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QHSE Manual

Document Name:

PROCUREMENT PROCEDURE FOR SUB- CONTRACTORS

QHSE Ref. No. IMS/PC/PP/01 Rev. 01

Date: 11Th December 2011

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1.0 PURPOSE

To establish a procedure for procurement, and supply-chain management of Sub-contractor.

2.0 SCOPE

This procedure describes the method used for selection of projects appropriate sub-contractors and procurement of services (placement of order) as per the project requirements.

3.0 DEFINITIONS

“Contractor” means the party identified as the Main contractor in the Sub-Contract Agreement. “Engineer” means the person appointed by the Employer (The Client) to act as the Engineer for the purposes of the Contract, or other person appointed from time to time by the Employer (The Client) and notified to the Contractor. “Sub-Contractor” means the party identified as the Sub-Contractor in the Sub-Contract

Agreement. “Main Contract” means the contract(s) entered into between the Employer and / or others and the

Contractor, particulars of which are available for review at site. “Sub-Contract” means the Sub-Contract Agreement, the Letter of Award, the Letter of Intent, these

Conditions, the Specification, the Drawings, the Schedules, and the further documents (if any) which are listed in the Contract Agreement or in the Letter of Intent.

“Letter of Intent” means the letter of formal acceptance, signed by the Contractor, of the Letter of

Award, including any annexed memoranda comprising agreements between and signed by both Parties. If there is no such letter of Intent, the expression “Letter of Intent” means the Contract Agreement and the date of issuing or receiving the Letter of Intent means the date of signing the Contract Agreement.

“Sub-Contract Works” means the works described in, or reasonably ascertainable from, the

documents specified in the Sub-Contract Agreement. “Works” mean the Sub-Contract Works. “Specification” means the document entitled specification, as included in the Contract, and any additions and modifications to the specification in accordance with the Contract. Such document specifies the Works. “Drawings” means the drawings of the Works, as included in the Contract, and any additional and modified drawings issued by (or on behalf of) the Employer in accordance with the Contract. “Bill of Quantities” and “Daywork Schedule” mean the documents so named (if any) which are comprised in the Schedules. “Provisional Sum” means a sum (if any) which is specified in the Sub-Contract as a provisional sum, for the execution of any part of the Works or for the supply of Plant, Materials or services.

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4.0 RESPONSIBILITY

4.1 The Procurement Department is responsible for procurement of all service (sub-contracts) at the most advantageous terms and conditions, taking into account quality, price and delivery. Sub-contract terms and conditions must be selected from the standard templates available in the QHSE system approved by the Corporate Office.

4.2 Project Managers will be responsible for the preparation of a Procurement Schedule/Plan (IMS/PC/PP/01/01) and will provided a schedule of Sub-contract liabilities to Procurement Department by the 1st of each month

4.3 Procurement Engineer shall verify all the documents received from the site related to quantities

and specifications of material required for the project. Studies Subcontractor material prices as shown in the budget, and recommends substitute materials where in his opinion they would be more advantageous to the project.

Note: -before the 3rd of each month, the Procurement Manager will give feedback of purchased

services for all major ongoing projects to project Managers (Sub-Contract Cost to Complete) for preparing project monthly reports

5.0 PROCEDURE 5.1 Procurement of major Services

Once the contract is awarded, the Procurement Manager will receive the following documents along with Post Tender Handover Documents from Estimation department (see IMS/ES/PTH0/02): -

a) Project Manager Budget b) Bill of Quantities c) List of approved / specified suppliers/manufacturers d) Tender Quotation e) Procurement Schedule/Plan f) Technical Specification

The Project Manager in conjunction with the Procurement Manager will establish the Procurement Schedule/Plan (IMS/PC/PP/01/01) and compare all data with BOQs vs. Cost Sheet.

If the BOQ quantity are in line with Cost sheet the Procurement Engineer shall send inquiries to approved subcontractors

If not: the quantity comparison between BOQ and Cost Sheet need to seek clarification from PM the Procurement Manager shall return back all document to Estimation Manager with comment for variation order.

Before procurement starts, Project manager shall submit a full quantity take off (to be completed within 25% of the entire project duration max) for the required items, so that quotations are sought and budgets are cleared.

The requesting Project Manager shall fill a Sub-Contract Request Form (IMS/PC/PP/01/11).that must be filled with all required information, Clear Scope of Work, Quantities, Specifications attached to its related drawings and sent to Procurement Department Procurement Department needs 15 working days to contact service providers (Sub-contractors), receive quotes, study them, complete the quotation comparison sheet (IMS/PC/PP/01/03)

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Upon receipt of a completed Sub-Contract Request Form (IMS/PC/PP/01/11); The Procurement Engineer will review the required scope vs contract documents, BOQ & PM budget; using Check List Form (IMS/PC/PP/01/12)

If the Scope of Works are in line with above, the Procurement Engineer shall send inquiries to approved subcontractors

If not: the quantity comparison between BOQ and Cost Sheet need to seek clarification from PM the Procurement Manager shall return back all document to PM with comments for variation order.

Procurement engineer will send enquiries against the items required for the job through Enquiry Letter (IMS/ES/PP/01/04) or via email following email enquiry template (IMS/ES/PP/01/14) to one of our approved subcontractors see Approved Subcontractor List (IMS/PC/SE/02/04). The Procurement Engineer has the responsibility to use only Companies from the approved list and shall always notify the Procurement Manager of any new Companies to be added to the Approved List following an interview and completion of a Sub Contractor Evaluation Questionnaire (IMS/PC/PP/01/09). This shall include specified or non specified service providers.

The procurement Engineer shall clarify DSI-PJSC Roles and Conditions to the assigned service Provider

Procurement Engineer will prepare the quotation comparison sheet (IMS/PC/PP/01/03) with three quotations as a minimum; Quotation Comparison Sheet to be reviewed by Procurement Manager & approved by Area General Manager before finalizing it for placement of order. Any selection rather than the cheapest to be justified by the Procurement Manager on the comparison sheet itself

It is the Procurement Manager responsibility to administer the commercial negotiations with sub-contractors in order to achieve the best buying price, in line with PM Budget;

Over Budget Approval Request (IMS/PC/PP/01/06) shall be raised If the item value in PM budget is less than received quotes, reasons to be identified (procurement error, estimation error, variation, design error)

For payment term & STANDARDS CONDITIONS

• Terms & Conditions may vary based on project / company cash flow. Cash Flow should be maintained all the time.

• Any diversions from this guideline you need approval from AGM/ Business Director

Services Type Preferred Payment Method

Terms & Conditions *

Sub-Contract (Major) Supply & Fix

Back-to-back ( Sub – Contract

Terms & Conditions )

Payment Back-to-back within 7 days of receiving money from the client

No Advance Payment unless on back-to-back basis and backed up with a Advance

Bank Guarantee .10% Performance Guarantee must be obtained with validity up to the defects liability period. A proper

contract must be signed. Monthly Payment Certificates must be issued

supported with Invoices from S/C. Retention should be on a Back to Back.

Basis to be released within 7 days of receiving from client / Main Contractor

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Workmanship Contract Apply only Unit rate 30-60 days from the date of approval

invoice

Sub-Contract Labour Only Open Credit

30- 45 days from the date of Approved Invoice.

Labour rate contract agreement must be signed.

Sub-Contract with Design

Major Equipments (if

any) with Indemnity

Insurance & Design

Responsibility & DI Insurance

LC for AED 500 k and above, CDC

any amount below AED 500 K

60-120 days LC A proper contract must be signed.

Payment Certificates must be issued supported with Invoices from S/C.

Performance Bank Guarantee up to the end of defect liability period.

Copy of Professional Indemnity insurance shall be attached with the contract

document.

Consultancy Agreement

Supply of Consultancy (

with PI Insurance)

Rate or Lump Sum

15 – 60 days from the invoice copy of Professional Indemnity Insurance Shall be

attached with Contract Document

Note: The above indicated payment terms might be adjusted as per the actual market conditions and per the specific contract case.

LOI Letter of Intent IMS/PC/PP/01/07 or LOA (IMS/PC/PP/PP/01/13) to be initialed by the Procurement Manager & Issued by Area General Manager for the selected subcontractor subject to client approval Letter of Award Letter of intent (LOI) is acceptance letter prepared by the main contractor and accepted by the subcontractor with stamp and signature subjected to the technical submitted and mock up sample approval by the Client / Consultant. LOA is a letter prepared by the main contractor issued to the subcontractor stated that to precede the works as per submitted offer subjected to the pre-qualification approval by the Client / Consultant.

Note: All the Subcontract Agreement should prepared and reviewed by Contract Administrator.

Procurement Engineer will also negotiate commercial terms with Sub-Contractors in line with the company’s general Sub-Contracts Agreement (IMS/PC/PP/01/08 & IMS/PC/PP/01/05 ) in conjunction with the Project Manager.

5.2. Sub-contract Placement Procedure 5.2.1 The Procurement Manager shall keep an approved list of all sub-contractors and suppliers, this list to be updated regularly and published quarterly to all interested parties.

5.2.2 The approved list of subcontractors and suppliers for each subsidiary company within DSI PJSC shall be sent by the subsidiary company Procurement Manager to the QHSE Manager in the subsidiary company and to the DSI PJSC Corporate QHSE Manager quarterly. 5.2.3 At each stage of the project checking shall be made by the Procurement Manager to ensure

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these procedures are strictly being followed including:

a.) Estimating stage

The estimation Manager has the responsibility to use only Companies from the approved list and shall always notify the Procurement Manager of any new Companies to be added to the Approved List following an interview and completion of the Sub Contractor Evaluation Questionnaire (IMS/PC/PP/01/09). b.) Project Stage

At Project Award, the Project Manager together with Procurement Manager shall have the responsibility to prepare a Procurement Plan/schedule and shall also review the proposed Companies to be used as sub-contractors. Upon undertaking the review if the proposed company is not on the Approved List then the Project Manager shall arrange for the proposed sub-contractor to complete the Questionnaire. c.) Pre-placing the sub-contract

Following approval, the Questionnaire will be signed by the Project Manager and the Procurement Manager prior to placing a sub-contract order the Project Manager and Commercial Manager shall meet with the sub-contractor and complete the sub-contractor Pre-order meeting Agenda Form (IMS/PC/PP/01/10).

d.) Registration of the subcontractor

The Project Manager shall submit the completed Questionnaire to the Procurement Manager for placement on the approved list.

e.) Audit Sub-contractors

The QHSE Manager shall undertake audits sub-contractors as required and shall issue feedback reports to the Project Managers and the Procurement Manager. Subcontractors have to be evaluated on yearly basis using the Form (IMS/PC/PP/01/16).

5.6 Limits of Authority

All purchase orders have to be signed by the authorized personnel as detailed in the Authority Levels Purchase Orders (IMS/PC/PP/01/04) and in line with the authority and limits procedure (IMS/CORP/AL/02) and area authority matrix,

5.7 Subcontractor Replacement

a.) Before terminating the subcontractor the project team should have all necessary information(Refer Subcontractor Replacement Form) in order to replace the another subcontractor for the same activities.

b.) Subcontractor replacement form must reach to the project control department before 15 working days.

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6.0 ATTACHMENTS

Type Name Number / Code Form Procurement Schedule / Plan IMS/PC/PP/01/01 Form Sub-Contract Replacement Form IMS/PC/PP/01/02 Form Quotation Comparison Sheet IMS/PC/PP/01/03Form Authority Levels Purchase Orders IMS/PC/PP/01/04 Form Sub-Contracts Agreement – Supply & Installation IMS/PC/PP/01/05 Form Over Budget Approval Request IMS/PC/PP/01/06 Form Letter of Intent IMS/PC/PP/01/07 Form Sub-Contracts Agreement - Manpower Supply IMS/PC/PP/01/08 Form Sub Contractor Evaluation Questionnaire IMS/PC/PP/01/09Form Pre-order Meeting Agenda Form IMS/PC/PP/01/10 Form Sub-Contract Request Form IMS/PC/PP/01/11 Form Check List IMS/PC/PP/01/12

Template Letter of Award IMS/PC/PP/01/13 Template Fax / Email Enquiry IMS/PC/PP/01/14 Appendix Subcontractor Procurement Procedure IMS/PC/PP/01/15

Form Supplier / Subcontractor Evaluation IMS/PC/PP/01/16

CONTRACTOR: _________________________

PROJECT: ______________________________

Submittal Date

Date Returned C

ode Submittal

DateDate

Returned Cod

e Submittal Date

Date Returned C

ode Submittal

DateDate

Returned Cod

e

1

2

3

4

5

6

7

8

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Document Name:

Procurement Schedule / Plan

QHSE Ref. No.

Date:

IMS/PC/PP/01/01 Rev. 01

Actual Submission

Rev. 0 Rev. 1SUBMITTAL

DATE (PLANNED)

APPROVAL REQ'D BY

(PLANNED)

ORDER DATE

REQ'D ON SITE

MATERIAL SUBMITTAL SCHEDULE

SI No.

MTO TO PROCUREMENT

Actual dateDESCRIPTION

Planned Submission

DELIVERY

MTO TO PROCUREMENT

Planned date

Rev. 2MATERIAL NO.

Updated As Of:

RemarksRev. 3

9

10

11

12

13

14

15

16

17

18

19

STATUS CODE DETAILS - 1 APPROVED, 2 APPROVED WITH COMMENTS, RESUBM'N NOT REQ'D. 2R. APPROVED WITH COMMENTS, RE-SUBMIS'N REQ'D. 3 NOT APRV'D, REVISE AND RESUBMIT. 4. REVIEW NOT REQ'D.

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QHSE Ref. No.

Project Name:Project No:

Ref.No : Date : Location :Project Status :Client :Consultant :

EXISTING SUBCONTRACTOR NAME

SCOPE OF WORKS

DETAILED INFORMATIONQuantities as per Contract:

Executed Quantities:

Remaining Quantities:

Warrantee or Guarantee:

Final Payment Certificate:

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IMS/PC/PP/01/02 Rev.01

Date:

Document Name:

Subcontractor Replacement Form

y

(attach documents, if necessary)RELATED DRAWINGS (Ref.No)

(attach documents, if necessary)SPECIFICATIONS PAGES (Ref. No) (attach documents, if necessary)SUBMISSION DATE REQUIRED

Subcontractor Prequalification:Material/Sample/Mock-Up:

Shopdrawings:Others:

LIKELY DATE FOR COMMENCING THIS ITEM

FINALIZATION REQUIRED ON OR BEFORE DATE

Signatures

NAME SIGNATURE

PROJECT MANAGER

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PERMANENT WORK

TEMPORARY FACILITIES

CAMP

OTHERS

Units Actual Qty Budget Qty Budget price Total

Dhs

Total RemarksUnit Price Remarks Unit Price

Currency

Total

Terms of Delivery

Dhs

Budget Value

TotalRemarks Unit Price

Dhs

Delivery Period

Remarks

Company Name :COST COMPARISON SHEET

Cost Code Description Unit Price

Date

Dhs

Total

Rev.: _______ Project Name: ___________________________

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Document Name: QHSE Ref. No. IMS/PC/PP/01/03 Rev. 01

Quotation Comparison Sheet

Budget Ref:

Prepared by: ____________________ Material/Scope of Work: ______________________

Terms of Payment

Validity

Date/Referencex

A. Total Quoted in Currency Dhs 0.00 Dhs 0.00

A-1 Total Quoted (In Dhs) Dhs 0.00 Dhs 0.00

1. Inland Freight (F.O.B.)

2. Freight (C&F Dubai)

3. Documentation Charges

4. Customs Duty (5%)

5 Clearance Charges

B. Total for Uplift

C. TOTAL IN Dhs Dhs 0.00 Dhs 0.00

OVER BUDGET / COST SAVING TO BUDGET (IN DHS) 0.00

OVER BUDGET / COST SAVING TO BUDGET (IN %) #DIV/0!

RECOMMENDED SUBCONTRACTOR:

Prepared by

Procurement Engineer

Reviewed by Verified by Approved by

Area General ManagerProject Control DepartmentProcurement Manager

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Authority Levels Purchase Orders

QHSE Ref. No. IMS/PC/PP/01/04 Rev.01

Date:

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A) Materials and Equipment Limits

(Dirham) Procurement

Manager Project

Manager Finance Manager

Area Manager Director CEO

Within PM’s Budget Limit

X X X X --------

Above PM’s Budget Limit

X X X X X

* For defined limits- see Company Authorization Matrix (IMS/CORP/AL/02) B) Sub- contract orders/Agreement

Limits (Dirham)

Procurement Manager

Project Manager

Finance Manager


Project Related fixed asset X ------- X X ----------

*For defined limits- see Company Authorization Matrix (IMS/CORP/AL/02) C) Capital expenditure for fixed assets (e.g. computers, printers, fax machines, photocopier, vehicles, furniture, plant & equipment etc.

Limits (Dirham)

Procurement Manager

Project Manager

Dept. Head

Finance Manager


Project Related fixed asset

X X -------- X X

Other than Project Related

X ----------- X X X

Purchase Requisition for fixed asset shall be approved by General Manager / Executive Director and based on this approval Purchase order will be signed by above mentioned persons. * For defined limits- see Company Authorization Matrix (IMS/CORP/AL/02) D) Petty cash / Site Float

Project Manager

Finance Manager

Area Manager

X X X

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Sub-Contractor Agreement Supply & Installation

QHSE Ref. No. IMS/PC/PP/01/05 Rev. 01

Date:

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Subcontract Agreement No.

Project:

Scope of Work:

Subcontract Price:

This AGREEMENT is drawn on the ____ day of (month & year).

BETWEEN Gulf Technical Construction Company LLC P.O. Box No: 66123, Dubai, United Arab Emirates

Tel: +9714 8112400, Fax: +9714 8850967, +9714 8859366 (Hereinafter called “The Contractor”)

AND

M/s Subcontractor company Name

P.O. Box No: ____, Area, Country

Mobile No: _______ Fax No.: ________

Attn: Mr. / Ms. ______________ – (Designation)

(Hereinafter called “The Sub-Contractor”) WHEREAS The Contractor has entered into a Contract (hereinafter called "The Main Contract") with _______________________ (Hereinafter called "The Employer") for the Proposed Construction and Completion of __________________________________________ (Hereinafter called "The Project") as more particularly described in the documents forming part of the Main Contract. WHEREAS The Engineer appointed by the Employer under the General Conditions of the Main Contract is _____________________________ (Hereinafter called "The Engineer"), AND WHEREAS The Subcontractor having been afforded an opportunity to read and note the provisions of the Main Contract (other than details of the Contractor's prices there under), has agreed to execute upon the terms hereafter appearing in the works which are described in schedule Two of this Subcontract Agreement (Hereinafter referred to as "The Subcontract Works") and which form part of the works to be executed under the Main Contract.

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NOW IT IS HEREBY AGREED AS FOLLOWS: 1. MAIN CONTRACT:

a. THIS AGREEMENT is supplemental to the Main Contract which together with all documents referred

to therein are available for inspection by the Sub-Contractor at the Office of the Contractor.

b. PROCEED WITH THE WORKS.

The Sub-Contractor shall proceed with work immediately on signing the Sub-Contract Agreement. The Sub-Contractor will execute and complete the work, including such variations additions and omissions as the Contractor may direct in writing, particulars of which are described in the documents referred to in SCHEDULE THREE hereto, which shall be deemed to be included in and form part of the Agreement. The Sub-Contract works shall be performed by the Sub-Contractor in a thoroughly professional manner to the entire satisfaction of the Contractor, the Engineer and the Employer. The Sub-Contractor shall proceed with the work with due expedition and without any delay.

c. OBLIGATIONS UNDER MAIN CONTRACT.

Save where the provisions of this Sub-Contract otherwise require, the Sub-Contractor shall so execute, complete and maintain the Sub-Contract works such that no act or omission on the part of the Sub-Contractor in relation thereto and in so far as the Sub-Contract works are concerned shall constitute, cause or contribute hereunder all the obligations and liabilities of the Contractor under the Main Contract in relation to the Sub-Contract works. PROVIDED THAT, where the provision of the Main Contract are inconsistent with the express provision of the Sub-Contract Agreement the latter shall prevail. Terms used in the Main Contract shall have similar meaning in the Sub-Contract Agreement unless the context otherwise requires.

2. LABOUR AND EQUIPMENT

a. The Sub-Contractor shall supply and furnish on site all labour, tools, tackle, plant, transport and equipment necessary for the complete and satisfactory performance of this Agreement except such items as the Contractor shall provide as may be referred to in SCHEDULE FIVE hereto. In the event of any loss or damage to such items the Sub-Contractor shall make good such loss or damage at his own expense unless damage is caused by others. The Sub-Contractor shall employ field labour and forces that will cause no conflict or interference with other trades or employees.

b. WRONGFUL USE OF PLANT

The Contractor, Sub-Contractor and their respective servants or agents shall not wrongly use or interfere with the plant, ways, scaffolding, temporary works appliances or other property belonging to or provided by the other, providing that nothing herein contained shall prejudice or limit the right of the Contractor or the Sub-Contractor in the carrying out of their respective statutory duties under this Agreement or under the Main Contract in so far as the Sub-Contract works are concerned.

3. SITE REGULATIONS

The Sub-Contractor shall comply with the site regulations laid down by the Employer or the Contractor in connection with the execution of the Main Contract in so far as the Sub-Contract works are concerned or this Sub-Contract and shall ensure that his employees, Sub-Contractors, suppliers or agents also comply with such regulations.

a. UNSATISFACTORY WORK.

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The Sub-Contractor shall provide sufficient, safe and proper facilities for all items for the inspection of the work by the Contractor, the Employer and the Engineer or their authorized representatives and shall within twenty-four hours after receiving written notice from the Contractor to that effect, proceed to take down all portions of the work, and remove from the building and grounds all material, whether worked, or un-worked, which the Engineer shall condemn as unsound or improper, or as failing in any way to confirm to the plans and specifications and shall make good all works so condemned and all other work of the Contractor or other Sub-Contractors damaged or destroyed in the making good of such condemned work.

b. SAFETY REGULATIONS. It is the responsibility of the Sub-Contractor to comply at all times with the safety regulations laid down

in the Main Contract and adhere strictly to the Contractor's Safety Policy. All Sub-Contractors personnel must wear safety shoes & overalls & hard hats at all times during working hours.

c. RESPONSIBILITY FOR EMPLOYEES.

Subject to the laws and regulations of the UAE, personnel of the Sub-Contractor shall at all times

remain the employees of and under the control of the Sub-Contractor who shall be responsible for the issue of orders, instructions or directions to such employees and also for the enforcement of discipline as reasonably required by the Contractor. Nothing in this clause shall be interpreted as giving any of the employees of the Sub-Contractor any special legal status in the UAE.

d. LIABILITY FOR TAXES AND EMPLOYEES.

The Sub-Contractor shall in respect of this Sub-Contract agreement accept full and exclusive liability for the payment of: i. Taxes of Municipal or other in respect of all his employees employed in connection with the

execution of this Sub-Contract. The Sub-Contractor shall maintain all necessary forms, books and records and shall, when required, produce the same to the Contractor for inspection.

ii. Any and all taxes and benefits which may be imposed by the Government of the UAE and any other

Authority or Authorities in the UAE in respect of the Sub-Contractor's employees.

iii. If the Sub-Contractor shall at any time fail to pay any wages due to his workmen employed on the Sub-Contract works or to pay for in respect of or make allowance for the statutory requirements of the Government of the UAE (including Municipal Authorities) any taxes, charges, fees or other duties payable in respect of such wages, then when the same are due, the Contractor shall be entitled to pay such wages and / or taxes, charges, fees or other duties at the Sub-Contractor's expenses and any monies so expended by the Contractor shall be recoverable from the Sub-Contractor.

e. SITE MEDICAL FACILITIES.

The Sub-Contractor shall be entitled to use such First Aid Facilities on sites as the Contractor may

provide. All other medical facilities will be provided by the Sub-Contractor and the Sub-Contractor should therefore make his own arrangements for provision of all medical requirements.

f. STATUTORY PROVISIONS (UAE).

The Sub-Contractor, his agents and employees shall observe, perform and at all times comply with

any statutory provisions by-laws or regulations so far as the same are applicable to the Sub-Contractor works in the country in which the Sub-Contractor resides and carries on business and in the UAE.

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g. SUB-CONTRACTOR'S ENGINEER / AGENT.

The Sub-Contractor shall keep upon the works requirements a competent Project Manager and Site Engineer and any instructions given to either of them by the Contractor shall be deemed to have been issued to the Sub-Contractor. The qualifications and credentials of these two officers shall be a subject of approval by the Employer.

h. HOURS OF WORK.

The Contractor shall establish the hours of work and rest periods on site and the Sub-Contractor shall

ensure that his employees on site follow such hours of works and take such rest periods as will afford maximum cooperation with the Sub-Contract works, provided always that the UAE Labour Laws are respected.

i. REMOVAL OF PLANT AND MANPOWER.

The Contractor shall at his discretion order the removal from the site of any of the Sub-Contractor's

plant, staff or labour, which the Contractor considers to be unsuitable for the task to be performed.

4. SUB-CONTRACTOR'S RESPONSIBILITY.

The Sub-Contractor accepts full responsibility for the efficiency of the Sub-Contract works and any part thereof and without prejudice to the generality of the foregoing, the Sub-Contractor shall ensure that the Sub-Contract works and any part thereof will comply with the design requirements as referred to in SCHEDULE TWO hereto. This must include the following:

a. Reviewing the design for the purpose of satisfying him that the design, installation and the equipment used are adequate for intended purpose.

b. The Sub-Contractor will be responsible for the total handing over of his works in a complete manner. c. Ensuring that the Sub-Contract works will function correctly at the project site as per Employers

requirements and maintain the safety. d. Ensuring that the Sub-Contract works comprises of component parts in accordance with the

specification, conditions and terms of the Agreement and the Main Contract. If not so specified, conditioned or termed, such parts shall be of the best available quality.

5. COMMENCING THE SUB-CONTRACT.

a. The Sub-Contractor shall commence the Sub-Contract work forthwith and shall proceed to execute

and complete the Sub-Contract works in a thorough and workmanlike manner to the entire satisfaction of the Contractor, the Engineer and the Employer by the date or within the period specified in SCHEDULE FOUR hereto.

b. MAINTAINING PROGRESS.

If, in the opinion of the Contractor and/or the Engineer reasonable progress in the performance of the Sub-Contract works is not being maintained, the Contractor shall issue written notification to the Sub-Contractor specifying and detailing the problems, the Sub-Contractor shall take all measures and steps to expedite to comply with the Sub-Contract Time of Completion and Sub-Contractor Construction Programme. The Sub-Contractor shall not be entitled to any addition payment or claim for taking such measures and steps. If, as a result of any notice given by the Contractor under this Clause, the Sub-Contractor considers that it is necessary to do any work at night and/or works extra shifts and/or works on locally recognised days of rest, the Sub-Contractor shall seek the consent of the

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Contractor to do so. Provided that if any steps, taken by the Sub-Contractor in meeting his obligations under this Clause, involve the Employer, Contractor and/or Engineer in additional supervision costs or any other costs, such costs shall be back charged to the Sub-Contractor account. However, should the Sub-Contractor fails to comply accordingly within 7 days of receiving such notification, the Contractor may (without prejudice to his right to terminate the Agreement under Clause 25 of this Agreement) accelerate the progress of the Sub-Contract works upon giving written notice to the Sub-Contractor by the employment of the Contractor's own labour or of other Contractors and any additional expenses so incurred by the Contractor shall be recoverable from the Sub-Contractor.

c. The Contractor may decide at its absolute and unfettered discretion to instruct the Sub-Contractor to

omit any parts of the sub-Contract Works and to appoint other Sub-Contractors to carry out such omitted works and the Sub-Contractor has no objection to such omission. The Contractor and the Sub-Contractor agree to implement such omission under the Sub-Contract. The Sub-Contractor shall not be entitled to claim any loss of revenue and/or loss of profit and /or any other losses arising from and/or in connection with such omission of works pertaining to the Subcontract Works under this clause.

6. PROGRAMME.

a. Within 7 days after signing of the Sub-Contract, the Sub-Contractor shall produce in the format required a programme for agreement with the Contractor detailing how the Sub-Contract works will be constructed within the dates stated in SCHEDULE FOUR hereto.

b. It shall be the duty of the Sub-Contractor to ensure that the Sub-Contract works are carried out and

completed within the period’s specified in the programme and in accordance with the terms and conditions of this Agreement.

c. The Sub-Contractor shall in accordance with the Sub-Contractor Construction programme furnish to

the Contractor all information which may be required to fulfil the Contractor's obligations under the Main Contract in so far as the Sub-Contract works are concerned and to enable the Contractor to monitor progress of the Sub-Contractor which shall include but not be limited to:

i. Shop drawing programme including information release dates, production dates etc., updating

information release dates etc., updated progress of the works and frequency as directed by the Contractor.

ii. Material submittal, log, material ordered and delivery status etc.

iii. Fabrication programme.

iv. Notification of shipment, arrival at and clearance from the port of entry, arrival on site of all materials.

7. EXPEDITING & INSPECTION.

The Engineer and The Contractor shall be entitled to expedite and inspect specific items forming part of the Sub-Contract works in UAE. The Contractor will notify the Sub-Contractor of his intention to expedite or inspect. The Sub-Contractor shall ascertain from the Contractor within 15 days before his goods are ready for shipment whether inspection is required or not. Such inspection shall not in any way relieve the Sub-Contractor of his obligations pursuant to the Sub-Contract and on receipt of such notice, the Sub-Contractor shall arrange facilities for persons duly authorized by the Engineer and The Contractor to expedite and inspect, at Sub-Contractor's cost on a back to back basis with the Main Contract.

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8. CONTRACTOR'S WORK IN CONNECTION WITH SUB-CONTRACT.

Whereas the Sub-Contractor is responsible for providing information to enable the Contractor to provide holes, opening and forming of chases and any other such work, the Sub-Contractor shall provide all necessary information in sufficient time as per the approved programme to enable the Contractor to make such provision before the relevant section of the works is set out. Any additional cost involved in making provision after setting out of the Contractor's work, will be chargeable to the Sub-Contractor.

9. DRAWINGS AND SPECIFICATION.

a. The Sub-Contractor hereby certifies that he has examined all the plans, drawings, and specifications prepared by the Employer for the Main Contract of which the work covered by this Sub-Contract is a part of it. These plans and specifications shall be considered a part of this Sub-Contract as if fully set forth herein.

The Sub-Contractor will be bound by any and all parts of said plans and specifications in so far as they relate in any part or in any way to the work undertaken herein, but it is hereby specifically agreed that the Sub-Contractor will not sublet, assign or transfer this Sub-Contract or any part thereof without the written consent of the Contractor.

In this event, all and every clause of this Agreement shall be deemed to be applicable to whomever this Sub-Contract is transferred or assigned. In all such cases, the Sub-Contractor is still solely and completely responsible for the complete execution of this Agreement with all its stipulations and the fact that though an assignment, transfer or subletting is approved by the Contractor; the Sub-Contractor is not released of any or of his obligations under this Agreement.

10. SHOP DRAWINGS.

a) Detailed shop drawings shall be prepared by the Sub-Contractor and shall be submitted to the

Contractor who will subsequently secure the Engineer's approval. In doing so, any modifications, adjustments or recalculations that may be required by the Engineer must be promptly adhered to and implemented on the shop drawings by the Sub-Contractor for resubmission by the Contractor to the Engineer to secure the latter's approval.

These drawings shall be deemed to constitute part of this Agreement. The Contractor's and Engineer's

approval of said drawings will not waive any responsibility from the Sub-Contractor. Notwithstanding the Sub-Contractor shall have full responsibility for compliance with the specifications, standards, local regulations, Civil Defence department and co-ordinate with all other pertaining drawings whether architectural, structural and/or any other relevant drawings. Actual finished dimensions must be taken from site to be used in the preparations of the shop drawings.

b) The Sub-Contractor agrees to prepare and submit to the Contractor any additional shop or detail

drawings or builder's work drawings pertaining to the Sub-Contract works if so required by the Contractor or the Employer or the Engineer.

c) The Sub-Contractor agrees to prepare and submit to the Main Contractor method of statements pertaining to the Sub-Contract works as per the requirements of the Main Contractor or the Employer or the Engineer.

11. DEFECTS LIABILITY.

If at any time prior to the expiration of the maintenance period specified in SCHEDULE FOUR hereto any defects are discovered which are due to the Sub-Contractor's materials or workmanship not being in

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accordance with this Agreement, then the Sub-Contractor at his own cost shall forthwith make such defects good. Should the Sub-Contractor fail to execute such remedial work forthwith after written notice of such defects from the Contractor, then the Contractor may make alternative arrangements for the remedial work to be executed and the cost thereof shall be recoverable from the Sub-Contractor.

12. WORKMANSHIP.

a. WHERE the Sub-Contract incorporates an applied finish to any surface formation or the like prepared by the Contractor for example, but not limited to walls, floors, ceilings, roofs, woodwork, roads and like areas, it is the responsibility of the Sub-Contractor to ensure that the base provided by the Contractor is suitable in all respects for the Sub-Contractor's work and in each and every case where it is not, to notify the Contractor in writing to that effect before commencing work.

b. WHERE the Sub-Contract incorporates materials likely to be effected by atmospheric conditions for example, but not limited to kiln dried timber in flooring or joinery polishing and decorating or the like, it is the responsibility of the Sub-Contractor to ensure that the conditions are suitable in all respects before commencing the Sub-Contract works and in each and every case where they are not, the Sub-Contractor must notify the Contractor in writing to the effect.

c. Failure on the part of the Sub-Contractor to confirm to the requirements of sub clause (a) and (b) of this clause shall in no way relieve the Sub-Contractor from any contractual obligations or guarantees.

13. INDEMNITIES.

The Sub-Contractor shall indemnify and save harmless the Contractor against and from:

a. Any breach, non-observance or non-performance by the Sub-Contractor, his servants or agents of the said provisions of the Main Contract.

b. Any claim, damage or loss or expense due to or resulting from any negligence or breach of duty on the part of the Sub-Contractor, his servants or agents, caused by or arising out of, or in connection with the execution of the Sub-Contract works including but not limited to wrongful use of scaffolding or other property provided by the Contractor. For clauses 'a' & 'b' above, the limit of indemnity payable by the Sub-Contractor to the Contractor shall be as actually executed by the Contractor and not exceeding the Sub-Contract Value.

c. Any act or omission of the Sub-Contractor, his servants or agents, which involves the Contractor in any liability to the Employer under the Main Contract.

d. Any loss or damage resulting from any claims under any statute or law in force for the time being in the country in which the Sub-Contract resides and carries on business and in the UAE by an employee of the Sub-Contractor in respect of personal injury arising out of or in the course of his employment in connection with the execution of the Sub-Contract works.

e. Any loss or damage cause by or arising out of or in connection with execution of the Sub-Contract

works resulting from any breach by the Sub-Contractor of the provision of Clause 3, sub-clause (g) hereto.

f. All loss, damage and expense resulting from any and every infringement of patent in the sub-contract

works other than in the circumstances specifically stated in sub-clause (a) to (e) above, nothing in this Sub-Contract shall impose any liability on the Sub-Contractor in respect of any negligence or breach of duty on the part of the employer, the Contractor, his other Sub-Contractors, or their respective servants or agents not create any privity of contract between the Sub-Contract and the Employer or any other Sub-Contractor.

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14. INSURANCE.

a. The Contractor will arrange a "Contractor's All Risks" Policy in accordance with the Main Contract conditions. This policy will be subject to certain retained Liabilities (Retained Liabilities include certain non-recoverable monies in relation to each and every claim which will be to the account of the Sub-Contractor in relation to any claim under these policies) and the Sub-Contractor's works and materials at site will be insured by this policy. The Insurance Policy can be checked any time at the Head Office.

The Policy description above are general and the liability of the Contractor to the Sub-Contractor in respect of matters covered by such insurance is limited to the insurance so arranged and the Sub-Contractor shall observe, fulfil and be subject to the terms, exceptions and conditions of the policies.

The Sub-Contractor shall be responsible for insuring the materials to be used in the Sub-Contract works until they are delivered to the site and become the property of the Client. Proof of such insurance must be delivered to the Contractor and approval secured for same.

b. VESTING OF EQUIPMENT AND MATERIALS SHIPMENT.

Any equipment and materials supplied pursuant to the Sub-Contract F.O.B. or C.I.F. for shipment to the UAE, shall become the property of the client as soon as payment has been made against an application for Interim Certificate for the said equipment and materials in any shipment, but such vesting shall not relieve the Sub-Contractor from any of his responsibilities under the Sub-Contract in respect of the said equipment & materials.

c. WORKER'S COMPENSATION INSURANCE.

The Contractor shall not be liable for, or in respect of, any damages or compensation payable at law in respect or in consequence of any accident or injury to any workman or other person in the employment of the Sub-Contractor, save and except an accident or injury resulting from any act or default of the Contractor, his agents, or servants. The Sub-Contractor shall indemnify and keep indemnified the Contractor against all such damages and compensations, save and except as aforesaid, and against all claims, proceedings, costs, charges and expenses whatsoever in respect thereof or in relation thereto.

The Sub-Contractor shall insure against such liability with an insurer approved by the Contractor, such approval shall not be unreasonably withheld. The Worker’s Compensation Insurance shall be forcible and valid during the Sub-Contract Construction Programme, and shall cover any persons are employed by Sub-Contractor on the works and shall, when required, produce to the Contractor with such policy or insurance and the receipt for payment of the current premium.

15. PORT CLEARANCE.

The Sub-Contractor shall be deemed to have satisfied himself as to all the conditions pertaining to the clearance of goods through the local ports and national border crossing and the Sub-Contractor's rates and prices shall be deemed to include all costs and charges necessary to ensure the easy flow of his materials through those ports and border crossings.

16. TAXES, DUTIES, LEVIES, ETC.

The Sub-Contractor shall bear or discharge all taxes, levies, duties, demurrage or other charges from time to time in force in his country or in the country in which the Sub-Contractor resides and carries on business and in the UAE, and imposed upon the Sub-Contractor in respect of the execution of the Sub-Contractor works including but not limited to such taxes, levies, duties, demurrages or other charges imposed in relation to:

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i. Any Plant or Constructional Plant or materials used in connection with the Sub-Contract works (including any such charges imposed on any import or re-export from the UAE).

ii. The salaries, allowance or other emoluments paid by the Sub-Contractor to his employees. iii. The personal effects of the Sub-Contractor's employees imported into or exported from the UAE. iv. Any profits earned by the Sub-Contractor.

17. DISPOSAL OF DEBRIS. The Sub-Contractor shall remove from the site daily or as often as may be directed by the Contractor, all rubbish, debris and surplus materials, which may accumulate during the execution of the work, covered by the Sub-Contract to a designated area in the Project approved by the Contractor. Should the Sub-Contractor fail to act after proper notice, the Contractor may at his discretion remove the rubbish and charge the Sub-Contractor with the expense. The debris will be collected inside the site in one place from there; the debris will be removed by the Contractor.

18. CONTACT WITH ENGINEER.

All contact between the Engineer or Employer and the Sub-Contractor as may be necessary in order for the Sub-Contractor to fulfil the Contractor's obligations under the Main Contract must be routed through the Contractor. If the Sub-Contractor receives any communication verbally or in writing from the Engineer or Employer, he shall immediately bring this to the notice of the Contractor in writing. The Sub-Contractor shall comply with instructions or directives of the Engineer or Employer only when he has received written confirmation to do so by the Contractor. Notwithstanding the foregoing in circumstances where delay in carrying out instructions from the Engineer or Employer is likely to endanger life or cause material loss, the Sub-Contractor may comply forthwith and shall notify the Contractor immediately thereafter.

19. PHOTOGRAPHS AND ADVERTISING. The Sub-Contractor shall not take any photographs nor shall he make any mention of the works, the Sub-Contract works and the temporary works or anything in connection with the same in any advertising medium without first obtaining the written consent of the Contractor.

20. SECRECY.

The Sub-Contractor will hold secure the documents, specifications, conditions and drawings issued to him with this Agreement.

21. SUB-LETTING.

The Sub-Contractor shall not sub-let or assign the Sub-Contract work or any part thereof nor any monies to become due hereunder without first obtaining the written consent of the Contractor. Such permission will not be unreasonably withheld.

22. TIME SCALE.

The time scale of this Agreement shall be based upon the Gregorian calendar.

23. IDENTITY DOCUMENTS.

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All personnel employed by the Sub-Contractor on site should be in possession of the Identity Documents mentioned in Resolution No. 1. Issued by the Ministry of Prime Ministerial Affairs on 21.01.1982.

24. CONTRACTING LICENCE.

The Sub-Contractor is required to submit to the Contractor a photocopy of his current contracting UAE Municipality License.

25. TERMINATION.

a. The Contractor shall be entitled to terminate this Sub-Contract forthwith by giving notice in writing to the Sub-Contractor for any of the following reasons:

i. If after 7 days’ notice in writing from the Contractor, the Sub-Contractor fails to proceed with

the Sub-Contract works with such speed and in such sequence as shall in the opinion of the Contractor and the Engineer be necessary to avoid impedance to other trades or to complete the Sub-Contract works within the required time.

ii. If the Sub-Contractor refuses or persistently neglects after 7 days in writing from the Contractor to remove and replace defective work or defective materials.

iii. If any execution is levied on his property or obtained against him.

iv. If the Sub-Contractor commits breach of this Agreement and fails to remedy the same after 7 days’ notice in writing from the Contractor.

b. If the Sub-Contractor commits an act of bankruptcy or enters into a Deed or arrangement of

composition with his creditors or enters into liquidation (except liquidation for the purposes of reconstruction) then without prejudice to any other rights or remedies, the Contractor may by written notice to the Sub-Contractor forthwith terminate the Sub-Contractor's employment under this Sub-Contract and thereupon the Contractor may take possession of all materials, Construction Plant and other things whatsoever brought on to the site by the Sub-Contractor and may use them for the purpose of executing, completing and maintaining the Sub-Contract Works and may, if he thinks fit, sell all or any of them and apply the proceeds in or towards the satisfaction of monies otherwise due to him from the Sub-Contractor.

1. Upon such termination, the rights and liabilities of the Contractor and the Sub-Contractor

shall, subject to the preceding sub-clause, be the same as if the Sub-Contractor had repudiated this Sub-Contract and the Contractor had by his notice terminated the Sub-Contract under the preceding sub-clause elected to accept such repudiation.

2. The Contractor may in lieu of giving a notice of termination under this clause take part of the

Sub-Contract works out of the hands of the Sub-Contract and may by himself, his servants or agents execute, complete and maintain such part and in such event the Contractor may recover his reasonable costs of so doing from the Sub-Contractor, or deduct such costs from monies otherwise becoming due to the Sub-Contractor.

c. MAIN CONTRACT TERMINATION.

If for any reason the Contractor's employment under the Main Contract is terminated, then, the employment of the Sub-Contractor under this agreement shall thereupon also be terminated automatically. In the event of such termination, the Sub-Contractor’s rights shall (to the extent that they do not conflict with the terms of this Agreement) be analogous to the Contractor's right under the Main Contract.

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26. SETTLEMENT OF DISPUTES AND GOVERNING LAWS.

a. The contractual validity and performance of this Sub-Contract shall in all respects be interpreted and governed by the laws of the UAE.

b. If any dispute arises between the Contractor and the Sub-Contractor in connection with this Sub-Contract, such dispute shall be settled by them amicably, failing which, it shall, subject to the provision of this clause, be referred to the UAE Courts of Law.

27. VALIDITY OF THE SUB-CONTRACT.

The validity of this sub-contract is subject to the approval of the Engineer and the Employer of the project to the appointment of the Sub-Contractor to carry out the subcontract work and subject to the approval of the Engineer and the Employer of the Subcontractor’s Method of Statement, Materials, Qualification, Samples and all other required approval. 28. TRANSPORTATION ,ACCOMMODATION & FOOD.

The Subcontractor is fully and the only responsible to provide the Subcontractor’s Employees food, medical insurance, transportation and accommodation. If the Subcontractor shall at any time fails to pay, provide or comply with this Clause, then when the same are due, the Contractor shall be entitled to pay such amounts. Any monies so expended by the Contractor shall be recoverable from the Subcontractor. SCHEDULE ONE 1. THE SUBCONTRACT SUM AND SCHEDULE OF RATES.

The agreed Re-measured price for executing the mentioned scope in Schedule Two and all related works for this project, as per the attached break-up (refer to Schedule Two) of cost is AED _____________ ( AED Amount in Words ) as per the attached Subcontractors’ offer ref: _______ dated ________ dd/ mm/yyyy. The contract price may vary according to the actual quantity of work executed. No variation will be admissible unless approved by the Employer. SCHEDULE OF RATE:

Item No. Description Unit Qty Unit Rate

(AED) Total Amount in

(AED)

OUTSIDE BUILDING

1 m2

2 m2

3 m2

4 m2

Total Subcontract Price: Note: The quantity will be Re-measured based on Engineering Calculations of the approved quantities.

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2. VARIATIONS. The Subcontractor shall make changes, furnish materials and perform any work, which the Contractor may require, without nullifying this Agreement. Variations to the subcontract either in the form of ADDITION or OMISSIONS shall be adjusted according to the subcontract rates in Schedule One. No variation to the sub-contract will be admissible unless approved by the Engineer and Employer or by the Contractor. The Subcontractor shall forthwith comply with all written instructions issued to the Subcontractor by the Contractor's representative only regarding any matter affecting the subcontract works. The Sub-Contractor shall proceed with properly instructed variations to the Subcontract Works immediately without delay, irrespective of whether or not valuation of the variation has been agreed between the contractor and the Subcontractor. The Contactor reserves the right to add / delete any item of work to / from the Subcontractor’s scope of work and the effect on the value of the sub-contract shall be evaluated on the basis of the unit rates as mentioned in (1) above. 3. PRICE VARIATIONS. No adjustments are to be made in respect of rise and fall in the costs of labour and/or material or any other matter affecting the cost of execution of the works except as otherwise provided in the Agreement. 4. PAYMENT TERMS.

-The Payment by the Contractor to the Subcontractor will be made as follows:-

a. Advance Payment: - The Contractor will pay the Subcontractor an amount of AED ________ (AED Amount in Words) of the Subcontract price as advance payment upon approval on technical submittal by the Consultant’s and against submitting bank guarantee.

b. Material on site: - An amount of ___% of the material price will be paid to the Subcontractor against paid against delivering to Project Site all material and accessories, which have been approved by the Engineer, Employer and Contractor..

c. Progress Payment: - All Progress Payment will be certified within 30 days of submission of monthly invoice and it will be paid after 60days of certified payment date.

The Subcontractor has to submit their invoice on or no later than 22nd of each month so that their payment can be included in the corresponding month’s payment application by GTCC to the Employer. If Subcontractor fails to submit their invoice by the 25th of the month, they will not be entitled for any payment and will be accrued and submitted with the next month’s payment application to the Employer.

d. Retention: - The amount of payment to the Subcontractor which the Contractor considers due and payable in respect of such statement is subject to retention of the amount calculated by applying percentage of retention 10%. 5% will be released upon receiving the Project Taking Over Certificate from the Employer and the remaining 5% will be released upon completion of defects liability period (12 months from taking over date).

e. Performance Guarantee: The Subcontractor shall provide Performance Guarantee Cheque in amount of 10% of the Subcontract Price as Guarantee for his Performance which should be valid up to handing over of work and Defects Liability Period and should be obtained from a reputed bank only. The Performance Guarantee Cheque will be returned to the subcontractor once the Contractor receives the Defects Liability Certificate from the Employer. The Contractor has the right to on hold any payment if the Subcontractor fails to submit such performance.

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f. The Final Payment will be released upon completion of the Subcontractor’s work and based on approval and approval from Engineer/Consultant and submittal of warranty certificate.

g. The Contractor has the right to on hold any payments if the Sub-Contractor fails to comply with the Contractors

instruction. h. In case the Sub-Contractor left his work in any time for any reason without getting approval from the

Contractor; the Contractor has the right to hold the retention money and the outstanding payments amounts of the Sub-Contractor. Any extra cost occurred to the Contractor as a result of this Clause, the Contractor has the right to back charge all the costs to the Sub-Contractor Final Account. This Clause is a pre-approval from Sub-Contractor for this kind of action.

i. Notwithstanding any of the foregoing provisions of this Clause, the Contractor shall have the right to deduct

such sums from any payment due hereunder as representing services or goods provided by the Contractor to the Sub-Contractor mutually agreed to the provision of any such services or goods (only if requested by the Sub-Contractor in writing).

j. Cheques to be issued in the name of M/s ______________________. 5. RECOVERY OF MONIES. Whenever in this Agreement, provision is made for any monies to be recoverable from the Subcontractor, such monies may be deducted from any sum due to or which may become due to the subcontractor, even from other projects of the Contractor. Any deduction made under the provisions of this Agreement by the Contractor from any sum due or sums which may become due to the Subcontractor shall in no way relieve the subcontractor from the due performance of his obligations under this Agreement and in the event of the Subcontractor not having any sum or sums due or becoming due equal to any monies recoverable by the Contractor the Sub-Contractor shall pay to the Contractor the part of whole of the said monies as may be necessary to discharge the subcontractor's liability. SCHEDULE TWO

SCOPE OF WORK.

a) The Subcontractor will execute the Supply and Fixing of Stone and all related works as per the

specifications, drawings, bill of quantities conditions and regulations set in the contract documents, which the Subcontractor confirms that they have fully examined and accepted, and to the approval of the Engineer and the Employer.

b) All documents mentioned above are supplementary to each other and items mentioned as pertaining to the above work in any one of them, even if not mentioned in others, shall be deemed to be present in all of them and are considered to be included in the offer by the Sub-contractor.

c) Subcontractor need to coordinate with other subcontractors working at site.

d) Provide all the required shop drawings and technical submittals in accordance with the Contractor’s

drawings and specifications.

e) The Supply and Installation should be in accordance with Schedule 4 clause 1.

f) External laboratory test and third party inspection (If required).

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g) The Subcontractor is responsible to provide all personal protection equipment according to site

requirement / Municipality Standard regulations for each worker.

h) Obtaining approval from the Engineer / Consultant and from the relevant Authorities for all the Subcontract Works.

i) The Subcontractor’s work should perform in accordance with the approved shop drawings, method of statements, specifications and as per Contractor’s instruction.

j) All materials shall be approved and certified by the Civil Defence and all related authorities.

k) The Subcontractor’s Unit rate is fixed during construction and defects liability period.

l) The Subcontractor shall be responsible for the coordination of his works with the works of the other trades and shall furnish information regarding the Subcontract Works required by the Contractor for the supervision of the works. All works required as a result of the Subcontractor's failing to comply with the foregoing provisions will be at the Subcontractor’s expense.

m) The Subcontractor will be responsible for the quality of his products and the Contractor has the right to back charge the cost due to Subcontractor’s default in executing the Supply and Installation of the subcontractor work and bad quality of his works.

SCHEDULE THREE

1. DOCUMENTS.

The following documents shall be deemed to form and be read and construed as part of this Agreement; the documents forming the Sub-contract Agreement are to be taken as mutually explanatory of one another. For the purposes of interpretation, the priority of documents shall be in accordance with the following sequence:

1. Conditions of Contract

2. Specification of Materials and Workmanship.

3. Bill of Quantities by Subcontractor

4. Contract drawings as per the appended list

5. Submitted Offer by Subcontractor ref: ________ dated mm/dd/yyyy – attached.

This Subcontract Agreement shall be read in conjunction with the Contract Documents. In the event of any ambiguity or discrepancy between this Agreement and the Contract Document, this Agreement shall take precedence. The Subcontractor agrees and accepts all the documents mentioned above, and confirm that he has a copy of all the documents mentioned in Schedule Three and will not object in any one of them.

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SCHEDULE FOUR 1. COMPLETION PERIOD. The work will proceed as per the Contractor’s construction programme. The subcontractor shall comply fully

with any modifications, which may be made by the Contractor with his programme if required, without any claim whatsoever. The subcontractor shall, within seven days from the date of signing this sub-contract submit to the Contractor his own baseline construction schedule which will be given due consideration to by the Contractor while preparing the final construction programme of the project. The subcontractor shall provide the Contractor with his planned manpower histogram and shall be deemed to have undertaken to update the schedule regularly during the course of actual construction. The shop drawings, material samples, catalogues, material delivery schedule, and any other submittals required by the Contractor shall be submitted by the Sub-contractor within 7 days from the date of this Sub-Contract agreement.

2. DEFECTS LIABILITY PERIOD. The Defects liability Period as defined in the Main Contract shall be of 12 months from the date of the Taking

Over Certificate of the project or till the date of receipt of final acceptance certificate from the Employer. 3. WARRANTIES AND GUARANTEES

The Subcontractor shall issue in the name of the Employer a provision of all the necessary warranties and guarantees for the Sub-Contract Works as set out in the Project Specifications and as per the Employer and the Engineer requirements and shall be issued before the Final Payment to the Sub-Contractor and shall be valid for minimum of One Year.

4. LIQUIDATED DAMAGES. If the Subcontract fails to achieve substantial completion of the whole of the subcontract work in the period in

clause 1 above or within any extended time authorized in accordance with the conditions of this subcontract, the Subcontractor shall pay the Contractor the penalty at the rate of AED xxx.xx/- per day, with maximum up to 10% of the sub-contract value as Liquidated Damage and not penalty.

5. COORDINATION. The Subcontractor shall coordinate with other subcontractors (appointed and nominated by the Contractor).

Throughout the duration of the subcontract works, the Subcontractor will provide attendance of his representative(s) at Coordination and/or Progress Meetings if instructed by the Contractor.

6. HOUSE KEEPING & PROTECTION OF WORKS. Subcontractor confirms to have included in their price for the following;

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a. Protection and cleaning of their works on daily basis and the related materials required for the same, and depositing the debris at allocated place assigned by the Site Management.

b. Protection and cleaning of the adjoining works, if affected by Subcontractor’s works and the related materials required for the same.

c. Ensure that their works including materials, labours, tools and equipments does not cause any obstruction to

the performance of other subcontractors at the project site. d. Cost of rectification for any other work damaged by Subcontractor. e. Failing to comply with any of the above will entitle Contractor to withhold the due payment until the

Subcontractor complies with the above requirements in totality.

SCHEDULE FIVE The Contractor undertakes to provide the following at no cost to the Subcontractor.

1) Temporary electric & water for construction purpose.

2) Use of any existing site first aid and welfare facilities.

3) Scaffolding and planks for the execution of works.

IN WITNESS THEREOF, the parties hereto have hereunto set their hands the day and year first written above,

this instrument being executed in duplicate each party retaining a copy.

For Gulf Technical Const. Co. LLC For Subcontractor company Name

(“The Main Contractor”) (“The Subcontractor”) Name: ___________________ Name: _____________________

Title: ___________________ Title: ______________________

Signature: ________________ Signature: ___________________

Date: _____________________ Date: _______________________

******************************************************

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APPENDIX 1 List of Applicable Drawings / Specifications. PROJECT: __________________________________________________________________________

• Specifications for supply and fixing of stone and all the related works.

• Drawings for supply and fixing of stone and all the related works.

• BOQ pages for supply and fixing of stone and all the related works, the specified items.

*******************************************

QHSE Ref. No.

Date

Reference No.: Original Contract Amount:

Project Code: Approved Variations:

Project Name: Anticipated Contract Amount:

Project Location: Original Budget Amount:

Contract Type: Over Budget Amount:

*NOTES:

COST CODE SELLING AMOUNT ORIGINAL BUDGETED COST AT

COMPLETIONOVER

BUDGETDESCRIPTION

COST IMPACT / EVALUATION

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Over Budget Approval Request

IMS/PC/PP/01/06 Rev.01

REASON FOR OVER BUDGET REQUEST0.00

VARIATION w/oEngrs Instruction

ESTIMATION ERROR*

OTHERS*ESCALATION VARIATION withEngrs Instruction Increase of Quantity

Page 1 of 1

0.00

0.00

0.00 0.00 0.00 0.00

1) Procurement Manager: 4) Projects Control Manager:

2) Estimation Manager: 5) Area Manager

3) Operation Manager 6) Managing Director

Note:Category 1 (Contract Amount 10M-100M) Area Manager authorized to adjust the budget up to 10% with maximum 5 Million DirhamCategory 2 (Contract Amount 101M-above) Area Manager authorized to adjust the budget up to 7.5% with maximum 7.5 Million Dirham

(Please attach documents for justification)

Remarks:

APPROVALS

OVER BUDGET REQUEST JUSTIFICATION

TOTAL

Page 1 of 1

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Letter of Intent QHSE Ref. No. IMS/PC/PP/01/07 Rev. 01

Date:

Page 1 of 4

Our Ref: _____________________________

To: M/s_____________________________ P.O. Box No: _____ (Specify Country) Tel. No.: ___________, Fax No.: ______ Mobile: __________________________

Attn: Mr./ Ms : ______________________ Designation:_____________________ Project: ________________________________________________ Subject: ______________________________________________

Dear Sirs, Gulf Technical Construction Company L.L.C. P.O. Box 66123, Dubai, United Arab Emirates has been appointed to act as the “Main Contractor” to execute the above mentioned project. We are pleased to issue this Letter of Intent to subcontractor M/s. _______________________ for the above mentioned project. This LOI will be superseded by the Official agreement subject to approval by the Client and the projects Consultant together with our written confirmation. This LOI shall not give any right to the subcontractor to claim any amount; claim should rise under subcontractor agreement. 1) Scope of Work:-

The Subcontractor shall execute the ________________________________________________, which the Subcontractor confirms that they have fully examined and accepted, and to the approval of the Engineer and the Employer. All documents mentioned above are supplementary to each other and items mentioned as pertaining to the above work in any one of them, even if not mentioned in others, shall be deemed to be present in all of them and are considered to be included in the offer by the Sub-contractor. 2) Subcontract Price:-

The agreed __________ sum price for executing ___________ works and all the related works for this project, as per the attached break-up (refer to Schedule Two) of cost is AED ___________ ( amount in words ) as per the attached offer from the Subcontractor ref:___________ dated (mm/dd/yyyy). No variation will be admissible unless approved by the Employer.

3) Payment Terms.

a) Advance Payment: b) An amount of ___% of the Subcontract price will be paid to the Subcontractor against the mock-up

sample approval from the Client/Consultant and against submitting Undated Guarantee Cheque for the same

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amount. This amount to be paid through Letter of Credit (L/C) 90 days from the date of submission of monthly commercial invoice.

c) Progress Payment:

All Progress Payment to be paid through Letter of Credit (L/C) 90 days from the date of submission of monthly commercial invoice. All the bank charges relating to LC transactions, negotiations, amendments, charges to be under the Subcontractor’s responsibility. The Subcontractor has to submit their invoice on twenty-fifth of each month so that their payment can be included in the corresponding month’s payment application by GTCC to the Employer. If Subcontractor fails to submit their invoice by the 25th of the month, they will not be entitled for any payment and will be accrued and submitted with the next month’s payment application to the Employer.

d) Retention:

All interim payments are subject to ___% Retention amount, the ___% of the retention money will be released upon issue of taking over certificate and the remaining ___% of the retention money will be released upon completion of defects liability period (12 months from taking over date).

e) The currency for all variations, payments, transactions and guarantees under this Subcontract shall

be in UAE Dirham.

f) The Contractor has the right to on hold any payments if the Subcontractor fails to comply with the Contractors instruction.

g) In case the Subcontractor left his work in any time for any reason without getting approval from the Contractor; therefore the Contractor has the right to deduct on the retention money and outstanding payment amount of the Subcontractor and this is pre-approval from Subcontractor for this kind of deduction of the Subcontractor has no right to claim at anytime.

h) The Final Payment will be released upon completion of the Subcontractor’s work and based on approval and recommendation of the Project Manager.

i) Notwithstanding any of the foregoing provisions of this Clause, the Contractor shall have the right to deduct such sums from any payment due hereunder as representing services or goods provided by the Contractor to the Subcontractor mutually agreed to the provision of any such services or goods (only if requested by the subcontractor in writing).

j) Cheques to be issued in the name of M/s ___________________________________________. 4) Warranty:

Subcontractors should submit warranty certificate to the main contractor as guarantee for his work which is specified in the projects specification.

5) Notice to proceed and Subcontract Period:-

The Subcontractor’s shall complete his work as per project Manager Program.

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6) Terms and Conditions:-

a) A detailed Subcontract Agreement will be signed in due course. In the meantime, this Letter of Intent is contractually the binding agreement. The Subcontractor performance will be evaluated prior signing the Subcontract Agreement.

b) The Subcontractor will be responsible for the quality of his products and the Main Contractor has the

right to back charge the cost due to the default/damages of the Subcontractor’s products and delay in completing the works within the time period.

7) Delay Penalty:-

If the subcontractor fails to complete the works in the subcontract period a delay penalty at the rate of which is AED: _____ per day of the subcontract value up to maximum ___%.

8) Acknowledgment:

Kindly sign this LOI and return a copy to GTCC, if signed copy is not received before the release of our LPO or Agreement, this LOI is deemed by GTCC to be accepted in its entirely by the subcontractor Congratulations for securing this contract and we assure you of our best intentions to fulfil our part of the contract. We are expecting the same from you including the quality we all look to achieve. Regards, Yours Sincerely, For Gulf Technical Construction Company LLC. (Name) Projects Control Manager On behalf of Procurement Manager Cc: _____________ _____________

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ACCEPTANCE STATEMENT

Letter of Intent with regards to “________________________________” for the project of ________________, (Location)

Between

Gulf Technical Construction Company LLC

And M/s (Supplier Name)_______________

We hereby acknowledge receipt of the Letter of Intent as per reference no. ___________ dated

( dd/mm/yyyy )and confirms our full and unconditional acceptance. We hereby submit our acceptance

statement signed and stamped for your further action and records.

For and on behalf of __________________________________________ .

Name: _______________

Signature: ______________

Company Stamp:

Date:_____________________

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AGREEMENT

This Agreement is made on ____day of ________(month/year) by and between Gulf Technical Construction Company LLC (First Party) having its Office Address at (PO Box, City,Country,Tel,Fax) (herein after referred to as “Contractor”) xxxxxxxxxxx (Second Party) having its office address at (PO Box, City,Country,Tel,Fax) (here in referred as “Sub-Contractor”) WHEREAS The Contractor has entered into a Contract (hereinafter called "The Main Contract") with M/s.XXXXX (Hereinafter called "The Employer") for the Proposed Construction and Completion of XXXXXX (Hereinafter called "The Project") as more particularly described in the documents forming part of the Main Contract. WHEREAS The Engineer appointed by the Employer under the General Conditions of the Main Contract is M/s. XXXXX (Hereinafter called "The Engineer"), AND WHEREAS The Subcontractor having been afforded an opportunity to read and note the provisions of the Main Contract (other than details of the Contractor's prices there under), has agreed to execute upon the terms hereafter appearing in the works which are described in schedule Two of this Subcontract Agreement (Hereinafter referred to as "The Subcontract Works") and which form part of the works to be executed under the Main Contract NOW IT IS HEREBY AGREED AS FOLLOWS: Preamble The foregoing Preamble shall be deemed to be an integral part of this Agreement. 1. MAIN CONTRACT:

a. THIS AGREEMENT is supplemental to the Main Contract which together with all

documents referred to therein are available for inspection by the Subcontractor at the Office of the Contractor.

b. PROCEED WITH THE WORKS.

The Subcontractor will execute and complete the work, including such variations additions and omissions as the Contractor may direct in writing, particulars of which are described in the documents referred to in SCHEDULE THREE hereto, which shall be deemed to be included in and form part of the Agreement. The subcontract works shall be performed by the Subcontractor in a thoroughly professional manner to the entire satisfaction of the Contractor, the Engineer and the Employer.

c. OBLIGATIONS UNDER MAIN CONTRACT.

Save where the provisions of this Subcontract otherwise require, the Subcontractor shall so execute, complete and maintain the subcontract works that no act or omission on the part of the Subcontractor in relation thereto and in so far as the subcontract works are

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concerned shall constitute, cause or contribute hereunder all the obligations and liabilities of the Contractor under the Main Contract in relation to the subcontract works. PROVIDED THAT, where the provision of the Main Contract are inconsistent with the express provision of this Agreement the later shall prevail. Terms used in the Main Contract shall have similar meaning in this Agreement unless the contract otherwise requires.

2. LABOUR AND EQUIPMENT

a. The Subcontractor shall supply and furnish on site all labour, tools, tackle, plant, transport and equipment necessary for the complete and satisfactory performance of this Agreement except such items as the Contractor shall provide as may be referred to in SCHEDULE FIVE hereto. In the event of any loss or damage to such items the Subcontractor shall make good such loss or damage at his own expense unless damage is caused by others. The subcontractor shall employ field labour and forces that will cause no conflict or interference with other trades or employees.

b. WRONGFUL USE OF PLANT

The Contractor and Subcontractor respectively, their respective servants or agents shall not wrongly use or interfere with the plant, ways, scaffolding, temporary works appliances or other property belonging to or provided by the other, providing that nothing herein contained shall prejudice or limit the right of the Contractor or the Subcontractor in the carrying out of their respective statutory duties under this Agreement or under the Main Contract in so far as the subcontract works are concerned.

3. SITE REGULATIONS & SAFETY REQUIREMENTS

The Subcontractor shall comply with the site regulations laid down by the Employer/ Client or the Contractor in connection with the execution of the Main Contract in so far as the subcontract works are concerned or this Subcontract and shall ensure that his employees, subcontractors, suppliers or agents also comply with such regulations.

a. UNSATISFACTORY WORK OR MATERIALS. The Subcontractor shall provide sufficient, safe and proper facilities for all items for the

inspection of the work by the Contractor, the Employer and the Engineer of their authorized representatives and shall within twenty-four hours after receiving written or verbal notice from the Contractor to that effect, proceed to take down all portions of the work, and remove from the building and grounds all material, whether worked, or un-worked, which the Engineer shall condemn as unsound or improper, or as failing in any way to confirm to the plans and specifications and shall make good all works so condemned and all other work of the Contractor or other Subcontractors damaged or destroyed in the making good of such condemned work.

b. SITE SAFETY REQUIREMENTS. By signing this Agreement the Sub-Contractor agrees to comply with the requirements of the Contractor’s safety policy as listed in Annexure.

c. RESPONSIBILITY FOR EMPLOYEES.

Subject to the laws and regulations of the UAE, personnel of the Subcontractor shall at all

times remain the employees of and under the control of the Subcontractor who shall be

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responsible for the issue of orders, instructions or directions to such employees and also for the enforcement of discipline as reasonably required by the Contractor. Nothing in this clause shall be interpreted as giving any of the employees of the Subcontractor any special legal status in the UAE.

d. LIABILITY FOR TAXES AND EMPLOYEES.

The Subcontractor shall in respect of this subcontract agreement accept full and exclusive liability for the payment of:

i. Taxes of Municipal or other in respect of all his employees employed in connection with the execution of this subcontract. The Subcontractor shall maintain all necessary forms, books and records and shall, when required, produce the same to the Contractor for inspection.

ii. Any and all taxes and benefits which may be imposed by the Government of the

UAE and any other Authority or Authorities in the UAE in respect of the Subcontract's employees.

iii. If the Subcontractor shall at any time fail to pay any wages due to his workmen

employed on the subcontract works or to pay for in respect of or make allowance for the statutory requirements of the Government of the UAE (including Municipal Authorities) any taxes, charges, fees or other duties payable in respect of such wages, then when the same are due, the Contractor shall be entitled to pay such wages and / or taxes, charges, fees or other duties at the subcontractor's expenses and any monies so expended by the Contractor shall be recoverable from the Subcontractor.

e. SITE MEDICAL FACILITIES.

The Subcontractor shall be entitled to use such First Aid Facilities on sites as the

Contractor may provide. All other medical facilities will be provided by the Subcontractor and the Subcontractor should therefore make his own arrangements for provision of all medical requirements.

f. STATUTORY PROVISIONS (UAE).

The Subcontractor, his agents and employees shall observe, perform and at all times

comply with any statutory provisions by-laws or regulations so far as the same are applicable to the subcontractor works in the country in which the Subcontractor resides and carries on business and in the UAE.

g. SUBCONTRACTOR'S ENGINEER / AGENT.

The Subcontractor shall constantly keep upon the works a competent Project Manager

and Site Engineer and any instructions given to either of them by the Contractor shall be deemed to have been issued to the Subcontractor. The qualifications and credentials of these two officers shall be a subject of approval by the Employer.

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h. HOURS OF WORK.

The Contractor shall establish the hours of work and rest periods on site and the Subcontractor shall ensure that his own employees on site work such hours and take such rest periods as will afford maximum cooperation with the subcontract works.

i. REMOVAL OF PLANT AND MANPOWER.

The Contractor shall at his discretion order the removal from the site of any of the

subcontractor's plant, staff or labour, which the Contractor considers to be unsuitable for the task to be performed.

4. SUBCONTRACTOR'S RESPONSIBILITY.

The Subcontractor accepts full responsibility for the efficiency of the subcontract works and any part thereof and without prejudice to the generality of the foregoing, the Subcontractor shall ensure that the subcontract works and any part thereof will comply with the design requirements as referred to in SCHEDULE TWO hereto. This must include the following:

a. Reviewing the design for the purpose of satisfying him that the design, installation and the equipment used are adequate for intended purpose.

b. The subcontractor will be responsible for the total handing over of his works in a complete manner.

c. Ensuring that the subcontract works will function correctly at the project site as

per Employers requirements and maintain the safety.

d. Ensuring that the subcontract works comprises of component parts in accordance with the specification, conditions and terms of the Agreement and the Main Contract. If not so specified, conditioned or termed, such parts shall be of the best available quality.

e. The Subcontractor must follow the productivity rate (attached) and any shortage in

the productivity rate at any time, it will be back charge from his payment as pro rata and the liquidated damages for delay of work as mentioned in the Schedule Four and this is pre-approval from Subcontractor for this kind of deduction and the Subcontractor has no right to claim at anytime.

5. COMMENCING THE SUBCONTRACT.

a. The Subcontractor shall commence the subcontract work forthwith and shall proceed to

execute and complete the subcontract works in a thorough and workmanlike manner to the entire satisfaction of the Contractor, the Engineer and the Employer by the date or within the period specified in SCHEDULE FOUR hereto.

b. MAINTAINING PROGRESS.

If, in the opinion of the Contractor and the Engineer reasonable progress in the performance of the subcontract works is not being maintained, the Contractor shall issue written notification to the Subcontractor specifying and detailing the problems and recommending action. Should the Subcontractor fail to comply accordingly within 7 days of receiving such notification, the Contractor may (without prejudice to his right to determine

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under Clause 23 of this Agreement) accelerate the progress of the subcontract works upon giving written notice to the Subcontractor by the employment of the Contractor's own labour or of other Contractors and any additional expenses so incurred by the Contractor shall be recoverable from the Subcontractor.

6. Subcontractor Undertakings

The Subcontractor shall indemnify and save harmless the Contractor (GTCC) against all losses and claims in connection with or related to death of injury to any person; or loss or damage to any property (other than the Sub Contract works), which may arise out of in consequence of the execution and completion of the Sub Contract work and remedying of any defects therein and/or resulting from any act or neglect of the Sub Contractor, his agents, workmen or servants or other subcontractors, not being employed by the Contractor and against all claims, proceedings, damages, costs, charges and expenses whatsoever in respect thereof or in relation thereto. The Sub Contractor undertakes and agrees that it will be responsible, at its own cost, for its labours’ transportation and accomodation in line with the applicable laws and regulations and in accordance to the contractors requirements By signing this Agreement, the Sub-Contractor agrees to comply with the requirements of the Contractor’s safety policies and proceedures. Hard hats, safety gloves and work-boots are minimum requirements to be provided by the Sub-Contractor. Coveralls will be supplied by the Sub-Contractor where it is deemed necessary by the Contractor. The subcontractor, undertake to provide only legally sponsored workers as per the UAE Federal Labor Law 11. INDEMNITIES

The Subcontractor shall indemnify and save harmless the Contractor against and from:

a. Any breach, non-observance or non-performance by the Subcontractor, his servants or

agents of the said provisions of the Main Contract.

b. Any claim, damage or loss or expense due to or resulting from any negligence or breach of duty on the part of the Subcontractor, his servants or agents, caused by or arising out of, or in connection with the execution of the subcontract works including but not limited to wrongful use of scaffolding or other property provided by the Contractor. For clauses 'a' & 'b' above, the limit of indemnity payable by the Subcontractor to the Contractor shall be as actually executed by the Contractor.

c. Any act or omission of the subcontractor, his servants or agents, which involves the

Contractor in any liability to the Employer under the Main Contract.

d. Any loss or damage resulting from any claims under any statute or law in force for the time being in the country in which the subcontract resides and carries on business and in the UAE by an employee of the subcontractor in respect of personal injury arising out of or in the course of his employment in connection with the execution of the subcontract works.

e. Any loss or damage cause by or arising out of or in connection with execution of the subcontract works resulting from any breach by the Subcontractor of the provision of Clause 3, sub-clause (g) hereto.

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f. All loss, damage and expense resulting from any and every infringement of patent in the sub-contract works. Other than in the circumstances specifically stated in sub-clause (a) to (e) above, nothing in this subcontract shall impose any liability on the Subcontractor in respect of any negligence or breach of duty on the part of the employer, the Contractor, his other Subcontractors, or their respective servants or agents not create any privity of contract between the Subcontract and the Employer or any other Subcontractor.

7. INSURANCE. The Subcontractor is responsible to have at all time during the contract, adequate insurance coverage in respect of workmen’s compensation and employee’s liability as per U.A.E. Law.

a. The Contractor will arrange a "Contractor's All Risks" Policy in accordance with the Main Contract conditions. This policy will be subject to certain retained Liabilities (Retained Liabilities include certain non-recoverable monies in relation to each and every claim which will be to the account of the Subcontractor in relation to any claim under these policies) and the Subcontractor's works and materials at site will be insured by this policy. The Insurance Policy can be checked any time at the Head Office.

The Policy description above are general and the liability of the Contractor to the

Subcontractor in respect of matters covered by such insurance is limited to the insurance so arranged and the subcontractor shall observe, fulfill and be subject to the terms, exceptions and conditions of the policies.

The Subcontractor shall be responsible for insuring the materials to be used in the

subcontract works until they are delivered to the site and become the property of the Client. Proof of such insurance must be delivered to the Contractor and approval secured for same.

b. VESTING OF EQUIPMENT AND MATERIALS SHIPMENT.

Any equipment and materials supplied pursuant to the subcontract F.O.B. or C.I.F. for shipment to the UAE, shall become the property of the client as soon as payment has been made against an application for Interim Certificate for the said equipment and materials in any shipment, but such vesting shall not relieve the Subcontractor from any of his responsibilities under the subcontract in respect of the said equipment & materials.

c. WORKER'S COMPENSATION INSURANCE.

The Contractor shall not be liable for, or in respect of, any damages or compensation payable at law in respect or in consequence of any accident or injury to any workman or other person in the employment of the Subcontractor, save and except an accident or injury resulting from any act or default of the Contractor, his agents, or servants. The Subcontractor shall indemnify and keep indemnified the Contractor against all such damages and compensations, save and except as aforesaid, and against all claims, proceedings, costs, charges and expenses whatsoever in respect thereof or in relation thereto.

The Subcontractor shall insure against such liability with an insurer approved by the Contractor, such approval shall not be unreasonably withheld and shall continue such insurance during the whole of the time

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That any persons are employed by Subcontractor on the works and shall, when required, produce to the Contractor with such policy or insurance and the receipt for payment of the current premium.

8. DISPOSAL OF DEBRIS.

The Subcontractor shall remove from the site daily or as often as may be directed by the Contractor, all rubbish, debris and surplus materials, which may accumulate during the execution of the work, covered by this Subcontract. Should the Subcontractor fail to act after proper notice, the Contractor may at his discretion remove the rubbish and charge the Subcontractor with the expense.

9. PHOTOGRAPHS AND ADVERTISING. The Subcontractor shall not take any photographs nor shall he make any mention of the works, the subcontract works and the temporary works or anything in connection with the same in any advertising medium without first obtaining the written consent of the Contractor.

10. SECRECY.

The Subcontractor will hold secure the documents, specifications, conditions and drawings issued to him with this Agreement.

11. SUB-LETTING.

The Subcontractor shall not sub-let or assign the subcontract work or any part thereof nor any monies to become due hereunder without first obtaining the written consent of the Contractor. Permission will not be unreasonably withheld.

12. TIME SCALE.

The time scale of this Agreement shall be based upon the Gregorian Calendar.

13. IDENTITY DOCUMENTS.

All personnel employed by the Subcontractor on site should be in possession of the Identity Documents mentioned in Resolution No. 1. issued by the Ministry of Prime Ministerial Affairs on 21.01.1982.

14. CONTRACTING LICENCE. The Subcontractor is required to submit to the Contractor a photocopy of his current contracting UAE Municipality License. 15. TERMINATION.

a. The Contractor shall be entitled to terminate this Sub-Contract forthwith by giving notice in writing to the Sub-Contractor for any of the following reasons:

i. If after 7 days notice in writing from the Contractor, the Sub-Contractor fails to

proceed with the Sub-Contract works with such speed and in such sequence as shall in the opinion of the Contractor and the Engineer be necessary to avoid

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impedance to other trades or to complete the Sub-Contract works within the required time.

ii. If the Sub-Contractor refuses or persistently neglects after 7 days in writing from the Contractor to remove and replace defective work or defective materials.

iii. If any execution is levied on his property or obtained against him.

iv. If the Sub-Contractor commits breach of this Agreement and fails to remedy the same after 7 days notice in writing from the Contractor.

b. If the Sub-Contractor commits an act of bankruptcy or enters into a Deed or arrangement of

composition with his creditors or enters into liquidation (except liquidation for the purposes or reconstruction) then without prejudice to any other rights or remedies, the Contractor may by written notice to the Sub-Contractor forthwith terminate the Sub-Contractor's employment under this Sub-Contract and thereupon the Contractor may take possession of all materials, Construction Plant and other things whatsoever brought on to the site by the Sub-Contractor and may use them for the purpose of executing, completing and maintaining the Sub-Contract Works and may, if he thinks fit, sell all or any of them and apply the proceeds in or towards the satisfaction of monies otherwise due to him from the Sub-Contractor.

1. Upon such termination, the rights and liabilities of the Contractor and the Sub-

Contractor shall, subject to the preceding sub-clause, be the same as if the Sub-Contractor had repudiated this Sub-Contract and the Contractor had by his notice terminated the Sub-Contract under the preceding sub-clause elected to accept such repudiation.

2. The Contractor may in lieu of giving a notice of termination under this clause take

part of the Sub-Contract works out of the hands of the Sub-Contract and may by himself, his servants or agents execute, complete and maintain such part and in such event the Contractor may recover his reasonable costs of so doing from the Sub-Contractor, or deduct such costs from monies otherwise becoming due to the Sub-Contractor.

c. MAIN CONTRACT TERMINATION.

If for any reason the Contractor's employment under the Main Contract is terminated, then, the employment of the Sub-Contractor under this agreement shall thereupon also be terminated automatically. In the event of such termination, the Sub-Contractor’s rights shall (to the extent that they do not conflict with the terms of this Agreement) be analogous to the Contractor's right under the Main Contract.

16. SETTLEMENT OF DISPUTES AND GOVERNING LAWS.

a. The contractual validity and performance of this Sub-Contract shall in all respects be interpreted and governed by the laws of the UAE.

b. If any dispute arises between the Contractor and the Sub-Contractor in connection with this Sub-Contract, it shall, subject to the provision of this clause, be referred to the UAE Courts of Law.

17. VALIDITY OF THE SUB-CONTRACT.

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The validity of this sub-contract is subject to the approval of the Engineer and the Employer of the project to the appointment of the Sub-Contractor to carry out the subcontract work and subject to the approval of the Engineer and the Employer of the Subcontractor’s Method of Statement, Materials, Qualification, Samples and all other required approval. 18. TRANSPORTATION ,ACCOMMODATION & FOOD.

The Subcontractor is fully and the only responsible to provide the Subcontractor’s Employees food, medical insurance, transportation and accommodation. If the Subcontractor shall at any time fails to pay, provide or comply with this Clause, then when the same are due, the Contractor shall be entitled to pay such amounts. Any monies so expended by the Contractor shall be recoverable from the Subcontractor. SCHEDULE ONE 1. THE SCHEDULE OF RATES/DAY WORKSHEETS. Schedule of Rate will be based on the following for executing the mentioned scope in Schedule Two and all related works for this project as per the attached offer from the Subcontractor dated 12th September 2011. No variation will be admissible unless approved by the Employer.

Item No.

Description Unit AED/

Unit Rate

1 Mason Per hour 9.00

2 Steel Fixer Per hour 9.00

3 Shuttering Carpenter Per hour 9.00

4 Helper Per hour 8.00

Note: The quantity will be Re-measured based on Engineering Calculations of the approved quantities. 2. VARIATIONS. The Subcontractor shall make changes, furnish materials and perform any work, which the Contractor may require, without nullifying this Agreement. Variations to the subcontract either in the form of ADDITION or OMISSIONS shall be adjusted according to the subcontract rates in Schedule One. No variation to the sub-contract will be admissible unless approved by the Engineer and Employer or by the Contractor. The Subcontractor shall forthwith comply with all written instructions issued to the Subcontractor by the Contractor's representative only regarding any matter affecting the subcontract works. The Sub-Contractor shall proceed with properly instructed variations to the Subcontract Works immediately without delay, irrespective of whether or not valuation of the variation has been agreed between the contractor and the Subcontractor.

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The Contactor reserves the right to add / delete any item of work to / from the Subcontractor’s scope of work and the effect on the value of the sub-contract shall be evaluated on the basis of the unit rates as mentioned in (1) above. 3. PRICE VARIATIONS. No adjustments are to be made in respect of rise and fall in the costs of labour and/ or material or any other matter affecting the cost of execution of the works except as otherwise provided in the Agreement. 4. PAYMENT TERMS.

a. PROGRESS PAYMENT. All Progress Payment will be certified within 30 days of submission of monthly invoice and payment to be released after 15 days from certified payment date. The Subcontractor has to submit their invoice on or no later than 22nd of each month so that their payment can be included in the corresponding month’s payment application by GTCC to the Employer. If Subcontractor fails to submit their invoice by the 25th of the month, they will not be entitled for any payment and will be accrued and submitted with the next month’s payment application to the Employer.

b. RETENTION.

No Retention will be applied on any payment to the Subcontractor.

c. The currency for all variations, payments, transactions and guarantees under this Subcontract shall

be UAE Dirham.

d. The Final Payment will be released upon completion of the Subcontractor’s work and based on approval and recommendation of the Project Manager.

e. The Contractor has the right to on hold any payments if the Sub-Contractor fails to comply with

the Contractors instruction.

f. In case the Sub-Contractor left his work in any time for any reason without getting approval from the Contractor; the Contractor has the right to hold the retention money and the outstanding payments amounts of the Sub-Contractor. Any extra cost occurred to the Contractor as a result of this Clause, the Contractor has the right to back charge all the costs to the Sub-Contractor Final Account. This Clause is a pre-approval from Sub-Contractor for this kind of action.

g. Notwithstanding any of the foregoing provisions of this Clause, the Contractor shall have the

right to deduct such sums from any payment due hereunder as representing services or goods provided by the Contractor to the Sub-Contractor mutually agreed to the provision of any such services or goods (only if requested by the Sub-Contractor in writing).

h. Cheques to be issued in the name of M/s . XXXXX

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5. RECOVERY OF MONIES. Whenever in this Agreement, provision is made for any monies to be recoverable from the Subcontractor, such monies may be deducted from any sum due to or which may become due to the subcontractor, even from other projects of the Contractor. Any deduction made under the provisions of this Agreement by the Contractor from any sum due or sums which may become due to the Subcontractor shall in no way relieve the subcontractor from the due performance of his obligations under this Agreement and in the event of the Subcontractor not having any sum or sums due or becoming due equal to any monies recoverable by the Contractor the Sub-Contractor shall pay to the Contractor the part of whole of the said monies as may be necessary to discharge the subcontractor's liability. SCHEDULE TWO

SCOPE OF WORK.

Item No.

Description Unit AED/

Unit Rate

1 Block work m2 16.00

2 Concrete & Steel Reinforcement m3 115.00

3 Internal Plaster m2 16.00

4 External Plaster m2 18.00

a) Workmanship work for executing the block, plaster, concrete, steel reinforcement and all other related works in the project, in accordance with the BOQ, drawings, specifications, conditions and regulations set in the contract documents, which the Subcontractor confirms that they have fully examined and accepted, and to the approval of the Engineer and the Employer.

b) All documents mentioned above are supplementary to each other and items mentioned as pertaining to the above work in any one of them, even if not mentioned in others, shall be deemed to be present in all of them and are considered to be included in the offer by the Sub-contractor.

c) The Subcontractor shall be responsible for the coordination of his works with the works of the other trades and shall furnish information regarding the Subcontract Works required by the Contractor for the supervision of the works. All works required as a result of the Subcontractor's failing to comply with the foregoing provisions will be at the Subcontractor’s expense.

d) The Subcontractor’s unit rate is fixed during construction and defects liability period.

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SCHEDULE THREE

1. DOCUMENTS.

The following documents shall be deemed to form and be read and construed as part of this Agreement; the documents forming the Sub-contract Agreement are to be taken as mutually explanatory of one another. For the purposes of interpretation, the priority of documents shall be in accordance with the following sequence:

1. Conditions of Contract.

2. Specification of Materials and Workmanship. 3. Bill of Quantities by Subcontractor

4.Contract drawings as per the appended list.

5.Appindix 1 and Appindix 2 attached hereafter with this Subcontract Agreement.

6.Annexure 1 attached hereafter with this Subcontract Agreement.

This Subcontract Agreement shall be read in conjunction with the Contract Documents. In the event of any ambiguity or discrepancy between this Agreement and the Contract Document, this Agreement shall take precedence. The Subcontractor agrees and accepts all the documents mentioned above, and confirm that he has a copy of all the documents mentioned in Schedule Three and will not object in any one of them.

SCHEDULE FOUR 1. COMPLETION PERIOD. The work will proceed as per the Contractor’s construction programme. The subcontractor shall

comply fully with any modifications, which may be made by the Contractor with his programme if required, without any claim whatsoever. The subcontractor shall, within seven days from the date of signing this sub-contract submit to the Contractor his own baseline construction schedule which will be given due consideration to by the Contractor while preparing the final construction programme of the project. The subcontractor shall provide the Contractor with his planned manpower histogram and shall be deemed to have undertaken to update the schedule regularly during the course of actual construction. The shop drawings, material samples, catalogues, material delivery schedule, and any other submittals required by the Contractor shall be submitted by the Sub-contractor within 7 days from the date of this Sub-Contract agreement.

2. DEFECTS LIABILITY PERIOD. The Defects liability Period as defined in the Main Contract shall be of 12 months from the date of

the Initial Handing Over of the project or till the date of receipt of final acceptance certificate from the Employer.

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3. Liquidated Damages. If the Subcontract fails to achieve substantial completion of the whole of the subcontract work in

the period in clause 1 above or within any extended time authorized in accordance with the conditions of this subcontract, the Subcontractor shall pay the Contractor The Liquidated Damages at the rate of AED 5,000/- per day, with maximum up to 10% of the sub-contract value as a Liquidated Damages and not Penalty.

4. COORDINATION. The Subcontractor shall coordinate with other subcontractors (appointed and nominated by the

Contractor). Throughout the duration of the subcontract works, the Subcontractor will provide attendance of his representative(s) at Coordination and/or Progress Meetings if instructed by the Contractor.

5. HOUSE KEEPING & PROTECTION OF WORKS. Subcontractor confirms to have included in their price for the following; a. Protection and cleaning of their works on daily basis and the related materials required for the

same, and depositing the debris at allocated place assigned by the Site Management.

b. Protection and cleaning of the adjoining works, if affected by Subcontractor’s works and the related materials required for the same.

c. Ensure that their works including materials, labours, tools and equipments does not cause any

obstruction to the performance of other subcontractors at the project site. d. Cost of rectification for any other work damaged by Subcontractor.

e. Failing to comply with any of the above will entitle Contractor to withhold the due payment until the

Subcontractor complies with the above requirements in totality.

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SCHEDULE FIVE The Contractor undertakes to provide the following at no cost to the Subcontractor.

1) Temporary electric & water for construction purpose.

2) Use of any existing site first aid and welfare facilities.

3) Scaffolding and planks for the execution of works.

IN WITNESS THEREOF, the parties hereto have hereunto set their hands the day and year first

written above, this instrument being executed in duplicate each party retaining a copy.

For Gulf Technical Construction Co. LLC. For xxxxxxx (“The Main Contractor”) (“The Subcontractor”)

Name: Name: Mr. xxxx

Title: Area General Manager Title xxxx

Signature: Signature:

Date: Date:

******************************************************

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APPENDIX 1 List of Applicable Drawings / Specifications. Project Name: xxxxxxxxxxx

o Specifications for the steel reinforcement, concrete, block, plaster and the related works.

o BOQ pages for the steel reinforcement, concrete, block, plaster and the related works,

the specified items.

o All pre-tender Addendums issued by the Employer.

o All the drawings related to for the steel reinforcement, concrete, block, plaster and the

related works, complete in all respect.

*******************************************

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APPENDIX II MASTER PRODUCTIVITY RATE

S.N o

Description Unit Units per day

Carpenter Steel fixer

Mason Painter Helper Hours per day

1 FORM WORK FIXING

Basement retaining walls Sq.M 4.60 1

10.0

Columns (small, largest dimension <400mm) Sq.M 3.00 1 Columns (small, largest dimension >400mm) Sq.M 4.00 1 D/S beam internal Sq.M 4.00 1 D/S beam external Sq.M 3.00 1 Lift walls (core) Sq.M 5.00 1 Walls Sq.M 6.00 1 Slab decking Sq.M 9.00 1 Staircase (non spiral) Sq.M 2.00 1 Balcony parapets Sq.M 3.00 1 Roof parapets Sq.M 4.00 1 Lintels LM 9.30 1

2 REINFORCEMENT

Fix Rebar to walls, columns, beams, solid slabs <16MM

Ton 0.30 1

10.0

Fix rebar to hidden beams <16MM Ton 0.30 1 Fix Rebar to walls, columns, beams, solid slabs >16MM

Ton 0.40 1 Fix rebar to hidden beams >16MM Ton 0.40 1 Steel cutting and bending 18 -25 mm Ton 0.60 1 Steel cutting and bending 8 -16 mm Ton 0.40 1

3 CONCRETE PLACEMENT WORKS

Concrete to pile caps by pump Cu.M 13.00 1 3

10.0

Concrete to PCC blinding (100 mm thick) Cu.M 11.00 1 2

Concrete to slabs/beams, by pump Cu.M 16.00 1 3

Concrete to slabs/beams by crane Cu.M 11.00 1 3

Concrete to walls/columns, by pump Cu.M 9.00 1 3

Concrete parapets/staircases Cu.M 4.00 1 4

Power float finish to slabs Sq.M 100.00 1 1

4 MASONARY WORKS

Hollow Blockwork (100, 150 & 200 mm) Sq.M 7.00 1 1 10.0

5 PLASTER WORK

Plaster, walls final coat Sq.M 13.00 1 1

10.0

Plaster, walls rush coat Sq.M 50.00 1 1

Plaster, walls mesh Sq.M 220.00 1 1

Plaster, walls hacking Sq.M 11.00 1 1

Plster, walls guide point Sq.M 60.00 1 1

Plaster, walls corner beads LM 110.00 1 1

Floor screed 50mm thick Sq.M 25.00 1 1

Roof screed 100mm thick Sq.M 20.00 1 1

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6 CERAMIC/MARBLE WORKS

Ceramic tiles to walls Complete Sq.M 6.00 1 1

10.0 Ceramic tiles to floors Complete Sq.M 7.00 1 1

Marble flooring Sq.M 4.00 1 1

Mosaic/Terazzo roof tiles Sq.M 11.00 1 1

Ceramic skirting LM 35.00 1 1

7 PAINTING WORKS

Painting (Internal/External) Sq.M 30.00 1 1 10.0 Epoxy coating/Anti slip coating Sq.M 15.00 1 1

S.N o

Description Unit Units per day

Carpenter Steel fixer

Mason Painter Helper Hours per day

8 CARPENTRY WORKS

Vanity counter fixing LM 6.00 1 1

10.0

Kitchen cabinet fixing LM 4.00 1 1

Wardrobe fixing LM 4.00 1 1

Mirror fixing No 11.00 1 1

Handrail fixing LM 11.00 1 1

Door subframe fixing No 5.00 1 1

Door fixing (Aluminium/wooden/Glass) No 5.00 1 1

Window Subframe fixing No 5.00 1 1

Window fixing No 5.00 1 1

9 FALSE CEILING WORKS

Ceiling frame fixing Sq.M 11.00 1 1

10.0 Gypsum board fixing Sq.M 12.00 1 1

Metal ceiling tile fixing Sq.M 35.00 1 1

10 KERBING/BLOCK PAVING WORKS

Wheel Stopper fixing Nos 6.00 1 1

10.0 PCC Kerb Base (curved) LM 30.00 1 1

PCC Kerb Base (straight) LM 35.00 1 1

Interlocking Paving on pre prepared sub base Sq.M 7.00 1 1

11 GENERAL LABOUR WORKS

Bitumen Paint to Blockwork Sq.M 45.00 1

10.0 Hacking of Concrete Surfaces Sq.M 55.00 1

Pile Cutting/Dressing No 3.00 1

12 EXCAVATION

— Excavation Cu.M 1.50 1 10 JCB Cu.M 120.00

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ANNEXURE 1

BASIC SITE SAFETY REQUIREMENTS The following description gives a brief introduction to some of the basic safety requirements, which should be strictly observed by the Sub-Contractor: 1. PERSONAL PROTECTIVE EQUIPMENT (P.P.E.): a. Appropriate P.P.E. must be provided by the Sub-Contractor to his labour to protect a

worker from injury. b. The worker must wear the appropriate P.P.E. at all times while at work. c. The P.P.E. must not be abused, and if damaged must be replaced at once. d. The minimum site requirement calls for head and feet protection at all times and standard

uniform / coveralls bearing the subcontractor logo.

2. HAND TOOLS: a. Personal made, modified or damaged tools are not allowed on site.

3. PLANT EQUIPMENT (P & E) a. P & E must be technically inspected by an authorised person prior to operation on

site. b. P & E must only be operated by authorised personnel and must be regularly

maintained. c. Safety test certificates by an approved testing company to be copied to GTCC.

d. All plant operators and Banksmen to be certified by an approved safety company;

copies of such certificates to be provided to GTCC.

4. CRANES, RIGGING LIFTING: a. All cranes and other lifting appliances must be tested by approved safety companies

prior to operating on site. b. All lifting equipment must be marked with the "Safe Working Load" (S.W.L.). c. Safety test certificates by an approved testing company to be copied to GTCC. d. All plant operators and Banksmen to be certified by an approved safety company;

copies of such certificates to be provided to GTCC.

5. WORKING AT HEIGHT: a. Anyone working above 2 meters high, (with no handrail in place) must wear

adequate fall protection. (Safety full body harness) and be hooked off above. b. There must be safe access/ egress to oil work locations, and a safe working platform

in position. c. Never throw any material from a height. FALLING OBJECTS CAN KILL! 6. SCAFFOLDING: a. Scaffolding must only be erected or dismantled by authorized scaffold erector. b. Any unauthorized person caught altering scaffold will be dismissed. 7. HOT WORK: a. Gas cylinders (whether full or empty) must be upright and secured at all times. b. Combustibles must be removed from the area.

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c. The correct P.P.E. must always be worn. d. The equipment must be in safe condition, with "Flash Back Arrester" and "Non-

Return Valve" in position, and hoses in good condition. e. All Hot works will be with work permit through GTCC HSE Department. 8. TEMPORARY ELECTRICAL PROVISIONS: a. Junction boxes, cables. etc, must be in safe condition - WATERPROOF & NO

TAPED JOINTS! b. Where possible cables to be off the ground. c. Earth Leakage Circuit Breaker (ELCB) fitted d. Hand grinders must have a "Deadman's Switch".

9. EXCAVATIONS: a. Check for buried services (electric, gas, water, etc). b. Safe access / egress (proper steps, handrail, etc). c. No heavy plant, vehicles, or equipment allowed near the top edge. d. Excavated area to be barricaded and provided with "Deep Excavation" warning signs

10. LADDERS: a. Not be "homemade" or damaged. b. Extend approximate 1m above landing point. c. Be positioned at an angle of 4 out to 1 in. d. Be secured at the top and bottom.

11. MANUAL HANDLING: a. Assess the load before you lift. b. If the load is too heavy - GET HELP. c. For every lift bend your knees and keep your back straight. d. Hold the load close to you, and move your feet rather than twist your body. e. Put the load down with your knees bent and back straight.

1 2. CONTROL OF SUBSTANCES HAZARDOUS TO HEALTH: a. A "Material Safety Data Sheet" must be available with any substance that may be a

hazard to health. b. Relevant safety information must be communicated to the workforce who may come

into contact with the substance. c. Hazardous Materials are allowed to be stored in designated area, provided it has

permission from GTCC HSE Department.

13. HOUSEKEEPING: a. A high standard of housekeeping must be maintained at all times. b. Waste, redundant material, trip hazards, etc, must be removed from site after

completion of works on daily basis.

14. SAFETY WORK METHOD STATEMENTS: a. For work that has a medium to high risk of an accident, a Safety Work Method

Statement must be completed, and approved prior to commencement of work. b. Good planning will reduce the risks of an accident, and ensure efficient progress. c. All risk activities risk assessment has to be submitted to GTCC HSE Department

15. PERMIT TO WORK: a. A Permit to Work system is designed to control potentially hazardous work. (Hot

work, confined space, entry to energized electrical rooms) b. The objective is to prevent injury, property damage, and stoppage of work.

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16. HEALTH & HYGIENE: a. Adequate facilities must be provided on site, and must be maintained in good order (by GTCC) b. Waste food, drink cans, battles, etc must be disposed of in appropriate waste containers. c. Symptoms of illness must be reported to the first aid/medical centre as soon as possible or GTCC

HSE Department.

17. ACCIDENT & EMERGENCIES: a. All accident must be reported to Gulf Technical Construction Co. LLC Project HSE Department (personal

injury, property damage or dangerous occurrence).

18. SECURITY: a. Smoking on site is not allowed; eating and drinking is allowed only in designated Mess areas. b. Anyone caught stealing, or causing property damage will be reported to the police and fined. c. Anyone caught fighting will be removed from site and fined.

19. OTHERS: a. Failure to comply with the above regulations will result in fines and replacement of offending workers. b. Safety standard of Local Authorities (Dubai Municipality, Nakheel, JAFZA, or TECOM) to be fully complied

with, in addition to the above regulations. c. The fines will be deducted from the monthly payment invoice.

For Gulf Technical Construction Company LLC Signature : _______________________ Name : _______________________ Designation : Projects Control Manager For (the name of the Subcontractor) Signature : _______________________ Name : _______________________ Designation :

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Sub-Contractor Evaluation Questionnaire


Date:

Page 1 of 9

COMPANY INFORMATION

Full name of Company, incl. Status (i.e. LLC,Ltd):

Registered Office Address:

Telephone :

Fax:

E-mail Address:

Trading Address:

Telephone:

Fax:

E-mail Address:

Registered Company No..:

Date Company established:

Parent company and/ or Ultimate Parent

Parent Company Registered Company No.:

Name of Managing Director:

No.: of Employees:

No. of direct permanent employees:

Staff turnover ratio: Please attach a copy of your Company Organisational Chart Copy attached?

YES NO

Please provide details of two independent references to be used when deemed appropriate:

Trade: Customer:

Company: Company:

Address : Address:

Telephone: Telephone:

Contact: Contact:

Briefly describe your Company’s core activities/services provided:

1.

2.

3.

4.

5.

Please indicate which geographical areas your Company can provide cover to.

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1.0 FINANCE / COMMERCIAL

No. (Please tick accordingly)

1.1

Please provide a copy of your Company’s audited previous year balance sheets(s) Copy attached?

YES NO

1.2 Please indicate total Sales Revenue (Gross) in each of the last 3 years:

Year Sales

AED

AED

AED

1.3 Does your company use a factoring agent? If Yes, please provide details:

YES NO

1.4 What value of work has been completed or is in hand with DSI JSC subsidiary companies in the last 3 years? AED

1.5

What percentage of your Company’s turnover is represented by it’s top 3 customers, and state the names of those customers? % Turnover

Customer 1 %

Customer 2 %

Customer 3 %

1.6

Please state the proportion of your turnover in percentage terms between New Build, Maintenance and other services: % Turnover

New Build %

Maintenance %

Other 1, please specify %



1.7

Bank Name:

Address:

Postcode:

Telephone No.: Fax No.:

Bank Sort Code:

Account No.:

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2.0 PROFESSIONAL QUALIFICATIONS

No. Question (Please tick accordingly)

2.1

Please provide membership certificate copies for any Trade or Professional Organisations of which your Company is a member or is affiliated to: Copies attached?

YES NO

3.0 VETTING OF SUBCONTRACTORS


3.1

Does your Company subcontract any part of its core business activities? If yes, please confirm what area and what % of your total business this represents:

YES NO

%

3.2 Does your company employ casual labour? YES NO

3.3 Does your Company maintain a register of approved subcontractors?

3.4 Does your Company have formal procedures(s) in place for the management of subcontractors?

3.5 Do you have subcontractor evaluation process? If yes, please provide details:

4.0 INSURANCE COVER


4.1

Please complete the following table detailing classes and levels of insurances held:

YES NO

Class of Insurance Yes/No Limit of Indemnity Expiry date on current Policy

Public Liability

Employers Liability

Product Liability

Contractual All risks

Professional Indemnity

5.0 HEALTH & SAFETY

5.1 Competence ATTACHED YES NO

5.1.1 Have your employees and supervisors received specific health and safety related training?

5.1.2 Do your employees receive regular occupational health related advice?

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5.1.3

Do your site personnel, including supervisors, hold training certificates by a recognised registration schemes?

ATTACHED YES NO

5.1.4

Who is the most senior person in your company with responsibility for health and safety?

Name: Position:

5.1.5

Who provides your company with competent health and safety advice? What are their health and safety qualifications?

Name:

Position:

Qualifications:

5.2 Health & Safety Management System ATTACHED YES NO

5.1.1 Is your company registered to third party certifications (if Yes please provided copies and continue to section 2.3)

5.2.2

Do you have a Health and Safety Policy document which sets out? Your general policy with respect to Health and Safety; The organization and arrangements currently in place for implementing that policy If YES please attach copy

5.2.3 Do you have a process for ensuring that they, and the associated safeguards and control measures, are communicated to the workforce?

5.2.4

Do you have a process for ensuring?

• Accidents and incidents are investigated; • Appropriate action is taken to prevent recurrence; • That they are reported in accordance with legal requirements.

5.2.5 At what frequency does your Safety Adviser or other responsible person(s) undertake health and safety inspections/audits on site?

5.3 Accident and Incident Performance

5.3.1

Please provide details of the following in relation to your undertakings over the past 3 years. This includes incidents involving your employees, subcontractors, labour only subcontractors, and agency personnel whilst they have been working for you. (If your company has changed names during this period include incidents before the name change)

Year

Number of Employees

and Subcontractors

Fatalities Major Injuries

Over 3 –day

Injuries

AFR = RIDDOR accidents x 100,000 / man hours worked

Notifiable Dangerous

Occurrences

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5.3.2

Please provide details of the following for the last three years.

Year Number of Improvement Notices Number of Prohibition Notices Number of Prosecutions

5.3.3

Please provide details of any prosecutions and actions taken to prevent recurrence.

6.0 QUALITY

6.1 Management Responsibility

6.1.1

Who is the person with overall responsibility for quality issues within your Company? Name: Position:

Is the company a member of any Quality Improvement Scheme? YES

6.2 Quality Management System YES NO

6.2.1

Do you have a documented Quality Management System? If Yes please provide copies certificate and continue onto section

If NO, do you intend to implement a QMS and if so by when?

Is the intervening period please confirm your commitment to comply with the requirements of our QMS

6.2.2

Do you have a written Quality Policy Statement? If so, please attach a copy

If NO, will you work to the requirements of our Quality Management System, QMS, when on site, including the undertaking of inspections and tests and completion of inspection records where required?

7.0 ENVIRONMENTAL

7.1 Management Responsibility

7.1.1

Who is the person with overall responsibility for environmental issues within your Company? Name: Position

7.2 Environmental Management System ATTACHED YES NO

7.2.1

Has your Environmental Management System been externally assessed?

(If YES please attach a copy of your certificate, scope of assessment made (If NO, do you intend to have your system assessed, and if so by when?

7.2.2

Do you have a documented Environmental Management System? If YES Please provide copy of index only . Does the company have any documented procedures such as waste management, emergency procedures, etc.? If YES please provide details

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7.2.3

Do you have a written Environmental Policy Statement? If yes, please provide a copy.

If NO, will you work to the requirements of our Environmental Management System, EMS, when on site, including compliance with legal & contractual obligations, provision of documents & applying environmental controls

7.2.4 Are you registered as waste carrier? If YES please attach a copy

Are you a producer of hazardous waste as defined within Hazardous Waste Regulations? If please provide details

Does the company have recycling programme in place to minimize environmental impact? Please provide details.

7.3 Environmental Performance Attached YES NO

7.3.1

Which of your activities do you consider have the most impact on the environment? Please List. 1. 2. 3. 4.

7.3.2

Have you been prosecuted or cautioned for any environmental offences within the last five years? If YES, please give details

7.3.3 Have you had served with an environmental enforcement notice within the last five years? If YES please give details:

7.3.4

Are there any environmental prosecutions or cautions pending? If YES, please give details:

7.3.5 Have you won any environmental awards in the last five years? If YES, please give details:

8.0 ADDITIONAL INFORMATION

No. Question

8.1 Please outline any experience your Company has had with regards to TUPE regulations:

8.2

Please outline any IT systems/ E-commerce Systems/Financial systems your Company currently operates, or any future plans to invest in any of the above:

8.3

Please indicate any Supply Chain Initiatives your Company operates and supply details:

8.4

Does your Company operate Key Performance Indicators and Performance Measurement, If so please provide examples:

8.5 Please provide details of any reporting procedures that are currently in place within your Company:

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9.0 DECLARATION STATEMENT (A Director, Partner or General Manager must sign this questionnaire) We hereby certify that the foregoing statements are correct and we agree to notify you of any significant changes effecting answers given to this questionnaire. We agree to representatives of DSI PJSC and subsidiary companies having the right to visit our premises to assess and verify the above statement at any given time with reasonable notification of such a visit. Print Name: Title: Signature Date: We agree to abide by DSI PJSC Terms and Conditions ( copies attached) Print Name: Title: Signature Date:

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REVIEW OF SUBCONTRACTOR / SUPPLIER SUMMARY

Supplier Name: Requested by:

No. Section Completed ( Y,N, N/A) Comments or Actions

1.

2.

3.

4.

5.

6.

7.

8.

9.

DSI Office Use Only

DSI Evaluation Category

Quality DSI

Signature

Date: Safety Environment Purchasing

Approved ( Y/N) Restrictions Company Use Limit Spend

Scope of approval Conditions for Approval

Signed by QHSE Manager

_____________________

Signed by Project Manager

______________________

Signed by Commercial Dept.

_____________________

Date:________________

Date: _____________________

Date: ____________________

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10. CHECKLIST Please Tick

1.1 Previous year balance sheet

2.1 Details of all professional qualifications held

6.1 Insurance Certificates Public Liability

Employers Liability

Product Liability

Contractual All Risk

Professional Indemnity

7.1 ISO 9000 Registration and Scope of approval Certificates

7.2 Quality Assurance Documents

7.4 Health & Safety Certifications or Registrations include Scope of Approvals

8.1 Health & Safety Documents

8.3 Details of HSE prohibition notices- if applicable

8.6

8.8

8.9

9.1 ISO 14001 Registration and Scope of Approval Certificates

9.2 Details of any Environmental Offenses – if applicable

9.3

9.4

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Document Name:

Pre-order Meeting Agenda


Date:

Meeting No. / Ref :

Venue:

Time of Meeting:

Attendees:

Item No. Discussion Topic Status

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

ON BEHALF OF CONTRACTOR

Name: ________________________

Position : _____________________

Signature: ___________________

Project Name:Project No:

Ref.No : Date : Location :Project Status :Client :Consultant :

WORK ITEM TO BE GIVEN ON SUB-CONTRACT:

NAMES OF SPECIFIED SUBCONTRACTOR - IF ANY

12

QuantitiesQuantities as per Contract:

Date:

QHSE Manual

Document Title:

Sub Contract Request Form

IMS/PC/PP/01/11 Rev. 01QHSE Ref. :

Page 1 of 1

Actual Quantities: (attach documents, if necessary)

RELATED DRAWINGS (Ref.No)

(attach documents, if necessary)SPECIFICATIONS PAGES (Ref. No) (attach documents, if necessary)SUBMISSION DATE REQUIRED

Subcontractor Prequalification:Material/Sample/Mock-Up:

Shopdrawings:Others:

LIKELY DATE FOR COMMENCING THIS ITEM

FINALIZATION REQUIRED ON OR BEFORE DATE

Signatures

NAME SIGNATURE NAME SIGNATURE

PROJECT MANAGER TECHNICAL MANAGER

Page 1 of 1

Activity Description :

GTCC Scope Of Works :

Engineer Instruction :

Claim / Variation :

Others (Justify) :

Note : Claim / Variation should be attached Site instruction or Claim Notification

Remarks : __________________________________________________

IMS/PC/PP/01/12 Rev. 01

Subject : _________________________

_______________________________________________

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QHSE Ref. No.

Date:

Document Name:

CHECK LIST

Page 1 of 1

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Letter of Award Template


Date:

Page 1 of 4

Date: XX-XX-XXXX Our Ref: PRC/D/XX/XX/XXXX

To: Company Name XXXXXX P.O. Box No: XXX, United Arab Emirates Tel. No: +971 XXXXXXX Fax No: +971 XXXXXXX Mobile No: +971 XXXXXXXXX Attn: XXXXXXXXXXXXXXXX Project: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Subject: XXXXXXXXXXXXXXXXXXXXXXXXXXXXX

LETTER OF AWARD Dear Sirs, Dear Sirs, Gulf Technical Construction Company L.L.C. P.O. Box 66123, Dubai, United Arab Emirates has been appointed to act as the “Main Contractor” to execute the above mentioned project. We are pleased to issue this Letter of Intent to subcontractor M/s. _______________________ for the above mentioned project. This LOI will be superseded by the Official agreement subject to approval by the Client and the projects Consultant together with our written confirmation. This LOI shall not give any right to the subcontractor to claim any amount; claim should rise under subcontractor agreement. 1) Scope of Work:-

The Subcontractor shall execute the ________________________________________________, which the Subcontractor confirms that they have fully examined and accepted, and to the approval of the Engineer and the Employer. All documents mentioned above are supplementary to each other and items mentioned as pertaining to the above work in any one of them, even if not mentioned in others, shall be deemed to be present in all of them and are considered to be included in the offer by the Sub-contractor. 4) Undertaking:

It is also understood and agreed upon that subcontractor will execute the whole system as per project and Engineer’s requirements and specifications. The subcontractor will replenish any short – supplied items, as the situation may so warrant, at their own and entire risk and cost

2) Subcontract Price:-

The agreed __________ sum price for executing ___________ works and all the related works for this project, as per the attached break-up (refer to Schedule Two) of cost is AED ___________ ( amount in words ) as per the attached offer from the Subcontractor ref:___________ dated (mm/dd/yyyy). No variation will be admissible unless approved by the Employer.

3) Payment Terms.

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a) Advance Payment:

An amount of ___% of the Subcontract price will be paid to the Subcontractor against the mock-up sample approval from the Engineer/Employer and against submitting Undated Guarantee Cheque for the same

amount. This amount to be paid through Letter of Credit (L/C) 90 days from the date of submission of monthly commercial invoice.

b) Progress Payment:

All Progress Payment to be paid through Letter of Credit (L/C) 90 days from the date of submission of monthly commercial invoice. All the bank charges relating to LC transactions, negotiations, amendments, charges to be under the Subcontractor’s responsibility. The Subcontractor has to submit their invoice on twenty-fifth of each month so that their payment can be included in the corresponding month’s payment application by GTCC to the Employer. If Subcontractor fails to submit their invoice by the 25th of the month, they will not be entitled for any payment and will be accrued and submitted with the next month’s payment application to the Employer.

c) Retention:

All interim payments are subject to ___% Retention amount, the ___% of the retention money will be released upon issue of taking over certificate and the remaining ___% of the retention money will be released upon completion of defects liability period (12 months from taking over date).

d) The currency for all variations, payments, transactions and guarantees under this Subcontract shall be in

UAE Dirham.

e) The Contractor has the right to on hold any payments if the Sub-Contractor fails to comply with the Contractors instruction.

f) In case the Sub-Contractor left his work in any time for any reason without getting approval from the

Contractor; the Contractor has the right to hold the retention money and the outstanding payments amounts of the Sub-Contractor. Any extra cost occurred to the Contractor as a result of this Clause, the Contractor has the right to back charge all the costs to the Sub-Contractor Final Account. This Clause is a pre-approval from Sub-Contractor for this kind of action.

g) Notwithstanding any of the foregoing provisions of this Clause, the Contractor shall have the right to deduct such sums from any payment due hereunder as representing services or goods provided by the Contractor to the Sub-Contractor mutually agreed to the provision of any such services or goods (only if requested by

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the Sub-Contractor in writing).

h) The Final Payment will be released upon completion of the Subcontractor’s work and based on approval and recommendation of the Project Manager.

i) Notwithstanding any of the foregoing provisions of this Clause, the Contractor shall have the right to deduct such sums from any payment due hereunder as representing services or goods provided by the Contractor to the Subcontractor mutually agreed to the provision of any such services or goods (only if requested by the subcontractor in writing).

j) Cheques to be issued in the name of M/s ___________________________________________. 5) Performance Guarantee: -

The Subcontractor will submit a Performance Bank Guarantee in amount of 10% of the Subcontract Price as Guarantee for his work which is valid till handing over of Subcontractor’s scope of work and defects liability period and should be obtained from a reputed bank only and as required in the Conditions of Contract.

4) Warranties And Guarantees

The Subcontractor shall issue in the name of the Employer a provision of all the necessary warranties and guarantees for the Sub-Contract Works as set out in the Project Specifications and as per the Employer and the Engineer requirements and shall be issued before the Final Payment to the Sub-Contractor and shall be valid for minimum of One Year.

5) Notice to proceed and Subcontract Period:-

The Subcontractor’s shall complete his work as per project Manager Program. 6) Terms and Conditions:-

a) A detailed Subcontract Agreement will be signed in due course. In the meantime, this Letter of Intent is

contractually the binding agreement. The Subcontractor performance will be evaluated prior signing the Subcontract Agreement.

b) The Subcontractor will be responsible for the quality of his products and the Main Contractor has the right to

back charge the cost due to the default/damages of the Subcontractor’s products and delay in completing the works within the time period.

7) LIQUIDATED DAMAGES.

If the Subcontract fails to achieve substantial completion of the whole of the subcontract work in the period in clause 1 above or within any extended time authorized in accordance with the conditions of this subcontract, the Subcontractor shall pay the Contractor the penalty at the rate of AED xxx.xx/- per day, with maximum up to 10% of the sub-contract value as Liquidated Damage and not penalty

******************************************************************* In view of above you are kindly requested to submit the detailed breakdown based on the above contract type which will allow us to prepare and issue the subcontractor agreement. Meantime, you are requested to mobilize your staff and equipment immediately in coordination with GTCC Project Manager.

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Congratulations for securing this contract and we assure you of our best intentions to fulfil our part of the contract. We are expecting the same from you including the quality we all look to achieve. Regards, Yours Sincerely, For Gulf Technical Construction Company LLC. Regards, Yours Sincerely, For Gulf Technical Construction Company LLC. (Name) Projects Control Manager On behalf of Procurement Manager Cc: _____________ _____________

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Document Name: Fax / Email Enquiry template


Date:

Page 1 of 1

To : M/s. Date:

Fax : Tel.:

Attn: Mr/s. Email:

Project :

Consult. :

Subj. : Ref: ⌧ URGENT FOR REVIEW PLEASE COMMENT PLEASE REPLY PLEASE RECYCLE Kindly quote us your best prices for the works of the above-mentioned project. A copy of the necessary documents attached in the email. For further clarification, please do not hesitate to contact Mr. Habib Rehman at contact: # +971 050-3762278. Your earliest feedback would be greatly appreciated. Please send us your offer as soon as possible. Thank you and best regards, On Behalf of Engr. Abdulqader Abu Soud – Projects Control Manager Habib Rehman Procurement Officer Gulf Technical Construction Co. LLC – A Drake & Scull PJSC Company P.O Box 66123, Dubai, United Arab Emirates Tel +971 4 8112400 Ext. 440 Fax +971 4 8859366 Email: [email protected] Web www.gulftcc.com

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Document Name:

Subcontractor Procurement Procedure

QHSE Ref. No. IMS/PC/PP/15 Rev.01 Appendix A

Date: 20th February 2011

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Document Name: SUPPLIER /SUBCONTRACTOR

EVALUATION


Date:

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Supplier/Subcontractor Details :-

(Name and address & contact nos.)

Item / Service:

1. QUALITY POOR – 0

FAIR – 1

GOOD – 3

EXCELLENT – 4

OUTSTANDING - 5

2. PRICE

3. DELIVERY

4. RESPONSE

5. SAFETY

6. ATTITUDE

7. ABILITY TO MEET

EMERGENCY REQUIREMENTS

OVERALL RATING - TOTAL

Evaluated by : Evaluation date :

Evaluator’s comments :

Reviewed by : Review date :

Reviewer’s comments :

MINIMUM ACCEPTABLE RATING FOR SUPPLIER/SUBCONTRACTOR TO BE IN THE LIST OF APPROVED SUPPLIER/SUBCONTRACTOR SHOULD BE 12.

IMS-PC-PP-01 Rev. 01-Draft-16-Jan-12 - drakescull.net · QHSE Ref. No. IMS/PC/PP/01 Rev. 01 Date:...

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Transcript of IMS-PC-PP-01 Rev. 01-Draft-16-Jan-12 - drakescull.net · QHSE Ref. No. IMS/PC/PP/01 Rev. 01 Date:...