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Project Number : 3206 Document Name.

: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

CONTRACT DOCUMENTS FOR

CUT & BEND PROCCESSING BUILDING NEW STEEL PLANT PROJECT (850,000 ton/year of STEEL REBARS)
(ANCILLARY BUILDINGS)
JEDDAH, KSA
WITH

RAJHI STEEL INDUSTRIES


CIVIL CONSTRUCTION BID PACKAGE

INDEX Section - I INSTRUCTION TO TENDERERS & FORMS TO TENDERERS

Section - II CONDITION OF CONTRACTS AND PRELIMINARIES

Saudi Designers Engineering Consultants

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

SECTION I

INSTRUCTION TO TENDERERS
A. TENDERER Tenderer shall submit a tender on the form attached (Attachment -I Bill of Quantity Cost Summary), for constructing and maintaining the work described in the following documents and/or shown on the drawings. No adjustments shall be made in respect to fluctuation in the cost plan of labour, materials or any other similar matters affecting the cost of executing the works and therefore, the Contractor shall Tender accordingly. The job shall be carried out by unit rates and lump-sum rate in some items basis respectively. The bill of quantity provided is for guidance only. The contractor shall verify the existing site conditions and re-calculate the bill of quantities as per the drawings provided.

B.

INSURANCE OF PERSONS VISITING THE SITE Persons, firms or companies proposing to tender, and any of their agents will be granted permission by the Owner to enter upon his premises and lands for the purpose of such inspection in connection with the proposed tender, but only upon the express condition that such persons, firms or companies, will release and indemnify the Owner and his servants and agents from and against all liability in respect of and will be responsible for personal injury, (whether fatal or otherwise), loss of or damage to property and any other loss, damage, cost and expense however caused (whether by the act of neglect of the Owner or his agents or not), which, but for the exercise of such permission, would not have arisen.

C.

QUESTIONS ARISING DOCUMENTS

FROM

EXAMINATION

OF

TENDER

Should there be any doubt or obscurity as to meaning of any of the Contract Documents or as to anything to be done or not to be done by Contractor, or as to these instructions, or as to any other matter, tenderers must deliver their queries in writing to the Owners Representatives not later than one (1) week before the date fixed for the delivery of the tenders. Any information supplied to the contractors during the tendering period will not be binding unless confirmed in writing and attached to the Contract.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

D.

VARIATIONS At anytime during tendering period, the Owners Representatives may issue instruction varying the work. Any such instruction shall be treated as a part of tender Document.

E.

FORM OF TENDER Tender will only be accepted on the form provided, or computer print-out following the same format.

F.

RETURN OF TENDERS

The Tender Documents shall be split into two (2) sealed envelopes with bidders Company Name, Address and stamp. The project name Cut and Bend Processing Building shall be pasted on the envelope. The first envelope Technical proposal shall contain the filled Form of Tender-1, Drawings, Conditions of Contract, Specifications and BOQ showing the materials to be used and shall be deposited in Saudi Designers Engineering Office P.O Box 7953, Dammam 31472 5th Floor, Al-Hugayet building 1st St. near cor. King Khaled St.

The second envelope to contain the Financial proposal with a letter mentioning the total prices and shall be signed by the owner or authorized representative and filled Form of Tender-2. It will also includes the BOQ with unit rate. This envelope shall be submitted in person or addressed to: Rajhi Steel Industries P.O. Box 5526 Jeddah 21432 Kingdom of Saudi Arabia Tel. No. 02-236 3559 Ext. 332 Fax No. 02-236 3576 The Quotation shall be addressed to : on the date mentioned in the invitation

Mr. Hany Abdul Hadi


Purchasing Director

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

G.

DELAY IN COMMENCEMENT If the Tenderer is unable to commence work on site within fifteen (15) days of the placement of order, the Owners Representatives should be immediately informed of such reasons.

H.

COST OF TENDERING The Owner will not be responsible for or pay any expenses or losses, which may be incurred by any Tenderer in the preparation of the Tender. The Owner does not bind himself to accept the lowest or any tender.

I.

TENDERING TO BE CONFIDENTIAL All Tenderer and other recipients of the Documents, whether or not they submit a Tender, shall treat all details of the Contract Documents as private and confidential.

J.

VALIDITY OF TENDER Tenders shall remain open for acceptance within one hundred twenty (120) days from the date set of Return of Tenders.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

SECTION II

CONDITIONS OF CONTRACT AND PRELIMINARIES


A. OWNER The Term : OWNER shall mean: RAJHI STEEL INDUSTRIES P.O. Box 5526 Jeddah 21432 Kingdom of Saudi Arabia Tel. No. 02-236 3559 Ext. 332 Fax No. 02-236 3576

B.

OWNERS REPRESENTATIVE The Term : Owners representative shall mean RAJHI STEEL INDUSTRIES Project Management Team or Representative

C.

CONSULTANT / OWNERS REPRESENTATIVE The Term CONSULTANT shall mean: SAUDI DESIGNERS ENGINEERING CONSULTANTS P. O. Box 7953, Dammam 31472 Kingdom of Saudi Arabia Tel. No. 8340840/8346778 Fax No. 8326594

D.

DESCRIPTION OF SITE The site is situated in Al Khomrah, Jeddah Industrial Zone K.S.A. The Contractor should visit the site and make himself informed as to the conditions of the site its present state, nature of ground and full extent and character of the works to be executed, means of access, storage space and availability and supply of water and electric power.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

The Contractor shall also include for taking delivery and providing suitable storage facilities for equipment supplied by a specialist contractor employed by the Owner under a separate contract. The Contractor will be responsible for all coordination details and timing of operations including those of firms employed direct by the Owner to ensure that the building will be completed by the date given for completion.

E.

LIMITATION OF SITE The Contractor must confine all workmen and limit the location of all offices or huts within the boundaries specified by the Owner. Fabrication in any forms shall be done at the designated area by Owner representative. The area should be separated by temporary fence by contractor on his expense.

F.

SCOPE OF WORKS Scope of works under this contract shall broadly include but not limited to the following: 1. MOBILIZATION 1.1 Mobilization of manpower & equipment, construction facilities including furnished portable offices for the Client Representative and Consultant. The owner will assist the contractor to get a temporary supply for the following utilities; Power supply (Contractor shall provide power generator at his expense) Water supply (Contractor shall provide by his own) Telephone from (Contractor shall provide by his own) Utility bills and other expenses necessary in obtaining the above-mentioned utilities connections shall be considered in the tender. Consideration has to be made if in case the abovementioned utilities are not available within the project site. Monthly bills for the above utilities shall be paid by the contractor. OFFICE EQUIPMENTS (For Client Representative & Consultant): Computers; Desk Top Fax Machine Xerox Machine Construction fence.

1.2 a) own b) c)

1.3 a) b) c) d) 1.4

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

2.

COMPLETE CIVIL AND CONCRETE WORKS FOR BUILDING: 2.1 2.2 2.3 2.4 Clearing from vegetation and excavation for foundation and proper disposal of waste soil (If any). Dewatering and shoring works. Protection of all existing underground utilities (If any). All concrete and related works below and above the ground including treatment and protection as shown in the drawing and specifications. Block works, plastering, painting and other related finishes. Gypsum board ceiling and all other related works and finishes. Acoustic ceiling and all other related works. Metal doors, hardwares and finishes Wooden doors, hardwares and finishes. Aluminum doors and windows, hardwares and accessories. Anti-termite protection. Unloading and proper handling of PEB building components and accessories. Erection of P.E.B. structure and related components. Handling of Plant Equipment supplied by SCHNELL and provides laborers for the erection of the said plant equipment under SCHNELL erectors/supervisors. Checkered plate with angular framing and support for power cable and compressed air piping. All other items shown in the drawings but omitted in the bill of Quantity.

2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14

2.15 2.16

3.

ELECTRICAL 3.1 Supply and fixing of all electrical equipments such as Transformer, RMU, Low Voltage MDP, Panel Boards, Cranes Bus Bars etc., cables, grounding and lightning protection systems, conduits, pipe sleeves, wiring, wiring devices, cable trays, lighting poles & fixtures, fire alarm and detection system, telephone & Data system and all other items shown in the drawing but omitted in the Bill of Quantity. Equipment hook-ups, testing and commissioning of all works related to Electrical and compressed air system

3.2

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

4.

PLUMBING & UTILITIES 4.1 Supply and install of pumps, controls, valves, pipes and fittings for potable, sanitary waste, industrial waste (if any), sanitary fixtures, water storage tank and accessories and all other related works shown in the drawing but omitted in the Bill of Quantity. Supply and install of Compressed air compressors, tanks and piping works and all other related works shown in the drawing. Testing and commissioning.

4.2 4.3

5.

H.V.A.C. 5.1 Supply, install and commission of H.V.A.C. equipments, ducting and all other related works as shown in the drawing to make the system in operational condition.

6.

MECHANICAL EQUIPMENTS 6.1 Proper Erection of Cut & Bend Machines as per the location shown in Drawing Number 3206-D-01-A-GA-MACHINES and in accordance to the Technology suppliers information data. Please be noted that machines mentioned below has several parts as listed in the packing list provided. All Dimensions and weight shall be taken from this Packing List. Fixation details shall be referred to the machine suppliers details & specs. Shop drawing shall be submitted for approval prior to installation. 6.1.1 Shear Line 500 & 300 6.1.2 NR.2 CP/3/12 6.1.3 Rombomaster 45/12 6.1.4 B12MFC + NR.2 P42 export KS 31 6.1.5 Rombomaster 60/12 Servo 6.1.6 B12MFC + NR.2 P55 Sintesi KS31 6.1.7 Nextra 16 6.1.8 Prima 12 R 6.1.9 CER 32 6.1.10 NR.2 P 42 Export KS 31 Installation of all Cranes including electrical works & related crane requirements. Supply & installation of Crane Rail type A 65 with complete accessories including Rubber Pad & Rail clamps at all height above ground level Supply & installation of Bus bars for cranes as specified in the drawing.

6.2 6.3

6.4

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

7.

SITE WORKS 7.1 Transformers and RMU foundation, encased PVC conduit Duct banks with proper designed Number of layer & diameter between electric room & transformer room, electrical manhole, manholes, underground concrete water tank & pump room, Asphalt roads & parking, sidewalks and curbstones, traffic signage and markings, bollards and gravel mulch finishes.

8. 9.

Preparation of shop drawing and bar bending schedule. As Built Drawing 9.1 Preparation of as built drawings (2 set of hardcopy and 1 set of electronic copy).

G.

DRAWINGS AND BILL OF QUANTITIES The contract is of itemize type. Contractor shall review the Bill of quantities provided as per drawings and existing site conditions. Any items omitted that are necessary for the project completion shall be included in form of attachment for Consultant review and approval. The bill of quantities shown in the tender document is indicative only.

H.

OWNERS RIGHT TO LET SEPARATE CONTRACTS. The Owners reserves the right to let separate contracts in connection with the work under similar conditions. The contractor shall afford the other contractor reasonable opportunity for the introduction and storage of their materials and execution of the work of the other contractors with work to be executed under the main Contract. If part of the Contractors work depends on the proper execution of works by the other contractors, the Contractor shall inspect and promptly report to the Owners Representative any defects in such work that render it unsuitable. His failure to inspect and report shall constitute an acceptance of the other Contractors work fit and proper for the reception of his work. To ensure the proper execution of his subsequent work the Contractor shall measure work already in place and shall at once report to the Owners Representative any discrepancy between the work executed by other contractor and the drawings. The Contractor shall liaise and cooperate with other contractors so that their work shall proceed without delay to the Contract.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

I.

OWNERS REPRESENTATIVES INSTRUCTIONS The Contractor shall forth with comply with all instructions issued to him by the Owners Representative in regard to any matter in respect of which the Owners Representative is expressly empowered by these conditions to issue instructions.

J.

CONTRACTORS OBLIGATIONS The Contractor shall check subject to the conditions carried out and complete works shown upon the Contract Drawings and described by or referred to in the Contract specification in every respect to the satisfaction of the Owners Representatives. It is the Contractors responsibility to conform in all respect with the drawings and specification. Any alterations are to be brought to the attention of the Owners Representative in writing before the work is carried out. All materials to be used under this Contract shall be submitted for approval prior to installation.

II
1.

CONDITIONS OF PARTICULAR APPLICATION


LANGUAGE AND LAW The language of the Contract shall be in English. The ruling language is English. The law to which the Contract is to be subject is relating to the Kingdom of Saudi Arabia.

2.

PERFORMANCE BOND The successful Tenderer will be required to enter into an agreement with the Owner by which he will provide the Standard Saudi Arabian Government Irrevocable unconditional Bank Guarantee of 10% as to delivery dates, quality of goods and satisfactory performance of the works by the date specified as the Date of Practical Completion. It shall include date of affectivity, value and span of bank guarantee.

3.

PROGRAME Before signing the Contract, the Contractors agent (Project Manager/Site Engineer), who will be constantly on the works, shall be approved by the Owners Representative.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

The Contractors agent shall be fluent in English language and shall be able to interpret the Owners Representatives requirements to the satisfaction of the Owner. 4. LABOUR The Contractor shall be deemed to have included in his Tender for compliance with any local labor legislation on force.

5.

DUTIES AND TAXES The Contractor shall be deemed to have included in his prices payment of all customs or other Import duties, Harbor and Port fees, and all other duties including zakat on all plant, materials and equipments entering Saudi Arabia for the purpose of this Contract.

6.

CHANGES IN COSTS AND LEGISLATION The Contract sum is fixed and no adjustment will be made in respect of fluctuation in the cost of plant, labor materials or any other matters affecting the cost of executing the works except for any change order issued by Owners Representative. No escalation in rate is allowed for variation in Quantities up to 25%. The Contractors quoted rates will be used to such changes. In case of extra item of works, mutually agreed rate shall be considered prior to commencement of work. The Contract Price shall not be adjusted or altered in any way whatsoever, for the agreed scope of work. Any error whether arithmetic or otherwise in the computation of the Contract Price shall be deemed to have been accepted by the Contractor hereto.

7.

TAXATION The Contractor shall pay all national and local taxation, zakat, duties and levies that relate to him and his employees. SCHEDULE OVERRUNS The Contractor shall submit construction schedule (Primavera 3 or 6) based on Construction Milestone attached. Contractor shall complete the work in agreed completion schedule. If however, Contractor fail to complete the work, in accordance with the agreed schedule for any reason not attributable to the Owner, the Contractor shall pay to the Owner as liquidated damage a sum of 1% of the Contract price for each week (or part thereof) of delay and such liquidated damages shall be limited to 10% of the Contract value

8.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

9.

CONTRACT PRICE The Total Contract Price for the defined scope of work as per accomplished Bill of Quantities shall be SR _________ ( in words ) and based on all tender drawings, specification and other related documents issued to Contractor during Tender Stage.

10.

TERMS OF PAYMENTS The Contractor shall submit his monthly progress during the previous month to the Consultant and/or Owners Representative to verify and agree on the actual progress of work. Subsequently after all Parties have agreed the progress for the previous month, the Contractor shall submit his interim monthly invoices to the Owner/Owners Representative. Payment to Contractors invoices shall be released 30 calendar days from the date of receipt.

11.

RETENTION MONEY The OWNER shall retain 10% of the Contract amount for a period of 365 days as a guarantee against defects in workmanship and /or materials. Starting date shall be after completion of project.

12.

PRECEDENCE OF DOCUMENTS In case of conflicts in any of the documents provided to Contractor, the order of precedence shall be as follows: 1) 2) 3) 4) Signed Contract including attachments. Contract Drawings Specifications Bill of Quantities

III POWERS AND DUTIES OF OWNERS REPRESENTATIVES


A. OWNERS REPRESENTATIVES INSTRUCTIONS If within seven days after receipt of a written notice from the Owners Representative requiring compliance with an instruction, the Contractor does not comply therewith, then the Owner may employ and pay other persons/ entity to execute any work whatsoever which may be necessary to give effect to such instruction and all costs incurred in connection with such employment
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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

shall be recoverable from the Contractor by the Owner as a debt or may be deducted by the Owner from any moneys due or to become due to Contractor under this Contract. The Owners Representative may issue instructions requiring a variation and no variation required by him shall vitiate this Contract. The term Variation as used in this Contract shall mean the alteration or modification of the design, quality or quantity of the works shown upon the Contract drawings or described in the specification and includes the addition, omissions or substitution of any work. The Owners Representative shall at all times have access to the works and to the workshops or other places of the Contractor or his subcontractors or suppliers where the work is being prepared for this contract. The Contractor shall prepare samples of all materials to be used for the approval of the Owners Representative prior to their use. The Contractor is to include for all his costs to enable him to comply with the above clause, and to ensure that compliance with same shall in no way affect the overall program.

B.

SUB-LETTING The Contractor shall not without the written consent of the Owners Representative sub-let any portion of the works.

C.

SITE MANAGER The Contractor shall constantly keep upon the works a competent Site Manager and any instruction given to him by the Owners Representative shall be deemed to have been issued to the Contractor. The Contractor shall provide references for his nominated Site Manager with a list of similar projects on which he has been employed in the same capacity in order that the Owners Representative may satisfy himself as to the persons competence.

D.

DISMISSAL OR REMOVAL FROM WORK SITE The Owners Representative may issue instructions requiring the dismissal or removal from the work site of any equipment, material and person employed by the Contractor.

E.

CONTRACT DOCUMENTS The Contract drawings shall remain in the custody of the Owners Representative so as to be available at all reasonable times for the inspection

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

of the Owner or of the Contractor, the Owners Representative shall furnish the Contractor (unless he shall have previously been furnished) with two copies of the specification descriptive schedules or other like document necessary for use in carrying out the works, provided that nothing contained in the said specification, descriptive schedules or other documents shall impose any obligations beyond those imposed by the Contract documents, namely, by the Contract drawings, the Contract specification. The Contractor will be supplied with one complete copy of approved drawing for the whole duration of the Contract. F. MATERIALS, QUALITY AND WORKMANSHIP TO CONFORM All materials, workmanship and proprietary products shall be the best of their respective kinds and standards described in the Contract specification. Upon the request of the Owners Representative, the Contractor shall provide duplicate or carbon copy of the purchase order. The Owner reserves the right to supply his own materials to the Contractor for use in any works. Claims for loss of profit or cancellation charges may be considered by the Owners Representative at the time of instruction. Any materials, quality and workmanship which are not in accordance with the Contract shall upon the instruction of the Owners Representative be removed from the site and be replaced at the Contractors expense. Failure of Contractor to comply with such instruction shall be considered a breach of Contract. The Contract price shall be fixed, for the agreed scope of work. Any error whether arithmetic or otherwise in the computation of the Contract price shall be deemed to have been accepted by the Contractor hereto.

G.

PRACTICAL COMPLETION & DEFECTS LIABILITY PERIOD When in the opinion of the Owners Representative the works are practically completed, he shall forth with issue a certificate to that effect and Practical Completion of the works be deemed for all purposes of this Contract to have taken place on the day named in such certificate. Any defects or other faults which appear within the Defects Liability Period stated in the Retention Money Condition which are due to workmanship and materials not in accordance with this Contract, the Owners Representative may instruct the defect to be corrected and/or shall specify in Schedule of Defects delivered to the Contractor not later than 30 days after expiry date of the Defects Liability Period and the Contractor shall make good of these defects at his own cost. Unauthorized alternation or addition to this document will not be permitted.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

Similar and Approved Where materials are specified as or similar and approved the Contractor shall submit a full performance specification and proof of equal standard to the Owners Representative, should he wish to use an alternative to that specified. All changes must be agreed in writing and the Contractor is to allow the Owners Representative seven (7) days to check the alternative material.

IV
A.

INSURANCE
INSPECTION OF INSURANCE POLICIES: The Contractor is to submit all insurance policies required under this Contract to the Owner for inspection

B.

CONTRACTORS ALL RISKS INSURANCE The Contractor shall in the joint names of the Owner and Contractor secure a Contractors All Risks Insurance up to Contract Value for the entire duration of the project. Upon acceptance of any claim under the insurance aforesaid, the Contractor with due diligence shall restore work damaged, replace or repair any unfixed materials or goods which have been destroyed or damaged, remove and dispose any debris and proceed with the completion of the works. The Contractor shall not be entitled to any payment in respect to the restoration of work damaged, the replacement and repair of any unfixed materials and goods and the removal and disposal of debris other than moneys received under the said insurance

C.

THIRD PARTY LIABILITY INSURANCE. The Contractor shall secure a Third Party Liability Insurance up to maximum value of SR. ______ Million for the entire duration of the project.. The Contractor shall also indemnity the Owner and any of its agents against any expense of liability whatsoever in respect of personal injury to or death of any person whomsoever or to any property real or personal arising out of or caused out of the works.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

V
A.

GOVERNMENT / PUBLIC RELATION


GOVERNMENT OBLIGATION If the Owner is notified in writing by the Saudi Arabian Government to withhold any income taxes, fines or related obligations from any amounts due to the Contractor pursuant to this Contract, he shall withhold such amounts and the Contractor hereby agrees to release the Owner from claims and indemnify and hold him harmless against any liability of any nature whatsoever arising out of or by reason of such withholding. The Owner will notify the Contractor as soon as practicable upon receipt of any notice. Should the Owner be requested to pay any of Contractors, subcontractors and suppliers income taxes, fines or related obligations including zakat, the Contractor shall reimburse the Owner for any payments so made, or alternatively, the Owner may offset any such sums which he has paid to the government against any sums due to him under this Contract. The provisions of this paragraph are continuing ones and their continuing binding effect shall survive the expiration or termination of the Contract.

B.

LAWS, REGULATIONS AND PERMITS The Contractor shall be fully responsible for conducting all government relations activities within Saudi Arabia on his own behalf and for his personnel. For purpose hereof, government relations activities shall include all contracts with and reports to the Saudi Arab Government, its agencies and officials, concerning matters arising out of or connected with this Contract, including but not limited to. * * Violation of laws or regulations by the Contractors employees. Arranging for visas, authorizations and permits required for entry residence.

Employees relations and claims under the Saudi Arabian Labor and Workmen Law, the Saudi Arabian Social Insurance Regulations and other applicable laws and regulations. * Debts and obligations of the Contractors employees.

* Licensing, including motor vehicle operator licenses, medical and other professional licenses and communications equipment licenses. * Registration including vehicles and construction equipments.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing Bldg. Project Owner : Rajhi Steel Industries

* * *

Custom duties Security If requested by the Contractor, the Owner may elect to provide general advice and guidance to assist the Contractor in the conduct of its government relations activities in connection with this Contract. The Contractor shall hold the Owner harmless from any loss, claim or award resulting from the Contractors failure to observe and comply with the provisions of this clause.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

VI
A.

CONTRACTORS OBLIGATION
SAFETY, HEALTH & WELFARE The Contractor shall provide and maintain suitable safety, health and welfare measures and amenities. Contractor to have fire extinguisher and fire fighting equipment available on construction site.

B.

PLANT, TOOLS & VEHICLES The Contractor shall provide all necessary plant tools and vehicles for proper execution of the works and shall isolate active building or under construction/demolition with suitable safe barrier. Contractor and workers shall be limited on the area designated by the Owner.

C.

GENERAL SCAFFOLDING The Contractor shall provide all necessary scaffolding for the proper execution of works and shall isolate active buildings from building under construction or demolition with suitable safe barrier.

D.

SAFEGUARDING THE WORKS The whole of the works, including those of subcontractors and those executed by the Owners will be under the protection of the Contractor, until the premises are formally handed over to the Owner. The Contractor is to provide all necessary lighting and any necessary provisions for the proper protection and security of the whole works and the public until the completion of the Contract. He is also to provide for the requisite storage and be responsible for the safekeeping of goods delivered to site.

E.

MAINTENANCE OF ROAD ETC. The Contractor shall be responsible for maintaining all public or private roads, footpaths, right-of-ways, etc. and shall make good at his own expenses any damage caused thereto

F.

MAINTENANCE OF SERVICES The Contractor shall protect, uphold and maintain all public and private services. The Contractor shall make good at his own expense any damage thereto.

G.

WATER FOR THE WORKS The contractor shall arrange construction water required for the entire duration of the project.
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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

H.

LIGHTING & POWER FOR THE WORKS The Contractor shall draw construction power from Royal Commission/SCECO tapping point or provide power generator.

I.

TEMPORARY ROADS Contractor has to maintain the temporary access road.

J.

TEMPORARY OFFICE The Contractor shall provide and maintain temporary office and facilities for his personnel, Client, Client Representative and Project Consultant. * Lay down area for storing machinery, equipment, materials etc.

K.

TEMPORARY FENCING The contractor shall provide temporary fencing for the whole site within the battery limit.

L.

TEMPORARY TELEPHONE The Contractor shall provide and maintain temporary telephone & internet facilities on site for the Client representatives and Consultant offices and pay all charges in connection therewith.

M.

NAME BOARD The Contractor shall to provide, erect and maintain two (2) Project name boards at site. An approved name board clearly displaying the title of the works, the Owner name, Contractors name, Owners Representatives and Consultant name. Also the project perspective shall be drawn in the name board. The approximate size of name boards is 3.25 x 3.0 meters and to be erected 3.5 meters above the ground with all necessary supports to be provided. The Contractor shall replace any name boards damage or lost during the progress of the works. The name board shall be removed on completion of the works.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

N.

METRICATION If any of the materials described in this specification, whether dimensioned in imperial or metric units, become unobtainable as such, the Contractor must notify the Owners Representative immediately giving dimensions in which such materials may be obtained. Under no circumstances is the Contractor to use the nearest equivalent without the permission of the Owners Representative.

O.

SUB-CONTRACTORS, ETC. General Attendance The Contractor shall provide general attendance on all Sub-Contractors and firms employed direct, which shall be deemed to include the use of standing scaffolding mess rooms, sanitary accommodation, storage of plant and materials, light and water for their works and shall clear away all rubbish and debris. The Contractor shall ascertain from all sub-contractors, and firms employed direct, their scaffolding requirements prior to removing same. The Contractor shall re-erect at his own expense any scaffolding removed by him prematurely. Particulars of Requirements The Contractor shall obtain from sub-contractors and firms employed direct full particulars of their requirements with regard to holes, chases, recesses and other details and shall supply them with all necessary dimensions and other information to enable their work to be accurately executed. Damage To Works The Contractor shall be responsible for any damage to works executed by all subcontractors and firms employed direct and shall repair/ replace such damage at his own expense.

P.

PROTECTING, DRYING & CLEANING THE WORKS The Contractor shall be responsible for protecting works from inclement weather. The Contractor shall remove all rubbish and debris from site from time to time as required and at completion of the works shall also clean the work site internally and externally. The Contractor will be responsible for all packing and transportation of goods. The Contractor will be responsible for all costs incurred through materials being damaged in transit.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

Q.

TEMPORARY SCREENS The Contractor shall provide all temporary screens and an ample supply of dust sheets and the like as may be necessary for protecting the buildings.

R.

ADVERTISEMENTS The Contractor shall not display any advertisements or trade signs on any part of the works except with the written approval of the Owners Representative.

S.

QUALITY ASSURANCE AND QUALITY CONTROL The Contractor is required to prepare quality assurance manuals and quality plans for procurement, fabrication, inspection and construction, which shall be used under this Contract. The Consultant/Owners Representative shall be entitled to be present at all locations where Contractor, subcontractors and suppliers are engaged in the performance of the work and/or witness whatever inspection and testing is required by this Contract. Contractor shall not refuse access to technical or other data that Contractor considers proprietary or confidential, and which is reasonably required to inspect. For any inspection or any test required to be witnessed by Owners Representative, Contractor shall advise in advance but not less than 3 working days to enable Owners Representative or Third Party Testing Company to be present. If any part of the work is closed or covered before the required inspection or witnessing has been performed or without the agreement of the concerned parties, it must be opened or uncovered for inspection or witnessing and re-closed or re-covered, all at Contractors expense.

T.

CONSTRUCTION METHOD STATEMENT The Contractor is required to provide Construction Method Statements to Consultant / Owners Representative incorporating inspection hold points for approval prior to commencement of any work. Failure of Contractor to provide this document will be a ground for the Consultant / Owners Representative to stop any ongoing works.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

U.

SUBMISSION OF REPORTS The Contractor is required to submit the following reports: On Daily Basis: (8:00 A.M.) 1. Manpower report per trade or discipline, segregate the indirect from direct manpower. 2. Vehicles and equipment report per type, indicate if working or breakdown. 3. Major materials delivered on site. 4. Construction activities performed for the whole day.

On Weekly Basis: (Saturday at 8:00 A.M.) 1. Progress of work for the previous week generated by Primavera 3 Software including progress S-Curve. 2. Three week look ahead schedule. On Monthly Basis: (1st Day at 8:00 A.M.) 1. Cumulative progress of work generated by Primavera 3 Software including the progress S-Curve. 2. Manpower histogram reflecting the actual against the scheduled. 3. Man-hours consumed reflecting the actual against the scheduled, brokendown into Civil, Mechanical, Electrical and Site Works. 4. Major works or construction activities completed and ongoing for the reporting month. 5. Planned major works or construction activities to start and to complete for next month. 6. Project Title including details. 7. Project highlights. 8. Major concerns on site. 9. Change Order logs, segregate into approved and for approval. 10. Invoice Register. 11. Other items that may be required later as deem necessary.

Contractor is required to submit the format for the above reports for Consultant and/or Owners Representatives approval.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

V.

SUSPENSION OF WORK The Owner or Owners Representative may at any time, with or without cause, suspend performance of the work or any part thereof by giving Contractor prior notice specifying the work to be suspended and the effective date of suspension. Contractor shall cease all activity on suspended work on the effective date of suspension but shall continue to execute any unsuspended work. Contractor shall take all necessary actions to maintain and safeguard the suspended work. Owner shall not be liable for loss of anticipated profits or for any damages or any other costs incurred with respect to suspended work during the period of suspension. Owner or Owners Representative may at any time authorize resumption of all or any part of the suspended work by giving notice to Contractor specifying the part of work to be resumed and the effective date of the resumption. Upon resumption of suspended work, Owner shall initiate an Amendment, Modification or Change Order as appropriate describing any required adjustments to schedule or compensation to Contractor that result from the suspension of work.

W.

TERMINATION FOR CONVENIENCE Owner/Owners Representative may terminate performance of the work under this Contract in whole or in part as Owner determines that termination is in the interest of the Owner. Owner or Owners Representative shall terminate by delivering to Contractor a Notice of Termination specifying the extent of termination and effective date. Upon receipt of a Notice of Termination, Contractor shall stop work as specified in the notice and demobilize within 30 days all personnel, equipment and subcontractor affected by the termination except as necessary to complete any continuing portion or for the preservation and protection of property related to this Contract. Owner shall be liable only for payment under the payment provisions of this Contract for services rendered before the effective date of termination. However, this does not relieve the Contractor to complete the performance of the work not terminated.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

X.

TERMINATION FOR DEFAULTS Owner or Owners Representative may, by written notice of default to Contractor, terminate this Contract in whole or in part if Contractor fails to deliver materials or to perform the work within the specified time in this Contract, or if Contractor through its gross negligence or willful misconduct on the part of any of its employees or through the operation of any of its subcontractors endangers the completion of work at the prescribed time. Termination for default may be exercised if the Contractor does not remedy such failure within 15 days after receipt of notice from Owners Representative specifying the failure. If Owner or Owners Representative terminates this Contract in whole or in part, it may acquire materials and services of other contractor to complete the terminated work. Contractor will be liable to Owner for any excess costs for these materials or services. However, the Contractor shall continue the work not terminated. Owner shall pay the Contractor for completed works and materials delivered and accepted. The Owners Representative/Consultant and Contractor shall agree on the amount to be paid for fabricated materials delivered and accepted and for the protection and preservation of the work and/or property. Owner or Owners Representative may hold any amount due to Contractor as determined by Owners Representative/Consultant to protect the Owner against loss because of outstanding liens. If, after termination, it is determined the Contractor was not in default or the default was excusable, the rights and obligations of both Parties shall be the same as if the termination had been for convenience of Owner.

Y.

EXCUSABLE DELAYS Contractor shall not be in default because of failure to perform this Contract if failure arises from cause beyond the control and without the fault or negligence of the Contractor. Examples of these causes are acts of God, acts of the Saudi Arabian Government, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes and unusually severe weather. Upon request of Contractor, Consultant/Owners Representative shall ascertain the facts and extent of the failure. If it is determined that any failure to perform the work results from one or more of the causes above the schedule shall be revised.

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Project Number : 3206 Document Name.: Contract Document Date: March 3, 2009 Project : Cut & Bend Processing building Project Owner : Rajhi Steel Industries

Z.

FORCE MAJUERE The term Force Majeure as used in this Contract shall mean any act, event, cause or occurrence rendering a Party unable to perform its obligation which is not within the reasonable control and not caused by negligence or fault of such Party. If either Party is rendered unable, wholly or part, by force majeure to perform its obligations under this Contract, shall be excused from the inception of any such inability until it is corrected. The Party claiming inability to perform shall notify the other party of the nature, date of inception and expected duration of the force majeure and the extent to which it will prevent the Party from performing its obligations under this Contract. The Party claiming inability to perform shall promptly correct such inability to the extent it may be corrected through the exercise of reasonable diligence.

The following are specifically excluded as force majeure: late performance of Contractor or any of its subcontractors caused by shortage of money, manpower/equipment and inefficiencies, late delivery of Contractor supplied equipment or materials by any supplier caused by congestion at a manufacturers plant or an oversold condition of the market and inability of Contractor and its subcontractors to obtain Iqamas or visas or renewal of Iqamas or visas for expatriate workers. Should the work be delayed for more than 30 consecutive days as a result of force majeure, Owner may either suspend the work affected or terminate this Contract or portion of the work involved. Neither Party shall be liable to the other for costs incurred by the other as a result of any delay or failure to perform arising out of force majeure.

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