Annexure - 3 Subcontract Terms and Conditions

PROJECT NAME: GAS COMPRESSION PLANTS (GCPs) – PACKAGE 1, AL JAFURA,
KINGDOM OF SAUDI ARABIA
BIDDING DOCUMENT NO.: EI-02-22

DESCRIPTION: RFQ FOR ELECTRICAL INSTRUMENTATION &
TELECOM WORK
EMPLOYER : SAUDI ARAMCO
PROJECT : GAS COMPRESSION PLANTS (GCPs) – PACKAGE 1,
LOCATION : Al Jafurah, KINGDOM OF SAUDI ARABIA
CONTRACTOR : L&T HYDROCARBON SAUDI COMPANY, KSA [LTHSC]
REQUEST FOR QUOTE (RFQ)

FOR
RFQ FOR ELECTRICAL INSTRUMENTATION & TELECOM WORK
ANNEXURE - 03
SUBCONTRACT TERMS AND CONDITIONS
00 19-09-22 Issued for Quote SP SVN PMR
Rev DD-MM-YY DESCRIPTION PREPARED BY REVIEWED BY APPROVED BY
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ALL RIGHTS RESERVED
THIS DOCUMENT AND ANY DATA AND INFORMATION CONTAINED THEREIN ARE CONFIDENTIAL AND THE PROPERTY OF L&T HYDROCARBON ENGINEERING (LTHE) AND THE COPYRIGHT THEREIN IS VESTED IN LTHE NO PART OF
THIS DOCUMENT, DATA, OR INFORMATION SHALL BE DISCLOSED TO OTHERS OR REPRODUCED IN ANY MANNER OR USED FOR ANY PURPOSE WHATSOEVER, EXCEPT WITH THE PRIOR WRITTEN PERMISSION OF LTHE.

TELECOM WORK
TABLE OF CONTENTS
ARTICLE 1. SCOPE OF WORK .......................................................................................................... 3

ARTICLE 2. COMMENCEMENT OF WORK & TIME SCHEDULE............................................. 4
ARTICLE 3. PRICE ................................................................................................................................. 5
ARTICLE 4. PAYMENT TERMS.......................................................................................................... 6
ARTICLE 5. RETENTION MONEY ..................................................................................................... 7
ARTICLE 6. PERFORMANCE BOND ................................................................................................ 7
ARTICLE 7. LIQUIDATED DAMAGES [LD] .................................................................................... 7
ARTICLE 8. INVOICING OF WORKS ................................................................................................ 7
ARTICLE 9. PAYMENT OF SUBCONTRACTOR'S INVOICES .................................................. 8
ARTICLE 10. MEASUREMENT OF WORKS ................................................................................... 8
ARTICLE 11. FINAL INVOICE / BILL ................................................................................................ 8
ARTICLE 12. INVOICE SUPPORTING DOCUMENTS.................................................................. 8
ARTICLE 14. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS ................................ 9
ARTICLE 15. EXTENSION OF TIME ................................................................................................. 9
ARTICLE 16. TAXES & DUTIES ......................................................................................................... 9
ARTICLE 17. FREIGHT AND INSURANCE ................................................................................... 10
ARTICLE 18. DEFECT LIABILITY PERIOD................................................................................... 10
ARTICLE 19. EMPLOYMENT OF LOCAL WORKMEN .............................................................. 10
ARTICLE 20. ADDITIONAL WORKS/ EXTRA WORKS ............................................................. 11
ARTICLE 21. PROGRESS REPORTS ............................................................................................ 11
ARTICLE 22. COMPLETION OF WORK AND COMPLETION CERTIFICATE .................... 11
ARTICLE 23. MATERIAL RECONCILIATION AND RETURN OF UNUSED MATERIAL .. 11
ARTICLE 24. PROJECT CORRESPONDENCE ........................................................................... 13
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ARTICLE 1. SCOPE OF WORK

SUBCONTRACTOR shall be responsible for Procurement, Supply (As specified in the
responsibility matrix and BOQ), and Installation to complete the WORK, acceptable for handing
over to the EMPLOYER / COMPANY.
Material Requisition provided in Annex 12_ MR & SOR. BIDDER to go through the package
information provided in the SUBCONTRACT DOCUMENTS .SUBCONTRACTOR to go through
the RFQ package information provided in various Annexures of this RFQ document and provide
the unit rates as per relevant BOQ and SOR requirements in line with the project specification,
HSE & Quality requirements and complying with RFQ documents.
SUBCONTRACTOR’s unit rates shall be inclusive of direct cost and in-direct cost and all taxes,
overheads, profit and all cost heads to complete the entire WORK as defined in the RFQ
Documents.
The Scope of Work and obligations of the PARTIES are specified in the SUBCONTRACT
DOCUMENTS, which are consists of the following:
1. ANNEXURE - 1 INSTRUCTION TO BIDDERS
a. ANNEXURE - 1A Form of Acknowledgement
b. ANNEXURE - 1B Form of BID
c. ANNEXURE - 1C Employer & Project Geographical Location
d. ANNEXURE - 1D Subcontract Agreement [Sample Copy]
2. ANNEXURE - 2 GENERAL CONDITIONS OF SUBCONTRACT
a. Annexure – 2.1 Schedule – S; Saudization Terms and Conditions
b. Annexure – 2.2 Schedule - S Attachment I Saudization Terms and Conditions
3. ANNEXURE - 3 SUBCONTRACT TERMS AND CONDITIONS
4. ANNEXURE - 4 SCOPE MATRIX
5. ANNEXURE - 5 SPECIFICATION & DRAWINGS
6. ANNEXURE - 6 SUBCONTRACT SCHEDULE
7. ANNEXURE - 7 PROJECT QUALITY
8. ANNEXURE - 8 PROJECT HSE
9. ANNEXURE - 9 TECHNICAL BID REQUIRMENTS
a. 9a. Const. Equipment Deployment
b. 9b. Const. Manpower Deployment
c. 9c. Manpower Deployment Saudization
10. ANNEXURE - 10 SPECIAL CONDITIONS FOR PAYMENT

10.1. ANNEXURE - 10.1 HSE IMPLEMENTATION BASED PAYMENT
10.2. ANNEXURE - 10.2 INVOICE PAYMENT STRUCTURE
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10.3. ANNEXURE - 10.3 FORM OF PERFORMANCE BOND

11. ANNEXURE - 11
11.1. Code of Conduct
11.2. NDA for Vendor/Subcontractor
12. ANNEXURE - 12 BOQ and SOR
13. ANNEXURE - 13 Clarification Format
14. ANNEXURE - 14 Correspondences List
The aforesaid SUBCONTRACT DOCUMENTS are to be taken as mutually explanatory of one
another.
1.1 SUBCONTRACTOR shall carryout the WORK in accordance with the details provided under
“Annexure 5_ SPECIFICATION & DRAWINGS”, “Annexure 7_ PROJECT QUALITY” & “Annexure
8_ PROJECT HSE” of RFQ Documents.
1.2 SUBCONTRACTOR shall be responsible for mobilizing manpower including engineers,
technicians and supervisors, specific tools and tackles, scaffoldings, construction equipment,
consumables enabling work material, required for accomplishing the proposed scope of WORK.
1.3 SUBCONTRACTOR shall be responsible for reconciliation of CONTRACTOR’s free issue
MATERIAL and to submit reconciliation statement.
1.4 SUBCONTRACTOR shall be responsible for shifting of MATERIAL within PROJECT SITE, which
includes vehicle/crane for transporting material from site stores to workplace.
ARTICLE 2. COMMENCEMENT OF WORK & TIME SCHEDULE

2.1 The Kickoff Meeting [KOM] shall be held within 10 days after the award of LOA [Letter of Award].
Key milestones for the Project shall be discussed during KOM. The evolved Project strategy shall
be presented during this meeting with focus on fast-track Execution philosophy and Construction.
All activities will be monitored with respect to Agreed Schedule. SUBCONTRACT SCHEDULE
shall be reckoned from the date of issue of LOA.
2.2 SUBCONTRACTOR shall achieve the individual milestones and achieve overall completion
schedule as detailed in Annexure 6_SUBCONTRACT SCHEDULE.
2.3 The SUBCONTRACTOR to follow the project work time and comply to work schedules in
coordination with ENGINEER-IN-CHARGE. Working hours shall be strictly compliance to
applicable Kingdom of Saudi Arabia Laws and regulations. No work shall be carried out on the
PROJECT SITE on locally recognized days of rest, or outside the normal working hours, unless:
a) the EMPLOYER gives consent; or

b) the work is unavoidable or necessary for the protection of life or property or for the safety
of the WORK, in which case the SUBCONTRACTOR shall immediately give a Notice to
the CONTRACTOR/ EMPLOYER with reasons and describing the WORK required.
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Work outside normal working hours or days shall be at no additional cost to the CONTRACTOR
and shall be deemed included in the SUBCONTRACT PRICE.
ARTICLE 3. PRICE
3.1 The Unit PRICE as mentioned in Annex 12_ MR & SOR. for executing and completing the Scope
Work and the SUBCONTRACT PRICE to be in SAR.
3.2 The Unit PRICE shall remain firm and unaltered till the completion of the WORK in all respects and
shall not be subject to adjustments due to increase in workmen wages, cost of materials,
consumables and any other input for performance of WORK. The Unit PRICE shall include but not
limited to the following:
a) Supply of materials including accessories [as per scope responsibility], existing or new
source identification, mobilization and demobilization of staff, workmen & construction
equipment, other services required to successfully complete the WORK as per
specifications and requirement of the SUBCONTRACT.
b) Sourcing and Loading of all the items and transportation of MATERIAL to the PROJECT
SITE.
c) Transit risk insurance from manufacturer’s works to destination / PROJECT SITE.
d) All Testing charges as per approved QAP.
e) Engaging TPI agency and documentation.
f) Engaging approved QA/QC and HSE staffs as required.
g) Charges for documentation for approval / as built as per actual.
h) Store management.
i) Completion of entire Construction scope of WORK and complying to punch points and
handing over all QA/QC documents.
j) Fulfilling contractual obligation under the SUBCONTRACT.
3.3 This SUBCONTRACT currency is SAUDI RIYAL (SAR) and the CONTRACTOR is obliged to pay
towards performance of the WORK in SAR terms only. Any variation in foreign exchange,
customs duty, CVD, SAD or other allied levies for import of certain components and raw materials
pertaining to this order shall be borne by the SUBCONTRACTOR.
3.4 Within 7 (Seven) DAYS of receipt of this SUBCONTRACT, SUBCONTRACTOR shall submit the
internal Job Order Reference / work order Reference.
3.5 As full and final compensation for the satisfactory performance of the WORK, the CONTRACTOR
shall pay the SUBCONTRACTOR the SUBCONTRACT PRICE, which shall be comprised of one
or more of the following items as indicated in the Terms & Conditions:
a. the lump sum(s) set forth in the Schedule of Rates and/ or
b. the amount calculated by application of any unit prices set forth in the Schedule of Rates
and/or
c. the amount calculated by application of any rates and fees set forth in the Schedule of Rates
for the compensation of Day work and services and/or
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d. the amount of any adjustment increases or decrease, to above items, if any, evaluated in
accordance with the provisions of the SUBCONTRACT, regardless of the overall amount of
such adjustment
Quantities mentioned in the Schedule of Rates are estimated quantities. Such quantities may
change during development of technical documents, as a consequence of variations and / or
changes in WORK and based on conditions at Site.
3.6 The SUBCONTRACT PRICE shall cover all obligations, responsibilities and risks of the
SUBCONTRACTOR in connection with the performance of the SUBCONTRACT in full
compliance with the SUBCONTRACT DOCUMENTS.
The SUBCONTRACT PRICE shall cover all costs for the workmanlike execution of the WORK
and shall include, but not be limited to, all salaries, wages, payroll related charges, medical care,
boarding and lodging, assistance and superintendence, travel expenses, all costs for the
provision of Subcontractor's equipment, temporary works, all Subcontractor's Materials,
temporary site accommodation and facilities, all general and administrative overheads, Insurance
costs, all charges, fluctuation of monetary exchange rates, inflation, contingencies, profits and all
other costs of whatever nature arising from the performance of the Works and such taxes, duties,
levies, imports and charges of whatever nature as may be payable by the subcontractor, any
lower tier subcontractor and their respective personnel in connection with the works.
The description of WORK referred in Article 1, ANNEXURE- 4 & ANNEXURE- 5 are not
intended to be exhaustive and detailed statement of all requirements involved in carrying out
the WORK and they shall be read in conjunction with other Annexures of the SUBCONTRACT
DOCUMENTS, including all the documents, drawings and specifications forming part of the
SUBCONTRACT (in so far as they relate to the Subcontract Works). It shall be the
SUBCONTRACTOR’s responsibility to assess the total quantum of WORK and its inclusion in the
SUBCONTRACT PRICE.
3.7 The SUBCONTRACTOR expressly declares to have satisfied himself as to the correctness and
sufficiency of the SUBCONTRACT PRICE (lump sums, unit prices, rates and fees), which shall
cover any and all costs, profits and risks under the SUBCONTRACT. The SUBCONTRACTOR
shall therefore expressly waive any right to compensation or indemnification and shall not avail
himself of the remedies provided by the Governing Law to cover any additional costs arising out
of the performance of the SUBCONTRACT, except insofar as it is otherwise provided in the
SUBCONTRACT and shall assume all related risks.
ARTICLE 4. PAYMENT TERMS

4.1 Payment terms shall be as per Method of Measurement or Definition of Measurement [DM]
provided in Annexure 12_ BOQ & SOR & special terms in Annexure 10_ SPECIAL CONDITIONS
FOR PAYMENT.
4.2 All payments shall be made within 60 days by the CONTRACTOR to the SUBCONTRACTOR on
receipt of certified original invoice from ENGINEER-IN-CHARGE at PROJECT SITE.
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ARTICLE 5. RETENTION MONEY

5.1 Retention Money shall be retained as define in Annexure 10_ SPECIAL CONDITIONS FOR
PAYMENT.
ARTICLE 6. PERFORMANCE BOND

6.1 SUBCONTRACTOR to submit Performance Bond as defined in Annexure 10_ SPECIAL
CONDITIONS FOR PAYMENT.
ARTICLE 7. LIQUIDATED DAMAGES [LD]

7.1 No Claims for compensation of cost or extension of time shall be entertained by the
CONTRACTOR for those delays in the agreed SUBCONTRACT SCHEDULE which are
attributable to or in the control of SUBCONTRACTOR unless such delays are permitted by
CONTRACTOR in writing through extension of SUBCONTRACT SCHEDULE.
7.2 Time is the essence of this SUBCONTRACT. In case of delay in completing the WORK beyond
the period of SUBCONTRACT, the SUBCONTRACTOR shall be liable for and shall pay to
CONTRACTOR as LD and not as penalty, a sum of 0.5% of the SUBCONTRACT PRICE per
week for each week of delay to a maximum of 10% [shall not exceed 10%) of the total
SUBCONTRACT PRICE.
7.3 CONTRACTOR shall have the right in addition to any other remedies available in the
SUBCONTRACT AGREEMENT to recover the delay in SUBCONTRACT SCHEDULE by taking
action as may be necessary and deducted any or all cost of such actions from the amounts
which may become otherwise due to SUBCONTRACTOR under the terms of the
SUBCONTRACT AGREEMENT.
7.4 The payment or deductions of any amount pursuant to this Article shall in no way release the
SUBCONTRACTOR from any of his other obligations under the SUBCONTRACT
AGREEMENTS.
ARTICLE 8. INVOICING OF WORKS

8.1 SUBCONTRACTOR shall submit the invoice in approved format to CONTRACTOR’s
ENGINEER-IN-CHARGE of the WORK, giving abstract and detailed measurement for the various
items executed during the month, in the first week of the succeeding month with all supporting
drawings and supporting QA/QC documents.
8.2 The running account invoices and the final invoice with duly signed measurements sheet(s) shall
be submitted in quadruplicate for certification. The invoice shall also be accompanied by quantity
calculations in support of the quantities contained in the invoice along with consumption
statement, actual/theoretical, wherever applicable duly certified by the ENGINEER-IN-CHARGE.
8.3 ENGINEER-IN-CHARGE shall validate the requisite measurements for the purpose of having the
invoice verified and/or check before forwarding the same to CONTRACTOR’s Site Accounts’
department.
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ARTICLE 9. PAYMENT OF SUBCONTRACTOR's INVOICES

9.1 Payment of Running Account Invoices / Bill(s) shall not determine or affect in any way the rights of
CONTRACTOR under this SUBCONTRACT to make the final adjustments of the
quantities measurements of work and adjustments of amounts etc., in the final invoice / bill.
ARTICLE 10. MEASUREMENT OF WORKS
10.1 CONTRACTOR shall pay SUBCONTRACTOR as full and complete compensation for
accomplished WORK and for the performance of all his obligation to CONTACTOR/COMPANY
under SUBCONTRACT AGREEMENT as per the unit prices listed in Annex 12_ MR & SOR.
10.2 Measurement of works shall be certified as per drawing given by ENGINEER-IN-CHARGE.
SUBCONTRACTOR shall submit the measurement with proper calculations supported by quality
documents.
10.3 Quantity shall be calculated based on the approved drawings and no physical measurement
shall be taken at site.
10.4 For any new or additional or modification work based on site instruction, shall be recorded with
Joint measurement to be witness and signed by the ENGINEER-IN-CHARGE at PROJECT
SITE prior to starting of the WORK.
ARTICLE 11. FINAL INVOICE / BILL

11.1 The final invoice / bill shall be submitted by the SUBCONTRACTOR within one month from the
date of completion of WORK, including close out of punch points in all respects and submission
of QA/QC documents as required.
11.2 Payment of final invoice / bill shall be made within 60 days from the date of receipt of the
certified invoice / bill.
ARTICLE 12. INVOICE SUPPORTING DOCUMENTS

The following documents shall be submitted along with the monthly and final invoice
12.1 Invoice should be in standard format approved by the CONTRACTOR.
12.2 HSE and QA & QC compliance documents [submission of all claimed WORK test reports and
TPI documents / acceptance documents, Close out of Observations & NCR (Non-Conformance
Report) etc.,]
12.3 Joint measurement with the relevant supporting documents / drawings dully approved and
signed by ENGINEER-IN-CHARGE.
12.4 Approved SUBCONTRACT compliance report.
12.5 CONTRACTOR’s MATERIAL reconciliation report.
12.6 Status report of NCR’s.
12.7 Monthly wages disbursement and Supporting documents as required.
12.8 Progress Backlog and catch-up plan if any.
ARTICLE 13. VARIATION IN QUANTITES
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13.1 Quantity variation up to +/- 20% of the total agreed SUBCONTRACT PRICE shall not have any
impact on agreed unit rate. Descoping of work due the reason solely attributable to
SUBCONTRACTOR shall not be governed by this sub-clause.
13.2 Any addition of new items in BOQ or deviation beyond agreed quantity variation limit shall be
mutually discussed and agreed.
13.2 No variation for change in cost on account of increase/decrease in the cost of labour,
MATERIAL and other inputs to the WORK shall be payable to the SUBCONTRACTOR.
ARTICLE 14. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS

14.1 CONTRACTOR reserves the right to add, amend or delete any work item, the bill of quantities at
a later date or reduce the scope of work in the overall interest of the PROJECT by prior
discussion and intimation to the SUBCONTRACTOR. The decision of CONTRACTOR, with
reasons recorded, shall be final and binding on the SUBCONTRACTOR. CONTRACTOR
reserves the right to split the work under this SUBCONTRACT without substantiating any
reasons to the SUBCONTRACTOR. SUBCONTRACTOR shall not have right to claim
compensation or damage etc. in this regard.
14.2 The rates for such additional, altered or substituted work under this Article, shall be worked out
in accordance with the following provisions:
i) SUBCONTRACTOR shall carry out the additional, altered or substituted work for similar class
of work at the same rates as specified in the SUBCONTRACT.
ii) In the event of not deriving the rates by the above, the SUBCONTRACTOR shall submit a
detailed analysis of the rates he intends to charge for such class of work, within seven days of
the date of receipt of approval to carry out the WORK, to the CONTRACTOR. The
SUBCONTRACTOR shall determine the rates on the basis of the prevailing market rates for
labor plus 10% to cover overhead and profit of labor rates. CONTRACTOR shall finalize the
rates and the quantum of labor involved per unit of measurement.
ARTICLE 15. EXTENSION OF TIME

15.1 In the event of delay on completion of WORKS, the SUBCONTRACTOR shall notify the
CONTRACTOR in writing before one Month of the period of expiry of the SUBCONTRACT
stating therein in detail, the reasons on which he desires to have an extension and the required
period of extension.
15.2 CONTRACTOR shall evaluate the request of the SUBCONTRACTOR for such extension of time
and shall communicate the decision to the SUBCONTRACTOR before 7 days of expiry of the
SUBCONTRACT. The decision of the CONTRACTOR in this regard shall be final and binding.
15.3 Extension of Time includes the Additional period for completion of WORK however no additional
payment by any means, can be claimed for such period.
ARTICLE 16. TAXES & DUTIES

16.1 SUBCONTRACT PRICE is inclusive of all taxes & duties and levies etc., as per Kingdom of
Saudi Arabia Laws.
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16.2 SUBCONTRACTOR must follow all the rules of TAX, DUTIES AND RELATED OBLIGATION and
submit the latest Tax certificate as required.
ARTICLE 17. FREIGHT AND INSURANCE
17.1 TRANSPORT - SUBCONTRACTOR shall arrange transportation facility from the Source /
accommodation to the PROJECT SITE at their own cost.
17.2 INSURANCE- SUBCONTRACTOR shall arrange necessary transit risk insurance policy for all
inland transport of the MATERIAL / vehicle to the PROJECT SITE. SUBCONTRACTOR shall
ensure that the policy number is clearly indicated in the documents.
ARTICLE 18. DEFECT LIABILITY PERIOD

18.1 SUBCONTRACTOR shall remain responsible and liable to make good all losses or damages that
may occur/appear to the work carried out under this SUBCONTRACT within a period of 12
Months from CONTRACTOR’s Completion date.
18.2 Provided that, with respect to any WORK and/or MATERIAL corrected, repaired or replaced
during such period by reason of a defect, the Defects Liability Period with respect to such
corrected, repaired or replaced WORK and/or MATERIAL shall be a further period of 12 h
18.3 CONTRACTOR shall intimate the defects noticed in writing and SUBCONTRACTOR within 15
days of receipt of the intimation shall start the rectification work and complete within the time
specified by the CONTRACTOR failing which the CONTRACTOR will get the defects rectified by
themselves or by any other SUBCONTRACTOR and the expenses incurred in getting the same
done shall be paid by the SUBCONTRACTOR under the provision of the SUBCONTRACT.
ARTICLE 19. EMPLOYMENT OF LOCAL WORKMEN

19.1 In regard to WORK which are performed within Kingdom of Saudi Arabia [KSA], the
SUBCONTRACTOR shall comply with ARAMCO SAUDIZATION requirements as applicable at
the minimum and maximize the use of local staff and labor. SUBCONTRACTOR shall strictly
comply to SCHEDULE - S and its Attachment [Saudization Terms and Conditions attached
herewith as Annexure 2.1 and Annexure 2.2] and demonstrate this to COMPANY/ EMPLOYER’s
satisfaction. Where it is necessary for the SUBCONTRACTOR to import personnel, the
SUBCONTRACTOR must ensure that these personnel are provided with the required visas and
work permits. SUBCONTRACTOR may bring into KSA any foreign personnel who are necessary
for the execution of the Works to the extent allowed by the applicable Laws.
The SUBCONTRACTOR shall be responsible for returning such personnel to the place where
they were recruited or to their country of domicile. In the event of death in the Country of any of
these personnel or members of their families, the SUBCONTRACTOR shall similarly be
responsible for making the appropriate arrangements for their return for burial to their country of
domicile. The SUBCONTRACTOR shall at all times comply with the Laws of the Country in
respect of using foreign staff, and labor
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ARTICLE 20. ADDITIONAL WORKS/ EXTRA WORKS

20.1 CONTRACTOR reserves the right to execute any additional works/ extra works, during the
execution of work, either by themselves or by appointing any other SUBCONTRACTOR, even
though such works are incidental to and necessary for the completion of works awarded to the
SUBCONTRACTOR. In the event of such decisions taken by CONTRACTOR,
SUBCONTRACTOR is required to extend necessary cooperation, and act as per the instructions
of ENGINEER-IN-CHARGE. This is without prejudice to the rights of the CONTRACTOR to get
the additional works/ extra works executed by the SUBCONTRACTOR.
ARTICLE 21. PROGRESS REPORTS

21.1 SUBCONTRACTOR shall submit daily/weekly and monthly progress reports both for Supplies,
execution works, resources and Saudization as instructed by ENGINEER-IN-CHARGE.
21.2 All the reports should be in a standard format as required by the CONTRACTOR.
ARTICLE 22. COMPLETION OF WORK AND COMPLETION CERTIFICATE

22.1 Upon successful completion of WORK as per the SUBCONTRACT, the SUBCONTRACTOR shall
give notice of such completion to the CONTRACTOR and within thirty (30) days of receipt of such
notice the CONTRACTOR shall inspect the work and shall furnish the SUBCONTRACTOR with a
certificate of completion indicating:
a) Defects, if any, to be rectified by the SUBCONTRACTOR
b) Items, if any, for which payment shall be made in reduced rates
c) Final reconciled statement of quantity with measurement sheet.
d) Final reconciled statement of CONTRACTOR’s MATERIAL.
e) The Date of Completion.
ARTICLE 23. MATERIAL RECONCILIATION AND RETURN OF UNUSED MATERIAL

23.1 SUBCONTRACTOR shall submit MATERIAL reconciliation statement periodically i.e. on monthly
basis for all CONTRACTOR’s supplied MATERIAL for dully review and certification by
CONTRACTOR.
23.2 All unused/scrap materials shall be the property of the CONTRACTOR and shall be returned in
good and acceptable condition size wise, category wise by the SUBCONTRACTOR at his own
cost to CONTRACTOR's designated area.
23.3 In case, SUBCONTRACTOR fails to return unused/ scrap materials, then recovery for such
quantity of materials, not returned by the SUBCONTRACTOR shall be affected at following penal
rates from the SUBCONTRACTOR's bills or from any other dues of the SUBCONTRACTOR to the
CONTRACTOR. SUBCONTRACTOR shall make his own arrangements for weighing the off cuts
to be returned to CONTRACTOR's stores.
Following Penal Rates applicable for non-return of materials:
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Sl. No. Material Penal Rates

Penal rate for non-return of Issue Rate + 25% or Landed Rate + 25% (in case issue
a)
accountable scrap rate are not indicated in the SUBCONTRACT)
Penal rates for non-return of Twice the Issue Rates or Twice the Landed Rates
b) Unused material/ excess (In case Issue Rates are not indicated in the
scrap SUBCONTRACT)
NOTE:
a. Landed Rate shall be arrived from the latest Purchase Order of respective material on the date of
issuance of material at site by the CONTRACTOR.
b. In case different penal rates have been indicated in the SUBCONTRACT (based on Project
requirement), the same will supersede the above rates.
23.4 Wastage Margin / Allowances / Norms for Piping
The scrap allowance for pipes shall be 3% (2.5% accountable + 0.5% non-accountable) of the
actual consumption as incorporated in the WORK. All pipes in length of 1 meter and above shall be
considered as serviceable material provided the material is in good and acceptable condition and
has clear identification and traceability (Manufacturer's name, heat number/batch number and test
certificates). Pipes in lengths less than 1 meter shall be treated as scrap. There is no any scrap/
surplus allowance for fittings, flanges and Valves.
23.5 Wastage Margin / Allowances / Norms for E&I
Cables: All cables shall be issued in available Meters. Cables shall be issued on cable drum. The
scrap allowance for cables issued by the subcontractor shall be 3% (2.5% accountable + 0.5% non-
accountable) of the actual consumption as incorporated in the works.
Tray/Earth Strip/Gland: All tray/Gland shall be issued in available Numbers/Meters. Tray /Glands
shall be issued on linear measurement basis. The scrap allowance for tray/earth strips/Glands
issued by the subcontractor shall be 3% (2.5% accountable + 0.5% non-accountable) of the actual
consumption as incorporated in the works.
23.5 Wastage Margin / Allowances / Norms for Structure Steel
The allowance for structural steel shall be total 3% (2.5% accountable and returnable and 0.5%
unaccountable) of the actual consumption as incorporated in the works. Structural steel except M.S.
Plates in length of 2 meters and above shall be considered as serviceable materials provided the
material is in good and acceptable condition. Structural steel section except M.S. Plates in lengths
less than 2 meter shall be treated as scrap.
For the purpose of accounting of the plates, all plates measuring not less than 1 Sqm in area and
having any dimensions not less than 200mm when returned to CONTRACTOR, will be considered
as serviceable material. All other pieces will be treated as wastage/scrap.
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ARTICLE 24. PROJECT CORRESPONDENCE

24.1 All notices and other communication which are required or may be given under this
SUBCONTRACT shall be established as per the CONTRACTOR’s documentation process. Any
notice or other communication to or by a Party to this SUBCONTRACT shall be in writing, legible
and in English and sent to the person and address specified below and copied to such other office
or offices of the Parties as is nominated from time to time in writing by one Party to the other.
Address for Communication of Contractor:

L&T Hydrocarbon Saudi Company
a) Attention : XXXXX
b) Telephone : XXXXX
c) E-mail : XXXXX
d) Address : XXXXX
Address for Communication of Subcontractor

XXXXXX
a) Attention : XXXX
b) Telephone : XXXX
c) E-mail : XXXX
d) Address : XXXX
All communications shall be signed by the Party’s authorized representative or deputy of the
sender and delivered in person, by registered mail or courier, email or facsimiles and shall be
immediately followed by delivery of originals.
--------------------------------------- ---------------------------------------
For L&T Hydrocarbon Saudi Company For SUBCONTRACTOR
Page 13 of 13
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Annexure - 3 Subcontract Terms and Conditions

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Annexure - 3 Subcontract Terms and Conditions

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PROJECT NAME: GAS COMPRESSION PLANTS (GCPs) – PACKAGE 1, AL JAFURA,

KINGDOM OF SAUDI ARABIA

BIDDING DOCUMENT NO.: EI-02-22

EMPLOYER : SAUDI ARAMCO

PROJECT : GAS COMPRESSION PLANTS (GCPs) – PACKAGE 1,

LOCATION : Al Jafurah, KINGDOM OF SAUDI ARABIA

CONTRACTOR : L&T HYDROCARBON SAUDI COMPANY, KSA [LTHSC]

REQUEST FOR QUOTE (RFQ)

00 19-09-22 Issued for Quote SP SVN PMR

Rev DD-MM-YY DESCRIPTION PREPARED BY REVIEWED BY APPROVED BY

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 1. SCOPE OF WORK .......................................................................................................... 3

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 1. SCOPE OF WORK

10. ANNEXURE - 10 SPECIAL CONDITIONS FOR PAYMENT

BIDDING DOCUMENT NO.: EI-02-22

10.3. ANNEXURE - 10.3 FORM OF PERFORMANCE BOND

ARTICLE 2. COMMENCEMENT OF WORK & TIME SCHEDULE

a) the EMPLOYER gives consent; or

BIDDING DOCUMENT NO.: EI-02-22

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 4. PAYMENT TERMS

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 5. RETENTION MONEY

ARTICLE 6. PERFORMANCE BOND

ARTICLE 7. LIQUIDATED DAMAGES [LD]

ARTICLE 8. INVOICING OF WORKS

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 9. PAYMENT OF SUBCONTRACTOR's INVOICES

ARTICLE 11. FINAL INVOICE / BILL

ARTICLE 12. INVOICE SUPPORTING DOCUMENTS

ARTICLE 13. VARIATION IN QUANTITES

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 14. ALTERATIONS AND ADDITIONS TO SPECIFICATIONS

ARTICLE 15. EXTENSION OF TIME

ARTICLE 16. TAXES & DUTIES

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 18. DEFECT LIABILITY PERIOD

ARTICLE 19. EMPLOYMENT OF LOCAL WORKMEN

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 20. ADDITIONAL WORKS/ EXTRA WORKS

ARTICLE 21. PROGRESS REPORTS

ARTICLE 22. COMPLETION OF WORK AND COMPLETION CERTIFICATE

ARTICLE 23. MATERIAL RECONCILIATION AND RETURN OF UNUSED MATERIAL

Following Penal Rates applicable for non-return of materials:

BIDDING DOCUMENT NO.: EI-02-22

Sl. No. Material Penal Rates

23.4 Wastage Margin / Allowances / Norms for Piping

23.5 Wastage Margin / Allowances / Norms for E&I

23.5 Wastage Margin / Allowances / Norms for Structure Steel

BIDDING DOCUMENT NO.: EI-02-22

ARTICLE 24. PROJECT CORRESPONDENCE

Address for Communication of Contractor:

Address for Communication of Subcontractor

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