PRI-COR-PJM-001-E-R01 (General)

Doc. no.
PRI-COR-PJM-001-E
PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
AND METHODS OF MEASUREMENT Page 1 of 23
PRICE LIST
GENERAL PREAMBLE
ON PRICES
AND METHODS OF MEASUREMENT
PRI-COR-PJM-001-E
Rev. 01
Dec 2014
This document is the property of Saipem SpA. All rights reserved.

Doc. no. PRI-COR-PJM-001-E
PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
TABLE OF CONTENTS
1 INTRODUCTION 3
2 GENERAL PROVISIONS 7
3 ACCOUNTING OR EVALUATION FOR WORK DONE 10
4 STRUCTURE OF THE PRICES 16
5 LIST OF GENERAL DIRECT COSTS 16
6 LIST OF INDIRECT COSTS 19

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1 INTRODUCTION
1.1 SCOPE
The purpose of this document is to indicate the structure of the PRICES and to give the principle of the
evaluation and measurement methods of the WORK done by the SUB-CONTRACTOR.
In case of incongruence of information among the technical documents the following order of
precedence shall govern:
a) The Scope of Work,
b) Special Conditions of SITE,
c) Special Preamble on Prices (if any);
d) this document (General preamble on prices and on methods of measurement),
e) the “Preambles on Prices and on methods of measurement” of each single discipline,
All the terms and conditions specified in this document is applicable for all the BOQ Unit Price items
1.2 DEFINITION
The following terms and expressions used in this document shall have the following meaning:
1.2.1 General
The words and expressions used herein shall have the meaning and the interpretation as assigned to
them in WORK CONTRACT, in the Addendum to the WORK CONTRACT if part of the WORK
CONTRACT DOCUMENT, and in the General Terms and Conditions attached to the WORK
CONTRACT.
1.2.2 Specific
BILL ITEM means the description of an element of the PRICE LIST and/or
BOQ, without the relevant amount.
BOQ or “Bill of Quantities” means the document containing the work quantities associated
with the BILL ITEMS and submitted during the bidding phase-It
is not part of the WORK CONTRACT DOCUMENTS.
CLIENT means the legal entity or entities for the benefit of which the
PROJECT is performed.
COMPONENT or TAG- means a minimal single physical object in the WORK which has
ITEM a unique identification.
TAG-ITEM could be composed by one or more parts and/or
items to be procured, constructed or installed and/or is subject
to a control cycle, as defined in the “Preambles on Prices and
on methods of measurement” for each single BILL ITEM and
for each use.
CONTRACTOR means the person so named in the WORK CONTRACT.

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CONTRACTOR means all the storage areas, lay-down areas, working areas,
WAREHOUSES parking, warehouses, docks, berths, moorings, workshops
used by CONTRACTOR for the performance of the WORK.
DAYWORKS PRICE means a PRICE expressed by time related units of

measurement (such as hour, day etc.).
DEMOBILISATION means those activities required to demobilise all SUB-

CONTRACTOR’s labour, materials, equipment and TCF from
site and restore the SUB-CONTRACTOR FACILITIES to the
condition existing prior to MOBILISATION or to a condition
previously agreed with the CONTRACTOR.
ERECTION means any WORK performed on SITE PLANT with the

exception of the FABRICATION.
FABRICATION
means any WORK necessary for preparing the elements to
compose, assembly and make ready the RESULT OF THE
WORK for ERECTION. Fabrication is distinguished into “real
fabrication” (i.e. performed outside the SITE PLANT) and
“fictitious fabrication” (i.e. carried out at ground level or final
position on SITE PLANT).
FREE ISSUED ITEMS means all lay-down areas, lay-down areas, working areas,
DELIVERY PLACE parking, warehouses, docks, berths, moorings, workshops
where the CONTRACTOR made available to SUB-
CONTRACTOR the FREE ISSUED ITEMS
HSE Health Safety and Environment
LUMP SUM PRICE means a PRICE expressed as a lump sum.
INSTALLATION means any work performed (both ERECTION and

FABRICATION)
MILESTONE means the document which confirms that SUB-CONTRACTOR

ACHIEVEMENT REPORT has achieved a contractual milestone, the relevant
achievement date, the relevant applicable PRICE and the
amount invoicable by SUB-CONTRACTOR in respect of the
provisions stated in the WORK CONTRACT and in the General
Terms and Conditions attached to the WORK CONTRACT.
MOBILISATION means those activities required to establish the SUB-

CONTRACTOR on SITE ready to commence ERECTION
and/or FABRICATION activities.
PERMANENT RESULT OF means the portion of the RESULT OF THE WORK required for
THE WORK and to be incorporated in the CLIENT’s permanent facilities
which are to be designed, procured, constructed, revamped or
refurbished, commissioned and tested as part of the
PROJECT;
PRICE or PRICES means any single price in the PRICE LIST.

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PRICE LIST means all the contractual bill items under the WORK
CONTRACT.
SCRAPS means the portion of the FREE ISSUED ITEMS which has
been not transformed into the RESULT OF THE WORK and
that at sole discretion of the CONTRACTOR are considered
unrecoverable;
SITE means all the locations or areas where the WORK is

performed.
SITE PLANT means those areas available for use of the CONTRACTOR,
where the PERMANENT RESULT OF THE WORK is to be
located.
SITE PLANT ASSEMBLY means the portion of ERECTION performed in the SITE PLANT
SUB-CONTRACTOR FACILITIES
SITE PLANT means the SUB-CONTRACTOR FACILITIES located in the

SUB-CONTRACTOR SITE PLANT
FACILITIES
SUB-CONTRACTOR means the person appointed by CONTRACTOR to perform the

WORK, and so named in the WORK CONTRACT.
SUB-CONTRACTOR means all buildings and structures, including warehouses, lay-

FACILITIES down areas, working areas, parking, offices, docks, berths,
moorings, camps, garages, workshops, batching plants,
permanent or temporary, used by SUB-CONTRACTOR in the
performance of the WORK. It does include also the buildings
and structures, including warehouses, areas, offices of SUB-
CONTRACTOR Low-tier Subcontractor and/or Vendors.
SUPPLIED GOODS means all materials, supplies, vessels, machinery, equipment,

tools, buildings and structures, including warehouses, offices,
docks, berths, moorings, camps, garages, workshops,
scaffolding, temporary work and all other items to be supplied
by SUB-CONTRACTOR under the WORK CONTRACT and to
be incorporated into or forming part of the RESULT OF THE
WORK.
TEMPORARY FACILITIES means all materials, supplies, vessels, machinery, equipment,

or TCF tools, buildings and structures, including warehouses, lay-down
areas, working areas, parking, offices, docks, berths, moorings,
camps, garages, workshops, scaffolding, temporary work and
all other items to be supplied or used by SUB-CONTRACTOR
in the performance of the WORK, but not incorporated into or
forming part of the RESULT OF THE WORK.
UNIT PRICE means a PRICE expressed by units of measurement such as

m, m2, m3, kg, number, lot, etc. (but not as time related units of
measurement).
EQUIPMENT VENDOR / Company, different from any low-tier supplier of

MANIFACTURER SUBCONTRACTOR, that manufactures and/or supplies

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equipment, materials and technical documentation and

provides specialist assistance where requested to
CONTRACTOR
WORK means all activities, duties, obligations (including the provision

of any documentation), RESULTS, works to be executed and
all works to be performed by SUB-CONTRACTOR, including
the RESULT OF THE WORK, in accordance with the WORK
CONTRACT DOCUMENTS.
WORK CONTRACT means the written agreement between CONTRACTOR and

SUB-CONTRACTOR for the provision of the WORK, including
any written amendment thereof.
WORK CONTRACT means all the documents related to the WORK CONTRACT,
DOCUMENTS including the WORK CONTRACT itself, the General Terms and
Conditions for WORK CONTRACT DOCUMENTS, and any
other document referred to in the WORK CONTRACT.
WORK PROGRESS means the document which details the quantity of WORK
REPORT performed by SUB-CONTRACTOR in a certain time, the
relevant applicable PRICES and the amount invoicable by
SUB-CONTRACTOR in respect of the provisions stated in the
WORK CONTRACT and in the General Terms and Conditions
attached to the WORK CONTRACT.

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2 GENERAL PROVISIONS
2.1. The SUB-CONTRACTOR undertakes responsibility that he has read completely all the Preambles
and associated documents, and is familiar, satisfied, unconditionally agrees, and fully commits to
comply with all the terms and conditions contained therein.
2.2 Descriptions of related items of the PRICE LIST are intended only to identify the type of work and
they are not exhaustive of all the work to be carried out. For the full obligation of each item, the
SUB-CONTRACTOR shall refer to the WORK CONTRACT DOCUMENTS.
2.3 If a activity, which was not included in the scope of work, happens to be requested by
CONTRACTOR as new activity, the new price shall be agreed by CONTRACTOR and SUB-
CONTRACTOR on the bases of fair interpolation or extrapolation of existing prices and formalized
by a REVISION.
2.4 If not specified differently, PRICES apply in equal measure to any type of WORK, all throughout the
PROJECT phase, independent of its entity, sequence situation, difficulty, and work portions. All
PRICES shall apply equally to the initial and final quantities.
2.5 PRICES apply to the performance of WORK independently from its duration, schedule and of
programme continuity. The same PRICES apply to any workfront that SUB-CONTRACTOR may
have open. The CONTRACTOR will therefore accept no claims for re-mobilization of workforce
necessary to perform the WORK according to the WORK CONTRACT DOCUMENTS.
2.6 The PRICES shall be inclusive of all the charges and burdens necessary for the correct execution
of the WORK.
2.7 All PRICES shall apply equally whether the portion of the WORK is performed directly by SUB-
CONTRACTOR or, subject to authorization by CONTRACTOR, the portion of the WORK is
performed by a SUB-CONTRACTOR’s Low-tier subcontractor or vendor.
2.8 In case two or more different PRICES may compensate the same type of the WORK, even
available in the different discipline price list, but the same or similar scope of work, only the PRICE
more convenient for CONTRACTOR shall be used in compensating the SUB-CONTRACTOR for
all the applicable disciplines includes in the SCOPE of WORK.
2.9 The PRICE LIST shall be deemed as complete to fully compensate the WORK. Any activity,
explicitly or implicitly, directly or indirectly, included in the Scope of the Work, and for which no
description is present in the PRICE LIST, shall be deemed as already included in the PRICES.
2.10 “Preambles on Prices and on methods of measurement” of each single discipline are applicable
only in respect to the general provisions and the BILL ITEMS included in the PRICE LIST. In case
the “Preambles on Prices and on methods of measurement” of a single discipline foresees some
BILL ITEMS not included in the PRICE LIST and the relevant activity is included in the Scope of the
Work, such activity shall be deemed as already included in the PRICES.
2.11 The same PRICES are valid for WORK performed in both FABRICATION and ERECTION, except
the only cases in which the PRICE LIST explicitly provides for two different PRICES, one for
FABRICATION and one for ERECTION.
Wheras the PRICE LIST provides for two different PRICES, one for FABRICATION and one for
ERECTION, such PRICES are to be considered as alternative one to the other, except in the cases
expressly specified.

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2.12 The same PRICES for ERECTION are valid regardless if the WORK is performed as SITE PLANT
ASSEMBLY and/or in any other place in the SITE PLANT, including in/on any temporary or
definitive structures and/or buildings at any heights, except the only cases in which the PRICE LIST
explicitly provides for differently.
2.13 Descriptions of the BILL ITEM and all the previous related levels are included only to identify the
type of work and they are not exhaustive of all the work to be carried out, nor the descriptions are
sufficient to completely detail the materials and methods of work execution. For the full obligation of
each item and the related charges for each BILL ITEM, the SUB-CONTRACTOR shall refer to the
WORK CONTRACT DOCUMENTS. In absolute terms, the PRICES shall be fully inclusive of any
work that is necessary to complete the work described, including any contingency that is essential
for its completion.
2.14 SUB-CONTRACTOR shall perform all the controls required to verify the compatibility of the
CONTRACTOR TECHNICAL DOCUMENTS provided with SITE conditions. Before starting any
activities,the SUB-CONTRACTOR shall verify the dimensions and construction details indicated in
the CONTRACTOR TECHNICAL DOCUMENTS. It shall be SUBCONTRACTOR’s responsibility to
verify any discrepancies between any of the CONTRACTOR TECHNICAL DOCUMENTS provided.
2.15 Quantities included in the BOQ are only an estimation and they are not be considered as the final
quantities. Quantities contained in the BOQ shall not be used for the purpose of ordering any
material that SUB-CONTRACTOR is required to provide under the contract conditions.
2.16 General and/or local practices or conventions concerning the evaluation or the accounting of the
WORK in contrast with the provisions included in this documents, and/or in the “Preambles on
Prices and on methods of measurement” of each single discipline, shall not be accepted and/or
used, unless supported by the WORK CONTRACT DOCUMENTS.
2.17 Works rejected by CONTRACTOR for reasons ascribable to SUB-CONTRACTOR shall not be
computed and turned to account (not even provisionally), regardless of the progress reached at the
time of rejection. In the event that works already computed and turned to account, at any stage of
progress, are subsequently rejected by CONTRACTOR for reasons ascribable to SUB-
CONTRACTOR, all the related quantities already turned to account shall be cancelled, and the
accounting book shall give evidence thereof.
2.18 All WORK shall be measured on a net basis, without any allowance for waste.
2.19 All consumable materials and all installation accessories shall not be subject to measurement as
they are included in the PRICES.
2.20 No charges are to be excluded from the PRICES.
2.21 Whereas a PRICE in the PRICE LIST is split in a “labour” portion and a “material” portion, the
following applies:

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a) the “labour” portion shall include all direct costs associated to manpower and
equipment (as listed in the inclusions in the Work on Daywork basis) as well as ALL
Indirect costs (including the costs of the materials which are included in the
DAYWORKS PRICEs).
b) Overhead and Profit, home office costs and whichever general charge and cost, shall
be equally split in both the “labour” and “material” portions, and
c) in case CONTRACTOR ask SUB-CONTRACTOR to provide only “labour” or only
“material”, the sole relevant portion of the PRICE shall be applied.
d) the sum of the “labour” and “material” portion entirely covers the activity under the
relevant BILL ITEM.
2.22 All the precommissioning activities listed in the Sub Contract Matrix of Project Mechanical
Procedure are included within Sub Contractor’s scope of Work and the payment is to be
considered in remeasurable bases if specified with dedicated Bill Item or to be considered included
in the Item erection (i.e. Equipment, Instrument, Piping Line, etc…) if not specified with dedicated
Bill Item.
2.23 All PRICES relevant to material provided by Subcontractor shall include all and any surplus and or
wastage. For the FREE ISSUED ITEMS, the SUB-CONTRACTOR shall be held liable for all and
any wastage incurred. Beyond following percentages of surplus material are already considered in
the provided FREE ISSUED ITEMS:
- itemized material: no surplus

- pipes material: less or equal to 2%
- piping supports: less or equal to 2%
- Structure material: no surplus
- Cables and trays: less or equal to 2% of cutting length
- Painting materials: less or equal to 2%
- Insulation materials: less or equal to 2%
The percentage should be defined on a Project basis within the range identified in the previous list.
The SUB-CONTRACTOR shall undertake to work in such a way that wastage of FREE ISSUED
ITEMS is avoided as far as practical.
2.24 The SUB-CONTRACTOR undertakes not to remove from the SITE and/or hide SCRAPS and
FREE ISSUED ITEMS of any kind or quantity.
SUB-CONTRACTOR shall return the SCRAPS and the not used FREE ISSUED ITEMS as soon as
no longer required for the performance of the WORK, or upon request of CONTRACTOR or, in any
case, not later than any date that may have been previously agreed for the return thereof.
However, on completing the WORKS, SUB-CONTRACTOR shall return the SCRAPS and the not
used FREE ISSUED ITEMS within a period of fifteen (15) days starting from the date of the
“PROVISIONAL ACCEPTANCE CERTIFICATE“.
The SCRAPS and the not used FREE ISSUED ITEMS shall be made available to CONTRACTOR
at SITE PLANT, properly segregated, packaged and loaded on CONTRACTOR’s mean of
transportation. CONTRACTOR may ask to SUB-CONTRACTOR to dispose at SUB-
CONTRACTOR’s expenses the SCRAPS. properly segregated in the CONTRACTOR lay down
area. SUB-CONTRACTOR shall provide a final reconciliation of all FREE ISSUED ITEMS.

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3 ACCOUNTING OR EVALUATION FOR WORK DONE
3.1 GENERAL:
3.1.1 Accounting or evaluation for WORK done will be subject to the CONTRACTOR's requirements as to
grouping per job, plant and cost code.
The accounting or evaluation for WORK done shall be prepared by SUB CONTRACTOR for
CONTRACTOR review on CONTRACTOR’s specific forms and/or files.
SUB-CONTRACTOR may be asked to prepare the accounting or evaluation for WORK done using
standard files and/or in-house systems for the correct implementation of CONTRACTOR’s
accounting management systems. The relevant charges are included in the PRICES.
CONTRACTOR will define the TAG-ITEM level to be used for the accounting or evaluation for
WORK.
3.1.2 Measurements or evaluations shall be made during the WORK but these shall only be valid for the
determination of partial payments.
3.1.3 Final settlement shall in all cases depend upon the result of the final measurements which may also
modify those previously recorded during the progress of the WORK.
3.1.4 Unless the WORK CONTRACT does specify otherwise, the SUPPLIED GOODS shall be accounted or
evaluated only when erected and placed by the SUB-CONTRACTOR in their final position. The only
delivery of the SUPPLIED GOODS at the SITE PLANT and/or at SITE and/or their SITE PLANT
ASSEMBLY does not qualify for their inclusion in the WORK PROGRESS REPORT.
3.1.5 The WORK CONTRACT specifies whether the WORK PROGRESS REPORT or the MILESTONE
ACHIEVEMENT REPORT shall be used. In case nothing is therein stated, it will be issued only a
single WORK PROGRESS REPORT after the COMPLETION DATE.
3.1.6 It is understood that whereas at CONTRACTOR’s sole discretion a WORK, or portion thereof, can be
paid on a lump sum basis, such WORK shall not be paid on a unit prices basis and/or dayworks
basis and/or on a reimbursable "cost plus fee" basis. It is understood that whereas at
CONTRACTOR’s sole discretion a WORK, or portion thereof, can be paid on a unit prices basis,
such WORK shall not be paid on a dayworks basis and/or on a reimbursable "cost plus fee" basis.
It is understood that whereas at CONTRACTOR’s sole discretion a WORK, or portion thereof, can be
paid on a dayworks basis, such WORK shall not be paid on a reimbursable "cost plus fee" basis.
3.1.7 The WORK PROGRESS REPORT and/or the MILESTONE ACHIEVEMENT REPORT shall be
prepared by SUB-CONTRACTOR for CONTRACTOR’s review and approval. , and signed by both
the PARTIES.
The WORK PROGRESS REPORT and/or the MILESTONE ACHIEVEMENT REPORT shall be
submitted with adequate and auditable documentation of support (in example but not limited to: daily
reports, mark-up drawings, ground levels surveyors reports, scales reports, material purchase orders
and subscribed subcontracts).
In case the PARTIES cannot reach an agreement on the figures to be inserted in the WORK
PROGRESS REPORT within a reasonable time, the CONTRACTOR alone shall determine as
provisional a fair solution for both parties and issue the WORK PROGRESS REPORT.
3.2 WORK ON A UNIT PRICE BASIS:
3.2.1 A WORK, or portion thereof, is accounted on a unit price basis when the relevant PRICES are
expressed by units of measurement such as m, m2, m3, kg, number, lot, etc. For sake of clarity,
PRICES based on a time related unit of measure (such as hour, day etc.) are not deemed to be
accounted on unit prices but as dayworks.

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The accounting on a unit price basis shall be done periodically considering, for each BILL ITEM
present in the PRICE LIST, the actual quantities performed by SUB-CONTRACTOR in the time as
indicated in the WORK CONTRACT (usually each month): such quantities shall be computed
using, in order of priority:
o the CONTRACTOR TECHNICAL DOCUMENTS issued for construction as possibly
specified in the “Preambles on Prices and on methods of measurement” of each single
discipline, or
o the as-built drawings approved by CONTRACTOR, or
o the red marked up drawing approved by CONTRACTOR, or
o the quantities as determined in field by the Representatives, or their delegate, of both
the PARTIES.
Quantities present in the CONTRACTOR TECHNICAL DOCUMENTS but not actually performed
by SUB-CONTRACTOR, or performed by SUB-CONTRACTOR but not under the WORK
CONTRACT, cannot be inserted in the WORK PROGRESS REPORT.
3.2.2 The WORK performed on unit price basis will constitute a portion of the WORK PROGRESS
REPORT. Such portion is built multiplying the actual quantities performed by SUB-CONTRACTOR,
determined as per the above sub-clause, by the relevant PRICES.
3.2.3 Each WORK PROGRESS REPORT entirely supersed the previous one, including in the own
figures also the figures of the previous WORK PROGRESS REPORT, modified and/or integrated
as the case may be.
3.2.4 Should a given piece of WORK be in progress but not yet fully completed, accounting will be
partial: the UNIT PRICES will apply to the completed WORK only, whereas the WORK still to be
executed will be accounted for later in one or more successive phases. Partial accounting will be
made to the lowest estimate, since incomplete WORK is both of reduced value and limited use.
3.2.5 SUB-CONTRACTOR cannot split a single BILL ITEM of a UNIT PRICE into low-tier activities and
request to account such low-tier activities separately. CONTRACTOR, at its own sole discretion,
may proceed with such a split and account.
3.2.6 The measurement books and the registers shall be signed by the PARTIES’ representatives.
3.2.7 Each PRICE will remain valid however different the relevant actually performed quantity may be
(either increased or decreased quantity) from what was stated in the BOQ (if any).
3.3 LUMP SUM WORK
3.3.1 A WORK, or portion thereof, is accounted on a lump sum basis when the relevant PRICE is
expressed as a lump sum.
SUB-CONTRACTOR cannot claim any adjustment of the LUMP SUM PRICE on the basis of
possible measurement of the WORK, either partial or total, either performed by SUB-
CONTRACTOR or by CONTRACTOR, either used for the accounting of the WORK or not.
3.3.2 Accounting for lump sum shall be done as follows:

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a) If not differently ruled in the WORK CONTRACT, the WORK, or a portion thereof, on a
lump sum basis can be inserted in the WORK PROGRESS REPORT, or claimed as part of
the MILESTONE ACHIEVEMENT REPORT, only when CONTRACTOR certifies that such
activities has been wholly performed.
b) In the case the WORK CONTRACT defines that payments for the lump sum WORK are
based on WORK PROGRESS REPORTs, the valuation of WORK done will be based on
an estimate of the percentage of the WORK originally scheduled which has actually been
carried out. When not detailed in the WORK CONTRACT, the PARTIES’ Representatives
will agree before the COMMENCEMENT DATE the criteria for such evaluation; failing the
agreement between the PARTIES, the CONTRACTOR alone shall determine such criteria.
c) In the case the WORK CONTRACT defines that payments for the lump sum WORK are
based on achieved Milestones, on the day when in SUB-CONTRACTOR's opinion one of
the INVOICING MILESTONES has occurred, SUB-CONTRACTOR may formally request
to CONTRACTOR to approve the relevant Milestone Achievement Report. As soon as
possible and in any case within 30(thirty) days thereafter and provided that all the
conditions stated in the INVOICING MILESTONE have occurred as evidenced by both the
PARTIES, CONTRACTOR shall approve the Milestone Achievement Report or issue a
written notice specifying in reasonable detail any respect in which any of the conditions
stated in the INVOICING MILESTONE have not occurred. The foregoing procedure shall
be repeated, if necessary, until all conditions stated in the INVOICING MILESTONE
occurred and the relevant Milestone Achievement Report is approved.
3.4 WORK ON DAYWORK BASIS:
3.4.1 A WORK, or portion thereof, is accounted on a daywork basis when the relevant PRICES are
expressed by time related units of measurement (such as hour, day etc.).
3.4.2 The execution of WORK performed on day work basis shall be authorized in advance and in writing
by the CONTRACTOR’s Representative. The works and results arising out from the services
performed on day-work basis shall be considered integral part of the WORK.
3.4.3 Unless otherwise stated in the WORK CONTRACT, the personnel assigned to the WORK
performed on day work basis will be under the complete control of the SUB-CONTRACTOR and
shall be provided with all necessary tools & equipment, in full working order. Such personnel shall
remain under the control of the SUB-CONTRACTOR from disciplinary, organisational and technical
point of view. All necessary tools & equipment shall be managed by the SUB-CONTRACTOR.
3.4.4 For the part of the WORK performed on day work basis and satisfactorily performed, the SUB-
CONTRACTOR will submit to the CONTRACTOR a signed daily report, in duplicate, showing the
hours (or days, etc.) of WORK actually performed (normal and overtime), the names of the
workers, the times of utilization of the equipment, the identification of the equipment, the quantities
of material used and the WORK performed.
Such daily report shall be submitted by SUB-CONTRACTOR to CONTRACTOR no later than the
day after the performance of the related activities. In case SUB-CONTRACTOR fails to submit
such daily report within the above indicated time, SUB-CONTRACTOR loses any right to ba
compensed for such activity performed on day work basis.
CONTRACTOR shall check such daily reports, and either sign them or give notice to the SUB‐
CONTRACTOR that such daily reports are rejected, indicating also the reasons of the rejection.
3.4.5 The WORK performed on day work basis will constitute a portion of the WORK PROGRESS
REPORT. Such portion is built multiplying the hours (or days, etc.) of WORK actually performed,
determined as per above sub-clause, by the relevant PRICES.
3.4.6 Each Manpower Daywork PRICE includes, but is not limited to:

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a) Basic salaries, (basic wage, contingency allowance, seniority, condition money, piece work,
production bonus and further specially agreed rates, national insurance, etc.).
b) Payroll burdens (annual leave, national holidays and weekday holidays, bonuses, seniority,
training board levies, redundancy payments, severance payouts, insurances, absence due to
sickness or accident, absence for study purposes,).
c) Social and assistance charges (all contributions to pension fund, unemployment fund, etc.),
welfare benefits, costs related to unions.
d) Travelling time, costs and fares from domicile up/from to the SUB-CONTRACTOR
FACILITIES and back and among the SUB-CONTRACTOR FACILITIES, periodic leave
allowances. Travelling time, costs and fares local travelling costs from accommodation
up/from to the SUB-CONTRACTOR FACILITIES and back.
e) Supply of all suitable types and quantities of working clothing and Personal protective
equipment, including their maintenance and substitution.
f) Supply of all suitable types and quantities of equipment and/or tools, up to the value of one
thousand US Dollars for each single item equipment and/or tools, including their
maintenance, including the necessary supply of spare parts, fuel, oil, lubricants and other
consumables necessary to ensure work continuity. Supply and substitution of any non-
durable part of small tools.
g) Supply of consumables and minor construction supplies/erection accessories. Cost for
consumable material including, but not limited to: welding electrodes, welding rods, wire,
fluxes, compressed air, oxygen and other gases, graphitic oil for bolts, tie-rods and nuts,
temporary supporting materials and fastenings, temporary closure materials, protections and
cleaning products and similar;
h) Performance of works in accordance with HSE and Quality contractual procedures.
j) All necessary utilities (electrical power, compressed air, industrial water, etc.) except what
expressly at CONTRACTOR's charge in the WORK CONTRACT DOCUMENTS. Any
communication (phone, mobile, internet, satellite) costs.
k) All taxes.
l) contribution to SUB-CONTRACTOR's direct and indirect costs.
m) SUB-CONTRACTOR's OVERHEAD and Profit.
n) Refreshments (including hot beverages) during working hours, shelters, cabins, heating
devices, bathroom/toilets. Winterization costs.
o) Board and lodging.
p) Home office support, training long distance and local telephone calls;
q) All insurance premiums;
r) Timekeepers and time keeping facilities (time alleys, time clocks etc.) tool crib facilities and
attendants;
s) training, even beyond occupational health and safety minimum requirement, needed to
properly perform the WORK
t) Recruitment fee, medical certificates expenses, physical and drug screening, entry visa
expenses, personnel Selection Charges.
3.4.7 Each Equipment Daywork PRICE includes, but is not limited to:

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a) Charges for road tax, insurance, lubricants and consumables.

b) Fuel.
c) Maintenance and repairs (including those carried out by the operator or driver or SUB-
CONTRACTOR own fitter or SUB-CONTRACTOR’s plant repair and maintenance
organisation) and downtime.
d) Any tackle normally associated with the equipment (Ropes, pulley blocks, slings, hooks, etc.)
e) Standard lashing.
f) Insurance costs
g) Travelling time, costs and fares up/from to the SUB-CONTRACTOR FACILITIES and back
and among the SUB-CONTRACTOR FACILITIES. Travelling time, costs and fares local
travelling costs from shelters up/from to the SUB-CONTRACTOR FACILITIES and back.
Note: Assembly and disassembly and warm-up of equipment is to be considered as normal
working time of the equipment.
h) All necessary utilities (electrical power, compressed air, industrial water, etc.) except what
expressly at CONTRACTOR's charge in the WORK CONTRACT DOCUMENTS. Any
communication (phone, mobile, internet, satellite) costs.
i) All taxes.
j) contribution to SUB-CONTRACTOR's direct and indirect costs.
k) SUB-CONTRACTOR's OVERHEAD and Profit.
l) shelters, cabins, heating devices.
Unless expressly indicated in the PRICE LIST, the Equipment Daywork PRICES don't include the
operator.
3.4.8 Each PRICE will remain valid however different the relevant actually performed quantity may be
(either increased or decreased quantity) from what was stated in the BOQ (if any).

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
3.5 SUPPLIED GOODS ON REIMBURSABLE "COST PLUS FEE" BASIS
3.5.1 The SUPPLIED GOODS , or portion thereof, may be accounted on reimbursable "cost plus fee"
basis when the following three conditions occur:
a) no PRICE is present in the PRICE LIST for such WORK, and
b) it is not possible to determine a New Price through the provisons included in the WORK
CONTRACT DOCUMENTS concerning the CHANGES, and
c) the CONTRACTOR authorizes in advance and in writing to proceed in such a way.
3.5.2 For the part of the WORK to be accounted on reimbursable "cost plus fee" basis, the SUB-
CONTRACTOR will submit to the CONTRACTOR an auditable and documented support, to the
satisfaction of CONTRACTOR, such as the invoice of his Low-tier vendor, in which the price and
the quantities which shall be the same of the WORK be accounted on reimbursable "cost plus fee"
basis.
CONTRACTOR keeps the rights to request to SUB-CONTRACTOR three valid and comparable
quotations by low-tier vendors and to audit the SUB-CONTRACTOR process of procurement.
Such auditable and documented support shall be submitted by SUB-CONTRACTOR to
CONTRACTOR no later than one month after the performance of the related activities. In case
SUB-CONTRACTOR fails to submit such report within the above indicated time, SUB-
CONTRACTOR loses any right to be compensated for such activity performed on “cost plus fee”
basis.
CONTRACTOR shall check such auditable and documented support, and either sign them or give
notice to the SUB‐CONTRACTOR that such auditable and documentated support is rejected,
indicating also the reasons of the rejection.
3.5.3 The WORK be accounted on reimbursable "cost plus fee" basis will constitute a portion of the
WORK PROGRESS REPORT. Such portion is built multiplying:
a) the quantites WORK actually performed, determined as if it were on a unit price basis, by
b) the relevant price which results from auditable and documentated support as per above sub-
clause, and by
c) a mark-up stated in the WORK CONTRACT DOCUMENTS. Whereas nowhere in the WORK
CONTRACT DOCUMENTS is determined such mark-up, it shall be considered to be 7%
(seven parcent) of the relevant auditable and documented price.
3.5.4 The mark-up indicated in the above sub-clause is applied only on the direct costs the SUB-
CONTRACTOR has sustained to perform the portion of WORK to be accounted on reimbursable
"cost plus fee" basis and includes i) the relevant portion of indirect cost, plus ii) all the charges
included in the PRICES under the WORK CONTRACT DOCUMENTS , plus iii) SUB-
CONTRACTOR’s profit and overhead and home office costs.
3.6 WORK ON A TIME AND MATERIAL BASIS:
3.6.1 A WORK, or portion thereof, is accounted on a time and material basis when the relevant
manpower and equipment is accounted on a daywork basis and the relevant SUPPLIED GOODS
is accounted on a reimbursable "cost plus fee" basis.

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
4 STRUCTURE OF THE PRICES
4.1 GENERAL
4.1.1 The compensation due to SUB-CONTRACTOR under the WORK CONTRACT is composed by
three portions:
i. Direct Costs
ii. Indirect Costs
iii. SUB-CONTRACTOR’s Overhead and Profit
4.1.2 The above three portions represent the full and complete compensation of SUB-CONTRACTOR’s
performance of the WORK and of all SUB-CONTRACTOR’s obligations under the WORK
CONTRACT DOCUMENTS.
4.1.2.1 DIRECT COSTS
All Direct Costs shall be deemed as included in each single PRICE.
4.1.2.2 INDIRECT COSTS

All Indirect Costs shall be deemed as included in each single PRICE, exept for the Indirect Costs
for which the PRICE LIST explicitly provides dedicated PRICES.
4.1.2.3 SUB-CONTRACTOR’S OVERHEAD AND PROFIT
 The SUB-CONTRACTOR’s Overhead and Profit, as well as home office costs, shall be
deemed as included in each single PRICE.
 Overhead means the expenses of operating the business at Head and/or Branch Offices,
including also, but not limited to, all statutory charges, general amministration costs,
commercial costs, financial charges, all taxes, all insurances, advertising, legal fees, labor
burden, communications, etc..
 Overhead includes also the costs and charges for SUB-CONTRACTOR to obtain all
licenses, authorizations, registrations, certificates and/or sponsorship and the like necessary
to carry out business in the countries where the SITE are located; SUB-CONTRACTOR shall
provide CONTRACTOR, at his request, with copies of such licenses, authorizations
registrations, certificates, etc.
5 LIST OF GENERAL DIRECT COSTS
All the charges indicated in this section “LIST OF GENERAL DIRECT COSTS” are included in each
single PRICES.

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GENERAL PREAMBLE
ON PRICES
5.1 THE SUB-CONTRACTOR SHALL PERFORM ALL THE CONTROLS REQUIRED TO VERIFY THE COMPATIBILITY OF
THE CONTRACTOR TECHNICAL DOCUMENTS PROVIDED WITH SITE PLANT CONDITIONS. PRIOR TO
ERECTION THE SUB-CONTRACTOR SHALL VERIFY THE DIMENSIONS AND CONSTRUCTION DETAILS INDICATED
IN CONTRACTOR TECHNICAL DOCUMENTS.
5.2 IF THE SUB-CONTRACTOR IS RESPONSIBLE FOR A MULTI-DISCIPLINE WORK CONTRACT, IT SHALL BE
THE SUB-CONTRACTOR'S BURDEN TO VERIFY ANY DISCREPANCIES BETWEEN THE DRAWINGS AND
TECHNICAL DOCUMENTATION OF EACH DISCIPLINE.
5.3 MANPOWER FOR ALL TYPES OF ACTIVITIES, INCLUDING ALSO FOREMEN.
5.4 SALARIES, WAGES, BONUSES, ALLOWANCES, FRINGE BENEFITS, INCENTIVE PAYMENTS, OVERTIME AND SHIFT
PAYMENTS, PAID HOLIDAYS, SICK LEAVES, INSURANCES, TREATMENT OF INJURE, ASSIGNMENTS, PENSIONS,
VISAS, HEALTH CONTROL PLAN AND CERTIFICATES, VACCINATIONS, TAXES AND ALL OTHER EXPENSES THAT THE
SUB-CONTRACTOR MAY HAVE FOR THE OWN MANPOWER.
5.5 TRAVELLING TIME AND FARES OF THE OWN MANPOWER UP/FROM TO THE SUB-CONTRACTOR FACILITIES
AND BACK AND AMONG THE SUB-CONTRACTOR FACILITIES.
5.6 LOCAL TRAVELLING COSTS OF THE OWN MANPOWER FROM ACCOMODATION UP/FROM TO THE SITE PLANT
SUB-CONTRACTOR FACILITIES AND BACK.
5.7 SUPPLY OF ALL SUITABLE TYPES AND QUANTITIES OF WORKING CLOTHING AND PERSONAL PROTECTIVE
EQUIPMENT, INCLUDING THEIR MAINTENANCE AND SUBSTITUTION.
5.8 SUPPLY OF ALL SUITABLE TYPES AND QUANTITIES OF EQUIPMENT AND/OR TOOLS, UP TO THE VALUE OF ONE
THOUSAND US DOLLARS FOR EACH SINGLE ITEM EQUIPMENT AND/OR TOOLS, INCLUDING THEIR MAINTENANCE
AND THE SUPPLY OF SPARE PARTS, FUEL, OIL, LUBRICANTS AND OTHER CONSUMABLES NECESSARY TO ENSURE
WORK CONTINUITY. SUPPLY AND SUBSTITUTION OF ANY NON DURABLE PART OF SMALL TOOLS, INCLUDING
SUPPLY OF BREATHING APPARATUS, ESCAPE MASKS, ESCAPE HOODS, TOXIC CLIPS, ETC.
5.9 SUPPLY OF ALL SUITABLE TYPES AND QUANTITIES OF EQUIPMENT AND/OR TOOLS, OVER THE VALUE OF ONE
THOUSAND US DOLLARS FOR EACH SINGLE ITEM EQUIPMENT AND/OR TOOLS, INCLUDING THEIR MAINTENANCE
AND THE SUPPLY OF SPARE PARTS, FUEL, OIL, LUBRICANTS AND OTHER CONSUMABLES NECESSARY TO ENSURE
WORK CONTINUITY. SUPPLY AND SUBSTITUTION OF ANY NON DURABLE PART OF SMALL TOOLS.
5.10 COST FOR CONSUMABLE MATERIAL INCLUDING, BUT NOT LIMITED TO: WELDING ELECTRODES, WELDING RODS,
WIRE, FLUXES, COMPRESSED AIR, OXYGEN AND OTHER GASES, GRAPHITIC OIL FOR BOLTS, TIE-RODS AND
NUTS, TEMPORARY SUPPORTING MATERIALS AND FASTENINGS, TEMPORARY CLOSURE MATERIALS,
PROTECTIONS AND CLEANING PRODUCTS AND SIMILAR;
5.11 LIFT OPERATIONS AND RELATED ACCESSORIES REQUIRED FOR ERECTION.
5.12 COSTS SUSTAINED FOR PACKING, TRANSPORTATION UP/FROM TO THE SUB-CONTRACTOR FACILITIES
AND AMONG THE SUB-CONTRACTOR FACILITIES, INSURANCES, HANDLING AND WASTAGE FOR
SUPPLIED GOODS.
5.13 COSTS SUSTAINED FOR PACKING, TRANSPORTATION FROM TO THE CONTRACTOR WAREHOUSES TO THE
SUB-CONTRACTOR FACILITIES AND AMONG THE SUB-CONTRACTOR FACILITIES, INSURANCES,
HANDLING AND WASTAGE AND/OR RETURN TO CONTRACTOR WAREHOUSES FOR FREE ISSUED
ITEMS.
5.14 MATERIAL MANAGEMENT: COLLECTION, CHECK, HANDLING, REMOVAL OF PACKING MATERIAL,
LOADING/UNLOADING, DISTRIBUTION TO THE WORK AREA AND ANY OTHER INTERMEDIATE HANDLING,
RECOVERY OF MATERIALS LOST OR DAMAGED BY THE SUB-CONTRACTOR, DISPOSAL OF WASTE MATERIALS,
INCLUDING THE HAZARDOUS MATERIALS, IN FULL COMPLIANCE WITH LOCAL LAWS, PROJECT PROCEDURES
AND WORK CONTRACT DOCUMENTS. THE SUB-CONTRACTOR SHALL ASSIGN QUALIFIED AND
COMPETENT PERSONNEL TO MANAGE MATERIAL SUPPLIED BY CONTRACTOR. SUB-CONTRACTOR SHALL
NAME A PERSON RESPONSIBLE FOR THE MATERIAL MANAGEMENT THROUGHOUT THE WORK EXECUTION. THE
CONTRACTOR MAY MAKE ERECTION MATERIAL AVAILABLE IN PARTIAL DELIVERIES, THUS THE SUB-
CONTRACTOR SHALL EVALUATE THE ERECTION SEQUENCE ON THE BASIS OF THESE DELIVERIES. THE SUB-
CONTRACTOR’S ACCEPTANCE OF THE MATERIAL DELIVERED BY THE CONTRACTOR INCLUDES, BUT IT IS
NOT LIMITED TO: VERIFICATION OF THE CONDITION OF THE MATERIALS DELIVERED, INFORMING AND NOTIFYING
THE CONTRACTOR OF ANY NON CONFORMITIES IN ACCORDANCE WITH THE PROCEDURE FOR THE
MANAGEMENT AND CONTROL OF MATERIALS INCLUDED IN THE SUBCONTRACT.
5.15 SAFE EXECUTION OF WORKS IN ACCORDANCE WITH APPLICABLE NORMS AND PROJECT PROCEDURES.
5.16 SUPPLY OF UTILITIES, ELECTRICAL POWER, LIGHTING OF WORK AREAS INCLUDING FLOOD LIGHTING,
COMPRESSED AIR AND WATER SUPPLY TO SITE PLANT (IF NOT SPECIFIED OTHERWISE IN THE WORK
CONTRACT DOCUMENTS).

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GENERAL PREAMBLE
ON PRICES
5.17 EXECUTION OF ANY ACTIVITIES THAT GUARANTEES THE PREVENTION OF POLLUTION AND SAFEGUARDS THE
ENVIRONMENT.
5.18 SUPPLY AND ERECTION OF SCAFFOLDING AND SUPPLY OF EQUIPMENT IN ORDER TO ALLOW ACCESS TO WORK
AREAS, INCLUDING COSTS TO ALLOW ACCESS FOR OTHER PROJECT SUBCONTRACTORS OR THIRD PARTIES.
5.19 PREPARATION OF ANY SHOP DRAWING AND DETAILED ENGINEERING REQUIRED FOR THE PROPER EXECUTION
OF FABRICATION AND ERECTION OF THE WORK.
5.20 COST FOR SETTING-OUT, CALIBRATION, LEVELLING AND MARKING, INCLUDING COST FOR THE USE OF THE
INSTRUMENTS, EQUIPMENT AND MATERIALS (INCLUDING TOOLS AND CONSUMABLES) REQUIRED FOR
MEASUREMENTS AND OTHER OPERATIONS
5.21 VERIFICATION OF DIMENSIONS AND MEASUREMENTS STATED ON PROJECT DRAWINGS BEFORE STARTING
WORKS. THE SUB-CONTRACTOR SHALL REPORT AND NOTIFY ANY DISCREPANCY ARISING FROM THE
ANALYSIS OF THE TECHNICAL DOCUMENTATION.
5.22 ALLOW THE CONTRACTOR’S PERSONNEL ACCESS TO THE SUB-CONTRACTOR’S AND SUB-
CONTRACTOR’S LOW-TIER SUBCONTRACTORS AND SUPPLIER’S FACILITIES.
5.23 EXECUTION OF ALL PUNCH LIST ITEMS UP TO FINAL ACCEPTANCE BY THE CONTRACTOR AND THE CLIENT
INCLUDING BUT NOT LIMITED TO MAKING GOOD OR REWORKING OF ANY WORK NOT EXECUTED IN ACCORDANCE
WITH THE SUBCONTRACT SPECIFICATIONS.
5.24 EXECUTION OF WORK IN ACCORDANCE WITH ANY APPLICABLE FINAL CLIENT AND SPECIFIC SITE WORK PERMIT
PROCEDURES.
5.25 GUARANTEE, ENSURE AND CERTIFY CONTROLS AND ACCEPTANCES AS REQUIRED BY THE QUALITY CONTROL
PLAN.
5.26 QUALITY ASSURANCE AND CONTROL AND PROVISION OF ALL AS-BUILT AND/OR RED MARKED DRAWINGS,
CERTIFICATES, REPORTS, CHEMICAL ANALYSES AND MECHANICAL TEST CERTIFICATES AND ANY OTHER
DOCUMENTATION AS REQUIRED BY THE SUBCONTRACT.
5.27 TEST MATERIALS AND COMPLETED WORK IN ACCORDANCE WITH THE TERMS OF THE SUBCONTRACT INCLUDING
THE PROVISION OF ALL NECESSARY TESTING EQUIPMENT/MANPOWER AND SUBMISSION TO CONTRACTOR OF
TEST CERTIFICATES.
5.28 PROVIDE MANPOWER, EQUIPMENT, AND FACILITIES TO THE CONTRACTOR, AND IF REQUIRED, TO THE CLIENT
DURING INSPECTION ON SITE AND OFF-SITE.
5.29 PREPARE PROGRESS AND PLANNING REPORTS AND OTHER REPORTS AND CERTIFICATES REQUIRED BY THE
SUBCONTRACT. IT IS ALSO THE SUB-CONTRACTOR PERSONNEL’S DUTY TO ATTEND ALL THE MEETINGS
REQUIRED BY THE WORK CONTRACT.
5.30 INTERFACING AND WORKING IN CLOSE PROXIMITY WITH OTHER CONTRACTORS OF THE CLIENT WHO MAY BE
WORKING ON THE SITE CONCURRENT WITH THE CONTRACTOR.
5.31 PROVIDE, INSTALL AND DISMANTLE TEMPORARY AND/OR DUMMY MATERIALS (SUCH AS SPOOLS, SUPPORTS,
BLINDS, GASKETS, WIRES ETC.) WHICH ARE NECESSARY TO PERFORM THE RESULT OF THE WORK
ACCORDING TO THE DETAILED WORK TIME SCHEDULE.
5.32 CHARGES CAUSED BY DAMAGE TO EXISTING FACILITIES THAT ARE CAUSED BY OR ATTRIBUTABLE TO THE SUB-
CONTRACTOR’S ACTIONS OR OMISSIONS.
5.33 MAINTENANCE AND SAFEGUARDING OF WORK AREAS UNTIL WORK COMPLETION. THE SITE SHALL BE
PERIODICALLY CLEANED AS PER PROJECT HSE PROCEDURES. CLEARANCE OF WASTE MATERIAL AND ITS
TRANSPORTATION TO DISPOSAL AREAS AT ANY LOCATION IS ALSO INCLUDED.
5.34 CHARGES FOR PRESERVATION AND MAINTENANCE, AFTER INSTALLATION, OF EQUIPMENT AND MATERIAL IN
GOOD CONDITION AS PER MANUFACTURER INSTRUCTION AND PROJECT DOCUMENTATION
5.35 SEGREGATED WASTE TO BE COLLECTED AT A DESIGNATED AREA WITHIN THE BOUNDARIES OF THE SITE
PLANT.
5.36 STAND-BY PERIODS THAT ARE NOT ATTRIBUTABLE TO THE CONTRACTOR, ADVERSE WEATHER CONDITIONS,
INACTIVITY OF WORKFORCE AND/OR EQUIPMENT, STRIKES, TRAINING COURSES OF ANY KIND.
5.37 INCREASE IN THE NUMBER OF HUMAN RESOURCES AND/OR OVERTIME OR SHIFTS REQUIRED TO MEET PROJECT
MILESTONES.
5.38 DISRUPTIONS DUE TO OPERATE IN AN EXISTING PLANT, PARTIALLY IN OPERATION.
5.39 DISRUPTIONS DUE TO DUE TO THE PRESENCE AT SITE PLANT OF OTHER CLIENT’S AND/OR
CONTRACTOR’S SUBCONTRACTORS AND/OR VENDORS.
5.40 TIME AND COSTS DUE TO OBTAIN THE AUTHORIZATION FROM CONTRACTOR AND/OR CLIENT TO PERFORM
THE WORK IN THE SITE PLANT.
5.41 CONSTRUCTION COMPLETION ACTIVITIES AS PER SCOPE OF WORK DEFINITION

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
5.42 ANY DIRECT (I.E. SCAFFOLDING, ELECTRIC, ETC) COST ARE DEEMED TO BA ALREADY INCLUSIVE OF ALL SUB-
CONTRACTOR OVERALL DIRECT COST.
6 LIST OF INDIRECT COSTS
All the charges indicated in section “LIST OF INDIRECT COSTS” are included in each
single PRICE, exept when the PRICE LIST explicitaly provides for PRICES solely
dedicated to the relevant Indirect Costs.
6.1 MOBILISATION AND PREPARATION OF SUBCONTRACTOR’S AREA
6.1.1 MOBILISATION
MOBILISATION shall include but not be limited to the execution and/or provision of the following:
 SUB-CONTRACTOR’s MOBILISATION plan for the Work including direct and indirect
manpower and construction equipment;
 Inspection and take over of site;
 Contact with local authorities and other similar bodies to obtain all necessary permits and/or
authorisations;
 Delivery of all Temporary Construction Facilities, and MOBILISATION to the site of the
SUB-CONTRACTOR’s management, supervision, staff, manpower and construction
equipment;
 Preparation and submittal by the SUB-CONTRACTOR to the Contractor of the following
documents:
a) SUB-CONTRACTOR’s safety plan.
b) SUB-CONTRACTOR’s quality control plan.
c) A detailed construction programme including the deployment of manpower and
construction equipment.
d) Method statements detailing how the SUB-CONTRACTOR intends to execute the
works.
e) A detailed plan of the SUB-CONTRACTOR’s TCF.
The SUB-CONTRACTOR shall include the Contractor’s comments in a final submission for the
approval of the Contractor.
6.1.2 Preparation of SUB-CONTRACTOR’s area
Preparation of SUB-CONTRACTOR’s area is defined as those activities required to prepare the

SUB-CONTRACTOR’s designated area ready to accept the SUB-CONTRACTOR’s TCF.
Preparation of SUB-CONTRACTOR’s area shall include for but not be limited to the execution
and/or provision of the following:
 Grading, levelling and any other activities necessary to prepare the area;
 Preparation of temporary roads and access;
 Fencing;
 Temporary foundations, hard standings etc.
6.2 ESTABLISHMENT OF SUB-CONTRACTOR’S TEMPORARY CONSTRUCTION FACILITIES
Definition
Establishment of SUB-CONTRACTOR’s temporary construction facilities is defined as the

provision, loading, transport to site, unloading, installation and placing in operation of all the
facilities mobilised to site on a temporary basis for the duration and purpose of the contract and
shall include but not be limited to the following unless such facilities are supplied by the
Contractor and stated as such in the contract:

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
Utilities
 Water production, storage and distribution facilities;

 Electrical power production and distribution facilities;
 Sewers internal to SUB-CONTRACTOR’s area and effluent treatment plant facilities;
 Temporary lighting;
 Safety and security facilities;
 Telephone network and other communication facilities;
 Any other distribution network that may be required;
 Any other services of a temporary nature necessary for construction work.
Temporary Offices/Buildings
 Offices;
 Stores and warehouses;
 Toilet facilities;
 First aid and medical facilities (except when stated as provided by Client);
 Darkroom and supporting facilities;
 Site laboratory and facilities;
 Site messing facilities;
 Storage facilities for a radioactive source according to local and statutory regulations in
force at the time;
 All office equipment including word processors and computers;
 Fire Fighting Equipment to all Buildings and Areas as required by Codes and
Regulations;
 Any other buildings of a temporary nature necessary for construction work.
Temporary/Workshops/Fabrication Shops
 Workshops;
 Fabrication shops/areas;
 Calibration workshops;
 Maintenance workshop;
 Any other workshop or fabrication shop of a temporary nature necessary for
construction work.
Charges included in the PRICES
Charges for activities of Establishment of SUB-CONTRACTOR’s TCF shall include but

not be limited to the following:
 All costs associated with the purchase and/or provision of the Temporary Construction
Facilities;
 All costs associated with the installation of the Temporary Construction Facilities
including services and distribution networks;
 All costs associated with the connection of the services and distribution networks to
the incoming connection points;
 All costs associated with the connection of the offices, workshops, buildings,
fabrication shops and the like to the services and distribution networks;
 Depreciation and amortisation.

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
6.3 RUNNING COSTS FOR SUB-CONTRACTOR’S TEMPORARY CONSTRUCTION FACILITIES
Definition
Running Costs for the SUB-CONTRACTOR’s temporary construction facilities are defined as the
costs for utilities, materials and services, incurred in the operation of the said temporary
construction facilities for the duration of the WORK CONTRACT.
Running Costs for SUB-CONTRACTOR’s temporary construction facilities shall include but not be
limited to the following:
 All costs for the production and utilisation of electrical power;

 All costs for the production and utilisation of potable water;
 All costs for the production and utilisation of industrial water;
 All costs for the provision of fuel required for the operation;
 All costs for the operation of the telecommunications system;
 All costs for the maintenance and operation;
 All costs for the operation and maintenance of site transport for personnel including
fuel, lubricants, tyres, spare parts and the like;
 All costs for the operation of safety and medical facilities on the site;
 All costs for the operation of a security service for SUB-CONTRACTOR’s area;
 All office stationary and consumables for all temporary construction facilities;
 All costs for the maintenance and cleanliness of the temporary construction facilities
and construction area;
 All costs for material control and maintenance of records, including offloading,
temporary storage, any necessary handling of materials and weather protection of
materials.
6.4 SUB-CONTRACTOR’S MANAGEMENT, SUPERVISION AND STAFF
Definition
This section covers SUB-CONTRACTOR’s costs in maintaining management, supervisory,

administrative and ancillary staff, including supervisors, for the execution of the WORK, both at
SITE and at home office, whether direct or agency employees.
Charges for activity of SUB-CONTRACTOR’s management, supervision and staff shall include
but not be limited to the following:
 All costs for management and supervisory staff above the level of working foreman;
 All costs for administrative staff including secretaries, typists, telephone operators and
the like;
 All costs for ancillary staff including but not limited to drivers, cleaners, warehouse
staff, maintenance staff and the like with the exclusion of staff carrying out
maintenance of direct equipment;
 All costs for the effective control of SUB-CONTRACTOR’s own approved safety
programme;
 All costs to maintain and issue SUB-CONTRACTOR’s own schedules and productivity
programme;
 All costs for the effective control of quality through SUB-CONTRACTOR’s own quality
control plan;

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
 All costs for the storing, distribution and administration of technical documentation;
 All costs for the preparation of “as-built” drawings;
The lump sum prices shall include for any extended staff working time considered necessary to
execute the contract and for any ineffective time due to adverse weather conditions.
6.5 INDIRECT EQUIPMENT
Definition
Indirect equipment is defined as the equipment required for SUB-CONTRACTOR’s indirect

activities such as transportation, SUB-CONTRACTOR’s warehouse, medical equipment and the
like. The equipment shall include but not be limited to such items as:
 Transport for indirect and direct personnel;
 Fork lift and cranes for material handling within SUB-CONTRACTOR’s compound;
 Equipment for maintaining and cleaning the temporary construction facilities and
construction area.
Costs shall include but not be limited to the following:

 All operating costs such as fuel, lubricants and the like;
 All maintenance costs;
 Depreciation/amortisation.
6.6 ACCOMODATION
This section covers all costs associated with the MOBILISATION, setting up, administration,
maintenance and operation of accommodation, leisure facilities and other services for SUB-
CONTRACTOR’s required workforce and staff according to SUB-CONTRACTOR’s current
standards unless otherwise specified in CONTRACTOR’s standards or conditions and any local
laws and regulations.
Accomodation costs shall include but not be limited to the following:
6.6.1 All costs for accommodation, toilets, (including buildings and equipment of laundry, restaurant and
kitchens), which shall be provided, operated and maintained in a suitable manner and in strict
compliance with the regulations in force;
6.6.2 All costs for the provision, operation and maintenance of camp/accomodation security which is to
be in force 24 hours per day 7 days per week. Costs shall include for all labour, transport and
materials (fencing, lighting and the like);
6.6.3 All costs for the provision and maintenance of recreation areas and prayer places, complete with
facilities;
6.6.4 All costs for the provision, installation and maintenance of all necessary utilities including
telecommunications, water supply and distribution, electrical power supply and distribution, sewage
system and the like, except for those utilities specifically supplied by CONTRACTOR and described
as such in the WORK CONTRACT DOCUMENTS;
6.6.5 All costs for the maintenance of the whole accomodation area, including the necessary services for
garbage collection and disposal;
6.6.6 All camp/accomodation running costs.
6.7 CATERING
This section covers all costs associated with the MOBILISATION, setting up, administration,
maintenance and operation of catering, laundry and hotel services and other services for SUB-

PRICE LIST
Rev. 01 Date 15/12/14
GENERAL PREAMBLE
ON PRICES
CONTRACTOR’s required workforce and staff according to SUB-CONTRACTOR’s current

standards unless otherwise specified in CONTRACTOR’s standards or conditions and any local
laws aand regulations.
Catering costs shall include but not be limited to the following:
6.7.1 All costs for board, food/drinks supply and preparation, laundry of clothes, supply and laundry of
linen for hotel services which shall be provided, operated and maintained in a suitable manner
and in strict compliance with the regulations in force;
6.7.2 All costs for the cleanliness of the whole camp area, including the necessary services for garbage
collection and disposal;
6.7.3 All catering running costs.
6.8 MEDICAL CARE AND HOSPITALISATION
Medical care and hospitalisation shall include but not be limited to the following:
 All costs in connection with the provision of medical care and hospitalisation for the
SUB-CONTRACTOR’s personnel in cases of accident or illness.
6.9 DEMOBILISATION
DEMOBILISATION costs shall include but not be limited to the following:
6.9.1 All costs associated with a complete clean up of the SITE PLANT;
6.9.2 All costs associated with the return of any surplus of FREE ISSUED ITEMS to designed
CONTRACTOR WAREHOUSES;
6.9.3 All costs associated with the DEMOBILISATION of SUB-CONTRACTOR’s direct and indirect
labour and staff;
6.9.4 All costs associated with the removal from SITE of SUB-CONTRACTOR’s materials, and TCF;
6.9.5 All costs associated with the loading, transportation and disposal of any waste material at any
approved dumping area. Obtaining permission to utilise a dumping area is the responsibility of the
SUB-CONTRACTOR but the CONTRACTOR must be informed by the SUB-CONTRACTOR of
the proposed dumping area and must give his approval before the SUB-CONTRACTOR uses
same;
6.9.6 All costs associated with a complete clean up of SUB-CONTRACTOR FACILITIES and
reinstating the said area to its original condition prior to MOBILISATION or to a condition
previously agreed with the CONTRACTOR;
6.9.7 Any other costs related to DEMOBILIZATION.

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This document is the property of Saipem SpA. All rights reserved.

CONTRACTOR means the person so named in the WORK CONTRACT.

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DAYWORKS PRICE means a PRICE expressed by time related units of

DEMOBILISATION means those activities required to demobilise all SUB-

ERECTION means any WORK performed on SITE PLANT with the

HSE Health Safety and Environment

LUMP SUM PRICE means a PRICE expressed as a lump sum.

INSTALLATION means any work performed (both ERECTION and

MILESTONE means the document which confirms that SUB-CONTRACTOR

MOBILISATION means those activities required to establish the SUB-

PRICE or PRICES means any single price in the PRICE LIST.

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SITE means all the locations or areas where the WORK is

SITE PLANT means the SUB-CONTRACTOR FACILITIES located in the

SUB-CONTRACTOR means the person appointed by CONTRACTOR to perform the

SUB-CONTRACTOR means all buildings and structures, including warehouses, lay-

SUPPLIED GOODS means all materials, supplies, vessels, machinery, equipment,

TEMPORARY FACILITIES means all materials, supplies, vessels, machinery, equipment,

UNIT PRICE means a PRICE expressed by units of measurement such as

EQUIPMENT VENDOR / Company, different from any low-tier supplier of

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equipment, materials and technical documentation and

WORK means all activities, duties, obligations (including the provision

WORK CONTRACT means the written agreement between CONTRACTOR and

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This document is the property of Saipem SpA. All rights reserved.

2.20 No charges are to be excluded from the PRICES.

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- itemized material: no surplus

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3 ACCOUNTING OR EVALUATION FOR WORK DONE

3.2 WORK ON A UNIT PRICE BASIS:

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3.3 LUMP SUM WORK

3.3.2 Accounting for lump sum shall be done as follows:

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3.4 WORK ON DAYWORK BASIS:

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This document is the property of Saipem SpA. All rights reserved.

a) Charges for road tax, insurance, lubricants and consumables.

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3.5 SUPPLIED GOODS ON REIMBURSABLE "COST PLUS FEE" BASIS

3.6 WORK ON A TIME AND MATERIAL BASIS:

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4 STRUCTURE OF THE PRICES

4.1.2.1 DIRECT COSTS

All Direct Costs shall be deemed as included in each single PRICE.

4.1.2.2 INDIRECT COSTS

4.1.2.3 SUB-CONTRACTOR’S OVERHEAD AND PROFIT

5 LIST OF GENERAL DIRECT COSTS

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This document is the property of Saipem SpA. All rights reserved.

This document is the property of Saipem SpA. All rights reserved.

6 LIST OF INDIRECT COSTS

6.1 MOBILISATION AND PREPARATION OF SUBCONTRACTOR’S AREA

6.1.2 Preparation of SUB-CONTRACTOR’s area

Preparation of SUB-CONTRACTOR’s area is defined as those activities required to prepare the

6.2 ESTABLISHMENT OF SUB-CONTRACTOR’S TEMPORARY CONSTRUCTION FACILITIES

Establishment of SUB-CONTRACTOR’s temporary construction facilities is defined as the

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 Water production, storage and distribution facilities;