QAP-16 Subcontracting Procedure

q~Doc Ref : QAP-16

QUALITY ASSURANCE Date: 1st January 2009

Kencana InfrastructurePROCEDURE Revision No : 0

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Cover Page

I\ CONTROLL~D COpy NO.

SUBCONTRACTING PROCEDURE

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KENCANA INFRASTRUCTURE SDN BHD

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NAME SIGN DATE NAME Slq N DATE NAME SIGN DATE

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Doc Ref : QAP-16

Date : 1st January 2009

Revision No : 0

SUBCONTRACTING

PROCEDURE Page 1 of 6

TABLE OF CONTENTS

SECTION DESCRIPTION PAGE

1.0 PURPOSE 2

2.0 SCOPE 2

3.0 REFERENCE 2

4.0 DEFINITION 2

5.0 PROCEDURE 5.1 ORGANIZATION STRUCTURE

3

5.2 SUBCONTRACTING PROCESS 3 5.2.1 SELECTION OF BIDDER 3 5.2.2 REQUEST FOR QUOTATION

5.2.3 BID OPENING 5.2.4 ISSUANCE OF LA / LOI / SO

3 4

4 - 5

5.3 SUBCONTRACTOR EVALUATION 5

6.0 SPECIAL REQUIREMENT 5

7.0 RECORDS 6

APPENDICES

APPENDIX 1 ORGANIZATION STRUCTURE APPENDIX 2 ISSUANCE OF LA / LOI / SO FLOW CHART APPENDIX 3 SUBCONTRACTING REGISTRATION FORM APPENDIX 4 SUBCONTRACTING PROCESS FLOWCHART APPENDIX 5 SERVICE REQUISITION APPENDIX 6 TENDER COMMITTEE APPROVAL FORM APPENDIX 7 COMMERCIAL EVALUATION FORM (CBE) APPENDIX 8 SERVICE ORDER APPENDIX 9 LETTER OF AWARD APPENDIX 10 SUBCONTRACTOR ASSESSMENT REPORT APPENDIX 11 FINAL SUBCONTRACTOR SELECTION REPORT

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SUBCONTRACTING


1.0 PURPOSE

The purpose of this procedure is to establish the required activities involved in the subcontracting process commencing from the subcontractor 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 subcontractor’s key performance index to ensure only the best subcontractor is employed for the work.

2.0 SCOPE

The scope of this procedure covers the subcontracting process for specific contract undertaken by Subcontracting Team of Kencana Infrastructure Sdn Bhd.

3.0 REFERENCES

• ISO 9001:2008 • Quality Manual (QM)

4.0 DEFINITIONS

KI - Kencana Infrastructure Sdn Bhd

SR - Service Requisition

RFQ - Request for Quotation

ITB - Instruction to Bidder

TBE - Technical Bid Evaluation

CBE - 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

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5.0 PROCEDURE 5.1 ORGANIZATION 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.

5.2 SUBCONTRACTING PROCESS

The subcontracting process for subcontract is summarized in the flowchart attached in Appendix 4. The Project Engineer or Site Contract Administrator shall initiate the SR, as enclosed in appendix 5, for specific subcontracting package together with clear description of the 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. 5.2.1 SELECTION OF BIDDER

All new subcontractors are required to register with KI and be evaluated before being eligible to participate in the subcontracting exercise. Information on the company’s background will be submitted by subcontractors using the Application for Subcontracting Registration Form stipulated in Appendix 3 and shall be assessed and approved using Final Subcontractor Selection Report in Appendix 11. A database will be maintained and record will be updated yearly for all registered subcontractors. The list of bidders for a specific subcontract work will be selected from the 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.

5.2.2 REQUEST FOR QUOTATION

Subcontracting Team will compile the tender documents comprise of drawings, plans, schedule, specifications and / or special provisions as appropriate.

The ITB shall specifically instruct the bidders to submit the bids in two separate envelopes clearly identified as “priced” and “unpriced” for technical intensive bid or contract requirement, otherwise only “priced” bid will be required.

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5.2.3 BID 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 the commercial evaluation. The commercial bid will be opened together with the Project Manager/GM (Tech), Subcontracting Manager/Procurement Manager and GM (Commercial) for those bids with “priced” and “un-priced” approach. Otherwise, the subcontracting team shall compile all quotations and proceed with CBE. Subcontracting Manager shall initiate further negotiation with the shortlisted bidders as indicated in the CBE for the best price together with PM, GM (commercial), GM (Tech) or Procurement Manager. The result of the negotiation shall be recorded in the CBE.

The CBE, enclosed in Appendix 7, together with the TBE compliance (if applicable) shall then be forwarded to the management for approval.

5.2.4 ISSUANCE OF LOI / LOA / SO

Upon LOA approval, Subcontracting Team shall proceed with Letter of Award (LOA) or Letter of Intent (LOI) or Service Order (SO) acknowledgment and acceptance by successful subcontractor. A sample of SO and LOA is enclosed in Appendix 8 and Appendix 9, respectively.

Service will be entered with successful subcontractor by means of document based on the following level of transaction amount and flowchart stipulated in Appendix 2:

Value of Subcontract Document

< RM250, 000 (Known LS) SO with optional T/C

< RM250, 000 (Unknown LS) LOA and T/C *Note: If the value of contract is less than RM250, 000.00 the documents will be approved by Managing Director or Executive Director (Operation).

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Value of Subcontract Document

≥ RM250, 000 (Known LS) LOI/LOA and T/C

≥ RM250, 000 (Unknown LS) LOI/LOA and T/C *Note: If the value of contract is above RM250, 000.00 the documents to be 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.

Copies of the above documents shall be distributed to Project Manager and 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.

5.3 SUBCONTRACTOR EVALUATION

Upon project completion, all subcontractors shall be assessed on their performance throughout the project duration using the Subcontractor Assessment Report stipulated in Appendix 10. Each criterion carries score points and overall assessment score will be recorded. The purpose of the subcontractor performance evaluation program is to provide the history of the subcontractor’s performance for future reference.

The Subcontracting Team is responsible for carrying out the evaluation of the subcontractor’s performance.

6.0 SPECIAL REQUIREMENT (if any)

Unless otherwise specified in the contract, priority of selection of bidders shall comply to 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.

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7.0 RECORDS

Title Responsibility Retention Period

SR Engineering Department At least 1 year after Project Manager completion of project TBE Engineering/Project Department “ CBE Subcontracting Team “ LOA / LOI or SO Subcontracting Team “

APPENDICES

QAP -16 Rev-0

Appendix 1

SUBCONTRACTING ORGANIZATION STRUCTURE

Snr. / Subcontract Executive

Subcontract 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. REGULATOR

QAP-16 Rev-0

Appendix 2

ISSUANCE OF SO/LA/LOI FLOW CHART

Approved by Managing Directoror Executive Director (Operation)

SUB-CONTRACT

CONTRACT VALUE ABOVE 250K ?

LOI / LOA & T/C

LOA & T/CSO

YESNO

LUMP SUM AMOUNT KNOWN ?

NO YES

Approved by Managing Directorand Executive Director (Operation)

QAP-16 Rev-.0 Appendix 3 Page 1 of 9

APPLICATION FOR SUBCONTRACTOR REGISTRATION WITH

KENCANA INFRASTRUCTURE SDN BHD

Corporate Office - Lot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan, Malaysia. Tel: (03) 6140 5801 Fax: (03) 6140 5810

INSTRUCTIONS

1. PLEASE READ INSTRUCTIONS CAREFULLY BEFORE FILLING THIS FORM. 2. FORMS SHOULD BE CLEARLY TYPEWRITTEN. 3. PLEASE ENCLOSE THE NECESSARY DOCUMENTS. 4. APPLICATIONS WHICH ARE IN INCOMPLETE WILL NOT BE REGISTERED. 5. PLEASE INDICATE YOUR COMPANY'S SCOPE OF MANUFACTURE AND / OR SUPPLY & ATTACH

NECESSARY CATALOGUES / BROCHURES TO SUPPORT YOUR COMPANY'S REPRESENTATION OF THESE PRODUCTS.

NOTE: YOU ARE REQUESTED TO SUBMIT FULL DOCUMENTARY INFORMATION AS REQUIRED.

NEW REGISTRATION UPDATED REGISTRATION REGISTRATION NUMBER: SR / KI________________

CONFIDENTIAL


SUB-CONTRACTOR INFORMATION A. COMPANY PARTICULARS (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


B. FINANCIAL INFORMATION

(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)

CATEGORY VALUE %

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.

BANKER’S NAME

BANKER’S ADDRESS

ACCOUNT NO.

AMOUNT OF LOANS / OVERDRAFT


(C) FACILITIES AND SERVICES PROVIDED

(1) CATEGORY OF WORKS : -

1 STRUCTURAL STEEL 2 PROCESS PIPES & FITTINGS 3 ELECTRICAL AND INSTRUMENTATION 4 FIRE FIGHTING, PROTECTION & DETECTION SYTEM 5 HEATING, VENTILATION & AIR CONDITIONING 6 MECHANICAL EQUIPMENT 7 INSULATION 8 INSPECTION AND TESTING 9 CORROSION PROTECTION 10 ARCHITECTURAL & FURNISHING 11 CIVIL WORKS 12 SCAFFOLDING & RIGGING 13 TRANSPORT 14 OTHER: (please specify)

NOTE: 1) Please tick where appropriate.

(2) TYPE AND VALUE OF PRODUCTS/SPARES NORMALLY HELD IN STOCK

PRODUCT TYPE PRODUCT BRAND VALUE


(3) LOCATION OF WAREHOUSE

ADDRESS CONTACT NO.

(D) REGISTRATION WITH STATUTORY AUTHORITIES/ COMPANIES

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 _____________________________________________________________________________________________ _____________________________________________________________________________________________ _____________________________________________________________________________________________


(F) BUSINESS RELATIONS WITH KENCANA INFRASTRUCTURE SDN BHD F.1 TERMS OF PAYMENT : ____________ F.2 CREDIT LIMIT : ____________ DECLARATION 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) COMPANY’S ORGANIZATIONAL CHART. (7) RELEVANT LICENCE/ REGISTRATION CONFIRMATION LETTER. (8) COMPANY BROCHURES AND AGREEMENT/AGENCY APPOINTMENT.


CURRENT EMPLOYMENT STRUCTURE

JOB CATEGORY TOTAL BUMIPUTRA % NON-BUMIPUTRA % FOREIGN

EMPLOYEE %

MANAGERIAL

SKILLED/TECHNICAL

CLERICAL

GENERAL WORKER/ OTHER

TOTAL:

NOTE: A copy of the Organization Chart must be enclosed.

OTHER KEY PERSONNEL

NAME NATIONALITY DESIGNATION ADDRESS TEL.NO. TECHNICAL PERSONNEL

SALES PERSONNEL

If insufficient space, please attach another sheet with the same format.


OTHER KEY PERSONNEL

NAME NATIONALITY DESIGNATION ADDRESS TEL.NO. TECHNICAL PERSONNEL

SALES PERSONNEL


LIST OF MAJOR SUBCONTRACTING WORKS

PRODUCT**

TYPE BRAND MANUFACTURER’S

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 4

SUBCONTRACTING FLOW CHART

PROCESS TURN AROUND ABOUT 7 - 10 DAYS

RESUBMISSION OF QUOTE

PROCESS TURN AROUND ABOUT 7 - 14 DAYS

BY PROJECT MANAGER / ASSIGNED(IF REQUIRED)

REVIEW AND APPROVAL BY CLIENT(IF REQUIRED)

PROCESS TURN AROUNDABOUT 7 - 10 DAYS

PROGRESS MONITOR BY PMT

CLIENT

CONTRACT AWARD

SR BY PMT

RFQ

RECEIVED BIDS

BID OPEN

TECHNICAL MEETING

PRICE IMPACT

TECHNICAL BID EVALUATION

CLIENT APPROVAL

COMMERCIAL BID EVALUATION

MGMT APPROVAL

LETTER OF AWARD / SERVICE ORDER

SUBCONTRACTOR

DEVELOP SOURCE LIST

MGMT APPROVAL

PROJECT SOURCE LIST

YES

NO

NO

NO

YES

YES

NO

YES

COMMERCIAL BID OPEN

QAP-16 Rev-0Appendix 4


No.

Approved by:

Name: Name: Name:

PROJECT MANAGER GENERAL MANAGER (TECH) SENIOR GM

Date: Date:

Cost Code:

Date:

Certification / Documents Required: (if none, state "None")

SERVICE REQUISITION

SR 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 5801 Fax: 03-6140 5810

Work Start Date:

Backcharge:

Completion Date:

Reason :

Requested by: Verified by:

Name:

Date: Date:

Position:

Attachment ListDescription

QAP-16 Rev-0KENCANA INFRASTRUCTURE SDN BHD Appendix 6

Lot 50, Jalan BRP 8/2,Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan, Malaysia.

Tel : (03) 6140 5801 Fax : (03) 6140 5810

PROJECT :

CONTRACT NO:

JOB NO :

TENDER COMMITTEE APPROVAL Ref No.:

SUB-CONTRACTING BIDDERS LIST Date:

Dear Sir,

Please find below proposed subcontractor bidders list for your kind approval.

NO NAMEAPPROVED LIST

YES NO N/A

1

2

3

4

5

6

7

8

9

10

11

12

13

14

REMARKS:

RECOMMENDED BY APPROVED BY

SIGNATURE : ________________________ SIGNATURE : ______________________________

Sub-Contracting Manager : General Manager :

DATE : DATE :

SIGNATURE : ______________________________

REVIEWED BY Senior General Manager :

SIGNATURE : ________________________ SIGNATURE : ______________________________

Project Manager : Managing Director :

DATE : DATE :

SIGNATURE : ______________________________

Executive Director :

DATE :

Project: QAP-16 Rev. 0

SR 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 7

LOA Ref:

Scope:

QUOTATION 1 QUOTATION 2 QUOTATION 3 QUOTATION 4

BUDGET CURRENT

NO. ITEM DESCRIPTION Qty unitCurrency: RM

Qty unitCurrency: RM Currency: RM Currency: RM Currency: RM

Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price

Initial Allocated BudgetExtra Allocated Budget 0.00

Total Budgeted amount 0.00This Sub Contract Amount 0.00

Total Amount Previously AwardedTotal Amount Awarded

Total Budget Balance - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) -

QUOTATION REF:

QUOTATION VALIDITY

DELIVERY TIME

WORK/ DELIVERY LOCATION

TERM OF PAYMENT

PETRONAS LICENCE

REMARKS

RECOMMENDATION:- BASIS OF RECOMMENDATION: APPROVED BY : UP TO 250K APPROVED BY : ABOVE 250K

PREPARED 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 8 Kencana Infrastructure Sdn Bhd

Name SO No.Company DateAddress PR No.

Supplier's QuotationProject Reference

Phone Terms of PaymentFax Cost Code

Unit Cost Amount

RM RM

Project:

Re:

AA. Scope of work Qty Unit U/Rate/Day Total Day

Ringgit Malaysia:

-

BB Additional Terms and Conditions

CC Mobilisation

DD Working Hours

EE Warranty Period

FF Price and CurrencyPrice quoted in Ringgit Malaysia (RM)

GG Payment Terms30 days upon approved invoice

HH Invoicing Instructions:-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: 603-61405801 Fax: 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 BHD

AUTHORISED SIGNATURE

General Manager Senior General Manager Managing Director / Executive Director (Operation)

NAME : NAME :

DATE : DATE :

ACKNOWLEDGEMENT RECEIPT

Signed 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 ONLY

Lot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor D.E. Malaysia.Tel : (03) 6140 5801 Fax: (03) 6140 5810

Provisional Price For This Service Order (RM)

SERVICE ORDER

Item QtyDescription OF Works

QAP-16 Rev-0 Appendix 9 Page 1 of 6

Our Ref: Project Ref No Date Name and Address of sub-contractor Attention: Name of Person in Charge Dear Sir, NAME OF PROJECT SUB-CONTRACT: SCOPE OF WORKS

- Letter of Award We are pleased to award the above mentioned Works to you for a sum of Ringgit Malaysia: Description of Sub-Contract Sum only (RM xxx,xxx.xx) (“the SUB-CONTRACT Sum”) and subject to the term and conditions of the SUB CONTRACT and the MAIN 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) “COMPANY” shall mean xxxxxxxxxxxxxxxxxxxxxx or his joint venture that entered into the Main Contract with the Main Contractor. “MAIN CONTRACT” shall mean the contract signed between the MAIN CONTRACTOR and the COMPANY for the above-mentioned Project. “SUB CONTRACT” shall mean the contract signed between the CONTRACTOR and the SUB-CONTRACTOR for the above-mentioned Project.

2. Firm Price Contract This is a firm price Bills of Quantities Contract (Provisional Quantities unless

otherwise specified), all rates and prices stated in the Bill of Quantities are firm and shall not be subjected to adjustment and fluctuation.

3. Scope of Works The SUB-CONTRACT scope of works comprises of provision to …………………………………………………………………………………….. A Scope Matrix between the SUB-CONTRACTOR and the CONTRACTOR is enclosed together with the Schedule of Prices.


4. SUB-CONTRACT Documents

The following documents (the “SUB-CONTRACT Documents”) shall form an 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). • Project scope of works, list of drawings, construction drawings,

fabrication/shop drawings and specification of main contract. (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-CONTRACTOR shall perform all duties and obligations under this SUB-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 relate and apply to the Works). In relation to any terms which exist in both Main contract and the SUB-CONTRACT, and if the said terms conflicts with each of the terms for the SUB-CONTRACT shall prevail. However, if the terms for a subject matter is absent in the SUB-CONTRACT, but exist in the Main Contract, then the Main Contract term for that subject matter will govern. 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 xxxxxxxxxxxxxxx and 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

As and when instructed by us, you shall forthwith hand over the whole or 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:-


No. Key Date / Milestone Completion LDC per day Total Max % of Contract Value

1 xxxxxx xx/xx/xx x,xxx.xx

xx%

9. Performance Bond Notwithstanding any provision herein contained, It is a strict and condition

precedent under this Sub-Contract that a performance bond in the form of bank guarantee approved by the Contractor for the sum equal to 10% of the Sub-Contract value is required to be submitted within 14 days as per attached format in Appendix A. failing the CONTRACTOR shall have no obligation to pay the SUB CONTRACTOR for any works done.

10. Contract Drawings The drawings upon which the SUB-CONTRACT is based upon are listed in the

List of Drawings. The drawings will be supplemented from time to time by additional drawings and/or details for successful completion of the works.

11. Payment Terms You have to submit your Interim Progress Claim to the CONTRACTOR for

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 invoices submitted, We shall issue the Progress Payment Certificate within seven (7) working days from end of month and make payment to you within thirty (30) days from date of payment certificate. Notwithstanding any payments might have been made to the SUB CONTRACTOR, CONTRACTOR’s rights to review, dispute and claim back any payment erroneous billed shall be unaffected and without prejudice to other rights or remedies available to the CONTRACTOR.


12. Insurance The Contractor’s All Risks insurance has been purchased by the CONTRACTOR

and the policy is available for your inspection in our office during office hours. The excess/deductibles specified in the policy and any additional insurance that may be required shall be borne by you.

The SUB-CONTRACTOR shall also at its own cost and expenses maintain any

other insurance(s) which may be relevant and/or necessary from time to time as required under the Sub Contract and Main Contract respectively.

You shall report to us any incident and/or accident, which may involve

insurance claim within twenty-four (24) hours from the occurrence of the incident/accident.

You shall arrange at your own cost any necessary insurance coverage for your

construction plants and machineries on site and any other insurance which deemed necessary.

13. Defects Liability Period The defects liability period is twelve (12) months from the date of receipt of

the Certificate of Initial Acceptance for the Main Contract or any other extension of such period thereof.

14. Undertakings and Warranty

You shall provide and execute the undertaking on the Employment of Workers and the undertaking on compliance with the Green Card Programme 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

maintenance of the works a competent and full time site and project management team throughout this SUB-CONTRACT. You shall also submit the curriculum vitae of your key project/site personnel who are qualified, 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 Contractor’s consideration.

16. Co-ordination of Works

You shall co-ordinate, interface and provide full co-operation to other subcontractors employed by us.


You are to arrange, programme and liaise with other sub-contractors or personnel so as not to cause any interference or interruption to the progress of works and no claim shall be entertained based on the ground of 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 CONTRACTOR or be responsible for any errors thereto. Any discrepancy or error found in the drawings shall be immediately notified to the CONTRACTOR for clarification and correction.

18. Security

The SUB-CONTRACTOR and its agent or employee or representative shall comply with all the security procedures, regulation, HSE requirements and 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 by you and this Letter shall be deemed null and void. In such event, we shall have 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


ACKNOWLEDGEMENT We, xxxxxxxxxxxxxxxxxxx (xxxxxx-x) acknowledge receipt of this Letter of Award (ref: KI07/002-KI-SSWJ/LOA/0003) and hereby agree and accept the terms and conditions in this Letter of Award.

Signature and Stamp of

SUB-CONTRACTOR

:

Name/Designation :

Date :

Signature of Witness

:

Name :

I/C No :


Page 1 of 11

SUB-CONTRACT CONDITIONS

SUB-CONTRACT CONDITIONS 1. Site Possession, Commencement and Completion.

The duration of the SUB-CONTRACT shall be as stipulated in Appendix I. Commencement shall mean commencement of physical works at site. 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 of the Main Contract on the part applicable to the CONTRACTOR insofar as they relate and apply to the SUB-CONTRACT.

4. Site Conditions.

The SUB-CONTRACTOR shall be deemed to have visited the site and its surroundings and to have ascertained and satisfied himself as to the nature, character and extent of the works, local conditions, accessibility of site, geological and 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 surroundings and other matters affecting the SUB-CONTRACT. The SUB-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 independent checking and valuation on all information provided by the CONTRACTOR.


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5. Sub-Contract Program. Subject to the dates mentioned in Clause 1 above, the SUB-CONTRACTOR shall submit a works program (Sub-Contract Program) which shall in all respects tie in and be consistent with the CONTRACTOR's program (Main Contract Program) which shall not in conflict with the CONTRACTOR’s program in the Main Contract. Details of the Main Contract Program are available at the CONTRACTOR's site office of which the SUB-CONTRACTOR is deemed to read and have knowledge. 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 ascertained and determined at such revised period. The SUB-CONTRACTOR shall 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 revisions thereto subject to Clause 28 and all terms herein. The CONTRACTOR reserves the right to instruct the SUB-CONTRACTOR accordingly at no costs should there be any deviations or non-compliance to the programs and the SUB_CONTRACTOR shall be obliged to perform accordingly.

6. Insurance.

The Contractor's All Risks Insurance Policy and the Workmen's Compensation Insurance Policy have been effected by the CONTRACTOR. Notwithstanding that both these policies have been extended to cover the SUB-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). Notwithstanding this, the SUB-CONTRACTOR shall from time to time provide necessary insurance 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.


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7. Firm Price Contract. The SUB-CONTRACT is a firm price contract and the rates mentioned therein are fixed for the entire duration of the SUB-CONTRACT and there shall be no claims for additional costs in any situation including arising out of increase in the cost of materials, currency fluctuations, labour, plant, equipment, fuel, etc (unless otherwise stated or provision is made under the “Special Provision to Sub-contract Conditions”). All costs in relation to authorities’ contribution, levy, payment, customs restriction, quotas, duties, taxes etc. are deemed to be included in the SUB-CONTRACT Sum.

8. Bills of Quantities. The quantities mentioned herein are provisional only and will be subjected to re-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 works properly and satisfactory completed and materials delivered to site (if applicable) provided that the value of materials delivered shall not exceed the maximum limit as specified in Appendix I. The SUB-CONTRACTOR shall submit his application for payment every calendar month, which shall be accompanied by all forms of calculation and supporting documents to substantiate his claim and the CONTRACTOR will pay upon verification of the claim . The period of honoring payment shall be as per Appendix I from the date of certification by the 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 not in accordance to the SUB-CONTRACT requirements as stated in the SUB-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 CONTRACTOR and this shall not without prejudice to other rights and remedies available to CONTRACTOR. Notwithstanding this, the SUB-CONTRACTOR is obliged to continue perform the work herein pending payment from the Contractor.


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10. Statutory Declaration. Provided always that no payment due to the SUB-CONTRACTOR under the Final Acceptance shall be made unless and until the SUB-CONTRACTOR shall have 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 on the Works, including workmen employed by his sub-contractors (including his “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's Social Security Act, the Employee's Provident Fund Act and any other laws relevant to the employment of workmen, have been paid.

11. Retention.

All payments made to the SUB-CONTRACTOR under Clause 9 above shall be subjected to retention as per Appendix I. Unless otherwise stated, the first moiety of retention sum shall be released upon issuance of the Certificate of Provisional Acceptance of the Main Contract and the execution of both the Deeds of Warranty and Statutory Declaration by the SUB-CONTRACTOR and the second moiety shall be released upon the receiving of the Certificate of Final Acceptance by the 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. Notwithstanding any provisions contrary herein, , the CONTRACTOR reserves the 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 Instructions/Variations.

The SUB-CONTRACTOR shall comply with all instructions issued by the CONTRACTOR within seven (7) days of the issuance thereof. The SUB-CONTRACTOR shall also comply with the instructions of the Owner and/or their duly appointed representatives provided the same has been duly endorsed by the CONTRACTOR and the same shall have equal effect of the instructions of the CONTRACTOR. If the SUB-CONTRACTOR fails to comply with the said instructions, within seven (7) days of receipt of written notice requiring compliance of the same, the


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CONTRACTOR shall be entitled to execute the said part of the SUB-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-CONTRACTOR or recovered from the SUB-CONTRACTOR as a debt due 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-CONTRACT and shall not be regarded as vitiation thereof. The SUB-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) Where work cannot properly be measured and valued, the SUB-

CONTRACTOR shall be allowed day-work-rates. 14. Owner's Requirements.

The SUB-CONTRACTOR shall have knowledge and be bound by all policies in relation to noise, environmental protection, quality assurance, occupational safety, logistics and site organization imposed by the Owner. In addition to other 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, ordinances etc. currently in force and any amendments thereto issued by the 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 deemed exhaustive: (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).


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(viii) Clean Air Regulation 1978. (ix) Construction Industry Development Board (CIDB) Green Card Programme

For Personnel At Construction Sites. 16. Compliance to Specifications.

The SUB-CONTRACT works shall be strictly carried out in accordance to the specifications and drawings provided.

17. Protection of Existing Works and Surrounding Areas.

The SUB-CONTRACTOR shall be responsible for the risks and liable for the necessary protection of all existing works and services within the site and the surrounding area. The CONTRACTOR shall determine any disputes with respect to matters relating to these protections. The SUB-CONTRACTOR shall immediately notify the CONTRACTOR of any existing services sum as water pipes, electric cables, 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) All foreign workers employed by the SUB-CONTRACTOR and his

subcontractors/ sub-suppliers shall be lawfully employed, in accordance to the local laws pertaining to the employment of foreign workers.

(iii) The CONTRACTOR shall not be held responsible or liable in anyway

whatsoever for the management and employment (lawful or otherwise) of foreign workers nor for the apprehension of any illegal workers under the employment of the SUB-CONTRACTOR by any authority.


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20. Sub-Contracting. The SUB-CONTRACTOR shall seek the written approval of the CONTRACTOR 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.

The Sub-contract is subject to a Defects Liability Period which shall commence 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 rectify and make good all defects, damage, shrinkage and faults in the SUB-CONTRACT works which appears during this period. A Certificate of Final 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) If without reasonable cause he wholly or substantially suspends the

carrying out of the SUB-CONTRACT Works for more than seven (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 into any deed or arrangement or composition with his creditors or being a company enters into liquidation, whether compulsory or voluntary, 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.


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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-CONTRACT accordingly and the SUB-CONTRACTOR shall be paid for the 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) In the event of termination of the SUB-CONTRACT in Clause 22 and/or Clause 23, the CONTRACTOR shall be entitled to exercise their rights under Clause 12 herein, without prejudice to any other rights available to the CONTRACTOR in contract and/or at law.

(b) The SUB-CONTRACTOR shall prevent injury, death or damage in respect of

which before the date of termination he is liable to indemnify the CONTRACTOR under Clause 6.

25. Indemnity.

The SUB-CONTRACTOR shall indemnify and save the CONTRACTOR harmless against all loss, expenses, claims, damages, cost or proceedings suffered or incurred by the CONTRACTOR as a result of the actions and/or omission of the SUB-CONTRACTOR or breach of the SUB-CONTRACT or generally any other provisions contained in the Letter of Acceptance/Letter of Award and Appendices. The SUB-CONTRACTOR further agrees and undertakes to indemnify the CONTRACTOR for any breach by it which may result in the CONTRACTOR being in breach of the Main Contract provisions and thus becoming liable for any lass, 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.

Notwithstanding any provision contained herein, any entitlements or reasons for extension of time shall be evaluated and determined at the sole and absolute discretion of the CONTRACTOR.


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28. Late Delivery Charges. Late Delivery Charges as per Appendix I shall be imposed on the SUB-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 connection with this SUB-CONTRACT, in the absence of an amicable settlement shall be decided by arbitration in accordance with the Rules for Arbitration of the Kuala Lumpur Regional Centre for Arbitration (“KLRCA”) at the Kuala Lumpur 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.


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APPENDIX - 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 of Honoring Payment : Thirty (30) days from date of the progress payment certificate.

Clause 11 : Percentage of Certified Value Retained: 10% of the value of

workdone certified under Clause 9 with cumulative total retained amount up to maximum of 5% of the SUB-CONTRACT value.

Clause 21 : Defects Liability Period for the SUB-CONTRACT:

Commencing immediately upon the date of Certificate of Initial Acceptance of the Main Contract and shall expire at the end of Twelve (12) months from the dates of issuance of Certificate of Initial Acceptance (or taking over certificate where appropriate) of the Main Contract or issuance of Certificate of Final Acceptance whichever later.

Clause 28 : Late Delivery Charges: As stipulated in the Letter of Award.


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APPENDIX – II

STATUTORY DECLARATION (SAMPLE FORM) I…………………………holder of NRIC No. ……………….of…………………….do 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

best of my knowledge and belief, all workmen employed by us and my sub-contractors (including “Labour Sub-Contractor”) have received all wages due to them in connection with such employment, and that all dues or contributions under the Employment Ordinance, the Employee’s Social Security Act, the Employee’s Provident Fund Ordinance and any other laws relevant to the 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-CONTRACTOR’s Signature and Company’s Chop Name :…………………………………… Date :…………………………………… Declared at the Commissioner of Oath Before me,


SUPPLEMENTARY CONDITIONS

1. Performance Bond

As a condition precedent to this SUB-CONTRACT, the SUB-CONTRACTOR shall 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 of Defect 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 by the relevant authority in relation to the SUB-CONTRACT Works and the CONTRACTOR’s safety regulations and procedures including the penalty scheme for safety breaches. In addition to the applicable safety regulations above, the Sub-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. The SUB-CONTRACTOR shall be responsible for the implementation of appropriate safety measures through out the execution and completion of the SUB-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. The SUB-CONTRACTOR shall provide security measures including, but limited to, 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 CONTRACTOR’s 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.



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.

The CONTRACTOR shall have full power and authority to supply the SUB-

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 necessary for the purposes of the execution and completion of the SUB-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.



APPENDIX 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”) who has entered into a contract with Kencana Infrastructure Sdn Bhd (Company No. 594894-P) having its registered office at Lot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan (hereinafter called “the CONTRACTOR”) whereby the SUB-CONTRACTOR agreed and undertake to ----------------------------------------------------- (hereinafter referred to as “the 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) If the SUB-CONTRACTOR shall in respect fail to execute the SUB-CONTRACT or

commit any breach of his obligations thereunder then 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 Ringgit Malaysia ------------------------------ 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 Ringgit Malaysia ---------------------------------------------- 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 Ringgit Malaysia ---------------------------------- Only (RM -----------------------) notwithstanding any contestation, arbitration, legal proceeding or any protest or request whatsoever by the SUB-CONTRACTOR of any breaches of contract 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 Ringgit Malaysia ----------------------------------- 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 the Guarantor or by any alterations in the obligations undertaken by the SUB-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 ------------------------- of the Main Contract. Provided always that this Guarantee shall be



extended by the Guarantor upon the CONTRACTOR’s 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 outstanding is occasioned by the loss, damages, cost, expenses or whether such sum is otherwise incurred by the CONTRACTOR is recoverable by legal action or arbitration.

f) The Guarantor and the CONTRACTOR bind themselves, their successors-in-title and

assigns for the abovementioned sum. g) All notices required to be given under the Guarantee shall be in writing and shall be

sufficiently served upon delivery thereof by post to the address furnished by the parties for the purpose and any notice sent by post shall be deemed to be received when in the ordinary course of post it would have been delivered to the said address.

This Guarantee is valid from --------------------- and shall expire on -------------------- (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 on day of 20 Signed for and on behalf of the said) Guarantor in the presence of :- ) Name : ) Designation : ) Bank’s Chop : Name : NRIC No: Designation :



APPENDIX - B

UNDERTAKING ON EMPLOYMENT OF WORKMEN We hereby undertake the following: 1. All foreign workers employed by us and/or our sub-contractors shall be lawfully

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-contractor’s 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



APPENDIX – C UNDERTAKING ON COMPLIANCE WITH THE CONSTRUCTION INDUSTRY DEVELOPMENT BOARD ( CIDB ) MALAYSIA. 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 our workers 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) We shall indemnify and continue to keep Kencana Infrastructure Sdn Bhd fully

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


DATE :

VENDOR :

REG. NO :

PACKAGE :

PROJECT :

A. * Assessment Criteria:

No. Rating (1-5)* Weightage Score Points

1 20 0

2 20 0

3 10 0

4 10 0

5 10 0

6 10 0

7 10 0

8 10 0

100 0

B. Subcontractor Main Strength:

C. Recommendation:

Appraised by: 1) Subcontracting Department 2) Project Manager

Name: Name:

3) Reviewed by:

Name:

0

Competitive pricing. Willingness for price negotiation & absorb additional costs.

TOTAL

Submission 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 BHD SUBCONTRACTOR ASSESSMENT REPORT

Excellent ( 5 ) Good ( 4 ) Fair ( 3 ) Poor ( 2 )

Areas of Assessment

Works / Performance Quality. Offer according to required specifications.

Work completion - delivery on time specified in the contract.

Very Poor ( 1 )


FINAL SELECTION 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 Assessment Weight (1) (2) (3)

1 Company’s reputation 15

2 Company’s financial strength 30

3 Company’s expertise 30

4 Company’s registration with authority 5

5 Company’s terms of payment 20

Total

WEIGHTED RESULT : Total/5

OVERALL 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 by Department ACCEPTED REJECTED (1) ____________________ ___________________ (2) ____________________ ___________________ (3) ____________________ ___________________ Approved by:

_______________________ _______________________

GM (Commercial) Senior GM Further Action:

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QAP-16 Subcontracting Procedure

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Transcript of QAP-16 Subcontracting Procedure