ABC’s Subcontracting Plan per Schedule “A” Article 13.1-13.6 for Contract No.

6600042949

1. Introduction

The subcontractors plan outlines the relationship between main contractor and its
subcontractors. It assures the production of quality deliverables from each of its
subcontractors and assures the development of long term business relationships between
the companies. Here Subcontractor means any person, or entity to whom execution of any
part of the work is contracted directly or indirectly by contractor.

2. Subcontracting Requirements:

Subcontracts for the performance of any portion of the work shall be procured only after
ABC will submit the Pre-Qualification and other related documents to Saudi Aramco to
receive the official approval from Saudi Aramco that ABC may subcontract that portion of
the work.

After the approval, ABC submit notification to Saudi Aramco containing the following
information as required;

Either subcontractor is a sole proprietorship or partnership. Proprietor’s name and location

of its headquarter. Name and address of subcontractor’s principle bank and a copy of the
subcontractor’s latest audited financial statement (if required).

ABC will also ensure that all subcontractor’s abide by and observe the Saudi Aramco
regulations. In case of subcontractor’s failure to accomplish the assigned job, ABC will either
accomplish the work by itself of may propose any other subcontractor subject to Saudi
Aramco approval.

Moreover, all subcontracts entered into by ABC, shall contain a provision of Terms &
Conditions of Saudi Aramco requirements as per project document; incorporate all
contractual related requirements.

ABC will be fully responsible to Saudi Aramco for the acts and omissions of all its
subcontracts.

ABC will manage, schedule and coordinate the work of all its subcontractors to meet the
schedules mechanical completion dates and critical milestones.

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 ABC will ensure that all subcontractors shall comply at all times with applicable Saudi Arab
Government Safety, Health & Environment (SH & E) regulations and Saudi Aramco SH & E
Requirements.

3. Subcontracting Procedure:

ABC apply the following procedure to nominate and award contracts to potential
Subcontractor’s.

 ABC will submit list of subcontractors to SAPMT for approval

 Define and state the scope of works which shall be subcontracted in accordance with
the project requirements and the Subcontract / Procurement Plan.
 Prepare, issue and send Assessment Questionnaire to Subcontractors with a complete
package of the relevant RFP (Request for Proposal) such as: scope of Work, Contract
conditions, BOQ, Drawings, Specs, Logistic Plan and Safety Plan etc.
 Follow up & receive the Assessment Questionnaire.
 Obtain commercial Assessment with corresponding rates and comparison sheets.
 Obtain the evaluation report from our HSE department with Ratings (only for
Subcontractor’s).
 Obtain Quality / Assessment report and review our QA / QC Department feedback.
 Obtain Technical Assessment with details and technical alternatives (if any) form
concerned departments.
 ABC will include in every subcontract a provision prohibiting any further subcontracting
of any portion of the work by the subcontractor unless the subcontractor first obtains
the approval of the ABC. Contractor will not give such approval without first obtaining
the approval from Saudi Aramco.
 ABC will submit notification to Saudi Aramco by including the Evidence acceptable to
Saudi Aramco of the proposed subcontractor’s technical and safety qualifications to
perform the Work to be subcontracted by providing the all terms of six (6) months or
longer.

4. Fair Dealing

In all Subcontracting / Procurement processes the integrity and fair dealing is established by
adopting the following:

 Bid documentation stating the evaluation criteria

 All Subcontractors are notified of the evaluation results promptly.
All companies who express an interest and were invited to submit a proposal, receive
precise
and equal information.
 Accurate records of inquiries or requests for clarification are maintained.

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 Information provided by Subcontractor’s as part of the procurement process is treated
as confidential contents, sensitively and restricted only to those persons directly
involved in the procurement process.

The procurement process respects the principle of fair treatment of all Subcontractors
.
5. Tendering / Contract Proposal Review Procedure:
 Review both parties obligations and liabilities and their cost and time impacts and legal /
contractual liability according to the amount of risk ownership.
 Conditions regarding the unforeseeable physical and non-physical conditions and
related liabilities and consequences.
 Review payment terms (including advance payment, billing, approval and release
periods) and their impact on the cash flow and suitability and / or the necessary
contingency plans needed to adapt to such conditions by ABC.
 Evaluate and review the commencement date, delays and L / D conditions and
vulnerability (probability of schedule slippage) and the necessary measures and pricing
contingencies.
 Check the completeness of the tender package (specifications, preliminary time
schedule, tender drawing and scope of work)’
 Do the best to limit uncertainties and insufficient data related to pricing process by
keeping open channels and rapid communications with the Client.

6. Subcontractor’s Status Reporting and System:

ABC technique to observe and effectively monitor Subcontractors can be summarized as
follows:

 Communicate with the Project Manager, Planning Manager & Procurement Manager to
check the performance, status and any updates concerning the Subcontractor works
and his adherence to the Project’s Time Schedule.
 Keep observing and tracking Subcontractor performance throughout the subcontract
agreement duration.
 Follow up and deal with all Subcontractors correspondence, notices, variation orders
and claims.
 Initiate Performance Evaluation (at the end engagement as minimum)
 Receive feedback & comments from the PM, key persons and different department’s
heads.
 Forward a complete evaluation report to the Procurement Department in the Head
Office for grading purposes. Our Monitoring and Evaluation approach for
subcontractor’s constitutes following up and observing his performance and ability to

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 fulfill his obligations required by the terms and conditions of the subcontract Agreement
/ P. O. (Purchase Order)

7. Subcontractor Monitoring & Control System:

ABC will implement a monitoring and control system such as;

 Issuance of Identification Cards

 Issuance of Vehicle and Equipment Sticker for access to the construction work site.

 Timely delivery of the assigned design work and adherence to the design schedule.
 Soundness of technical solutions and exercise of engineering judgement.
 All of Subcontractor’s equipment will be inspected and certified prior to use to ensure
that it is suitable for the safe and efficient performance of the WORK. This inspection
and certification will be carried out by recognized and accredited third party certification
and inspection agencies.
 Weekly summary report of personnel and equipment at any Work Site will be submitted
as part of the monthly progress report.
 Willingness to consider and develop design alternatives suggested by ABC or the client.
 Quality of the produced deliverables and services.
 Capability of personnel assigned to the project.
 Number of personnel assigned to the project.
 Sufficiency of his equipment and tools used for implementing the subcontract works.
 Response to requests for information, correction, changes or updates.
 Adherence to the consultant’s QA / QC system and policy.
 Adherence to HSE requirements and the Client / Project Consultant instructions.
 Adherence to the agreed budget.
 ABC will follow, and ensure that Subcontractor and Vendors follow, the most stringent
interpretation of the Job Specification, Applicable Standard and Project Drawing that
apply to the work.
 Overall cooperation and compatibility with ABC and other subcontractor’s on site.

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 Subcontractor’s Name, Percentage
Commercial Registration Subcontractor’ of Total
S/ N Works to be Subcontracted Remarks:
(C. R.) Number, Address & s award date Contract
Telephone Number Amount

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 Earth Works ( Site
leveling ,Excavation and To be revised and updated
1 backfill) 2.00% regularly
To be revised and updated
2 Hard & Landscaping Works 5.69% regularly
To be revised and updated
3 Block works 0.50% regularly
To be revised and updated
4 Plaster works 2.27% regularly
To be revised and updated
5 Tiles work 1.00% regularly
To be revised and updated
6 Painting works 0.50% regularly
To be revised and updated
7 Vinyl tiles works 0.50% regularly
To be revised and updated
8 Wooden flooring & panels 1.00% regularly
Roofing system waterproof To be revised and updated
9 Works 1.08% regularly
To be revised and updated
10 Aluminum Works 3.85% regularly
Interior & Exterior Doors To be revised and updated
11 Works 0.96% regularly
To be revised and updated
12 Stainless steel Handrails works 0.73% regularly
To be revised and updated
13 Acoustic Ceiling Works 0.96% regularly
To be revised and updated
14 HVAC works 2.31% regularly
To be revised and updated
15 Firefighting works 0.96% regularly
To be revised and updated
16 Fire Alarm 0.58% regularly
To be revised and updated
17 Elevators 2.31% regularly
To be revised and updated
18 Parking Sheds 0.77% regularly
To be revised and updated
19 Irrigation System 1.35% regularly
To be revised and updated
20 Tensile structural sheds 1.92% regularly
To be revised and updated
21 Laboratories 1.92% regularly
To be revised and updated
22 Asphalt works 1.15% regularly
To be revised and updated
23 Pre-engineered building works 3.85% regularly
38.15%

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