QAP-16 Subcontracting Procedure

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Doc Ref : QAP-16 QUALITY ASSURANCE Date: 1 st January 2009 Kencana I nf rastructure PROCEDURE Revision No : 0 Cover Page I COpy NO. SUBCONTRACTING PROCEDURE KENCANA INFRASTRUCTURE SDN BHD REV NQ DATE PREPARED BY REVIEWED BY AP PROVED BY NAME SIGN DATE NAME Slq N DATE NAME SIGN DATE 0 29.12.08 CCK 15.12.08 YLP 23 12 08 TKH l 29 .12.08 '----'" ·v I """"

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subcontracting Procedure

Transcript of QAP-16 Subcontracting Procedure


2312 08 TKHl 29.12.08'----'"vI""""Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 1 of 6 TABLE OF CONTENTS SECTIONDESCRIPTIONPAGE 1.0PURPOSE2 2.0SCOPE2 3.0REFERENCE2 4.0DEFINITION2 5.0PROCEDURE 5.1ORGANIZATION STRUCTURE 3 5.2SUBCONTRACTING PROCESS3 5.2.1 SELECTION OF BIDDER3 5.2.2 REQUEST FOR QUOTATION 5.2.3BID OPENING 5.2.4ISSUANCE OF LA / LOI / SO 3 4 4 - 5 5.3SUBCONTRACTOR EVALUATION5 6.0SPECIAL REQUIREMENT5 7.0RECORDS6 APPENDICES APPENDIX 1ORGANIZATION STRUCTUREAPPENDIX 2ISSUANCE OF LA / LOI / SO FLOW CHART APPENDIX 3SUBCONTRACTING REGISTRATION FORM APPENDIX 4SUBCONTRACTING PROCESS FLOWCHART APPENDIX 5SERVICE REQUISITION APPENDIX 6TENDER COMMITTEE APPROVAL FORM APPENDIX 7COMMERCIAL EVALUATION FORM (CBE) APPENDIX 8SERVICE ORDER APPENDIX 9LETTER OF AWARD APPENDIX 10SUBCONTRACTOR ASSESSMENT REPORT APPENDIX 11FINAL SUBCONTRACTOR SELECTION REPORT Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 2 of 6 1.0PURPOSE Thepurposeofthisprocedureistoestablishtherequiredactivitiesinvolvedinthe subcontracting process commencing from thesubcontractor planning, receipt of service requisition (SR), sourcing, and selection of subcontractor until issuance of Service Order (SO) or Letter of Award (LA). This procedure also outlines the evaluation of subcontractors key performance index to ensure only the best subcontractor is employed for the work. 2.0SCOPE Thescopeofthisprocedurecoversthesubcontractingprocessforspecificcontract undertaken by Subcontracting Team of Kencana Infrastructure Sdn Bhd. 3.0REFERENCES ISO 9001:2008 Quality Manual (QM) 4.0DEFINITIONS KI- Kencana Infrastructure Sdn Bhd SR- Service Requisition RFQ - Request for Quotation ITB- Instruction to Bidder TBE- Technical Bid EvaluationCBE- Commercial Bid Evaluation LA- Limit of Authority SO- Service Order LOA- Letter of Award LOI- Letter of Intent LS- Lump Sum T/C- Terms and Conditions Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 3 of 6 5.0PROCEDURE 5.1ORGANIZATION STRUCTURE The organization structure of subcontracting team is as per stipulated in Appendix 1. The role and responsibility of each subcontracting personnel is clearly defined. 5.2SUBCONTRACTING PROCESS Thesubcontractingprocessforsubcontractissummarizedintheflowchartattachedin Appendix 4. The Project Engineer or Site Contract Administrator shall initiate the SR, as enclosed in appendix5,forspecificsubcontractingpackagetogetherwithcleardescriptionofthe Scope of Work. The SR shall be approved by the GM and SGM prior to issuance to the Subcontracting Team. Upon receipt of SR, the Subcontracting Team shall initiate the bidding process. 5.2.1SELECTION OF BIDDER AllnewsubcontractorsarerequiredtoregisterwithKIandbeevaluatedbefore beingeligibletoparticipateinthesubcontractingexercise.Informationonthe companysbackgroundwillbesubmittedbysubcontractorsusingtheApplication forSubcontractingRegistrationFormstipulatedinAppendix3andshallbe assessedandapprovedusingFinalSubcontractorSelectionReportinAppendix 11. A database will be maintained and record will be updated yearly for all registered subcontractors. Thelistofbiddersforaspecificsubcontractworkwillbeselectedfromthe database. The list will then be submitted for management approval using Tender Committee Approval Form (Appendix 6). Upon management approval, a complete tender document will be issued out to the selected bidders. 5.2.2REQUEST FOR QUOTATION SubcontractingTeamwillcompilethetenderdocumentscompriseofdrawings, plans, schedule, specifications and / or special provisions as appropriate. TheITBshallspecificallyinstructthebidderstosubmitthebidsintwoseparate envelopes clearly identified as priced and unpriced for technical intensive bid or contract requirement, otherwise only priced bid will be required. Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 4 of 6 5.2.3BID OPENING The technical bid (if applicable) shall be opened and witnessed together with the Project Manager or the General Manger In-charged. Upon receipt of the technical bid proposal, the Subcontract Executive shall forward the unpriced copy of the bid proposals to relevant dept. / Originator for TBE purposes. A technical meeting will be arranged with the selected bidders to discuss in detail the technical proposals submitted (if applicable). When all the requirements are satisfied, Subcontracting Team shall proceed with thecommercialevaluation.Thecommercialbidwillbeopenedtogetherwiththe Project Manager/GM (Tech), Subcontracting Manager/Procurement Manager and GM(Commercial)forthosebidswithpricedandun-pricedapproach. Otherwise, the subcontracting team shall compile all quotations and proceed with CBE. SubcontractingManagershallinitiatefurthernegotiationwiththeshortlisted biddersasindicatedintheCBEforthebestpricetogetherwithPM,GM (commercial),GM(Tech)orProcurementManager.Theresultofthenegotiation shall be recorded in the CBE. TheCBE,enclosedinAppendix7,togetherwiththeTBEcompliance(if applicable) shall then be forwarded to the management for approval. 5.2.4ISSUANCE OF LOI / LOA / SO UponLOAapproval,SubcontractingTeamshallproceedwithLetterofAward (LOA)orLetterofIntent(LOI)orServiceOrder(SO)acknowledgmentand acceptance by successful subcontractor. A sample of SO and LOA is enclosed in Appendix 8 and Appendix 9, respectively. Servicewillbeenteredwithsuccessfulsubcontractorbymeansofdocument basedonthefollowingleveloftransactionamountandflowchartstipulatedin Appendix 2: Value of SubcontractDocument < RM250, 000 (Known LS) SO with optional T/C < RM250, 000 (Unknown LS)LOA and T/C *Note:IfthevalueofcontractislessthanRM250,000.00thedocumentswillbeapproved by Managing Director or Executive Director (Operation). Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 5 of 6 Value of SubcontractDocument RM250, 000 (Known LS) LOI/LOA and T/C RM250, 000 (Unknown LS)LOI/LOA and T/C *Note:IfthevalueofcontractisaboveRM250,000.00thedocumentstobe approved by Managing Director and Executive Director (Operation). Letter of Intent shall only be issued if the subcontract is unable to finalize prior to physical work done by the subcontractor. CopiesoftheabovedocumentsshallbedistributedtoProjectManagerand Account Department. Project Manager shall initiate the kick-off meeting with successful subcontractor. The progress of subcontracting works shall be monitored by the Project Manager office and relevant departments directly involved in the works. 5.3SUBCONTRACTOR EVALUATION Uponprojectcompletion,allsubcontractorsshallbeassessedontheirperformance throughout the project duration using the Subcontractor Assessment Report stipulated in Appendix10.Eachcriterioncarriesscorepointsandoverallassessmentscorewillbe recorded. Thepurposeofthesubcontractorperformanceevaluationprogramistoprovidethe history of the subcontractors performance for future reference. TheSubcontractingTeamisresponsibleforcarryingouttheevaluationofthe subcontractors performance. 6.0SPECIAL REQUIREMENT (if any) Unless otherwise specified in the contract, priority of selection of bidders shall complyto the following level of sequence. 1.Preferred vendor / subcontractor in the contract. 2.Vendor Development Programme (VDP) sub-contractor. 3.Petronas Licensed subcontractor if specified. 4.Client preferred subcontractor. Doc Ref : QAP-16 Date : 1st January 2009 Revision No :0 SUBCONTRACTINGPROCEDURE Page 6 of 6 7.0RECORDS TitleResponsibility Retention Period SREngineering Department At least 1 year after Project Managercompletion of project TBEEngineering/Project Department CBESubcontracting Team LOA / LOI or SOSubcontracting Team APPENDICES QAP -16Rev-0Appendix 1SUBCONTRACTING ORGANIZATION STRUCTURESnr. / Subcontract ExecutiveSubcontract Regulator Ensure subcontract document are legally stamped. Compile all documents into a subcontract document. Ensure all the agreeable terms and conditions are captured in the subcontract document. Liaison with subcontractor for subcontract signing. Prepare Service Order / L.A. Maintain record of subcontract requisition. Perform subcontractor KPI upon project completion. Source for subcontractor. Prepare CBE. Organize technical clarification meeting. Liaison with subcontractor. Liaison with Service Intiator and PM.TITLE JOB DESCRIPTION GENERAL MANAGER SUBCONTRACTING MANAGER SNR. SUBCONT. EXEC. SUBCONT. EXEC. SUBCONT. EXEC. SUBCONT. REGULATORQAP-16Rev-0Appendix 2ISSUANCE OF SO/LA/LOI FLOW CHARTApproved by Managing DirectororExecutive Director (Operation) SUB-CONTRACTCONTRACT VALUE ABOVE 250K ?LOI / LOA & T/CLOA & T/C SOYESNOLUMP SUM AMOUNT KNOWN ?NO YESApproved by Managing DirectorandExecutive Director (Operation)QAP-16 Rev-.0 Appendix 3Page 1 of 9



SUB-CONTRACTOR INFORMATION A. COMPANY PARTI CULARS (1) NAME OF COMPANY: _________________________________________________ _________________________________________________ (2) REGISTERED BUSINESS ADDRESS: _________________________________________________ _________________________________________________ _________________________________________________ (3) CORRESPONDENCE ADDRESS: _________________________________________________ _________________________________________________ _________________________________________________ (4) TELEPHONE NO : _________________________________________________ _________________________________________________ (5) FAX NO: _________________________________________________ _________________________________________________ (6) EMAIL ADDRESS: _________________________________________________ _________________________________________________ (7) NATURE OF ORGANISATION: (Thick where appropriate)

(8) DATE OF INCORPORATION: _________________________________________________ (9) PLACE OF INCORPORATION: _________________________________________________ ( A true certified copy of Certificate of Incorporation and Articles of Association must be enclosed ) PUBLIC LIMITED PRIVATE LIMITED PARTNERSHIP SOLE PROPRIETOR QAP-16 Rev-.0 Appendix 3Page 3 of 9

B. FI NANCI AL I NFORMATI ON (1) CAPITAL STRUCTURE (Please state the currency) (1.1) AUTHORISED CAPITAL: __________________________________ (1.2) PAID-UP CAPITAL: __________________________________ (1.3) ANNUAL TURNOVER: __________________________________ (1.4) WORKING CAPITAL: __________________________________ (1.5) NET PROFIT LAST THREE YEARS 20___: __________________________________ 20___: __________________________________ 20___: __________________________________ (2) EQUITY PARTICIPATION (State value and currency. A true certified Form 24 must be enclosed) CATEGORYVALUE% LOCAL ( I ) BUMIPUTRA ( II )NON-BUMIPUTRA FOREIGN TOTAL (3) ACCOUNT DETAILS (4) Please enclose true certified copies of audited account of your company for the last three years. BANKERS NAME BANKERS ADDRESS ACCOUNT NO. AMOUNT OF LOANS / OVERDRAFT QAP-16 Rev-.0 Appendix 3Page 4 of 9


(3)LOCATION OF WAREHOUSE ADDRESSCONTACT NO. (D)REGI STRATI ON WI TH STATUTORY AUTHORI TI ES/ COMPANI ES STATUTORY AUTHORITIES/ COMPANIES REGISTRATION NUMBER EXPIRY DATE REMARK PETRONAS TREASURY PUSAKABUMI NOTE : 1. Please include Documentary Proof (License/ registration confirmation letter ) 2. Others, please specify in space provided. (E) OTHER RELEVANT INFORMATION _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________ QAP-16 Rev-.0 Appendix 3Page 6 of 9

(F) BUSI NESS RELATI ONS WI TH KENCANA I NFRASTRUCTURE SDN BHD F.1 TERMS OF PAYMENT: ____________ F.2 CREDIT LIMIT: ____________ DECLARATI ON I, the undersigned hereby declare to the best of my knowledge and belief that all particulars furnished under this application are true and accurate. I also authorize Kencana Infrastructure Sdn Bhd and its representatives and assign to undertake further investigation if so desired, I also agree that any incorrect information stipulated in this form may render our registration invalid. SIGNATURE: _______________________________ NAME : _______________________________ I.C. NO.: _______________________________ DESIGNATION: _______________________________ DATE: _______________________________ ___________________________________________________________________________ LIST OF ENCLOSURES REQUIRED (1)CERTIFIED COPY OF REGISTRATION OF COMPANY CERTIFICATE. (2)CERTIFIED COPY OF CERTIFICATE OF INCORPORATION AND ARTICLES OF ASSOCIATION. (3)CERTIFIED COPY OF FORM 49 (4)CERTIFIED COPY OF FORM 24 (5)CERTIFIED COPY OF AUDITED ACCOUNT FOR THE LAST THREE YEARS. (6)COMPANYS ORGANIZATIONAL CHART. (7)RELEVANT LICENCE/ REGISTRATION CONFIRMATION LETTER. (8)COMPANY BROCHURES AND AGREEMENT/AGENCY APPOINTMENT. QAP-16 Rev-.0 Appendix 3Page 7 of 9



LIST OF MAJ OR SUBCONTRACTING WORKS PRODUCT** TYPEBRAND MANUFACTURERS NAME, ADDRESS AND CONTACT NUMBER *OIL COMPANIES/AGENCIES SUPPLIED * Please list the major oil companies / agencies that you have supplied your product to, e.g. CARIGALI, PETRONAS, SHELL, etc. If insufficient, please attach another sheet with the same format. **Please provide documentary proof of agency or distributorship arrangements. QAP-16 Rev-0 Appendix 4SUBCONTRACTING FLOW CHARTPROCESS TURN AROUND ABOUT7 - 10 DAYSRESUBMISSION OF QUOTEPROCESS TURN AROUND ABOUT 7 - 14 DAYSBY PROJ ECT MANAGER / ASSIGNED(IF REQUIRED)REVIEW AND APPROVAL BY CLIENT(IF REQUIRED)PROCESS TURN AROUNDABOUT 7 - 10 DAYSPROGRESS MONITOR BY PMTCLIENTCONTRACT AWARDSR BY PMTRFQRECEIVED BIDSBID OPENTECHNICAL MEETINGPRICE IMPACTTECHNICAL BID EVALUATIONCLIENT APPROVALCOMMERCIAL BID EVALUATIONMGMT APPROVALLETTER OF AWARD / SERVICE ORDERSUBCONTRACTORDEVELOP SOURCE LISTMGMT APPROVALPROJECT SOURCE LISTYESNONONOYESYESNOYESCOMMERCIAL BID OPENQAP-16 Rev-0Appendix 4QAP-16 Rev-0Appendix 5No.Approved by:Name:Name: Name: PROJECT MANAGER GENERAL MANAGER (TECH) SENIOR GMDate: Date:Cost Code:Date:Certification / Documents Required: (if none, state "None")SERVICE REQUISITIONSR No.:Project:Suggested Sub-contractor:KENCANA INFRASTRUCTURE SDN. BHD.Lot 50, Jalan BRP 8/2, Pesiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh Selangor Darul Ehsan, Malaysia.Tel: 03-6140 5801Fax: 03-6140 5810Work Start Date:Backcharge:Completion Date:Reason :Requested by: Verified by:Name: Date: Date: Position:Attachment List DescriptionQAP-16 Rev-0KENCANA INFRASTRUCTURE SDN BHD Appendix 6 Lot 50, J alan BRP 8/2,Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan, Malaysia.Tel : (03) 6140 5801Fax : (03) 6140 5810 PROJ ECT : CONTRACT NO: J OB NO :TENDER COMMITTEEAPPROVALRef No.:SUB-CONTRACTING BIDDERS LIST Date: Dear Sir,Please find below proposed subcontractor bidders list for your kind approval.NO NAMEAPPROVED LISTYES NO N/A1234567891011121314REMARKS:RECOMMENDED BY APPROVED BY SIGNATURE : ________________________ SIGNATURE : ______________________________Sub-Contracting Manager:General Manager : DATE:DATE:SIGNATURE : ______________________________REVIEWED BYSenior General Manager:SIGNATURE : ________________________ SIGNATURE : ______________________________Project Manager :Managing Director:DATE:DATE:SIGNATURE : ______________________________Executive Director:DATE:Project: QAP-16 Rev. 0SR No:C O M M E R C I A L B I D E V A L U A T I O N ( C B E )Appendix 7LOA Ref:Scope:QUOTATION 1QUOTATION 2QUOTATION 3 QUOTATION 4BUDGET CURRENTNO. ITEM DESCRIPTION Qty uni tCurrency: RMQty uni tCurrency: RM Currency: RM Currency: RM Currency: RM Uni t Pri ce TotalPri ceUni t Pri ce TotalPri ceUni t Pri ce TotalPri ceUni t Pri ce TotalPri ceUni t Pri ce TotalPri ceInitial Allocated BudgetExtra Allocated Budget 0.00TotalBudgeted amount 0.00This Sub Contract Amount 0.00Total Amount Previously AwardedTotal Amount AwardedTotalBudget Bal ance - TOTAL AMOUNT(RM) -TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - QUOTATION REF:QUOTATION VALIDITYDELIVERY TIMEWORK/ DELIVERYLOCATIONTERM OF PAYMENTPETRONAS LICENCEREMARKSRECOMMENDATION:- BASIS OF RECOMMENDATION: APPROVED BY : UP TO 250K APPROVED BY : ABOVE 250KPREPARED BY : INITIATED BY: REVIEWED / CHECKED BY : VERIFIED BY :MANAGING DIRECTOR :DATE :MANAGING DIRECTOR/Name : SUBCONTRACTING HOD GM : SGM : FINANCE CONTROLLER: EXECUTIVE DIRECTOR OPERATION : EXECUTIVE DIRECTOR OPERATION :Date : DATE : DATE :DATE : DATE : DATE :DATE :QAP-16 Rev-0Appendix 8Kencana I nfrastructure Sdn Bhd Name SO No.Company DateAddress PR No.Supplier's QuotationProject ReferencePhone Terms of PaymentFax Cost CodeUni t Cost AmountRMRM Project:Re:AA. Scope of work Qty Unit U/Rate/Day Total DayRi nggi t Mal aysi a:-BB Addi ti onalTerms and Condi ti onsCC Mobi l i sati onDD Worki ng HoursEE Warranty Peri od FF Pri ce and CurrencyPrice quoted in Ringgit Malaysia (RM)GG Payment Terms30 days upon approved invoiceHH Invoi ci ng Instructi ons:-Submit the Original Invoice, Purchase Order and Supporting Documents to: KENCANA INFRSSTRUCTURE SDN BHDLot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3,Perusahaan Bukit Rahman Putra, Sg Buloh 47000, Selangor Darul Ehsan.Tel: 603-61405801Fax: 603-61405810Attention: Accounts Department II References :-The following documents contain herein and shall be read and interpreted as whole :1 This Service OrderRFQ Ref.Verified By : KENCANA INFRASTRUCTURE SDN BHDAUTHORISED SIGNATUREGeneralManager Seni or GeneralManager Managi ng Di rector /Executi ve Di rector (Operati on)NAME :NAME : DATE :DATE : ACKNOWLEDGEMENT RECEIPTSigned by : Company Official Stamp:Designation :Date :The undersigned hereby acknowledges receipt of this Service Order (a copy of which has been retained by us) and accept the award in accordance to the specified term and conditions.Rate ONLYLot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor D.E. Malaysia.Tel : (03) 6140 5801Fax: (03) 6140 5810Provi si onalPri ce For Thi s Servi ce Order (RM)SERVICE ORDERItem Qty Descri pti on OF WorksQAP-16 Rev-0 Appendix 9 Page 1 of 6 Our Ref: Proj ect Ref No Date Name and Address of sub-contractor Attention: Name of Person in Charge Dear Sir, NAME OF PROJ ECT SUB-CONTRACT: SCOPE OF WORKS -Letter of Award WearepleasedtoawardtheabovementionedWorkstoyouforasumofRinggit Malaysia: Description of Sub-Contract Sum only (RM xxx,xxx.xx) (the SUB-CONTRACT Sum)andsubjecttothetermandconditionsoftheSUBCONTRACTandtheMAIN CONTRACT and the following terms and conditions set forth herein below: 1.Definitions CONTRACTOR shall mean Kencana Infrastructure Sdn. Bhd. (594894-P) MAIN CONTRACTOR shall mean Kencana HL Sdn. Bhd. (83307-K) SUB-CONTRACTOR shall mean XXXXXXXXXXXX (XXXXXX-X) COMPANYshallmeanxxxxxxxxxxxxxxxxxxxxxxorhisjointventurethat entered into the Main Contract with the Main Contractor. MAINCONTRACTshallmeanthecontractsignedbetweentheMAIN CONTRACTOR and the COMPANY for the above-mentioned Project. SUBCONTRACTshallmeanthecontractsignedbetweentheCONTRACTOR and the SUB-CONTRACTOR for the above-mentioned Project. 2.Firm Price Contract ThisisafirmpriceBillsofQuantitiesContract(ProvisionalQuantitiesunless otherwisespecified),allratesandpricesstatedintheBillofQuantitiesare firm and shall not be subjected to adjustment and fluctuation. 3.Scope of Works TheSUB-CONTRACTscopeofworkscomprisesofprovisionto .. A Scope Matrix between theSUB-CONTRACTORandtheCONTRACTORisenclosedtogetherwiththe Schedule of Prices. QAP-16 Rev-0 Appendix 9 Page 2 of 6 4.SUB-CONTRACT Documents Thefollowingdocuments(theSUB-CONTRACTDocuments)shallforman integral part of this SUB-CONTRACT and are listed in; This Letter of Award. Schedule of Prices and Scope Matrix.Sub-Contract Conditions (Page SCC 1/11 to SCC 11/11). Supplementary Conditions (Page SUPC-1/6 to 6/6). Projectscopeofworks,listofdrawings,constructiondrawings, fabrication/shopdrawingsandspecificationofmaincontract.(not enclosed in this sub-contract document, but can be accessed at the site office during office hour on working day) 5.Conditions of SUB-CONTRACT & Main Contract SUB-CONTRACTORshallperformalldutiesandobligationsunderthisSUB-CONTRACT and you shall execute the works subject to and in accordance with this SUB-CONTRACT and Main Contract (in respect to term and conditions that relateandapplytotheWorks).Inrelationtoanytermswhichexistinboth MaincontractandtheSUB-CONTRACT,andifthesaidtermsconflictswith each of the terms for the SUB-CONTRACT shall prevail. However, if the terms forasubjectmatterisabsentintheSUB-CONTRACT,butexistintheMain Contract,thentheMainContracttermforthatsubjectmatterwillgovern. Notwithstanding any other provisions in the SUB-CONTRACT, the provisions in the MAIN CONTRACT shall apply mutatis mutandis to the Sub-Contract herein mentioned. 6.Commencement and Completion Duration The Commencement Date is xxxxxxxxxxxxxxxand the SUB-CONTRACTOR shall complete the SUB-CONTRACT Works on or before xxxxxxxxxxxxxxxx and within the sectional completion date (if any). 7.Partial Handing Over Asandwheninstructedbyus,youshallforthwithhandoverthewholeor partly completed Works to us. 8.Late Delivery Charges The Late Delivery Charges for non-completion Of the SUB-CONTRACT Works as per schedule below:-QAP-16 Rev-0 Appendix 9 Page 3 of 6 No.Key Date / MilestoneCompletionLDC per dayTotal Max % of Contract Value 1xxxxxxxx/xx/xxx,xxx.xx xx% 9.Performance Bond Notwithstandinganyprovisionhereincontained,Itisastrictandcondition precedent under this Sub-Contract that a performance bond in the form of bank guaranteeapprovedbytheContractorforthesumequalto10%oftheSub-Contractvalueisrequiredtobesubmittedwithin14daysasperattached formatinAppendixA.failingtheCONTRACTORshallhavenoobligationtopay the SUB CONTRACTOR for any works done. 10.Contract Drawings ThedrawingsuponwhichtheSUB-CONTRACTisbaseduponarelistedinthe ListofDrawings.Thedrawingswillbesupplementedfromtimetotimeby additional drawings and/or details for successful completion of the works. 11.Payment Terms YouhavetosubmityourInterimProgressClaimtotheCONTRACTORfor Monthly Interim Payment on every 25th of the month or any other date to be mutually agreed by both parties. Unless disputed by the CONTRACTOR on the invoicessubmitted,WeshallissuetheProgressPaymentCertificatewithin seven(7)workingdaysfromendofmonthandmakepaymenttoyouwithin thirty(30)daysfromdateofpaymentcertificate.Notwithstandingany paymentsmighthavebeenmadetotheSUBCONTRACTOR,CONTRACTORs rightstoreview,disputeandclaimbackanypaymenterroneousbilledshall be unaffected and without prejudice to other rights or remedies available to the CONTRACTOR. QAP-16 Rev-0 Appendix 9 Page 4 of 6 12.Insurance The Contractors All Risks insurance has been purchased by the CONTRACTOR and the policy is available for your inspection in our office during office hours. Theexcess/deductiblesspecifiedinthepolicyandanyadditionalinsurance that may be required shall be borne by you. TheSUB-CONTRACTORshallalsoatitsowncostandexpensesmaintainany other insurance(s) which may be relevant and/or necessary from time to time as required under the Sub Contract and Main Contract respectively. Youshallreporttousanyincidentand/oraccident,whichmayinvolve insuranceclaimwithintwenty-four(24)hoursfromtheoccurrenceofthe incident/accident. You shall arrange at your own cost any necessary insurance coverage for your constructionplantsandmachineriesonsiteandanyotherinsurancewhich deemed necessary. 13.Defects Liability Period The defects liability period is twelve (12) months from the date of receipt of theCertificateofInitialAcceptancefortheMainContractoranyother extension of such period thereof. 14.Undertakings and Warranty You shall provide and execute the undertaking on the Employment of Workers andtheundertakingoncompliancewiththeGreenCardProgramme stipulated by Construction Industry Development Board (CIDB), Malaysia. 15.Site Personnel You shall provide and employ on the site for the purpose of the execution and maintenanceoftheworksacompetentandfulltimesiteandproject management team throughout this SUB-CONTRACT.You shall also submit the curriculumvitaeofyourkeyproject/sitepersonnelwhoarequalified, experienced and competent for our acceptance and the Contractor is entitled to object and require the Sub-Contractor to resubmit the replacement of such personnel for the Contractors consideration. 16.Co-ordination of Works Youshallco-ordinate,interfaceandprovidefullco-operationtoother subcontractors employed by us.QAP-16 Rev-0 Appendix 9 Page 5 of 6Youaretoarrange,programmeandliaisewithothersub-contractorsor personnel so as not to cause any interference or interruption to the progress ofworksandnoclaimshallbeentertainedbasedonthegroundof hindrance/obstruction experienced. 17. Care of Works You are responsible to independently check the construction drawings for any discrepancy or errors and the CONTRACTOR shall not owe any duty to the Sub CONTRACTORorberesponsibleforanyerrorsthereto.Anydiscrepancyor error found in the drawings shall be immediately notified to the CONTRACTOR for clarification and correction. 18.Security TheSUB-CONTRACTORanditsagentoremployeeorrepresentativeshall complywithallthesecurityprocedures,regulation,HSErequirementsand adhere to all safety regulations by COMPANY at his own cost. This letter is sent to you in three (3) sets. Please signify your receipt of this Letter of Award by returning the original and one (1) duplicate duly signed by your authorized representative and witnessed to us within seven (7) days from the date of this letter, failing which we shall deem that our offer as contained in this Letter is not accepted byyouandthisLettershallbedeemednullandvoid.Insuchevent,weshallhave the absolute right and discretion to award this SUB-CONTRACT to other party and you shall have no claims, interests nor rights against us in respect to this SUB-CONTRACT. Yours sincerely, For and on behalf of KENCANA INFRASTRUCTURE SDN BHD ..Ir. Haron Ali Managing Director QAP-16 Rev-0 Appendix 9 Page 6 of 6 ACKNOWLEDGEMENT We,xxxxxxxxxxxxxxxxxxx(xxxxxx-x)acknowledgereceiptofthisLetterofAward (ref:KI07/002-KI-SSWJ/LOA/0003)andherebyagreeandacceptthetermsand conditions in this Letter of Award. Signature and Stamp ofSUB-CONTRACTOR : Name/Designation: Date: Signature of Witness : Name : I/C No: QAP-16 Rev-0 Appendix 9 Page 1 of 11 SUB-CONTRACT CONDITIONS SUB-CONTRACT CONDI TI ONS 1.Site Possession, Commencement and Completion. The duration of the SUB-CONTRACT shall be as stipulated in Appendix I. Commencementshallmeancommencementofphysicalworksatsite.SUB-CONTRACTOR shall ensure strict compliance to the above dates, subject to Clause 28 and other terms herein, and subject to any revisions thereto by the CONTRACTOR. Possession of site shall not be exclusive to the SUB-CONTRACTOR. 2.Execution of the SUB-CONTRACT Works. The SUB-CONTRACTOR hereby acknowledges that the CONTRACTOR is relying on its skill and expertise and upon this reliance undertakes that its workmanship shall in all respects comply with and perform the Works in accordance to the requirements of this SUB-CONTRACT and fit for the purpose of this SUB-CONTRACT. 3.Main Contract. The SUB-CONTRACTOR is deemed to have read, understood and be bound by the terms and conditions of the Main Contract documents, insofar as it relates to the SUB-CONTRACT works (except details of the prices therein) and all subsequent revisions and amendments thereto. The SUB-CONTRACTOR shall observe, perform and comply with all the provisions oftheMainContractonthepartapplicabletotheCONTRACTORinsofarasthey relate and apply to the SUB-CONTRACT. 4.Site Conditions. TheSUB-CONTRACTORshallbedeemedtohavevisitedthesiteandits surroundings and to have ascertained and satisfied himself as to the nature, character andextentoftheworks,localconditions,accessibilityofsite,geologicaland hydrological conditions, the supply of and conditions affecting labour and materials, existing services and any other limitations and restrictions imposed by the site and its surroundingsandothermattersaffectingtheSUB-CONTRACT.TheSUB-CONTRACTOR shall accept the site as found on the date of site possession and no claims of any nature will be entertained on grounds of ignorance of site conditions. The SUB-CONTRACTOR agrees and accepts that the CONTRACTOR shall not be held liable in whatever manner for any information provided to the SUB-CONTRACTOR, whether it be inaccurate or erroneous and the SUBCONTRACTOR shall undertake its independentcheckingandvaluationonallinformationprovidedbythe CONTRACTOR. QAP-16 Rev-0 Appendix 9 Page 2 of 11 SUB-CONTRACT CONDITIONS 5.Sub-Contract Program. SubjecttothedatesmentionedinClause1above,theSUB-CONTRACTORshall submit a works program (Sub-Contract Program) which shall in all respects tie in and beconsistentwiththeCONTRACTOR'sprogram(MainContractProgram)which shall not in conflict with the CONTRACTORs program in the Main Contract. Details oftheMainContractProgramareavailableattheCONTRACTOR'ssiteofficeof whichtheSUB-CONTRACTORisdeemedtoreadandhaveknowledge.The CONTRACTOR shall be entitled to revise the Sub-Contract Program, at no costs to suit the Main Contract Program at their sole and absolute discretion and at terms to be ascertainedanddeterminedatsuchrevisedperiod.TheSUB-CONTRACTORshall comply and complete the SUB-CONTRACT works strictly in accordance to the time allocated and approved by the CONTRACTOR in the Sub-Contract Program or any revisionstheretosubjecttoClause28andalltermsherein.TheCONTRACTOR reserves the right to instruct the SUB-CONTRACTOR accordingly at no costs should therebeanydeviationsornon-compliancetotheprogramsandthe SUB_CONTRACTOR shall be obliged to perform accordingly. 6.I nsurance. TheContractor'sAllRisksInsurancePolicyandtheWorkmen'sCompensation Insurance Policy have been effected by the CONTRACTOR. NotwithstandingthatboththesepolicieshavebeenextendedtocovertheSUB-CONTRACT works, the SUB-CONTRACTOR shall : a)comply with the policy conditions and shall be bound by the deductibles stated therein; b)Not commit or by omission do any act which shall render the said insurance policies void or voidable, particularly but not limited to the administration and notification of claims; The SUB-CONTRACTOR shall indemnify the CONTRACTOR for any loss or claims in respect of personal injury to or the death of any other person regardless whether the same is due to any act of negligence, omission or default of the SUB-CONTRACTOR, his servant, agents and/or representative(s). Notwithstandingthis,theSUB-CONTRACTORshallfromtimetotimeprovide necessaryinsurance coverage for his own plant, machinery, equipment and foreign workers. The SUB-CONTRACTOR shall submit to the CONTRACTOR a list of plant, machinery and equipment he intends to be employed on site and furnish documentary proof that the same has been adequately insured. QAP-16 Rev-0 Appendix 9 Page 3 of 11 SUB-CONTRACT CONDITIONS 7.Firm Price Contract. TheSUB-CONTRACTisafirmpricecontractandtheratesmentionedthereinare fixed for the entire duration of the SUB-CONTRACT and there shall be no claims for additionalcostsinanysituationincludingarisingoutofincreaseinthecostof materials, currency fluctuations, labour, plant, equipment, fuel, etc (unless otherwise stated or provision is made under the Special Provision to Sub-contract Conditions). Allcostsinrelationtoauthoritiescontribution,levy,payment,customsrestriction, quotas, duties, taxes etc. are deemed to be included in the SUB-CONTRACT Sum. 8.Bills of Quantities. Thequantitiesmentionedhereinareprovisionalonlyandwillbesubjectedtore-measurement and adjustments at the approval of the CONTRACTOR upon completion of the SUB-CONTRACT works unless otherwise specified in the Letter of Award. The SUB-CONTRACTOR shall not be entitled to claim for additional cost incurred in the Preliminaries nor for any consequential loss, loss of profit, economic loss or any other loss and/or expense due to variance of the quantities. 9.Payment. Progress payment to the SUB-CONTRACT works shall be made based on the value of worksproperlyandsatisfactorycompletedandmaterialsdeliveredtosite(if applicable)providedthatthevalueofmaterialsdeliveredshallnotexceedthe maximum limit as specified in Appendix I. The SUB-CONTRACTOR shall submit his applicationforpaymenteverycalendarmonth,whichshallbeaccompaniedbyall formsofcalculationandsupportingdocumentstosubstantiatehisclaimandthe CONTRACTORwillpayuponverificationoftheclaim.Theperiodofhonoring paymentshallbeasperAppendixIfromthedateofcertificationbythe CONTRACTOR.Payment made to the SUB-CONTRACTOR shall not be deemed as acceptance of the Sub- Contract works should the same proved to be defective and/or notinaccordancetotheSUB-CONTRACTrequirementsasstatedintheSUB-CONTRACT documents. Not withstanding to the payment certified and paid to the CONTRACTOR, the SUB-CONTRACTOR shall be responsible to rectify the said defects within 7 days from the day of notification at the SUB-CONTARCTOR own cost. The CONTRACTOR shall have the right to withhold payment to the SUB-CONTRACTOR for the next invoice pending satisfactory completion of the defective works. For the avoidance of doubt, the CONTRACTOR shall have the legal rights to withhold payment to the SUB-CONTRACTOR if works are found to be unsatisfactory to the CONTRACTORandthisshallnotwithoutprejudicetootherrightsandremedies availabletoCONTRACTOR.Notwithstandingthis,theSUB-CONTRACTORis obliged to continue perform the work herein pending payment from the Contractor. QAP-16 Rev-0 Appendix 9 Page 4 of 11 SUB-CONTRACT CONDITIONS 10.Statutory Declaration. ProvidedalwaysthatnopaymentduetotheSUB-CONTRACTORundertheFinal AcceptanceshallbemadeunlessanduntiltheSUB-CONTRACTORshallhave satisfied the CONTRACTOR by means of either: a)a Statutory Declaration made by or on behalf of the SUB-CONTRACTOR (to be provided in the format as set out in Appendix III attached); or b)a certificate signed by or on behalf of the Director Genera1 of Labour, to the effect that the workmen who have been employed by the SUB-CONTRACTOR ontheWorks,includingworkmenemployedbyhissub-contractors(includinghis labour only" sub-contractors) have received all wages due to them in connection with such employment and that all dues or contributions under the Employment Act, the Employee'sSocialSecurityAct,theEmployee'sProvidentFundActandanyother laws relevant to the employment of workmen, have been paid. 11.Retention. AllpaymentsmadetotheSUB-CONTRACTORunderClause9aboveshallbe subjected to retention as per Appendix I. Unless otherwise stated, the first moiety of retentionsumshallbereleaseduponissuanceoftheCertificateofProvisional Acceptance of the Main Contract and the execution of both the Deeds of Warranty and StatutoryDeclarationbytheSUB-CONTRACTORandthesecondmoietyshallbe releaseduponthereceivingoftheCertificateofFinalAcceptancebythe CONTRACTOR. Where contractually the 2nd moiety of retention sum shall be released under the Main Contract, interest free and always subject to the period of honouring payment provided under Clause 9. 12.Right to deduct set-off. Notwithstandinganyprovisionscontraryherein,,theCONTRACTORreservesthe right to withhold, deduct, set-off or set-aside any sums due or to be due to the SUB-CONTRACTOR under the SUB-CONTRACT. 13.Compliance with I nstructions/Variations. TheSUB-CONTRACTORshallcomplywithallinstructionsissuedbythe CONTRACTORwithinseven(7)daysoftheissuancethereof.TheSUB-CONTRACTOR shall also comply with the instructions of the Owner and/or their duly appointedrepresentativesprovidedthesamehasbeendulyendorsedbythe CONTRACTORandthesameshallhaveequaleffectoftheinstructionsofthe CONTRACTOR. If the SUB-CONTRACTOR fails to comply with the said instructions, within seven (7) daysofreceiptofwrittennoticerequiringcomplianceofthesame,the QAP-16 Rev-0 Appendix 9 Page 5 of 11 SUB-CONTRACT CONDITIONS CONTRACTORshallbeentitledtoexecutethesaidpartoftheSUB-CONTRACT works pertaining to the instructions or employ others to execute the same and all costs incurred in connection therewith shall be deducted from monies due or to be due to the SUB-CONTRACTORorrecoveredfromtheSUB-CONTRACTORasadebtdue without prejudice to any other rights available to the CONTRACTOR in contract and/ or at law. Variations issued by the CONTRACTOR shall be deemed to form part of this SUB-CONTRACTandshallnotberegardedasvitiationthereof.TheSUB-CONTRACT Sum shall be adjusted accordingly to take into account of such variations. The valuation of variation shall be made in accordance with the following rules: (i)The prices in the Bills of Quantities shall determine the Valuation of Work of similar character executed under similar conditions as work priced herein. (ii)Where work is not of a similar character or executed under similar conditions, the prices in the Bills of Quantities shall be the basis for valuation. The lowest price shall prevail. (iii)Whereworkcannotproperlybemeasuredandvalued,theSUB-CONTRACTOR shall be allowed day-work-rates. 14.Owner's Requirements. TheSUB-CONTRACTORshallhaveknowledgeandbeboundbyallpoliciesin relationtonoise,environmentalprotection,qualityassurance,occupationalsafety, logisticsandsiteorganizationimposedbytheOwner.Inadditiontoother environmental protection guidelines, there shall be no open burning at site or anywhere within the vicinity of site. 15.Statutory Compliance. The SUB-CONTRACTOR shall comply with all statutes, rules, regulations, directives, ordinancesetc.currentlyinforceandanyamendmentstheretoissuedbythe government or any other competent authority at his own cost. Particular reference is brought to the following legislations, the list of which shall not be deemedexhaustive: (i)Occupational Safety & Health Act (Act 514) 1994 and related regulations. (ii)Factory and Machinery Act (Act 139) and related regulations. (iii)Environmental Quality Act (Act 127) 1974. (iv)Guideline for the Public Safety and Health at Construction Sites issued by the Department of Occupational Health and Safety. (v)Regulations issued by the Department of Health. (vi)Regulations 18 (Public Vehicular Traffic) of Building Operations and Work of Engineering 1986. (vii)Transport Ordinance 1958 (Ordinance 48). QAP-16 Rev-0 Appendix 9 Page 6 of 11 SUB-CONTRACT CONDITIONS (viii)Clean Air Regulation 1978. (ix)ConstructionIndustryDevelopmentBoard(CIDB)GreenCardProgramme For Personnel At Construction Sites. 16.Compliance to Specifications. TheSUB-CONTRACTworksshallbestrictlycarriedoutinaccordancetothe specifications and drawings provided. 17.Protection of Existing Works and Surrounding Areas. TheSUB-CONTRACTORshallberesponsiblefortherisksandliableforthe necessaryprotectionofallexistingworksandserviceswithinthesiteandthe surrounding area. The CONTRACTOR shall determine any disputes with respect to matters relating to these protections. TheSUB-CONTRACTORshallimmediatelynotifytheCONTRACTORofany existingservicessumaswaterpipes,electriccables,drainage,telecommunication cables, gas pipes, sewerage etc. which will be affected by the SUB-CONTRACT works and shall provide necessary protection and supports to the same at their own expense, to the satisfaction of the CONTRACTOR. 18.Coordination. The SUB-CONTRACTOR shall coordinate, interface and provide full cooperation to the Project Consultants, other contractors employed by the Owner, CONTRACTOR or others who may be concurrently working on site or at its surrounding area and the costs implications of which shall be deemed included in the SUB-CONTRACT Sum. 19.Particulars of Labour. (i)The SUB-CONTRACTOR shall submit particulars of workers employed at site. The SUB-CONTRACTOR shall ensure prompt payment of all salaries, wages, allowances, EPF and SOCSO contribution, levy, permit and all other charges associated with their workforce. (ii)AllforeignworkersemployedbytheSUB-CONTRACTORandhis subcontractors/ sub-suppliers shall be lawfully employed, in accordance to the local laws pertaining to the employment of foreign workers. (iii)TheCONTRACTORshallnotbeheldresponsibleorliableinanyway whatsoeverforthemanagementandemployment(lawfulorotherwise)of foreignworkersnorfortheapprehensionofanyillegalworkersunderthe employment of the SUB-CONTRACTOR by any authority. QAP-16 Rev-0 Appendix 9 Page 7 of 11 SUB-CONTRACT CONDITIONS 20.Sub-Contracting. TheSUB-CONTRACTORshallseekthewrittenapprovaloftheCONTRACTOR prior to the subletting of any part of the Sub-contract works. Any other sub-contract and assignment done without the approval of the Contractor shall be breach of this SUB CONTRACT and the CONTRACTOR reserves the right to terminate this SUB CONTRACT forthwith. 21.Defects Liability Period. TheSub-contractissubjecttoaDefectsLiabilityPeriodwhichshallcommence immediately upon the Certificate of Provisional Acceptance of the Sub-contract works and shall expire at end of the Defects Liability Period for the Main Contract which is as indicated in Appendix I from the issuance of the Certificate of Provisional Acceptance for the Main Contract. The SUB-CONTRACTOR shall at his own cost and expense rectifyandmakegoodalldefects,damage,shrinkageandfaultsintheSUB-CONTRACTworkswhichappearsduringthisperiod.ACertificateofFinal Acceptance shall be issued by the CONTRACTOR upon the SUB-CONTRACTOR's full compliance of his obligations and upon satisfaction by the CONTRACTOR during the Defects Liability Period. 22.Termination. The CONTRACTOR may without prejudice to any other rights or remedies shall (at their sole discretion) terminate the employment of the SUB-CONTRACTOR under this SUB-CONTRACT by way of a written notice in the following event:- (a)If the SUB-CONTRACTOR shall make default in any of the following respects viz. (i)Ifwithoutreasonablecausehewhollyorsubstantiallysuspendsthe carryingoutoftheSUB-CONTRACTWorksformorethanseven(7) days including rest day; (ii)If he fails to commence or proceed regularly and diligently with the SUB-CONTRACT Works; (iii)If he refuses or persistently fails after notice in writing to comply with any instructions given by the CONTRACTOR; (b)If the SUB-CONTRACTOR commits an act of bankruptcy or makes or enters intoanydeedorarrangementorcompositionwithhiscreditorsorbeinga companyentersintoliquidation,whethercompulsoryorvoluntary,except liquidation for purposes of reconstruction, or suffers, or allows any execution, whether legal or equitable, to be levied on his fixed and/or floating property or obtained against him. QAP-16 Rev-0 Appendix 9 Page 8 of 11 SUB-CONTRACT CONDITIONS 23.Termination for Convenience. In the event the Main Contract is terminated, or any part of it is omitted, by the Owner and/or the CONTRACTOR, the CONTRACTOR shall therewith terminate or omit the SUB-CONTRACTaccordinglyandtheSUB-CONTRACTORshallbepaidforthe actual value of work less any previous payments and retention, without prejudice to any other rights available to the CONTRACTOR. There shall be no claim by the SUB-CONTRACTOR on grounds of consequential loss, loss of profits, economic loss or other damages, loss and/or expenses. 24.Rights and Liabilities. (a)IntheeventofterminationoftheSUB-CONTRACTinClause22and/or Clause 23, the CONTRACTOR shall be entitled to exercise their rights under Clause12herein,withoutprejudicetoanyotherrightsavailabletothe CONTRACTOR in contract and/or at law. (b)The SUB-CONTRACTOR shall prevent injury, death or damage in respect of whichbeforethedateofterminationheisliabletoindemnifythe CONTRACTOR under Clause 6. 25.I ndemnity. The SUB-CONTRACTOR shall indemnify and save the CONTRACTOR harmless against all loss, expenses, claims, damages, cost or proceedings suffered or incurred bytheCONTRACTORasaresultoftheactionsand/oromissionoftheSUB-CONTRACTORorbreachoftheSUB-CONTRACTorgenerallyanyother provisions contained in the Letter of Acceptance/Letter of Award and Appendices. TheSUB-CONTRACTORfurtheragreesandundertakestoindemnifythe CONTRACTOR for any breach by it which may result in the CONTRACTOR being inbreachoftheMainContractprovisionsandthusbecomingliableforanylass, damages or claims thereafter. 26.Divergence in Documents. Should there be any omission, uncertainty, ambiguity, inconsistency or uncertainty between the documents forming part of this SUB-CONTRACT, the party finding out the same shall give written notice to the other and the CONTRACTOR shall issue instructions accordingly. Such instructions shall be final and deemed to form part of this SUB-CONTRACT and not as a variation thereof. 27.Extension of Time. Notwithstandinganyprovisioncontainedherein,anyentitlementsorreasonsfor extensionoftimeshallbeevaluatedanddeterminedatthesoleandabsolute discretion of the CONTRACTOR. QAP-16 Rev-0 Appendix 9 Page 9 of 11 SUB-CONTRACT CONDITIONS 28.Late Delivery Charges. LateDeliveryChargesasperAppendixIshallbeimposedontheSUB-CONTRACTOR for each day or part thereof for any delay to the completion of the SUB-CONTRACT works. 29.Final Account. Within a reasonable time after the completion of the SUB-CONTRACT, the SUB-CONTRACTOR shall submit to the CONTRACTOR the final account in respect of the SUB-CONTRACT together with all particulars, details or information in support thereof for verification and audit purposes. 30.Arbitration. Any disputes arising between the CONTRACTOR and the SUB-CONTRACTOR in connectionwiththisSUB-CONTRACT,intheabsenceofanamicablesettlement shall be decided by arbitration in accordance with the Rules for Arbitration of the KualaLumpurRegionalCentreforArbitration(KLRCA)attheKualaLumpur Regional Centre for Arbitration. 31.General. Words importing singular only also include the plural and vice-versa. Any reference to the Letter of Acceptance shall include the Appendices included therein. 32.Confidentiality. All information in relation to this SUB-CONTRACT and the Main Contract shall be treated in the strictest confidence. The SUB-CONTRACTOR shall not divulge, communicate or allow information in respect thereof to any third party save for the proper execution and completion of the SUB-CONTRACT. QAP-16 Rev-0 Appendix 9 Page 10 of 11 SUB-CONTRACT CONDITIONS APPENDI X - I Clause 1:Date of Site Possession and Commencement: As stipulated in the Letter of Award. Clause 9 (i):Payment for the value of material on Site: Not Applicable. Clause 9 (ii):Period ofHonoring Payment : Thirty (30) days from date of the progress payment certificate. Clause 11:PercentageofCertifiedValueRetained:10%ofthevalueof workdonecertifiedunderClause9withcumulativetotal retainedamountuptomaximumof5%oftheSUB-CONTRACT value. Clause 21:DefectsLiabilityPeriodfortheSUB-CONTRACT: CommencingimmediatelyuponthedateofCertificateof Initial Acceptance of the Main Contract and shall expire at the endofTwelve(12)monthsfromthedatesofissuanceof CertificateofInitialAcceptance(ortakingovercertificate whereappropriate)oftheMainContractorissuanceof Certificate of Final Acceptance whichever later. Clause 28:Late Delivery Charges:As stipulated in the Letter of Award. QAP-16 Rev-0 Appendix 9 Page 11 of 11 SUB-CONTRACT CONDITIONS APPENDI X I I STATUTORY DECLARATI ON (SAMPLE FORM) Iholder ofNRIC No. solemnly and sincerely declare: 1)I am the .of engaged to [Name of SUB-CONTRACT / Project] 2)That the workmen who have been engaged by us on the works, including, to the bestofmyknowledgeandbelief,allworkmenemployedbyusandmysub-contractors (including Labour Sub-Contractor) have received all wages due to theminconnectionwithsuchemployment,andthatallduesorcontributions undertheEmploymentOrdinance,theEmployeesSocialSecurityAct,the EmployeesProvidentFundOrdinanceandanyotherlawsrelevanttothe employment of workmen, have been paid. And I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declaration Act, 1960. SUB-CONTRACTORs Signature and Companys Chop Name: Date: Declared at the Commissioner of Oath Before me, QAP-16 Rev-0 Appendix 9 Page 1 of 6 SUPPLEMENTARY CONDITIONS 1.Performance Bond AsaconditionprecedenttothisSUB-CONTRACT,theSUB-CONTRACTORshall provide a performance bond by way of bank guarantee approved by the CONTRACTOR. The sum of the performance bond shall be ten (10) percent of the SUB-CONTRACT Sum. The terms of the performance bond shall be as per attached format in Appendix A. The bond shall remain in full force and valid until xx/xx/xxxx or to be extended until the date of issuance of Certificate of Provisional Acceptance. The cost for obtaining the same and any extension hereof shall fully be borne by the SUB-CONTRACTOR. Subsequently, the SUB-CONTRACTOR shall provide a new Bank Guarantee of five (5) percent of the Final Sub-Contract sum within thirty (30) days from the issuance of Certificate of Provisional Acceptance of the Main Contract, which shall be valid until the completion ofDefect Liability Period plus 30 days thereafter of the Main Contract (or any extension thereto whichever is later). 2.Safety Precautions The SUB-CONTRACTOR shall comply with all applicable safety regulations prescribed bytherelevantauthorityinrelationtotheSUB-CONTRACTWorksandthe CONTRACTORssafetyregulationsandproceduresincludingthepenaltyschemefor safety breaches. In addition to the applicable safety regulations above, theSub-Contractor shall strictly comply with all the safety requirements as imposed by the COMPANY or its policy from time to time on the Main Contractor. TheSUB-CONTRACTORshallberesponsiblefortheimplementationofappropriate safetymeasuresthroughouttheexecutionandcompletionoftheSUB-CONTRACT Works. The SUB-CONTRACTOR shall at his own expenses provide all safety gears, equipment for his workmen in the course of carrying out the SUB-CONTRACT Works. TheSUB-CONTRACTORshallprovidesecuritymeasuresincluding,butlimitedto, lighting, guarding and watching of the Site and SUB-CONTRACT Work until practical completion of the SUB-CONTRACT. 3.Sample/Mock-Up Unit (where applicable) Within two weeks of the award of the Contract, the SUB-CONTRACTOR shall at his own costs provide and deliver the samples to the site office for CONTRACTORs approval. Where required, the SUB-CONTRACTOR shall provide samples/mock-up units to the CONTRACTOR as and when required and shall bear all costs thereto. Any materials and/or workmanship not complying with the approved samples/mock-up units will be rejected and replace at the SUB-CONTRACTOR's own cost. QAP-16 Rev-0 Appendix 9 Page 2 of 6 SUPPLEMENTARY CONDITIONS 4.Construction Drawings, Further Supplementary Drawings, As Built Drawings etc. The CONTRACTOR shall provide, free of charge, one (1) set of construction drawings to the SUB-CONTRACTOR. Any additional sets requested by the SUB-CONTRACTOR shall be charged accordingly. TheCONTRACTORshallhavefullpowerandauthoritytosupplytheSUB-CONTRACTOR from time to time during the progress of the SUB-CONTRACT Work such revised or further drawings, specifications and/or instructions as may in its opinion be necessaryforthepurposesoftheexecutionandcompletionoftheSUB-CONTRACT Works. The SUB-CONTRACTOR shall carry out and be bound by the same. 5.Quality Assurance Procedures The SUB-CONTRACTOR shall comply with the quality assurance procedures prescribed by the CONTRACTOR. The SUB-CONTRACTOR shall, before carrying out any physical works, submit the method statement, working programme, quality control procedures, testing procedures etc. which the SUB-CONTRACTOR proposes to adopt for the execution of the SUB-CONTRACT Works to the CONTRACTOR for approval. 6.Overtime and Night Works The SUB-CONTRACTOR shall give sufficient written notice to the CONTRACTOR and all supervising parties for all night works and overtime works. QAP-16 Rev-0 Appendix 9 Page 3 of 6 SUPPLEMENTARY CONDITIONS APPENDI X A BANK GUARANTEE FOR PERFORMANCE BOND BANK GUARANTEE NO.We, ------------ (Company No.) at ----------------- (hereinafter referred to as the Guarantor) hereby agree to guarantee the due performance of the SUB-CONTRACT in the manner hereinafter appearing at the request of --------------------------- (Company No. ---------) having its address at No. ------------------------------------ (hereinafter referred to as the SUB-CONTRACTOR)whohasenteredintoacontractwithKencanaInfrastructureSdnBhd (Company No. 594894-P) having its registered office at Lot 50, J alan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan (hereinaftercalledtheCONTRACTOR)wherebytheSUB-CONTRACTORagreedand undertake to ----------------------------------------------------- (hereinafter referred to asthe SUB-CONTRACT) for the sum of Ringgit Malaysia ---------------------------------------- Only (RM -------------). This Guarantee is now issued to the CONTRACTOR on the following terms and conditions: a)IftheSUB-CONTRACTORshallinrespectfailtoexecutetheSUB-CONTRACTor commitanybreachofhisobligationsthereunderthentheGuarantorshallpay unconditionallyondemandwithoutprooforconditionswithinfourteen(14)daysafter receipt of the said demand to the CONTRACTOR up to and not exceeding the sum of RinggitMalaysia ------------------------------ Only (RM ---------------) notwithstanding any contestation, arbitration, legal proceeding or any protest or request whatsoever by the SUB-CONTRACTOR or by the Guarantor or by any third party Provided Always that the total of all partial demands so made shall not exceed the sum of RinggitMalaysia ---------------------------------------------- Only (RM ----------------------) b)The Guarantor shall pay unconditionally on demand without proof or conditions within fourteen (14) days after receipt of the said demand to the CONTRACTOR up to and not exceeding the sum of RinggitMalaysia ---------------------------------- Only (RM -----------------------)notwithstanding any contestation, arbitration, legal proceeding or any protest or request whatsoever by the SUB-CONTRACTOR of any breaches of contractor by the Guarantor or by any third party Provided Always that the total of all partial demands so madeshallnotexceedthesumofRinggitMalaysia-----------------------------------Only (RM ---------------------) . c)The Guarantor shall not be discharged or released from this Guarantee by any arrangement between the CONTRACTOR and the SUB-CONTRACTOR with or without the consent of theGuarantororbyanyalterationsintheobligationsundertakenbytheSUB-CONTRACTOR or by forbearance whether as to payment, time, performance or otherwise. d)Notwithstanding any terms contained herein, this Guarantee is a continuing security and shall be irrevocable and shall remain valid from the date of award of the SUB-CONTRACT and effective for the whole duration of the SUB-CONTRACT until ------------------- or the -------------------------oftheMainContract.ProvidedalwaysthatthisGuaranteeshallbe QAP-16 Rev-0 Appendix 9 Page 4 of 6 SUPPLEMENTARY CONDITIONS extended by the Guarantor upon the CONTRACTORs written notice should there be any extension to the SUB-CONTRACT. e)The Guarantor undertakes that the Guarantee is given regardless of whether or not the sum outstandingisoccasionedbytheloss,damages,cost,expensesorwhethersuchsumis otherwise incurred by the CONTRACTOR is recoverable by legal action or arbitration.

f)TheGuarantorandtheCONTRACTORbindthemselves,theirsuccessors-in-titleand assigns for the abovementioned sum. g)AllnoticesrequiredtobegivenundertheGuaranteeshallbeinwritingandshallbe sufficiently served upon delivery thereof by post to the address furnished by the parties for thepurposeandanynoticesentbypostshallbedeemedtobereceivedwheninthe ordinary course of post it would have been delivered to the said address. ThisGuaranteeisvalidfrom---------------------andshallexpireon-------------------- (hereinafter referred to as the Expiry Date). Subject to Clause (c) above, this Guarantee shall become null and void and all our obligation and liabilities under this Guarantee shall terminate on the Expiry Date notwithstanding that the original of this Guarantee is not returned to us for cancellation. Any claims under this Guarantee shall be made in writing and must be received by us within one (1) month beyond the Expiry Date (i.e. ---------------------) failing which we shall be completely absolved from all liabilities whatsoever under this Guarantee. Given under our hand onday of 20Signed for and on behalf of the said) Guarantor in the presence of :- )Name : )Designation : )Banks Chop : Name : NRIC No: Designation : QAP-16 Rev-0 Appendix 9 Page 5 of 6 SUPPLEMENTARY CONDITIONS APPENDI X - B UNDERTAKI NG ON EMPLOYMENT OF WORKMEN We hereby undertake the following: 1.Allforeignworkersemployedbyusand/oroursub-contractorsshallbelawfully employed, in accordance to local laws pertaining to the employment of foreign workers. 2.That we shall be held responsible and liable in any way whatsoever for the unlawful employment of illegal workers and for the apprehension of illegal workers under our employment and/or our sub-contractors employment by any authority. 3.That we hereby warrant that there are and will be no illegal workers employed by us and/or our sub-contractors at any point of time whatsoever and we shall indemnify and save Kencana Infrastructure Sdn Bhd harmless for any loss and/or expense suffered by Kencana Infrastructure Sdn Bhd as a result of any breach of this undertaking. Authorised Signatory . Name in full .. I.C. No. . Designation .. Company stamp QAP-16 Rev-0 Appendix 9 Page 6 of 6 SUPPLEMENTARY CONDITIONS APPENDI X C UNDERTAKI NG ON COMPLI ANCE WI TH THE CONSTRUCTI ON I NDUSTRY DEVELOPMENT BOARD ( CI DB ) MALAYSI A. We hereby undertake the following: (1)We have read and understood fully the intent and regulation in relation to the imposition of the CIDB Green Card Program in respect to the engagement of ourworkers and staffs (whether foreign and locals) at the construction site for the SUB-CONTRACT works. (2)We shall observe and comply with the requirements stipulated by CIDB in relation to the program.. (3)We shall be responsible and liable in any way whatsoever arising from our failure to comply with the requirements of CIDB. (4)WeshallindemnifyandcontinuetokeepKencanaInfrastructureSdnBhdfully indemnified against any penalties, costs, fines, etc. that may be imposed in the event of our non compliance to any rules under the Occupational Safety and Health Act 1994. Authorised Signatory . Name in full .. I.C. No. . Designation .. Company stamp QAP-16 Rev-0Appendix 10DATE :VENDOR :REG. NO :PACKAGE :PROJ ECT :A. * Assessment Criteria:No. Rating (1-5)* Weightage Score Points1 20 02 20 03 10 04 10 05 10 06 10 07 10 08 10 0100 0B. Subcontractor Main Strength:C. Recommendation:Appraised by: 1) Subcontracting Department 2) Project ManagerName: Name:3) Reviewed by:Name: 0Competitive pricing. Willingness for price negotiation & absorb additional costs.TOTALSubmission of required documents on time. (Drawings / Certificates / VDRL)Expediting on work progress. Prompt response / updating of delivery status.Rectification of discrepancies / punch list. Cooperation in resolving problems.Technical Assistance. Response to any technical queries at pre & post award stages. Participated in tendering exercise.Payment terms. Offer credit facilities.OVERALL ASSESSMENT SCORE:KENCANA INFRASTRUCTURE SDN BHDSUBCONTRACTOR ASSESSMENT REPORTExcellent ( 5 ) Good ( 4 ) Fair ( 3 ) Poor ( 2 )Areas of AssessmentWorks / Performance Quality. Offer according to required specifications.Work completion - delivery on time specified in the contract.Very Poor ( 1 ) QAP-16 Rev-0 Appendix 11

FI NAL SELECTI ON OF SUB-CONTRACTOR REPORT NAME OF COMPANY SELECTED:__________________________________________ TRADE:__________________________________________ A.Assessment Criteria Rating to be based on the scale below ; Excellent ( 5 ) Good ( 4 )Fair ( 3 )Poor ( 2 ) Very Poor ( 1 ) Rating Result (1 to 5) * No.Areas of AssessmentWeight(1)(2)(3) 1Companys reputation152Companys financial strength303Companys expertise304Companys registration with authority 55Companys terms of payment20Total WEIGHTED RESULT :Total/5OVERALL ASSESSMENT SCORE : B.Recommended Action: 0 - 39 : Poor - Not recommended 40 - 59 : Fair - Acceptable if only other good candidate is not available 60 - 79 : Good - Acceptable 80 - 100: Excellent Assessed byDepartmentACCEPTED REJ ECTED (1) _______________________________________ (2) _______________________________________ (3) _______________________________________ Approved by:

______________________________________________ GM (Commercial)Senior GM Further Action: Page 1 of 1