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SC-5 Contractor - Furnished Materials And Equipment



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SC-5 Contractor - Furnished Materials And Equipment


Contractor shall furnish to Subcontractor, at Contractor’s designated warehouse or Jobsite storage area, the items listed below to be incorporated into or used in performance of the Work under this Subcontract or a designated area agreed with Subcontractor. Such items shall be furnished, without cost to Subcontractor, provided that Subcontractor shall, at its expense, prepare a material request, load at Contractor’s warehouse or Jobsite storage location, transport to points of use, unload and care for such items until final disposition thereof. At time of acceptance of any such item from Contractor, Subcontractor shall sign a receipt therefore. Signing of such receipt without reservation therein shall preclude any subsequent claim by Subcontractor that any such items are received from Contractor in a damaged condition and with shortages. If at any time after acceptance of any such item from Contractor any such item is damaged, lost, stolen or destroyed, such item shall be repaired or replaced at the expense of Subcontractor. Items required to be replaced may, at its option, be furnished by Contractor. Upon completion of all the Work under this Subcontract, Subcontractor shall, at its expense, return all surplus and unused items to Contractor's designated warehouse or Jobsite storage area.
Contractor shall exert every reasonable effort to make delivery of such materials and equipment so as to avoid delay in the progress of the Work. However, should Contractor, for any reason, fail to make delivery of any such item and a delay result the provisions of the General Condition titled "Changes" apply. Subcontractor shall take all appropriate action to mitigate the consequences of such delay.

Materials to be furnished by Contractor:

None

SC-6 Contractor-Furnished Permits


The General Condition titled "Permits" notwithstanding, Contractor shall without cost to Subcontractor, furnish the permits listed below; however, Subcontractor shall, as necessary, provide Contractor and Owner with assistance in obtaining such permits. Subcontractor shall, in accordance with said General Condition titled "Permits," provide all other permits. All such Contractor-furnished permits are available for examination at the project office of Contractor during regular business hours.
Permits to be furnished by Contractor:

One


SC-7 Subcontractor-Furnished Drawings, Data And Samples


Contractor review and permission to proceed does not constitute acceptance or approval of submittals including, but not limited to, design details, calculations, analyses, test methods, construction methods, rigging plans, certificates or materials developed or selected by Subcontractor and does not relieve Subcontractor from full compliance with the Subcontract requirements.

Drawings


Where drawings are required for:

Fabrication of Subcontractor-furnished equipment or materials,

Installing Subcontractor‑furnished equipment or materials, or

Planning and performance of the Work under this Subcontract;

such drawings shall be submitted by and at the expense of Subcontractor before fabrication, installation or performance is commenced, allowing at least thirty (30) calendar days for review by Contractor unless otherwise shown on the Subcontract Schedule. Such drawings shall include, but not be limited to, matchmarks, erection diagrams and other details, such as field connections for proper installation, erection of equipment or materials, and performance of the Work.

Drawings of a specific piece of equipment shall identify components with the manufacturer's part number or reference drawing number clearly indicated. If reference drawing numbers are used, the review data of such drawings shall be included.

Drawings shall indicate design dimensions, maximum and minimum allowable operating tolerances on all major wear fits, e.g., rotating, reciprocating or intermittent sliding fits between shafts or stems and seals, guides and pivot pins. The sequence of submission of all drawings shall be such that all information is available for reviewing each drawing when it is received.

All drawings submitted by Subcontractor shall be certified by Subcontractor to be correct, shall show the Subcontract number and shall be furnished in accordance with the Subcontract Drawings and Data Requirements Form(s). Contractor shall conduct a review of Subcontractor's drawings and a reproducible drawing marked with one of the following codes shall be returned to Subcontractor.

Code Notation

1. Work may proceed.

2. Revise and Resubmit. Work may proceed subject to resolution of indicated comments.

3. Revise and Resubmit. Work may not proceed.

4. Review not required. Work may proceed.

Although work may proceed on receipt of a drawing with a Code 2 notation, Subcontractor must resolve the comments indicated, resubmit and obtain a Code 1 notation before release for shipment or completion of the affected work.

Samples

Where samples are required, they shall be submitted by and at the expense of Subcontractor. Such submittals shall be made not less than thirty (30) calendar days prior to the time that the materials represented by such samples are needed for incorporation into the Work. Samples shall be subject to review and materials represented by such samples shall not be manufactured, delivered to the Jobsite or incorporated into the Work without such review.



Each sample shall bear a label showing Subcontractor's name, Project name, Subcontract number, name of the item, manufacturer's name, brand name, model number, supplier's name, and reference to the appropriate drawing number, technical specification section and paragraph number, all as applicable.

Samples which have been reviewed may, at Contractor's option, be returned to Subcontractor for incorporation into the Work.

Certificates and Data

Where certificates are required, four (4) copies of each such certificate shall be submitted by and at the expense of Subcontractor. Such submittal shall be made not less than thirty (30) calendar days prior to the time that the materials represented by such certificates are needed for incorporation into the Work. Certificates shall be subject to review and material represented by such certificates shall not be fabricated, delivered to the Jobsite or incorporated into the Work without such review.

Certificates shall clearly identify the material being certified and shall include but not be limited to providing the following information: Subcontractor's name, Project name, Subcontract number, name of the item, manufacturer's name, and reference to the appropriate drawing, technical specification section and paragraph number, all as applicable.

All other data shall be submitted as required by the Subcontract Documents.

As-Built Drawings and Specifications

Drawings:

Progress As-Builts. During construction, Subcontractor shall keep a marked-up-to-date set of as-built blueline drawings on the Jobsite as an accurate record of all deviations between work as shown and work as installed. These drawings shall be available to Contractor and Owner for inspection at any time during regular business hours.

Final As-Builts. Subcontractor shall at its expense and not later than thirty (30) calendar days after Final Acceptance and before Final Payment furnish to Contractor a complete set of marked-up as-built reproducible drawings with "As-Built" clearly printed on each sheet. Subcontractor shall accurately and neatly transfer all deviations from progress as-builts to final as-builts. As-built drawings shall be provided where specified and as required to reflect as-built conditions.

Specifications:

Progress As-Builts. During construction, Subcontractor shall keep a marked-up-to-date set of as-built specifications on the Jobsite annotated to clearly indicate all substitutions that are incorporated into the Work. Where selection of more than one product is specified, annotation shall show which product was installed. These specifications shall be available to Contractor and Owner for inspection at any time during regular business hours.

Final As-Builts. Subcontractor shall at its expense and not later than thirty (30) calendar days after Final Acceptance and before Final Payment furnish to Contractor a complete set of marked-up as-built specifications with "As-Built" clearly printed on the cover. Subcontractor shall accurately and neatly transfer all annotations from progress as-builts to final as-builts.

Endorsement:

Subcontractor shall sign each final as-built drawing and the cover of the as-built specifications and shall note thereon that the recording of deviations and annotations is complete and accurate.


SC-8 Commencement, Progress and Completion Of The Work


Subcontractor shall carry out the Work with due diligence in accordance with good practices and standards of workmanship in order to meet the key dates detailed in the Schedule.

Subcontractor shall complete the Work under the Subcontract to meet the following Subcontract Milestone dates. As provided in this SC-8, Handover means “Complete all Work, including all mechanical completion, testing and commissioning activities, provide all technical assistance and training, deliver all documentation (including O&M Manuals), bring into operational use and handover to Contractor“

Subcontractor shall give Contractor full information in advance as to its plans for performing each part of the Work. If at any time, Subcontractor's actual progress is inadequate to meet the requirements of this Subcontract, Contractor may notify Subcontractor to take such steps as may be necessary to improve its progress. If, within a reasonable period as determined by Contractor, Subcontractor does not improve performance to meet the Subcontract Milestones set forth above, Contractor may require an increase in Subcontractor's labor force, the number of shifts, overtime operations, additional days of work per week, expedited shipment(s) of equipment and materials, and an increase in the amount of construction plant and equipment, all without additional cost to Contractor. Neither such notice nor Contractor's failure to issue such notice shall relieve Subcontractor of its obligation to achieve the quality of work and rate of progress required by this Subcontract.
Noncompliance with Contractor's instructions shall be grounds for Contractor's determination that Subcontractor is not prosecuting the Work with such diligence as shall assure completion within the times specified. Upon such determination, Contractor may terminate this Subcontract pursuant to the General Condition titled "Termination For Default."
Subject to the warranties which survive the warranty period, the Work shall be considered complete upon issuance to Subcontractor by Contractor of the Final Acceptance Certificate.


SC-9 Subcontract Schedules


Subcontractor shall within ten (10) calendar days of subcontract award submit for Contractors written approval a 30/90 day kick off schedule.

The schedule shall clearly show all activities in detail, including start and completion of mobilisation and discreet work elements and work element interrelationships necessary to complete all services and separable parts for a period of ninety (90) calendar days following the subcontract award / notice to proceed. In addition the schedule shall show in summary, the proposed plan and approach for performance of all major subdivisions of work during the entire contract period. It shall contain sufficient detail to assure Contractor of the feasibility of the plan and approach proposed by Subcontrator.

Level of detail required;

Tasks in the 90 day schedule should be sufficiently detailed to describe activities that include but not limited to, the following:

Mobilisation

Construction and installation of any temporary works

Issue of any technical deliverables required by Contractor

Required permitting activities

Approvals required by Subcontractor from Contractor

Early activities required for material purchases

Provision of such financial instruments as may be required by the agreement

Provision of such insurance documents that may be required by the agreement

Issue of the Subcontract schedule

Issue of progress measurement / reporting procedure


Subcontractor shall, within thirty (30) calendar days of Subcontract award and before the first progress payment is made, submit to Contractor for its written approval a Subcontract Schedule. The schedule shall consist of a precedence network diagram using the critical path method (CPM) to show each individual essential activity in sequence to meet the Subcontract Milestones of the Special Condition titled "Commencement, Progress And Completion Of The Work." The diagram shall show durations and dependencies including contractual review periods, permitting activities and off-Jobsite activities such as design, fabrication of equipment, procurement, delivery of materials, and items to be furnished by Contractor. It shall show total float and free-float times. Float shall not be considered to be for the exclusive benefit of either Contractor or Subcontractor. Extensions of time for performance required under other Subcontract clauses shall be made only to the extent that equitable time adjustments for affected activities exceed the total float available along their paths.
The activity listing shall show the following information for each activity on the diagram:

Identification by node number;

Description of the task or event;

Duration;

Personnel by craft;

Equipment;

Earliest start and finish dates; and

Latest start and finish dates.


In addition Subcontractor shall submit a complementary and detailed narrative description of its plan for performing the Work. The narrative description shall summarize equipment and personnel requirements by craft to complete a resource loaded schedule, and provide other schedule assumptions such as planned work week, shift patterns, permitting, deliverable times required by Contractor, and any other salient points related to the methods to be employed in completing the work.
The planned progress that is envisaged from the plan shall be described by way of a series of “S” curves related to progress for Overall Subcontract, Procurement and Construction activities, calculated using the procedure and methodology described in SC -14.
Subcontractor shall promptly inform Contractor of any proposed change in the schedule and narrative and shall furnish Contractor with a revised schedule and narrative within ten (10) calendar days after approval by Contractor of such change. The schedule and narrative shall be kept up to date, taking into account the actual work progress and shall be revised, if necessary, every thirty (30) calendar days. The revised schedule and narrative shall, as determined by Contractor, be sufficient to meet the requirements for completion of any separable part and all of the Work as set forth in this Subcontract.
During the performance of the Work, Subcontractor shall submit to Contractor periodic reports on the actual progress. Such progress reports shall include the following:

Monthly A copy of the Subcontract Schedule showing actual progress to date overall and for the major parts of the Work, as compared to planned progress. To be provided on every last Thursday of the month

Monthly A jobhour comparison by craft of actual versus planned staffing;

Weekly A three-week look-ahead personnel forecast by craft. Variation from approved schedules and plans shall be noted and rationalized;

Weekly A rolling four-week schedule showing one week actual progress and a three-week look-ahead forecast. Variation from approved schedules and plans shall be noted and rationalized;

Weekly A weekly report of quantities installed versus total quantities on items of the Work selected by Contractor;

Weekly A weekly report of labor productivity comparing actual versus planned jobhours on items of the Work selected by Contractor. Variation from approved schedules and plans shall be noted and rationalized;

Daily A daily force report listing all personnel by craft and work assignment; and

Daily A daily plant and equipment report showing the construction facilities and plant and equipment utilized in the Work.

As required Other reports as may be required by Contractor from time to time to satisfy itself that work is progressing as planned in the appropriate manner.

Schedules and reports shall be furnished in hardcopy and/or electronic files as specified by Contractor. To permit electronic exchange of schedule data to the greatest extent possible Subcontractor shall use Primavera P3TM scheduling software version 3.1 Contractor may provide coding structure to Subcontractor for development of schedule. Where applicable the MS suite of software may be used.

SC-10 Temporary Access and Haul Roads


Subcontractor shall, at its expense, construct and maintain temporary access and haul roads as may be necessary, including any hard standings and provision of adequate temporary bridging of pipe and cable tracks for the proper performance of this Subcontract. Subcontractor shall submit a layout of all proposed roads prior to road construction. The layout shall show widths of roads, direction of traffic, curves, grades and related information in sufficient detail for review by Contractor. Roads constructed on Contractor’s or Owner's land or rights-of-way shall be subject to Contractor’s and/or Owner’s approval.
All Temporary Works shall be properly designed and substantially constructed to carry such loads as shall be imposed on them. Subcontractor shall submit for the approval of Owner and/or Contractor its drawings and calculations relating to the strength and stability of any Temporary Works as well as the methods proposed for the erection thereof. If the Owner and/or Contractor upon receipt of such drawings and calculations is not satisfied with any aspect of the Temporary Works, they may require the Subcontractor to take additional measures at the Subcontractor’s own cost.
All Temporary Works supplied by Subcontractor shall be removed on completion of the Work to Contractor’s satisfaction.

SC-11 Safety, Health and Security Requirements


In the development and implementation of its Health, Safety and Environment Plan (HSE Plan) and performance of the Work, Subcontractor shall conform and comply with Contractor’s “Health, Safety And Enviromental Standards” .
In performance of the Work under this Subcontract, Subcontractor shall establish and maintain a security program, implementing and supplementing Project security requirements. This shall include a written Security Plan which shall be submitted to Contractor for review and approval within thirty (30) calendar days after Subcontract award and in any event prior to commencing work at the Jobsite. Such program shall include:

Controlled access to office, warehouse, material and equipment sites.

Physical security of office, warehouse, material and equipment sites, to include periodic security checks of all work areas assigned to Subcontractor.

Control of material and equipment packaging, transportation, and delivery to the Jobsite.


Accountability procedures for storage, requisition and issue of material and equipment.
Personnel security to include, but not limited to, compliance with Project work rules (access, badging, prohibited activities and items, etc.)
Communications security to include, but not limited to, use of radios, radio finders, beacons, etc.
Compliance with the Project Emergency Response Plan to include, but not limited to, emergency notification lists, personnel accountability procedures, etc.

Compliance with all Project security programs and the coordination measures, with Contractor, Owner and others on the Jobsite, established for that purpose.



Prompt reporting of incidents of loss, theft or vandalism to CONTRACTOR, subsequently detailed and provided in writing.
Subcontractor’s Security Plan shall be added as an appendix to its Project HSE Plan.
Subcontractor shall ensure that all manual/non manual personnel on Jobsite, whether direct or indirect are issued with safety personal protection items to a minimum of hard hat, safety shoes, overalls, ear plugs and safety glasses to a quality as defined in the Project Safety Procedure and acceptable to Contractor. High Visibility vests shall also be provided, for any personnel working in the vicinity of moving or unloading vehicles, or near to lifting and handling of heavy loads, or working in low light conditions. Any personnel without the minimum foregoing shall not be allowed access to the Jobsite. In the event of Subcontractor’s failure to comply with the foregoing requirements, Contractor shall furnish the necessary personal protection items and backcharge Subcontractor under Exhibit ‘A’, General Conditions, GC-36, titled ’Backcharges’
Subcontractor shall strictly ensure the availability on the Jobsite, throughout the duration of the Subcontract, adequate supplies of good quality chilled potable water for all Subcontractor’s personnel. Contractor reserves the right, at Subcontractor’s expense, to have potable water samples analysed and certified fit for consumption. In the event of Subcontractor failure to comply with the foregoing requirements, Contractor shall furnish the necessary chilled potable water and means of distribution, and backcharge Subcontractor under Exhibit ‘A’, General Conditions, GC-36, titled ’backcharges’
Safety and Security of Owner’s Existing Facilities
The safety of the Existing Facities, their uninterrupted operation and safe and unhindered access thereto by Owner and its Affiliates, shall be of paramount importance in relation to Subcontractor’s performance of the Work.
With regard to any part of the Work requiring inter-ties or inter-faces with Existing Facilities, to the extent that it directly affects the Existing Facilities, or requires access to the Existing Facilities, determination of the sequence of performance of the Work, working practices, number of Subcontractor’s personnel admitted to the Existing Facilities and issuance of work permits therefore shall be subject to the prior examination and approval of Owner or the relevant authority.
Subcontractor’s safety personnel shall assist Owner And Contractor to determine safety levels/requirements for such any activities within the Existing Facilities but the final decision shall rest with Owner.


SC-12 Explosives


Explosives shall be transported to the Jobsite only when required to perform the Work under this Subcontract and with prior notice to and written approval of Contractor. Subcontractor shall be responsible for properly purchasing, transporting, storing, safeguarding, handling and using explosives required to perform the Work under this Subcontract. Subcontractor shall employ competent and qualified personnel for the use of explosives and, notwithstanding any other provision in the Subcontract to the contrary, shall assume full responsibilities for the cost of any incidental or consequential damages caused by the improper use of explosives. Residual surplus explosives shall be promptly removed from the Jobsite and properly disposed of by Subcontractor.

SC-13 Performance and Payment Securities


Unless expressly waived by Contractor, Subcontractor shall, within ten (10) calendar days after subcontract award and prior to commencing the Work or entering the Jobsite, furnish to Contractor the following securities:

1. Subcontractor hereby agrees to provide to Contractor, within Ten (10) days of the coming into force of this Subcontract, an unconditional and irrevocable first demand Performance Bank Guarantee in the form set out herein and in the amounts provided for below. Such Performance Bank Guarantee, the cost of which is deemed to be included in the subcontract price, shall be to secure Subcontractor’s obligations under this Subcontract notwithstanding any Changes, alterations or extensions of time that may be given or agreed upon.


The Performance Bank Guarantee shall remain valid until settlement of all issues between the Parties following termination of this Subcontract, pursuant to the provisions hereof or until issuance of the Notice of Final Acceptance (excluding painting works), by Contractor whichever is the earlier. The Performance Bank Guarantee shall be provided by a bank registered in national or a prime international bank, nominated by Subcontractor and approved by Contractor.
The Performance Bank Guarantee shall be in the currency of US Dollars and equivalent to ten percent (10%) of the subcontract price. The value of the Performance Bank Guarantee shall be increased or decreased in steps of ten percent (10%) each time the subcontract price is increased or decreased by an amount equal to ten percent (10%) of the original subcontract price.
The value of the Performance Bank Guarantee shall be reduced to fifty percent (50%) of its then current value upon issuance of the Notice of Provisional Acceptance last issued.
Prior to the issuance of the Notice of Final Acceptance (excluding painting works) and with specific reference to the extended painting warranty provisions as described in the General Condition entitled “Warranty”, Subcontractor shall automatically provide an unconditional and irrevocable first demand Performance Bank Guarantee modified with reference to the specified painting works, from a bank registered in national or a prime international bank and approved by Contractor. The value of the subject Bank Guarantee shall be a sum equal to five percent (5%) of the estimated value of painting works (such value to be agreed between both Parties prior to issuance of the last Notice of Provisional Acceptance) and shall remain valid for the duration of the warranty period for the painting works.
Contractor may make a claim on the Performance Bank Guarantee in respect of any breach of contract or liability of Subcontractor whatsoever arising under the Subcontract including without limitation and for the avoidance of doubt any breach of Warranty or failure to comply with the requirements of the General Condition entitled “Warranty”. Contractor in making any such claim shall not be obliged to notify Subcontractor specifying the default of Subcontractor upon which it bases its claim. Contractor shall on making any claim under the Performance Bank Guarantee comply with the requirements and procedures stated in the Performance Bank Guarantee.
In the event that the Performance Bank Guarantee has an expiry date that shall expire prior to the expiry of the relevant periods referred to in this Special Condition, Subcontractor shall procure that a prime international bank approved by Contractor shall, prior to the date falling thirty (30) days before the expiry of the Performance Bank Guarantee, have extended or provided a replacement Performance Bank Guarantee in an amount equal to the Performance Bank Guarantee to take effect at least twenty one (21) days prior to the expiry of the Performance Bank Guarantee being replaced.
In the event that Subcontractor fails to extend or replace the Performance Bank Guarantee or Subcontractor fails to renew or reinstate the Performance Bank Guarantee in the stated amount to be maintained, Contractor shall be entitled

to :-


make any immediate call on the Performance Bank Guarantee up to the full amount thereof ;
retain for its own account from the monies received pursuant to any call any amount which it would have been entitled to demand from time to time under the Performance Bank Guarantee had it been extended or replaced, and
retain the monies received pursuant to i) and ii) above until Subcontractor procures an extension or replacement of the Performance Bank Guarantee or the period for which the Performance Bank guarantee is required to be provided pursuant to the terms of the Subcontract expires.
In the event that the Subcontract allows for payment of an advance payment, then Subcontractor shall be required to provide to Contractor, prior to any advance payment, an advance payment bank guarantee equal to 100% of the advance payment value which shall be unconditional and irrevocable and effective until the full amount of the advance payment is recovered by Contractor.
Such securities shall be issued in a form and by a bank acceptable to Contractor. Subcontractor shall vary the value of such securities as necessary and called for by the issuing bank to equal all subcontract changes made pursuant to the General Condition titled "Changes" including, but not limited to, increase or decrease in scope, value, and schedule acceleration or deceleration.



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