THE SUBCONTRACT AGREEMENT

BETWEEN

BOOM CONSTRUCTION CO.

AND

LICUAS TRADING & CONTRACTING

Sub-Contract Agreement No.

BCC-SCA-108-LICUAS-J2003-2023
Dated 03 August 2023

PROJECT:

Project ID: PA 2019 C 094 G – Construction of Flood

Prevention Scheme (FPS-Phase 3) For Doha North Area -
C850/1

SUBJECT:

Complete Supply & Installation of Pump Station Works

(Electromechanical + Civil)
……………………………..

1
 SHORT FORM STANDARD SUBCONTRACT

 This Agreement is made the day of 3rd August 2023, between: Boom Construction
Company (Contractor) and Licuas Trading & Contracting (SubContractor).

 The work described in Section 2 below shall be performed in accordance with the
Main Contract between Contractor and Ashghal (Owner) and in accordance with all
plans, specifications and other contract documents attached hereto, including those as
specified in the Main Contract for the project known as: Flood Prevention Scheme
(FPS-PHASE 3) for Doha North Areas – C850/1 Qatar.

 The Subcontract agreement shall be governed and construed in accordance with the
laws of the State of Qatar.

 Contractor agrees to pay Subcontractor for the strict performance of his work the sum
as as set out in Section 3 (Prices), subject to adjustments for changes in the work as
may be directed in writing by the Contractor.

IN WITNESS WHEREOF, the parties hereto have executed this Sub-Contract in two original
copies, copy being received by each Party and warrant to each other that the said work is
legally binding and valid under the laws of the State of Qatar.

For and behalf of For and behalf of

CONTRACTOR SUB-CONTRACTOR

AHMED NADDAF MANUEL SOLER

Managing Partner Executive Manager
Date: ____________________ Date: ____________________

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TABLE OF CONTENTS:

SECTION 1: DEFINITION OF TERMS

SECTION 2: SCOPE OF WORK
SECTION 3: PRICES
SECTION 4: PAYMENT
SECTION 5: TAX CARD
SECTION 6: BACKCHARGES
SECTION 7: ENTIRE AGREEMENT
SECTION 8: TIME & PROGRAMME TO BE FURNISHED
SECTION 9: PROCUREMENT OF MATERIALS
SECTION 10: DELAY
SECTION 11: LIQUIDATED DAMAGES FOR DELAY
SECTION 12: DEFAULT
SECTION 13: MEASUREMENT NATURE/ METHOD OF MEASUREMENT
SECTION 14: CHANGES IN WORK
SECTION 15: CLAIMS
SECTION 16: EQUIPMENT REMOVAL FROM SITE
SECTION 17: INSPECTION AND PROTECTION OF WORK
SECTION 18: SAFETY RULES AND REGULATIONS
SECTION 19: WELFARE OF EMPLOYEES
SECTION 20: INSURANCE
SECTION 21: WARRANTY / COLLATERAL WARRANTY
SECTION 22: INDEMNITIES
SECTION 23: PERMITS
SECTION 24: CONFIDENTIALITY
SECTION 25: FINAL ACCEPTANCE
SECTION 26: DISPUTES AND APPLICABLE LAW
SECTION 27: TERMINATION
SECTION 28: PENALTIES

APPENDIX 01: SUBCONTRACTOR COMMERCIAL OFFER

SECTION 1: DEFINITION OF TERMS

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“Certificate of Final Completion” means the Certificate issued to the Subcontractor after
the Completion of Maintenance Period and the rest of the Maintenance Period Extension
(when applicable) and as provided for in Section 25 of this Subcontract. This Certificate shall
be required for the release of the 2nd 50% retention money (Section 4.1).
“Client” means the Public Works Authority (Ashghal), also referred to as the owner in this
Agreement.
“Collateral Warranty” means a Pre-formed Collateral Warranty of this Agreement to be
delivered to the Contractor by the Subcontractor as part of its Preliminary Obligation. Prior
to any Obligations being commenced by the Subcontractor, the Subcontractor shall deliver to
the Contractor a Collateral Warranty duly signed and stamped by its Appointed
Representative.
“Effective date” means the commencement of this subcontract and shall be upon signing of
the Agreement by both Parties.
“Maintenance Period” means the 400 days period (and its extension, if any) after the
substantial completion certificate is released, where works are inspected and approved by the
Engineer and the remaining works are snags and minor punch lists which shall be rectified by
the Subcontractor within the said period.
“Substantial Completion Certificate” means the certificate to be obtained by the
Subcontractor to mark the commencement of the 400 days Maintenance/ Guarantee Period.
This Certificate shall be required for the release of the 1st 50% retention money (Section 4.1).
“Tender Documents” shall include all documents forwarded to the Subcontractor for
inquiry, related to the Subcontract Work during Tender which shall form part of this
Subcontract.

SECTION 2: SCOPE OF WORK

2.1 Subcontractor agrees to furnish all labor, tools and equipment required to complete the
Pump Station Works, Civil Works and MEP Works in accordance with the requirements of
QCS 2014 and the Main Contract and based on the Subcontractor’s offer reference
LTC/BCC/FPS/005 Rev.04 dated 17th July 2023 (Appendix 1).
2.2 The listing or description of the Subcontract works/ item in the Subcontract documents
shall not be taken to limit the nature, range or extent of the Subcontractor’s obligations for
the satisfactory completion of the Subcontract works. For any risks / matter / works,
mentioned or not mentioned elsewhere in the Subcontract Agreement, the Subcontractor is
assumed to have done its due diligence to inspect, investigate and made his assumptions and
included the same in its Subcontract rate.

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As an expert and experienced Subcontractor, the Subcontractor is assumed to have realized
and included in its offer all the necessary tools, equipment, accessories, consumables and
other related activities or items not mentioned in the BOQ however, shall complete the
Works and shall make it operational in accordance with the requirement of the Main Contract
and to the satisfaction of the Contractor and the Client. No claims shall arise nor be
entertained by the Contractor related to this clause.

2.3 The Subcontractor shall assume and perform all of the Contractor’s obligations in relation
to the Subcontractor works to the entire satisfaction and approval of the Contractor and the
Employer as Subcontract agreement is purely on back-to-back basis with respect to the scope
of works included in Main Contractor executed between the Employer and the Contractor.

2.4 The Subcontractor shall provide and is deemed to have allowed for all requirements,
costs and expenses that the satisfactory execution, handover, warranty and guarantee of the
Subcontract works that may be required. (Method statement, data sheets, assistance in
QA/QC procedures, manuals, HSE project requirements …etc).

2.5 The Subcontractor shall thoroughly check and review the Main Contract’s specifications
& drawings issued during bid stage and inform the Contractor of any omission, discrepancy
or shortage therein and shall execute the Subcontract works in accordance with the shop
drawings approved by the Employer/ Engineer and with other relevant conditions

2.6 The Subcontractor is deemed to have inspected and acquainted himself with the site
conditions, and is deemed to be aware of all circumstances that and / or may be prevailing
during the execution of the Subcontract works and is deemed to be in
Knowledge of the Main Contract requirements and all other conditions applicable on the
Contractor pertaining to the Subcontract works.

2.7 Work hours during operations should be as per Contractor schedule. Otherwise in case of
any requirement subcontractor should notify with a letter of intent to work overtime and get
the approval from the contractor. The Subcontractor shall allow for the temporary disruption
of the works due to the coordination with other contractors/subcontractors change in the
access from time to time, approval requirements and changes in the timings as may be
required by the authorities and delays in the Works.

2.8 The Contractor reserves its right to request the increaser decrease of number of the
Subcontractor’s workers and personnel, likewise, has the right to instruct the Subcontractor
to withdraw or remove any unqualified worker or staff who is not effectively carrying out his
duties.

2.9 Any work by the Contractor or other subcontractors, damaged by the Subcontractor if not
replaced, or repaired by the Subcontractor, shall be carried out by the Contractor and/or by

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other subcontractors and all cost shall be back charged to the Subcontractor +10% Overhead
and Administrative Cost.

2.10 If errors, omissions, ambiguities, inconsistencies, inadequacies or other defects are

found in the Subcontractor's Documents, the Documents & the Works shall be corrected at
the Subcontractor's cost, notwithstanding any consent or approval under this Clause.

2.11 Testing. All tests and document submittals related to the installation and supplied
materials under the scope of the subcontractor to complete the works mentioned in the
Subcontractor’s offer reference LTC/BCC/FPS/005 Rev.04 dated 17th July 2023 (Appendix
1) as required in the Main Contract are deemed included in the scope of the Subcontractor
and shall be carried out by the Subcontractor. The Subcontractor shall be responsible to
coordinate such requirements to the Contractor’s QAQC team at site.

SECTION 3: PRICES

3.1 The Subcontract Price is Qatari Riyals: Nineteen Million and Five Hundred Thousand
Only (QAR 19,500,000.00) with Provisional Amount of Seven Hundred Ninety-Nine
Thousand (QAR 799,000.00) for Spare Parts supply as per QCS. The Contract Price is
Lump Sum Accepted Contract Amount in accordance with the documents issued by the
Contractor. The Subcontractor is deemed to have evaluated the whole works and the risk
thereof and agrees that the works shall be completed without exceeding the Subcontract
Price.

3.2 The Subcontractor shall provide a conceptual Bill of Quantities showing the Subcontract
Work items’ rate and quantities and must be attached in Appendix 2 forming part of this
Subcontract Agreement. The Purpose of Conceptual Bill of Quantities is for billing purposes
only subject to the provision of Section 3.1.

3.3 Any quantities which may be set out in the Schedule are estimated quantities and are not
to be taken as the actual and correct quantities of the Works which the Subcontractor is
required to execute; and any quantities or price data which may be set out in a Schedule shall
be used for the purposes stated in the Schedule and may be inapplicable for other purposes.

3.4 The Subcontractor shall pay all taxes, duties and fees required to be paid by him in the
Subcontract and the Subcontract Price shall not be adjusted for any of this cost, except as
stated in Sub-clause 3.8 [Adjustments for Changes in Legislation] and Section 14 [Changes
in the Work].

3.5 The Subcontractor confirms that he has satisfied himself as to the correctness and
sufficiency of these prices which are considered the full and comprehensive compensation
for the execution of the Subcontractor’s obligations under this Subcontract agreement and
has allowed for all contingencies in this connection.

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3.6 The Subcontract Price is inclusive of fluctuations in costs due to the rise or fall in the cost
of labor, materials and/or any other matter affecting the cost of the execution of the
Subcontract Works.
3.7 The Subcontractor has accepted under this Subcontract any risks and/or costs relating to
currency restrictions, blockade, limited timings, and all other constraints which exist at
the time of execution of the Subcontract, or which may be imposed by the Government or
authorized agency of the Government of the country in which the Site is located. Such an
event shall not be deemed as a change in legislation.

SECTION 4: PAYMENT
 10% advance payment after signing the contract against undated PDC for the same
value. The Advance Payment shall be recovered progressively from the
Subcontractor’s Interim Payment.
 Actual certified and approved invoice (payment certificate) to be paid @ 60 days
from approval date after the deduction of 10% advance payment.
 10% Retention to be paid as below:
 5% against testing and commissioning.
 5% against final handing over to end user (FCC) for the pumping station.
SECTION 5: TAX CARD
Sub-Contractor shall provide a Tax card from Ministry of Economy and Finance/ Public
Revenues and Taxes Department with dates covering all contract period.
SECTION 6: BACKCHARGES
In case of any requirements which are included in the Sub-Contractor scope of work and
provided by the Contractor to fulfill the work, Contractor will back charge the sub-contractor
at agreed rates plus 5% administration fees.
SECTION 7: ENTIRE AGREEMENT
This Agreement represents the entire agreement between Contractor and the Subcontractor
and supersedes any prior written or oral representations.
SECTION 8: TIME & PROGRAMME TO BE FURNISHED
1. The Effective date of this agreement shall be upon signing by both Parties.
2. Upon Effective date, the Subcontractor shall provide Contractor with scheduling
information in a form acceptable to Contractor and shall conform to Contractor's
progress schedules, including any changes made by Contractor in the scheduling of
work.

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 3. The Subcontractor shall submit to the Contractor a program for all Subcontract work
and provision of information to be performed by the Subcontractor. The program
shall include the following:
 The order in which the Contractor proposes to carry out the Works (including
each stage of construction and inspection).
 All major events and activities in the production of Construction Documents.
 The program shall be developed using precedence networking techniques,
showing early start, late start, early finish, and late finish dates.
4. The absence of Program/schedule from the side of the Subcontractor during the
signing of this Subcontract Agreement does not constitute the Subcontractor shall not
be liable for any delays. The Subcontractor therefore agrees that it shall work with
the Schedule well cooperated and convenient for the Contractor. The Subcontractor
further agrees that it shall not make the Contractor breach the Main Contract
Schedule.
5. From time to time, the Subcontractor shall update the Contractor for any delays that
may hamper the Subcontract Schedule. In case of reasonable delays, the
Subcontractor shall apply for Extension of Time equitable to cover such delay in the
Subcontract. The Subcontractor shall substantiate the reasons for the delay including
the submission of the revised program for approval.
6. In case of Delays due to the Employer (PWA) the Extension of Time application shall
be on back-to-back basis and shall be subject to approval by the Employer.
No Extension of time shall be granted for delays attributable to the Subcontractor.

SECTION 9: PROCUREMENT OF MATERIALS AND INSTALLATION

9.1 Subcontractor to submit a detailed procurement schedule and plan to ensure the below:
a) Procurement Plan in accordance with Contractor’s project procurement plan.
b) Materials Submittals & Supply in accordance with Contract specifications and QCS
2014. other requirements
c) Source of Supply should be approved by client.
d) Submit Manufacturer's standard samples of Materials (if required)
e) Identify the source of all materials to be included in the Works and shall highlight
that must be imported (if applicable) due to no availability in Qatar.
f) All shall be documented with the listing of names, contact information and locations
of all material sources.
9.2 Delivery.
9.2.1 The Subcontractor shall give a program for the target delivery of each item in the
Subcontract Agreement.
9.2.2. The Subcontractor shall give the Contractor not less than five (5) Days’ prior notice
of the date on which the material will be available for Delivery to the designated.

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 location. Such notice shall state the expected date of Delivery of Material for the
Contractor to prepare the Access for the Delivery (if required) and be able to
arrange inspection request.
9.2.3. The Subcontractor shall arrange at site a storage area/ facility or place where the
Materials supplied, tools and equipment to be used a will be safely and securely
stored against all weather conditions and damage from other Subcontractor’s
operation. The storage area/ facility must be accessible by the Contractor and
Consultant anytime, for inspection.
9.3 Rejection upon Delivery.
9.3.1 In the event that any Material delivered at the Designated Location does not comply.
with the project specifications, or otherwise does not comply with the requirements
set out in the Contract, then without limiting any other right or remedy that the
Contractor may have, the Contractor may reject the Supplied Material and:
(a) require the Subcontractor to replace the rejected material at the Subcontractor’s
risk within 12 hours after being instructed to do so; or
(b) Claim damages for any costs, expenses or losses resulting from the Delivery of the
Material that does not comply with the terms of the Subcontract.
9.3.2 The terms of the Subcontract shall apply to any repaired or replaced material
supplied by the Subcontractor.
9.3.3 If the Subcontractor fails to promptly replace the rejected material in accordance
with Sub-clause 9.3.1(a), the Contractor may, without affecting its rights under
Sub-clause 9.3.1(b), and under instruction from the Engineer, obtain substitute
materials from a third-party Subcontractor, or have the rejected Material replaced
by a third party, and the Contractor shall be entitled to recover from the
Subcontractor any costs that the Contractor incurs as a result thereof.
9.4 Ownership of Materials.

All Materials shall, to the extent consistent with the Law, become the property of the
Contractor at whichever is the earlier of the following times:
(a) The date the relevant Material is Delivered to the Designated Location
(whenever advance payment has been made); or
(b) The date on which any amount due in respect of the Material has been paid for
by the Contractor.

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SECTION 10: DELAY
The Subcontractor shall allow for the temporary disruption of the works due to the
coordination with other contractors/subcontractors, change in the access from time to time,
approval requirements and changes in the timings as may be required by the authorities and
delays in the Works.
If the Subcontractor however has caused the delay due to incompetent staff and labors
supplied/ mobilized at site, or due to the defective equipment, tools or materials mobilized
and/or supplied at site and/ or caused delay due to non-collaboration and non-coordination
with other subcontractors or contractors, the Subcontractor will indemnify the Contractor and
hold Contractor harmless for any damages, claims, demands, liens, stop notices, lawsuits,
attorneys' fees, and other costs or liabilities imposed on Contractor connected with said delay
by the Subcontractor.
For any delays caused by such damage attributable to the Subcontractor as referred from Sub
Clause 2.9, the Contractor will not charge the Subcontractor, unless otherwise the Contractor,
will be charged by the Client of Liquidated Damages for such delay from the damage caused
by the Subcontractor.

SECTION 11: LIQUIDATED DAMAGES FOR DELAY

If the Subcontractor fail to complete the whole of the Works, or any section of the Works for
which a particular time for completion is provided in the Contract within the time or
extended time then the Subcontractor shall pay to the Contractor as liquidated damages the
sum of 0.5% (0.2) from total amount for the whole of the Subcontract works as a penalty per
day.
The maximum penalty for delay shall not exceed 10% of the total Subcontract Sum or
adjusted Subcontract Sum.
The Main Contractor may without prejudice to any other method of recovery deduct the
amount of such penalty from any monies due or which may become due to the Subcontractor.
The payment or deduction of such penalty shall not relieve the Subcontractor from his
obligation to complete the Works or from any other of his obligations and liabilities under
the Subcontract.

SECTION 12: DEFAULT

If the Subcontractor fails to comply with any of the Subcontract agreement conditions or his
performance is slow and not to the Contractor’s schedule or fails to execute any requirement
entraining or make good the defective work or if the Employer / Contractor deems that the
Subcontract works or any part / activity thereof be, in the opinion of the Contractor, too slow
to ensure the completion of the Subcontract works within the prescribed time including
submittals and / or procurement and or installation, and if the Subcontractor despite the

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Contractor’s seven (7) days’ notice, fails to reinstate or rectify or remedy the failure or
default to the satisfaction of the Contactor, then without prejudice to other rights, conditions
and measures he may apply, and without recourse to any judicial authority, the Contractor
shall have the right to take one or more of the following actions
A. Execute and / or repair the defective Subcontract works.
B. Employ and method and take any action to rectify the Subcontractor’s failure /
default and to bring Subcontract works back to the Contractor’s schedule.
C. Take possession of all materials, constructional plant, equipment, and other things
whatsoever brought by the Subcontractor to the site and may use them free of
charge for the purpose of execution, completing and maintaining the Subcontract
works.

D. Terminate the Subcontractor’s employment without prejudice to the Subcontract

conditions and engage other Subcontractor to complete the Subcontract works, and
the price to be deducted from the previous failed Subcontractor

In any such default / event, any measure(s), application(s) and / or actions taken be the
Contractor shall be made at and charged to the subcontractor’s account, and the
Subcontractor shall not be granted any extra time for any such remedy, measures, or actions
whether carried out by him or be the Contractor. in addition, the Contractor shall not be liable
to pay the Subcontractor any further amount until final acceptance certificate for the project
works is issued be the Employer and thereafter until ascertaining the total amount of losses,
damages, costs, penalties, fees, and expenses incurred in connection with execution,
completion, and remedying of Subcontractor’s default.

SECTION 13: MEASUREMENT NATURE/ METHOD OF MEASUREMENT

The quantities set out in the Bills of Quantities are the estimated quantities of the Works and
are not to be taken as the correct and final quantities. The Quantities shall be subject to re-
measurement in accordance with the actual quantities executed and performed at the site
during construction and to be approved by the Engineer. The total contract value will be re-
measured in accordance with the actual approved quantities executed and the established
contractual unit rates.

SECTION 14: CHANGES IN WORK

Subcontractor shall make no changes in the work covered by this Agreement without written
direction from the Contractor. The subcontractor shall not be compensated for any change
which is made without such written direction.
A variation shall not comprise the omission of any work which is to be carried out by others.

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Variations can be initiated in two ways:
(a) When the Engineer, at any time prior to issuing the taking over certificate, instruct a
variation to the Contractor or request the Contractor to Submit a proposal related to the
Subcontracted Work by the Subcontractor, without prior agreement as to feasibility or
price and the Contractor has issued the same Engineer’s instruction to the Subcontractor.
The Subcontractor must promptly submit a competitive proposal as per the Engineer’s
Instruction upon request of the Contractor.
(b) When the Contractor initiate Value Engineering and would request the Subcontractor to
submit his proposal which (in the Contractor's opinion) will, if adopted, (i) accelerate
completion, (ii) reduce the cost to the Employer of executing, maintaining or operating
the Works, (iii) improve the efficiency or value to the Employer of the completed
Works, or (iv) otherwise be of benefit to the Employer.
The Proposal for (a) & (b), whenever the Contractor requires, shall be prepared at the
Cost of the Subcontractor.
All new rates and/ or cost of variation shall be on a back-to-back basis in accordance with the
Client’s determination. Until such time as rates, prices or quantities involved are agreed or
fixed, the Subcontractor has no right to stop or delay the execution of the variation works and
the Contractor may determine provisional rates, prices, or quantities to enable on account
payments to the Subcontractor, subject always to the Employer’s decision as to considering
additional value and / or time for such variation under the Main Contract.

However, the Employer’s or Engineer’s non acceptance on any request for instruction to vary
or variation order initiated by the Subcontractor or the Contractor or the disagreement on the
valuation of variation shall not give any right to the Subcontractor to stop or delay the
execution of the varied works and shall not relieve the Subcontractor of any of his
responsibilities, duties, and obligations to execute the relevant works.

SECTION 15: CLAIMS

If the Subcontractor asserts a claim which involves, in whole or in part, acts or omissions
which are the responsibilities of the Client or another party, including but not limited to
claims for failure to pay, an extension of time, delay damages, or extra work, Contractor will
present the Subcontractor's claim to the Client or other responsible party. The Subcontractor
shall cooperate fully with the Contractor in all steps. Payment is related to Client approval if
the claim was his responsibility. However, for any claims related to payments, whether it is
the responsibility of the Client or of other parties, the Subcontractor shall execute the work
with all its capacity and does not have the right to stop the work.
If any dispute shall arise between Contractor and Subcontractor regarding performance of the
work, or any change in the work, Subcontractor shall timely perform the disputed work and

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shall give written notice of a claim for additional compensation for the work prior to
commencement of the disputed work.
Subcontractor’s failure to give written notice prior to commencement constitutes an
agreement by Subcontractor that it will receive no extra compensation for the disputed work.

SECTION 16: EQUIPMENT REMOVAL FROM SITE

Subcontractor shall not be allowed to remove any equipment, material and temporary works
whether belonging to him or hired or supplied by other parties unless he has completed the
Subcontract works satisfactorily and has obtained a prior written approval from the
Contractor.

SECTION 17: INSPECTION AND PROTECTION OF WORK

 The subcontractor shall make the work accessible at all reasonable times for
inspection by the Contractor and Employer.
 Subcontractors shall at the first opportunity inspect all material and equipment
delivered to the job site by others to be used or incorporated in the Subcontractors’
work and give prompt notice of any defect there.
 The subcontractor assumes full responsibility to protect the work done here until final
acceptance by the Owner and Contractor.

SECTION 18: SAFETY REQUIREMENTS, RULES, AND REGULATIONS

The Subcontract shall comply with all safety measurements that are required from the
Contactor under the Main Contract or regulations in the Country concerning safety rules and
are advised during execution by the Employer / Engineer and as per QCS 2014. The
Subcontractor shall always and until the final acceptance certificate is issued, implement at
the project site all required protection and precautionary measures to the satisfaction of the
Contractor / Employer to avoid causing damage and / or disturbance to persons, possessions,
and to project works including the Subcontract works. Such protection and precautionary
measures shall include but not be limited to inspection approved equipment, safety tools for
subcontractor’s staff, barriers, sign boards, warning lights, tarpaulin covers, temporary
passages, guards, and fences during the construction phase.
The subcontractor shall be aware of their environmental obligations as detailed under
environmental obligations of the environmental protection law no. 30 of 2002 and if
applicable; project CEMP and as per QCS 2014.
Among the specific requirements that must be adhered in this Subcontract, prior to
mobilization at site and commence the work, the subcontractor is required to submit to
Contractor its HSE plan, method statements with the supplemented risk assessments for the
activities to be undertaken.
The Contractor’s QAQC and HSE departments will review the submitted documents for
adequacy, compliance, and approval.

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The Sub-contractor shall provide one safety officer if the number of his employees is
between 5 to 50, and one additional safety officer for each 50 persons further on. The
Subcontractor should provide one trained first aider for each 25 laborers and a First aid box
for each 25 laborers must be available at site.
The Subcontractor shall designate a member who is responsible for and directly accountable
to the Contractor in all matters concerning safety.
The Subcontractor shall report all accidents and near misses to project HSE department
within the required time frame.
The Subcontractor’s employees must attend site induction training prior to starting their
activity at site and shall attend daily toolbox meetings at the course of project duration. All
tools and equipment must be in good and safe condition and fitted with the required safety
devices.

SECTION 19: WELFARE OF EMPLOYEES

In line with the Qatar Government’s initiative to improve the quality of accommodation and
services provided to the workforce, Sub Contractor is required to comply with all Qatar
Legislation. Labour Law No 14 of 2004, Ministerial Decision 6-20 of 2005, QCS 2014, and
such other regulations as may be enacted, or additional requirements related to Workers
Accommodation Facilities.

SECTION 20: INSURANCE

Subcontractor shall, at its expense, procure and maintain insurance on all its operations, with
carriers acceptable to Contractor and as required by the prime contract.
All insurance coverage shall be in amounts and for durations acceptable to the Contractor and
as required by the prime Contract.
All work covered by this Agreement done at the site, or in preparing or delivering materials
or equipment to the site, shall be at the sole risk of Subcontractor until the completed work is
accepted by Contractor.
Insurances should include the following:
a. Workers Compensation and Third-Party Liability insurance.
b. Equipment Insurance.
c. Vehicle Insurance
d. Main Contract Insurance is under OCIP Facility by Ashghal and can be viewed
readily by the Subcontractor anytime.

SECTION 21: WARRANTY / COLLATERAL WARRANTY

Subcontractor warrants to Owner and Contractor that all materials and equipment furnished
shall be new unless otherwise specified and that all work under this Agreement will be

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performed in a good, shall be of good quality, free from faults and defects and in
conformance with the Contract.
The Subcontractor shall guarantee the Subcontract works against all defects in engineering,
material, workmanship, and other matters required under the specifications, as and to the
extent / period(s) that the Contractor is bound to guarantee them under the Main Contract.
Whenever required, the Subcontractor agrees to provide/execute a Collateral Warranty as per
specimen form provided in the Main Contract.

SECTION 22: INDEMNITIES

All work covered by this Agreement done at the site or in preparing or delivering materials or
equipment to the site shall be at the sole risk of Subcontractor until the completed work is
accepted by Contractor.
The Subcontractor shall, except if and so far as the Subcontract provides otherwise,
indemnify the Contractor against all losses and claims in respect of:
 Death or injury to any person
 Loss or damage to any property (other than the Subcontract Works), which may arise
out of or in consequence of the execution and completion of the Subcontract Works
and the remedying of any defects therein, and against all claim proceedings, damages,
costs, charges, and expenses.

SECTION 23: PERMITS

The Subcontractor shall assist he Contractor in obtaining all required permits, licenses,
certificates, and every other authorization necessary for the execution of its legal obligations/
existence and the existence of his work force (Staff) under the Subcontract agreement. All
these requirements must be obtained within sufficient time prior to starting delivery of
material and execution of the Subcontract works at the site.
The Contractor shall obtain and is deemed to have allowed for obtaining of all required
permits, licenses, certificates, and every other authorization necessary for the execution of all
its obligations under the Subcontract agreement. All these requirements must be obtained
within sufficient time prior to starting delivery of material and execution of the Subcontract
works at the site, thus the Subcontractor is requiring cooperating with the concerned
Personnel regarding site permits that will be obtained for the Subcontractor to be given
access to work at site.
Only permits related to execution of the work at site shall be provided by the Contractor.

SECTION 24: CONFIDENTIALITY

The Subcontractor’s personnel may during execution of their duties, have access to
information relating to the Subcontract works and Main Contract works which is considered
restricted security information by the Employer. The Subcontractor undertakes to safeguard

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and protect such information against disclosure to any unauthorized person or party. The
Subcontractor undertakes also not to take any photographs of or make any publication about
the Subcontract works without prior written approval of the Contractor. All such obligations
are extended to include the Subcontractor’s personnel, their dependents and guests who may
in any manner obtain such information and shall stay valid and binding even after handing
over the project works.
SECTION 25: FINAL ACCEPTANCE
Final Acceptance of the Works shall in general occur upon completion of the subcontractor’s
scope of work subject to fulfilment by the Subcontractor of the following conditions:
The Subcontractor, not less than 14 days prior to the commencement of Guarantee or
Maintenance Period, shall notify the Contractor that its work has been substantially
completed/completed with approved inspection documents and seek a Substantial
Completion Certificate from the Contractor to commence the Guarantee or Maintenance
Period.
On completion of work, the Subcontractor shall attend to any snags and punch lists and
rectify the same and commits to complete the rectification along with the submission of
required project documentation within the specified period. The making good by the
Subcontractor of any defects, and the execution of any omitted Work discovered during the
Guarantee Period, shall be executed within the 400 days Maintenance Period, including any
extended Guarantee Period should the Subcontractor does not meet or satisfy Subcontract
requirement during the required Guarantee period. Failure to do so, the Contractor has the
right to sublet the works to others or carry out the work by itself and all cost towards the
same shall be deducted from the Subcontractor.
If all minor defects have been rectified by the Subcontractor within the
Maintenance/Guarantee Period, not less than 14 calendar days prior to the prospective date of
Final Acceptance of the Subcontract Works, the Subcontractor shall submit to the Contractor
a request for issuance of a Certificate of Final Completion of the Works. Upon inspection,
evaluation and obtaining clearance or inspection approvals from the Consultant to document
the acceptance of the Subcontracted Work, the Contractor may release a Certificate of Final
Completion to the Subcontractor. The Release of Final Completion Certificate shall be upon
the release of Final Completion Certificate by the Employer to the Contractor (Completion of
Contractor’s Maintenance Period).

Upon release of Certificate of Final Completion, notwithstanding a quit claim has been
signed by both parties, the Subcontractor is released from its obligations provided for in the
Subcontract, unless otherwise provided for in any warranties and guarantees in conjunction
with this Subcontract Agreement. Likewise, the Contractor is released from any claims
and/or financial obligations from the Subcontractor upon release of its retention monies.

SECTION 26: DISPUTES AND APPLICABLE LAW

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If a dispute of any kind whatsoever arises between the Contractor and the Subcontractor in
connection with, or arising out of, the Subcontract or the execution of the Subcontract
Works, whether during the execution of the Subcontract Works or after their completion and
whether before or after repudiation or other termination of the Subcontract, then the
Contractor or the Subcontractor may give a notice of such dispute to the other Party, in which
case the Parties shall attempt for the next 30 days to settle such dispute amicably before the
commencement of arbitration. Such notice shall state that it is made pursuant to this Clause.

Any dispute which has not been amicably settled within 30 days after the day on which such
notice was given shall be finally settled under the Rules of Arbitration of the International
Chamber of Commerce by one or more arbitrators appointed in accordance with the said
Rules.
The arbitration shall be conducted in the English language, shall be held in Doha, Qatar in
accordance with the rules of the arbitration of the Qatar Chamber.

SECTION 27: TERMINATION

The Agreement may be terminated forthwith by contractor giving notice in writing if
Subcontractor fail to rectify any contractual deficiencies which breach the terms of this
Agreement and has failed to remedy the breach within 30 days’ notice in writing requiring it
to do so. Contractor shall have the right to take whatever steps it deems necessary to correct
said deficiencies & charge the cost thereof to subcontractor, who shall be liable for the full
cost of Contractor's corrective action, including overhead, profit, and actual attorneys' fees.
The contractor may at any time and for any reason terminate Subcontractor's services
hereunder at Contractor's convenience. In the event of termination for convenience,
Subcontractor shall recover only the actual cost of work completed to the date of termination,
in approved units of work or percentage of completion. Subcontractor shall not be entitled to
any claim or lien against Contractor, Owner, or anyone else for any additional compensation
or damages in the event of such termination.

SECTION 28: PENALTIES

A. Quality Assurance
Under no circumstances whatsoever subletting will be allowed. The Subcontractor can sublet
all or any part of the work to any third party only when the written approval of the Contractor
is made.
The Contractor reserves the right to enter the Subcontractor’s premises and those of its
subcontractors, for the purpose of Quality inspections and Quality Audits to verify the
Subcontractor’s Quality System based on the requirement of the Contract is being
implemented, maintained and effective.

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When the Quality inspections or Quality Assurance Audits find that Non-conformances,
Non-conformance Report (N.C.R.) or Corrective Action Requests (C.A.R.) are issued, the
Subcontractor shall close them out within allowed periods to be set by the Quality
Department at his own costs.
Stoppage or Suspension of the Subcontract Works due to poor QA/QC activities of the
Subcontractor shall be at the discretion of the Quality Assurance Manager or the Quality
Control Manager of the Contractor. The Subcontractor shall bear all the responsibilities
including the cost and time impact resulting from the stoppage or suspension of the
Subcontract Works.
The Contractor may impose fines on the Subcontractor as follows:
(1) QR 1000 penalty to close out each N.C.R. or C.A.R. within the specified time after
three times warning for the same N.C.R. or C.A.R.
(2) Where work has been stopped or suspended due to the non-compliance with QA
manual and procedures, a penalty of QR2500 per day will be imposed.
(3) The penalty imposed due to the above shall be deducted from the Subcontractor’s
progress payment.
The subcontractor shall be solely responsible for the cost incurred to the Contractor due to
the failure to meet the requirements of the Project until the settlement of the same.
B. Safety, Hygiene and Environmental Control
The Subcontractor shall ensure that all operations carried out under the Subcontractor shall,
always, comply in all respects will all Applicable laws and whenever required by QCS 2014
or, client requirements and other legal requirement, subcontractor shall provide 3rd party
certificates required.
The Subcontractor shall designate a member who is responsible for and directly accountable
to the Contractor in all matters concerning safety.
Especially, the Subcontractor shall ensure that all persons working on or visiting the site shall
wear PPEs including but not limited to safety helmet, safety shoes, safety harness, goggles,
ear plugs, etc.
In case an employee of the subcontractor received written warnings more than three times, he
shall be expelled from the Work.
The Contractor may impose fines on the subcontractor as follows:
(1) QR 1000 penalty after three times warning is issued for the same violation.
(2) QR 1000 penalty to close out each N.C.R. or C.A.R. within the specified time after
three times warning for the same N.C.R. or C.A.R.
(3) The penalty imposed due to the above shall be deducted from the Subcontractor’s
progress payment.

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 Appendix 1

Subcontractor Proposal ref: LTC/BCC/FPS/005 Rev.04

dated 17th July 2023

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 Appendix 2

Conceptual Bill of Quantities Showing the Subcontract

Work items’ Rate and Quantities

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