2009-0363 - Schedule B_19.03.2010

Kashagan Field Development Experimental ProgrammeContract No: 2009-0363Hook-Up, Pre-Commissioning & Commissioning AssistanceSchedule B – Compensation

Kashagan Field Development

Experimental Programme

Schedule B – Compensation

CONTRACT No. 2009-0363

FOR

HOOK-UP, PRE-COMMISSIONING & COMMISSIONING ASSISTANCE

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TABLE OF CONTENT

1. INTRODUCTION1.1 ABBREVIATIONS

2. INDIRECT COSTS2.1. INDIRECT COSTS - INTRODUCTION2.2 INDIRECT COSTS - GENERAL PRICING PREAMBLES2.3 INDIRECT COSTS - DEFINITIONS2.4 CONTENT OF LUMP SUMS FOR INDIRECT COSTS2.5 INDIRECT COSTS - ADJUSTMENT MECHANISM

3. DIRECT PRICES 3.1 INTRODUCTION3.2 CONTENT OF RATES FOR DIRECT WORK3.3 RATES TO INCLUDE

4. CIVIL WORKS (NOT USED)

5. SCAFFOLDING5.1 GENERAL5.2 SPECIFIC CHARGES FOR SCAFFOLDING5.3 METHOD OF MEASUREMENT FOR SCAFFOLDING

6. STRUCTURAL STEELWORKS6.1 REFERENCE SPECIFICATIONS & DRAWINGS6.2 STRUCTURAL STEELWORK6.3 ERECTION OF PIPE SUPPORTS

7. PIPING WORKS & VALVES7.1 REFERENCE SPECIFICATIONS7.2 PIPING WORKS & VALVES- SPECIFIC CHARGES7.3 PIPING WORKS & VALVES - METHOD OF MEASUREMENT7.4 PIPING WORKS & VALVES - CLASSES7.5 HANDLE & ERECT FABRICATED SPOOLS BETWEEN/OUTSIDE PIPE-RACKS7.6 WELDING OF CARBON STEEL PIPING7.7 WELDING OF ALLOY STEEL PIPING7.8 BOLTED JOINTS7.9 HYDROTESTING7.10 UNDERGROUND PIPING 7.11 VALVES

8. MECHANICAL EQUIPMENT8.1 REFERENCE SPECIFICATIONS8.2 SPECIFIC CHARGES FOR THE INSTALLATION OF EQUIPMENT8.3 VERTICAL EQUIPMENT 8.4 HORIZONTAL EQUIPMENT 8.5 EQUIPMENT REQUIRING ASSEMBLY8.6 INTERNAL FITTINGS8.7 PUMPS AND COMPRESSORS8.8 PACKAGES

9. ELECTRICAL - INSTRUMENTATION - TELECOM9.1 ELECTRICAL9.2. INSTRUMENTATION & TELECOM

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10. PAINTING10.1 PAINTING – SPECIFIC CHARGES10.2 PAINTING – PAINTING WORK CLASSES 10.3 INCLUSIONS & EXCLUSIONS10.4 METHOD OF MEASUREMENT

11. INSULATION11.1 INSULATION - CHARGES EXCLUDED/INCLUDED11.2 INSULATION - METHOD OF MEASURMENT11.3 INSULATION - CLASSES11.4 INSULATION WORK - SPECIFIC CHARGES

12. FIREPROOFING12.1 FIREPROOFING - SPECIFIC CHARGES12.2 FIREPROOFING - METHOD OF MEASUREMENT

13. DAY-WORK PRICES13.1 INTRODUCTION13.2 CONTENT OF DAY-WORK RATES13.3 RATES TO INCLUDE13.4 DAY-WORK RATES – PREAMBLES13.5 DAY-WORKS13.6 DAY-WORKS AFTER ISSUE OF MECHANICAL ACCEPTANCE CERTIFICATE

14. MANHOURS FOR EACH ITEM IN THE PRICE LIST

15. PAYMENT RULES15.1 GENERAL15.2 PREPARATION OF PAYMENT CERTIFICATE

Att. 1 2C-PRE-GC-CC-8012 Preambles to Charges included in the Prices and Method of Measurement of Electrical Works

Att. 2 2D-PRE-GC-CC-8010 Preambles to Charges included in the Prices and Method of Measurement of Instrumentation Works

PRICE TABLES

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1. INTRODUCTIONThis schedule B contains the Price List Guides and Price Lists applicable to the CONTRACT.

The lump sums, unit rates, day-works and percentages contained in the Schedule B are to be fully inclusive and represent the total reimbursement the CONTRACTOR will receive for complying with and fulfilling the obligations contained in the Contract and for the satisfactory execution of the WORK.

The CONTRACT currency will be US Dollars.

The lump sums, unit rates, day-works and percentage shall be fixed and not subject to adjustment for duration of the CONTRACT.

Scope of WORK of CONTRACTOR includes the following Areas of the OFFSHORE FACILITY:

Train 2 Pipe-racks and Modules

Riser Island Pipe-racks and Flare

Island A

Notwithstanding the above, in case of commitment of additional Scope of WORK on Island D, then rates will be subject to the application of escalation and factors in accordance with the terms included in Table 6 attached to this Schedule B.

1.1 ABBREVIATIONS

Abbreviations used throughout Schedule B shall have the following meaning:

General

AFC = Approved for Construction

LS = Lump Sum

SIMOPS = Simultaneous Operations (1)

Quantity

NR = number

Time

HR = Hour

DY = Days

WK = Week

YR = Year

Length

MM = Millimeter

CM = Centimeter

DM = Decimeter

M = Meter

KM = Kilometer

IN = Inch

Area

M2 = Square meter

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Volume

D3 = Cubic decimeter

M3 = Cubic meter

Weight

KG = kilogram

TN = tons

Abbreviations are valid irrespective of whether upper case or lower case letters are used.

NOTE

1. By extension, SIMOPS means also all situations when two or more contractors are working in the same location and at the same time.

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2. INDIRECT COSTSFor the pricing of CONTRACTOR’s Indirect Costs the CONTRACTOR is referred to the following documents enclosed herewith:

Table 1 Price List for Indirect Costs

2.1. INDIRECT COSTS - INTRODUCTION

The purpose of this document is to define the costs which are deemed to be included in the prices for Indirect Costs, and also to define the method of measurement and payment for such Indirect Costs.

2.2 INDIRECT COSTS - GENERAL PRICING PREAMBLES

2.2.1 Indirect Costs shall be priced strictly in accordance with this document.

2.2.2 CONTRACTOR shall note that the Indirect Costs will be reimbursed in two manners:

Mobilization and Demobilization will be reimbursed to CONTRACTOR on a lump sum basis. CONTRACTOR shall provide a schedule and value weighted breakdown of mobilization activities.

Running Costs will be paid in equal installments starting from completion of mobilization up to the Contract Completion Date (1st December 2010).

2.2.3 All personnel of CONTRACTOR organization (as described in the Organization Charts of CONTRACTOR and as approved by COMPANY) above the foreman level shall be considered Indirect.

2.2.4 The descriptions attached to the respective item if Indirect Costs within the Price List Guide are intended to be sufficient only for identification of an item. The descriptions do not provide exhaustive detailing of each and every operation required to provide the service covered by the item or the full obligations of each item the CONTRACTOR is referred to the documents forming the CONTRACT.

2.2.5 Notwithstanding the omission from an item description in the Price List Guides of an individual operation considered necessary for the execution and completion of the service by the item, the cost of such operations shall be deemed to be included in the applicable item in the Price List and the CONTRACTOR shall be deemed to have made allowance for the cost of such operations in each applicable item. No claim will be accepted on the grounds of defective description or omissions that further operations other that those described are required.

2.2.6 CONTRACTOR’s Indirect Costs lump sums and percentages shall include for liaison and coordination as required under the CONTRACT and for obtaining the stipulated approval(s) at all stages according to the requirements of the CONTRACT.

2.2.7 CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning of every item description in the Price List Guides and of the completeness of his lump sum prices and percentages for the work described therein and herein. No claim for additional payment, as a consequence of any error or misunderstanding on the part of CONTRACTOR to fully determine the scope of the WORK and his CONTRACT obligations with regard to a Price List Guide item description or as set forth herein will be considered by COMPANY.

2.2.8 CONTRACTOR shall provide details required by COMPANY of the CONTRACTOR’s Indirect Costs lump sum prices and percentages prior to the acceptance of same by the COMPANY. The submission of an offer in the form of a price against an item in the Price List will be deemed to mean that the COTRACTOR has fully satisfied himself as to pertinent requirements of the service to be provided.

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2.3 INDIRECT COSTS - DEFINITIONS

2.3.1 Mobilization

Mobilization is defined as those activities required to establish the CONTRACTOR on SITE ready to commence construction activities, (including those activities required to establish any SUBCONTRACTORS). Mobilization shall include but not be limited to the execution and/or provision of the following:

o Mobilization plan for the work including direct and indirect manpower and construction equipment

o Inspection and take over of the SITE and any partially completed work by other contractors, and the COMPANY designated location for camp facilities

o Contact with local authorities and other similar bodies and obtaining all necessary permits and/or authorizations

o Delivery of temporary construction facilities (including erection/commission), construction equipment and mobilization to the SITE and sufficient members of the CONTRACTOR’s management, supervision, staff, manpower for initial operations, including Key Personnel (unless waived by COMPANY)

o Demobilization on Completion

o Preparation and submittal by the CONTRACTOR to COMPANY of the following documents:

a) CONTRACTOR’s CONTRACT and SITE specific safety and security plan

b) CONTRACTOR’s CONTRACT and SITE specific quality control plan

c) A detailed construction program and ninety (90)days look ahead schedule, including the deployment of manpower and construction equipment

d) A method statement detailing how the CONTRACTOR intends to execute the works

e) A detailed plan of the CONTRACTOR’s temporary construction facilities

Each of the above shall be submitted in draft within the time period stated in the CONTRACT for COMPANY’s review and comment. The CONTRACTOR shall include the COMPANY’s comments in a final submission for the approval of the COMPANY.

2.3.2 Payment for Mobilization

CONTRACTOR is deemed to be aware of and fully understand that only when the activities associated with mobilization of the CONTRACTOR’s establishment have been performed and completed to COMPANY’s satisfaction (or part thereof with the COMPANY’s written agreement) will any payment for the lump sum be made to the CONTRACTOR.

Any payment will be conditional on CONTRACTOR submitting the mandatory information and/or deliverables in accordance with the criteria specified in the CONTRACT documents.

Payment will be either in a single payment, or as agreed between COMPANY and CONTRACTOR based on clearly defined milestones, supported by a cost and schedule breakdown.

CONTRACTOR shall provide to COMPANY this breakdown of the Mobilization lump sum, which shall accurately reflect the facilities provided, addressing such aspects as phasing of personnel mobilization etc.

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2.3.3 Demobilization

Demobilization is defined as those activities required to demobilize CONTRACTOR’s labor, materials, equipment, temporary production base and camp facility from SITE, (including those activities required to similarly fully demobilize the CONTRACTOR’s SUB-CONTRACTORS) and restore the CONTRACTOR’s area to a condition previously agreed in writing with the COMPANY.

2.3.4 Prices for demobilization

Prices for Demobilization shall include:

o Costs associated with a complete clean up of the SITE.

o Costs associated with the return of any surplus COMPANY supplied material to COMPANY’s warehouse.

o Costs associated with the demobilization of CONTRACTOR’s direct and indirect labor and staff.

o Costs associated with the removal from SITE of CONTRACTOR’s materials, construction equipment and temporary construction and facilities

o Costs associated with a complete clean up of CONTRACTOR’s area and reinstating the said area to a condition previously agreed in writing with COMPANY.

2.3.5 Payment for demobilization

The lump sum price for demobilization shall be paid in a single payment to CONTRACTOR when activities required for demobilization all WORK shall be complete and the CONTRACTOR shall have received the COMPANY’s approved and signed last MECHANICAL ACCEPTANCE CERTIFICATE issued by the COMPANY as defined in the CONTRACT.

In the event of the CONTRACTOR implementing guarantee work, no mobilization and demobilization lump sum shall apply. CONTRACTOR shall not assume that SITE facilities will be available to the CONTRACTOR for its temporary construction facilities, camp accommodation facilities and the like in implementing such work.

2.4 CONTENT OF LUMP SUMS FOR INDIRECT COSTS

The following activities and services shall be included inside the lump sums for Indirect Costs. The following list shall not be considered conclusive:

Cost of checking by CONTRACTOR for any discrepancies between or within the CONTRACT specifications and the construction drawings issued by the COMPANY and liaison with the COMPANY with regard to the resolution of same. The COMPANY will not be liable in respect of costs incurred by the CONTRACTOR as a result of a failure on the part of the CONTRACTOR to notify COMPANY on such matters in the timeframe stipulated in the CONTRACT.

Cost of undertaking full liability for any COMPANY nominated subcontractor assigned to or novated to the CONTRACTOR in an identical manner as for the CONTRACTOR’s SUBCONTRACTORS.

Cost of government and local taxes, duties, levies, insurances and permits for which the CONTRACTOR may be liable.

Cost of complying with government and local regulations pertaining to the SITE and payments of fines for breaches found by Regulatory Authorities.

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Cost for providing facilities for use by COMPANY and COMPANY appointed third parties during its inspection of the execution of work at any CONTRACTOR offsite facilities.

Cost of providing progress and planning reports and other such reports and other such reports and certificates required by the CONTRACT, and attendance by appropriate CONTRACTOR’s personnel at meetings required by the CONTRACT or as directed by COMPANY.

Cost of interfacing with and working in close proximity with Other Contractors of COMPANY and re-sequencing CONTRACTOR’s activities, as required, to avoid disrupting COMPANY’s Other Contractors who may be working on the SITE concurrent with the CONTRACTOR.

Cost of interfacing with the Regulatory Authorities and for complying with the requirements of the Regulatory Authorities including training and examinations of CONTRACTOR’s personnel to meet Regulatory Authority requirements for supervision of work (including RoK “Blue Book”)

Cost of preparation of Welding Procedure Specifications and obtaining COMPANY approval

Cost of promptly making good damages to existing structures, roads, fences and any other work constructed, fully or partially, by Other Contractors, which are to be retained, caused by or attributable to the actions or the omissions of the CONTRACTOR

Cost for the impact on the program and cost of time lost and/or inefficiency due to inclement weather and for all other periods of non productive time of labor and construction plant for which the COMPANY is not responsible including mechanical breakdown of plant and equipment; industrial disputes; and attendance of CONTRACTOR’s personnel at tool box meetings and induction and training courses, COMPANY instituted safety meetings, idle time and travel time.

Cost of preparing any necessary field sketches, fabrication drawings, engineering calculations, crane lift studies and details of work and “red line” mark ups for as built documentation.

Cost of compilation of mechanical completion dossiers for staged completion of the WORK as defined by COMPANY.

Cost of any insurances required to be provided by the CONTRACTOR, whether under this CONTRACT and/or by government or local laws, regulations or decree.

Costs for preparing and working to CONTRACTOR’s safety plan.

Costs for constructability, accessibility and other studies required to optimize the WORK and improve the PROJECT SCHEDULE.

Operational activities connected with the above listed activities and services shall be included in the Unit Rates for the Direct WORK.

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2.5 INDIRECT COSTS - ADJUSTMENT MECHANISM

The Indirect Cost Final amount to be paid = Indirect Cost Initial Amount * Y

‘Y Factor’ to be applied calculated as follows :

X = FACTOR DERIVED FROM: Y = FACTOR TO BE APPLIED FOR

X = DIRECT COSTS FINAL AMOUNT ADJUSTMENT OF INITIAL INDIRECT

DIRECT COST INITIAL AMOUNT COST AMOUNT

DIRECT COSTS EVOLUTION FACTOR

X 1.00 Y = 1.00

1.00 < X ≤ 1.10 Y = 1.00

1.10 < X ≤ 1.20 Y = (X-1.05)*0.70 +1.00

1.20 < X ≤ 1.25 Y = (X-1.05)*0.75 +1.00

1.25 < X ≤ 1.30 Y = (X-1.05)*0.80 +1.00

1.30 < X TO BE AGREED

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3. DIRECT PRICES 3.1 INTRODUCTION

For the pricing of Direct Prices (whether on unit rates, day-works or lump sum) CONTRACTOR is referred to the following documents enclosed herewith:

Part 2A Price List for Civil Works

Part 2B Price List for Scaffolding Works

Part 2C Price List for Structural Steel Works

Part 2D Price List for Piping Works

Part 2E Valves Installation Works

Part 2F Price List for Mechanical Works

Part 2G Price List for Electrical Works

Part 2H not used

Part 2I Price List for Instrumentation & Telecom Works

Part 2J Price List for Painting Works

Part 2K Price List for Insulation Works

Part 2L Price List for Passive Fire Proofing Works

CONTRACTOR should note that documents listed above are COMPANY standard developed to cover a comprehensive Schedule of Rates the WORK “elements”, comprising Civil, Mechanical, Electrical and Instrument works (the last two being an option for the COMPANY). Where there is any apparent conflict between the information included in this or any other sections of Schedule “B”, CONTRACTOR shall bring any such difference to the immediate attention of the COMPANY.

Unit rates, day-works and lump sums shall be inclusive of safety requirements for the protection of personnel, small tools and equipment and the FACILITIES throughout the construction and pre-commissioning of the WORK and during the CONTRACTOR’s support to commissioning.

The purpose of this document is to define the costs which are deemed to be included in the prices for the Direct Costs and to define the method of measurement.

3.2 CONTENT OF RATES FOR DIRECT WORK

The work in the Price List is divided into work elements, and each work element is further subdivided into work classes (where applicable)

The grouping of items or designating an item “Included’ is not acceptable. If an item within the Price List is not priced as required the cost of the item shall be deemed to be covered by other items which have been priced by the CONTRACTOR in the Price List.

The descriptions attached to the respective items within the Price List Guides (Sect. 4 through 12 here below) are intended to be sufficient only for identification of an item of work. The descriptions do not provide exhaustive detailing of each and every operation required to carry out the WORK. For the full obligations of each item the CONTRACTOR is referred to the documents forming the CONTRACT. The unit rate entered by the CONTRACTOR against each respective item in the Price List shall be deemed to be a fully inclusive rate for the finished work described in the respective item including matters set

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out in these pricing preambles and including everything which is contingent to and indispensable in the construction and completion of the WORK to be carried out under the CONTRACT, and shall be deemed to include for CONTRACTOR’s acceptance of that part of WORK previously performed by COMPANY’s other contractors. Unless COPMANY is notified in writing to the contrary within ten (10) days, CONTRACTOR is deemed to have warranted aforesaid WORK as if performed directly by CONTRACTOR.

Notwithstanding the omission from an item description in the Price List Guides (Sect. 4 through 12 here below) of an individual operation or operation considered necessary for the execution and completion of item, the cost of such operation shall be deemed to be included in the applicable item in the Price List, and the CONTRACTOR shall be deemed to have made allowance for the cost of such operations in each applicable item. No claim will be accepted on the grounds of defective description or omissions that further operations other than those described are required.

Where the specific charges/method of measurement state that the unit rate for an item shall include for work which will not be separately measured or paid for, then the extent of the included work within the unit rate shall be assessed by the CONTRACTOR and no claim for additional cost will be entertained by the COMPANY should be extent of the included work actually executed, vary from that assessed by the CONTRACTOR.

CONTRACTOR shall be deemed to have allowed for checking of drawing dimensions and any and all applicable dimensions prior to commencing work. CONTRACTOR shall further be responsible for checking documentation issued to him by COMPANY and shall draw the attention of the COMPANY to any discrepancies or omissions therein within ten (10) working days of COMPANY’s issue to the CONTRACTOR of documentation or revisions to and/or supplements to documentation. COMPANY will not be liable in respect of costs or schedule impact incurred by the CONTRACTOR due to errors, conflicts omissions in drawings, other documents or dimensions the effects of which were avoidable had the CONTRACTOR checked such documents and dimensions beforehand and notified the COMPANY within the timeframe stipulated above.

Where proprietary names or products are quoted in an item in the Price List Guides (Sect. 4 through 12 here below) such proprietary names or products shall be taken as indicating a required class of quality of finished work. The proprietary name or product may only be changed by the CONTRACTOR with prior approval in writing of the COMPANY.

Except as provided in Section 15 “Payment Rules”, the rates shall apply equally to executing work in large or small quantities, in difficult or easy situations, in any sequence and at grade or any elevation above the ground unless stated to the contrary in the CONTRACT and no claim will be allowed which arises form the proportion of the finished work actually falling into these categories. In the course of the development of the construction drawings, the proportion and complexity of the various operations included within the items described in the Price List Guides (Sect. 4 through 12 here below) may vary from the proportions or complexity which may have been inferred from the CONTRACT drawings or from the CONTRACTOR’s assessment of the proportions and complexity. The unit rates are deemed to include provisions for all risk and all advantages that may arise from any such changes in proportions and complexity and thus unit rates shall apply equally to the tender quantities and the finished quantities of work.

The rates apply equally to executing the WORK at any time prior to completion irrespective of whether the various work items have programmed continuity or not, or performed in a different season, or in a different proportions in different seasons and/or weather conditions, or performed in different sequences, from that initially envisaged in the CONTRACT. No claims will be accepted by the COMPANY for remobilization of labor or equipment, additional access and the like, as full entitlement under the CONTRACT shall

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be deemed to have been made by application of the relevant unit rates. No claims will be accepted by the COMPANY for schedule extension, as CONTRACTOR shall be deemed to have included in CONTRACTOR’S schedule full allowance for any and all such eventualities.

The rates and prices shall include for liaison with COMPANY and the COMPANY’s Other Contractors and the Regulatory Authorities, and obtaining COMPANY and Regulatory Authorities approval at all stages according to the requirements of the CONTRACT.

When the CONTRACTOR is required by the CONTRACT to seek approval, the CONTRACTOR shall do so in writing at least seven (7) working days before such approval is required.

The CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning of every item description in the Price List Guides and of the completeness of his unit rate or price for the work described therein. No claim for additional payment, as a consequence of any error or misunderstanding on the part the CONTRACTOR to fully determine the scope of work and his CONTRACT obligations with regard to a Price List Guide item description, will be considered by the COMPANY

Rates for the items of work to be undertaken by CONTRACTOR as a consequence of a variation and not listed in the Price List shall be analogous to existing rates for similar items of work. Should there be no such similar item in the Price List then a new rate shall be determined mutually between CONTRACTOR and COMPANY based on the reasonable interpolation or extrapolation of the rates included in the Price List or, falling which, recourse will be made to COMPANY establishing a reasonable fully inclusive rate based upon the reasonable expenditure of labour, plant and material resources.

CONTRACTOR shall provide any details required by the COMPANY of the CONTRACTOR’s rates prior to the acceptance of same by COMPANY. This shall apply solely to tendered rates and prices and to variation rates and prices as appropriate to facilitate the development of supplementary rates and prices during the duration of the CONTRACT.

The quantities indicated in the Price List are approximate only and are not to be taken as final quantities of work to be executed for any Price List item. The range of work may vary to the extent that new items and/or sections may be added to the Price List and existing items or sections may not be used. Any variations, omissions or additions shall be dealt with in accordance with CONTRACT. Save as provided in Section 5, remuneration for the Unit Rates for Direct WORK shall remain valid regardless of any variation between the estimated and actual quantities of work executed against the unit rates, and no variation of the items or quantities give in the Price List shall in any way affect the validity of the relevant price in the Price List.

The quantities contained within the Price List shall not be used for the purpose of ordering any materials that CONTRACTOR is required to provide under the CONTRACT except as provided herein. CONTRACTOR shall order CONTRACTOR supplied material on the basis of the identification of materials for Hook Up as provided inside the “Approved For Construction” (AFC) documents issued by COMPANY: CONTRACTOR shall always seek confirmation by COMPANY before proceeding with any such procurement.

The quantities of work actually executed in accordance with the CONTRACT shall be measured or calculated in accordance with the method of measurement defined in the Pricing List Guides (Sect. 4 through 12 here below). COMPANY computer programs for the re-measurement of work shall be used where possible. Quantities not detailed on drawings or derived from computer programs shall be determined by joint measurement by the CONTRACTOR and the COMPANY. No allowance shall be made for waste in the re-

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measurement of the quantities. The CONTRACTOR shall be deemed to have included in the Price List for Indirect Costs for the provision of personnel and other recourses necessary for the re-measurement of the WORK and CONTRACTOR’s commercial administration of the CONTRACT.

Except as provided in Section 15 “Payment Rules”, the amounts of money to be paid to the CONTRACTOR for unit rate measured work in accordance with the CONTRACT, shall be the product of the total quantities of work correctly executed by the CONTRACTOR, in accordance with the CONTRACT drawings and specifications and measured in accordance with the applicable method of measurement, and the pertinent total unit rates defined in the Price Lists.

Works rejected by COMPANY for reasons ascribable to CONTRACTOR shall not be computed and taken into account (not even provisionally), regardless of the progress reached at the time of COMPANY’s rejection.

In the event that works already progressed and taken into account, at any stage of progress, are subsequently rejected by COMPANY for reasons ascribable to CONTRACTOR, all the related quantities and compensation already taken into account shall be nullified and the Payment Certificate shall be amended to reflect such adjustments.

Compliance with CONTRACT drawings and technical specifications and quantity assurance requirements.

The prices in the Price List are deemed to Include for the execution of the WORK and the supply of materials (where specified as CONTRACTOR supplied in the CONTRACT), strictly in accordance with the CONTRACT drawings and specifications.

3.3 RATES TO INCLUDE

The unit rates included in the Price List for Direct Costs and referred to in this document shall include, along with the other CONTRACT provisions, for costs in connection with the complete performance of the WORK described in the respective Price List Guides descriptions including, but not limited to, the following:

Cost of skilled, semi-skilled and unskilled labor for trades up to and including the level of working foreman.

Salaries, wages, bonuses, allowances, fringe benefits, incentive payments, overtime and shift payments, offshore rotations for travelling personnel, local travelling time and fares (in particular: to and from the Crew Change Facility), public holiday entitlement, paid holiday, sick pay, insurances, pensions, recruitment, passports, visas, residence and work permits, training and other emoluments, contributions, taxes, levies or expenses that CONTRACTOR may make in respect of labor in accordance with national or local agreements or with statutory provisions.

Cost of providing construction equipment and plant (delivery point: the ONSHORE SUPPORT BASE in Kuryk) of adequate type, quality and quantity for the execution of the WORK (including ensuring certification remains valid) including maintaining and repairing the plant and equipment, road tax, insurance and providing sufficient spare parts, fuel, fuel oil, lubricants, other consumables and any tackle normally associated with the equipment and sufficient contingency for the equipment to ensure work continuity.

Cost of providing and replacing “small tools” and Personal Protection Equipment (PPE) required for trades.

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Cost of providing cranes, crane mats lifting equipment, lifting/spreader beams, slings and shackles and other ancillaries and sufficient contingency for the equipment to ensure work continuity. Delivery point: the ONSHORE SUPPORT BASE in Kuryk.

Cost of materials defined as CONTRACTOR supplies by an instruction from COMPANY, including any necessary insurance, packing for transport, transportation, customs duties and clearances, off loading, handling and waste (COMPANY supplied materials are separately addressed in the CONTRACT).

Cost of consumables including but not limited to nails, wood spreader, ties, stake-brace, studs, wire clamps, wing nut, plate washer, spacers, polyethylene sheets, waterproof paper, wet burlap. Hessian cloth, welding electrodes, fluxes, compressed air, oxygen, and other gases, temporary supporting materials and fastenings, wood, water cleaning materials, clothes, sponges, degreasants, blasting materials, solvents, brushes, etc.

Cost of collecting COMPANY supplied materials and equipment after transportation to either Island D or A including cranage, loading, transporting within the OFFSHORE SITE of fabrication facility, unloading, storing if required, unpacking, removal of protection used during transportation, distributing, making good any losses, faults or damages which occur after CONTRACTOR has taken delivery, handling and fixing in final position.

CONTRACTOR costs shall include for ensuring that COMPANY SUPPLIED MATERIALS are utilized in a manner consistent with INTERNATIONAL GOOD OIL FIELD PRACTICE, to avoid unreasonable wastage and/or depletion of COMPANY’s materials contingency, CONTRACTOR shall ensure that it notifies COMPANY without delay of any projected or actual shortfall in COMPANY SUPPLIED MATERIALS, arising from such CONTRACTOR’s use of material contingency, in order not to jeopardize CONTRACTOR’s progress of the WORK.

Cost of storing, protecting, handling and managing COMPANY and CONTRACTOR supplied materials, equipment, machinery, prefabricated and fabricated components to be incorporated into the WORK by the CONTRACTOR, in accordance with the CONTRACT procedures and specifications.

Cost of transporting labor, plant and materials to and from the ONSHORE SUPPORT BASE in Kuryk, and then around the OFFSHORE SITE including travel allowances and expenses and the traveling time of personnel to and from their temporary accommodation and the SITE including complying with the COMPANY’s SITE security regulations and SITE transportation regulations. Only cost of transporting labor, plant and materials from the ONSHORE SUPPORT BASE to the OFFSHORE SITE and vice-versa shall not be included in the unit rates quoted by CONTRACTOR.

Costs of utilities (power distribution, water) for SITE construction and fabrication activities including connections thereto.

Costs of temporary works including hard-standings, hoardings, screens, dustsheets, fences, lightning and measures to prevent the pollution of the soil and any water courses. Temporary vents to the atmosphere shall be checked by the CONTRACTOR to prevent air pollution.

Cost for setting out, leveling and marking of the WORK including the use of instruments and equipment required for the taking of measurements and the like.

Costs for checking drawing dimensions and any applicable site dimensions and site levels, including partial works performed by other contractors, prior to commencing work

Cost of working in accordance with any applicable COMPANY Work Permit Procedure and any and all limitations imposed by SIMOPS.

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Cost of quality assurance and quality control and the provision of as-built drawings, certificates, reports, chemical analysis, test certificates and the like, and other documentation as required by the CONTRACT or the statutory authorities.

Cost of implementing “material identification and traceability” for materials supplied and/or incorporated by the CONTRACTOR during all phases of the WORK, as may be required by the CONTRACT.

Cost of implementing technology / knowledge transfer and Local Content commitments in accordance with the CONTRACT requirements.

Cost of testing of materials, welding procedure qualifications, welder qualifications and work in accordance with the CONTRACT including the provision of necessary testing equipment and facilities, and the submission to the COMPANY and the Regulatory Authorities (as applicable) of the appropriate test or calibration certificates. Provision of samples where required by the CONTRACT.

Cost of performing Non Destructive Examination (NDE)

Cost of collecting up scrap, recoverable and surplus material and delivering same to the CONTRACTOR’s and/or the COMPANY’s designated storage points

Cost of making good or reworking any item not executed in accordance with the CONTRACT.

Cost for protecting, preserving and maintaining the WORK at all stages as required or as inferred by the CONTRACTOR including the provision of sufficient watching, flood lighting, general lighting, fire fighting capabilities, general security and weather protection to avoid damage to the WORK and delay in the execution of the WORK. This cost includes preservation of COMPANY supplied equipment and material in accordance with manufacturers’ recommendations and/or as specified in the CONTRACT. Preservation of COMPANY Provided Items after their installation shall be performed by COMPANY.

Cost of increasing the number and/or capacity of CONTRACTOR’s labor and construction plant as applicable, and/or execution of weekday, weekend or holiday overtime and shift working where necessary to complete the construction work in accordance with the current program in the PROJECT SCHEDULE (or as revised from time to time with COMPANY’s agreement) except where liability for the delay in the PROJECT SCHEDULE does not lie with CONTRACTOR under the provisions of this CONTRACT.

Cost of keeping the SITE clear of rubbish, cleaning up upon completion of the WORK and at all times removing rubbish and waste material to RoK approved disposal areas

Cost associated with the incidental demobilization of CONTRACTOR’s personnel and/or equipment during execution of the WORK for whatever reason including any request by COMPANY for the replacement of CONTRACTOR’s personnel. Also any other incidental costs associated with the mobilization of replacement personnel and/or equipment.

Costs for providing free access to the WORK for COMPANY personnel.

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4. CIVIL WORKSSpecification reference:

KE01.A0.000.KD.C.SP.0001.000 Specification for Site Preparation, Construction of Roads and Earthworks.

4.1 BACKFILLING

4.1.1 Backfilling - Specific Charges

The unit rates for backfilling are inclusive of the work necessary to go from an excavated or existing site condition to backfilled condition.

Charges excluded:

None

Charges included:

Charges for preparation of the sub-grade by stepped formation levels, where required

Charges for preparation and dismantling of any temporary facilities such as ramps, access tracks, etc. (with relevant excavation, fill, compaction, etc.)

Charges for preparation, erecting and removal of any false work, strutting board, shoring

Charges for supplying of the water necessary to obtain the optimum moisture content

The topographic survey of the backfilling areas. CONTRACTOR shall check the congruence of the received survey with the actual elevations, measurements and profiles, and then confirms to COMPANY in writing that the received survey is used for the calculation of backfilling volumes.

Charges for backfilling includes the use of material directly from excavation, materials from stockpiles (temporary or not), and/or materials from borrow pits

4.1.2 Backfilling - Method of Measurement

Backfilling whether by hand or using mechanical equipment will be paid in accordance with the unit rates

The volume of fills, by type of material , shall be measured according to the cross-section method, or another method previously approved by the COMPANY. The volumes shall be calculated on the basis of the elevations specified on the topographic survey or site survey of areas prepared by other contractors and of the design elevations found on the AFC drawings.

4.2 AREA FINISH

Specification reference:

KE01.A0.000.KD.C.SP.0001.000 Specification for Site Preparation, Construction of Roads and Earthworks

KE01.B0.000.KD.C.SP.0002.000 Specification for Concrete Materials and Construction of Concrete Structures, Foundations and Paving

4.2.1 Area Finish - Specific Charges

CE 301 – 304 The unit rates for area finish are inclusive of the work necessary to go from a construction site to an area in final finish.

Charges excluded:

Page 17 of 60


None

Charges included:

Charges for excavation or backfill to bring the area to final grade

Charges for finish grading of the site including the shaping of the ditch along side the roads

Charges for shaping of the surfaces, sides and/or slopes.

Charges for grassing includes maintenance up to sprouting

4.2.2 Area Finish - Method of Measurement

a. Finish Grading (C E 301)

Area shall be calculated from the dimensions shown on the AFC drawings

b. Pedestrian Stone Walkways (C E 302)

Area shall be calculated from the dimensions shown on the AFC drawings

4.3 TRENCHING

Specification Reference:

KE01.B0.000.KD.C.SP.0003.000 Specification for Drainage Materials and Construction

KE01.00.000.KD.E.SF.0020.000 Project Specification for Electrical Installation and Testing

KE01.B0.000.KD.I.SF. 0001.000 Instrument Installation and Testing Procedural Specification – Offshore Facilities

Drawing Reference:

KE01.B0.675.KD.C.DD. 0011.001/5 Miscellaneous Details

KE01.00.000.KD.E.DS. 0014.001 Configuration of Directly Buried Cables

KE01.00.000.KD.E.DS. 0015.001 Cable Route Marker Post & Sign Plate Details

KE01.00.000.KD.E.DS. 0016.001 Typical Cable Duct Bank Under Roads

KE01.A0.000.KD.I.DS. 0004.000 Cable Trench in Non-paved Areas (042/175)

KE01.A0.000.KD.I.DS. 0004.000 Cable Trench in Paved Areas (043/175)

KE01.A0.000.KD.I.DS. 0004.000 Cable Route Marker Posts (044/175)

4.3.1 Trenching - Specific Charges

C E 501 – 505 The unit rates for trenching are inclusive of the work necessary to go from existing site conditions to an installed underground cables and under roadway duct-ways.

Charges excluded:

Trenching for underground piping

Installation f the cables in the trenches or piping in the ducts

Sybase, wedge chipping and wear course for roads and paving

Charges included:

Charges for preparation of site, e.g. excavation

Charges for finishing the site, e.g. backfilling (including sand and other fills)

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Charges for of protective tiles, warning tape and cable route marker posts and signs

Charges for of mass concrete, coloring and ducting material

4.3.2 Trenching - Method Of Measurement

a) The calculation of the area for the trench will be based on the width times the length of the trench. The width of the trench will be established in AFC drawings. The length of the trench will be measured along the centerline of the design route shown on the AFC drawings.

b) Unit rates have been provided for the various depths (900 and 1200mm) and end condition of ground surface ( e.g. paved, unpaved or roads)

4.4 FENCING

KE01-B0-000-KD-C-SP-0004-000 Specification for Fencing Material and Construction

Drawing Reference:

KE01.B0.699.KD.C.DS. 0009.001/2 Type A Fencing & Gate Details

4.4.1 Fencing - Specific Charges

C G 001 – C G – 005 The unit rates for fencing are inclusive of work necessary to go from existing site conditions to a completed fence

Charges excluded:

Earthling of fences around substations

Charges included:

Charges for preparation of site, e.g. excavation

Charges finishing, e.g. backfilling

Charges for preparation of the sub-grade at the fencing base

The unit rates for fencing are separate from the rates for gates and relevant gate accessory works

Charge for fence include the fencing, blinding concrete, foundation blocks, formwork, reinforcing bars, galvanized wire fabric, galvanized wire for stretching and tying of the fabric, turnbuckles, barbed wire, posts and bracings

Charges for the gates includes items as above as well as concrete foundations, bolts and locks for closing the gates

4.4.2 Fencing - Method Of Measurement

a) Fencing

Fencing shall be evaluated on the basis of calculated lengths using coordinates included on fence layouts, excluding gate openings

The gate opening will be measured from the centerline of the posts on either side of the gate

b) Gates

Gates shall be evaluated at a lump sum price for each type

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5. SCAFFOLDING5.1 GENERAL

Scaffolding shall be erected in accordance to the reference procedure:

GE00-DHS-H20-SP-0001-000 Scaffolding Specification

The Unit Rates for scaffolding works shall allow for the provision of access to the WORKS including erecting, maintaining, and dismantling of scaffolding.

Charges excluded:

Supply of materials

5.2 SPECIFIC CHARGES FOR SCAFFOLDING

The Unit rates for provision of Scaffolding shall include, but shall not be limited to the following:

o Cost of complying with pricing preambles included in the CONTRACT

o All costs associated with the design of Scaffolding in accordance with HSE procedures and the CONTRACT requirements and/or applicable law

o Any required site measurement

o Transport, erection, maintenance, and removal

o Toe boards, guard rails and decking

o All necessary ladders, ledgers, transoms, bracing, ties, anchorages, clips, base plates or boards

o The preparation of a safety procedure for the installation, use, dismantling of scaffolding

o Provision and maintenance of a scaffolding tag system

o Rubber lined wheels with locking facilities for mobile scaffold

o Any required protection against contact with electrical supply

o Any other protection required by HSE plan and procedures and the CONTRACT requirements and / or applicable law.

Scaffolding will paid in accordance with the rates and prices entered in the Contract on the following basis:

70% on completion of erection (scaffold ready for use)

30% on completion of dismantling

5.3 METHOD OF MEASUREMENT FOR SCAFFOLDING

o Scaffold

Scaffolds are classified and grouped into heights of every 6 m above commencement level. The working area of platforms are measured in square meters at each level within the particular group of a given height range.

Platforms at levels of 6m, 12 m, 18 m, are considering as pertaining to the nearest group downwards.

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The area of the working platform (plan of scaffold) is determined by the design norms in relation to the safety and stability of the scaffold.

o Mobile Scaffold

Mobile scaffolds shall be numbered as per the Price List description.

The area of the working platform (plan of scaffold) is determined by the design norms in relation to the safety and stability of the scaffold.

o Platform Scaffold

Platform scaffold shall be measured in square meters on plan at any elevations.

o Barrier

Barriers shall be measured in linear meters stating the height of the barrier and number of rails.

o Protective Panels / Sheeting

Protective panels / sheeting shall be measured in cubic meters stating the type of materials to be used, the lighting system, ventilation and heating system, PA/GA system included inside the enclosed environment defined by the scaffold.

Lap and joints shall be deemed to be included

o Scaffold to convex / concave surfaces

CONTRACTOR shall prepare a proposal for a lump sum price for such type of scaffold on the basis of available rates for other types of scaffolds. Price shall be agreed before commencement of erection.

o Scaffolding for load bearing purposes

CONTRACTOR shall prepare a proposal for a lump sum price for such type of scaffold on the basis of available rates for other types of scaffolds. Price shall be agreed before commencement of erection.

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6. STRUCTURAL STEELWORKS6.1 Reference Specifications & Drawings

KE01.A0.000.KD.C.SP.0008.000 Specification for Erecting of Structural Steelwork

KE01-A0-650-KD-C-DD-0007-003 Typical Ladder Details

KE01-A0-650-KD-C-DD-0007-004 Typical Stair Details

KE01-A0-650-KD-C-DD-0007-005 Typical Handrail and Gate Details

KE01-A0-650-KD-C-DD-0007-006 Typical Circular Platform Details

6.2 STRUCTURAL STEELWORK

6.2.1 Structural Steelworks - Specific Charges

Charges excluded:

Supply of materials

Prefabrication of structural steel

Electrical, telecommunications, instrument and piping supports

Charges included:

unit rates for structural steel are inclusive of the work necessary to go from loose structural members to a fully erected steel structure.

unit rates for miscellaneous steel are inclusive of the work necessary to go from loose components to fully erected steel components.

Pipe-rack and building structural steel includes those items identified on structural drawings and identified as light, medium and heavy steel

Miscellaneous structural as access related items that are prefabricated by other contractors

Charges for the assembly and erection of prefabricated steelworks

Charges for leveling material and temporary restraints

Charges for the supply and installation of installation accessories (e.g. slings)

Charges for installation of fastening devices/erection aids (e.g. pad-eyes for ladders)

Charges for fastening of the works to masonry, concrete or steel structure by welding, bolting, etc.

Charges for cutting, drilling, welding and bolting to achieve fitment

Charges for any cutting, trimming or adding penetrations in the grating

Charges for assembly and installation of prefabricated miscellaneous steelwork e.g. handrails, stairs and ladders.

6.2.2 Structural Steelworks - Method of Measurement

The weight of a piece is calculated based on the nit weight of the primary member times its end-to-end length

The weight shall not include the weight of stiffeners and other appurtenance (e.g. padeyes, brackets)

The weight shall not include a reduction for any penetrations

Page 22 of 60


The area of grating shall be calculated based on the outside dimensions

The area of granting shall not include a reduction for any penetrations

The length of stairways, landings, walkways, handrails shall be based on the end-to-end center line dimension

The length of ladders shall be based on the end-to-end center line dimension

6.3 ERECTION OF PIPE SUPPORTS

6.3.1 Erection of Pipe Supports – Specific Charges

Charges excluded:

Supply of materials

Prefabrication of support

Charges included:

unit rates shall be inclusive of work required to erect pipe supports

a pipe support is defined as any single configuration of steel members welded, bolted or otherwise fixed together to form a single support

installation for pipe supports

Fabrication work including cutting, trimming, welding, trial assembly, painting and other associated work.

Any configuration and assembly of standard sections, hollow sections, flat bar and/or steel plate in brackets, slides, saddles, anchors, guides, shoes, trunnions, wear plates, hangers, U bolts, clamps, insulation blocks, anti vibration pads and sliding plates.

Handling or multiple handling

Erection work of both COMPANY and CONTRACTOR supplied supports, including measuring, detailing, cutting, drilling, subassembly, welding and bolting where required to structural steel work, concrete or brickwork, including the supply of anchor bolts, nuts, washers, U bolts and other associated work including break out and build up of concrete foundation

Installation of wedging with shims etc. and setting up to line and level, aligning and checking

Adjustment of spring hangers in cold and hot positions, removal of locking pins after the hydraulic test, calibration and fixing the pins to the unit with wire

Identification of supports

6.3.2 Erection of Pipe Supports – Method of Measurement

The total weight of members forming an individual pipe support as per ISO shall be measured in kg.

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7. PIPING WORKS & VALVES7.1 REFERENCE SPECIFICATIONS

The following list includes pertinent specifications relevant to pipe fabrication and installation:

KE01-00-000-KD-P-ST-0002-000 Specification Piping Fabrication

KE01-00-000-KD-P-ST-0004-000 Specification Piping Installation and Testing

KE01-00-000-KD-P-ST-0019-000 Specification Pipe Support Element

KE01-00-000-KD-V-SS-0018-000 Specification Welding of Piping and Fittings

KE01-00-000-KD-V-SS-0002-000 Specification Piping Fabrication

KE01-A1-620-MC-P-ST-001-000 ASME Piping Design Specifications

KE01-A1-730-KD-H-SP-0002-000 Specification Firewater Hose Reels

KE01-00-000-KD-P-DS-0003-000 Jacketed Pipe – Standard Details

KE01-00-000-KD-P-ST-0001-000 Piping Project Material Specification

KE01-00-000-KD-P-ST-0007-000 Specification for Chemical Cleaning Of Piping Systems

KE01-00-000-KD-P-ST-0009-000 Bulk Materials – Traceability, Marking and Colour Coding for Material Identification Purposes During Storage and Fabrication

KE01-00-000-KD-P-ST-0012-000 Controlled Stud Bolt Tensioning

KE01-00-000-KD-P-ST-0013-000 Technical Supply Requirements for Pipe, Fitting and Flanges

KE01-00-000-KD-P-ST-0016-000 Technical Supply Requirements for Gaskets

KE01-00-000-KD-Q-LS-0001-000 Project Codes and Standards Register

KE01-00-000-KD-V-SS-0001-000 Specification for Surface Preparation and External Coating

KE01-00-000-KD-V-SS-0005-000 Welding of Structural Steel for Packages and Equipment

KE01-00-000-KD-V-SS-0015-000 Specification for Positive Material Identification

7.2 PIPING WORKS & VALVES- SPECIFIC CHARGES

Charges excluded:

Each Unit Price Table gives specific charges excluded

Nitrogen purging

Chemical cleaning

Charges Included

Each Unit Price Table gives specific changes included

Temporary storage of fabricated pipe-work in an approved lay down area and the provision of end caps and pallets, in accordance with the specification

Spool tagging, identification and protection

Erection of fabricated pipe-work including but not limited to handling, cutting, tapering, beveling, threading, joint preparation, hoisting, setting up, alignment,

Page 24 of 60


assembling temporary supports and fixtures, tack welding and temporary jointing as necessary and final welding or jointing

Protecting of paintwork

Trial assembly of pipe-work if deemed necessary and multiple handling arising there from

Internal and external cleaning of pipe-work

The execution of non-destructive testing (liquid dye penetrate testing, magnetic particle testing, radiography and hardness testing) of welds

Pre and post weld heat treatment (stress relieving)

Pre-commissioning of installed equipment and systems

7.3 PIPING WORKS & VALVES - METHOD OF MEASUREMENT

The method of measurement for each class of work and work element is described in the Tables hereafter.

7.4 HANDLE AND ERECT SMALL BORE PIPE-WORK

7.4.1 Handle and Erect Small bore Pipe-work - Specific Charges

Charges excluded (items included elsewhere):

Threaded pipe-work

Charges included:

the work required to complete the installation of small bore pipe-work

fittings and flanges, including handling in any location is to be included in the linear rate for pipe-work (fittings and flanges are not measured separately)

valves, strainers, filters, in-line equipment etc. including handling, placing and aligning etc.

any screwed or bolted joints up to and including 1½" diameter made to a boss or similar connecting item to process pipe-work, either during or post mechanical construction, for instrument insert items.

7.4.2 Handle and Erect Small-bore Pipe-work - Method of Measurement

Linear meters of small bore piping will be measured from end to end including flanges and fittings as per ISO

7.5 HANDLE & ERECT FABRICATED SPOOLS BETWEEN / OUTSIDES PIPE-RACKS

7.5.1 Handle & Erect Fabricated Spools Between/Outsides Pipe-racks - Specific Charges

Charges exclude (items included elsewhere):

installation of control/motorized valves

installation of safety valves

installation of in line instruments such as PD meters and Turbine meters

threaded piping

Charges include:

work required to complete the installation of pipe, fabricated spools and in-line items

Page 25 of 60


installation of pipe-work and spools, valves, strainers, filters, in line equipment etc. including handling, placing, aligning all types, grades, ratings and weights per diameter

fittings and flanges including handling in any location is to be included in the linear rate for pipe-work. (fittings and flanges are not measured separately)

7.5.2 Handle & Erect Fabricated Spools Between/Outsides Pipe-racks - Method of Measurement

Piping unit rate will be measured for each diameter group through the center line of the pipe including fittings, flanges and in-line items as per ISO.

7.6 WELDING OF CARBON STEEL PIPING

7.6.1 Welding of Carbon Steel Piping – Specific Charges


None

Charges included:

Unit Rates are inclusive of work required to make welded joints

Cleaning and preparation of pipe, cutting to length, tapering, beveling, setting up, aligning, orientating, jigging, making joint, tack welding, temporary jointing, final welding of any wall thickness or rating

Weld ‘O-lets including cutting and preparation of the main pipe, alignment and making of the joint between the O-let and main

non destructive testing

stress relieving

7.6.2 Welding of Carbon Steel Piping – Method of Measurement

Small bore socket and butt weld joints are numbered with reference to the pipe diameter

Large bore butt weld joints are enumerated with reference to the pipe material, diameter and wall thickness

where a butt weld joint is executed to small bore pipe-work, charges shall be equivalent socket weld rate plus 20%

The welding of a slip on flange for each diameter of pipe shall be paid at the unit rate of a butt weld for pipe of STD wall thickness

The welding of O-lets/half couplings are enumerated stating the material and branch diameter

In circumstances where a reinforcing/ compensating plate is required the Charges shall be paid at an addition o 20% to the rate for a welded branch joint of the same pipe diameter and wall thickness

In circumstances where an angled welded branch joint is executed the Charges shall be paid at an addition of 40% to the rate for a welded branch joint of the same pipe diameter and wall thickness

Straight length of pipes in excess of 6 meters will be based on a weld every 6 meters without re-measure

Page 26 of 60


Enumeration will include only welds properly recorded on the engineering isometric drawings

7.7 WELDING OF ALLOY SEEL PIPING

7.7.1 Welding of Alloy Steel Piping – Specific Charges

Charges Excluded (item included elsewhere):

None

Charges included:

Unit rates shall include work required to make welded joints

cleaning and preparation of pipe, cutting to length, tapering, beveling, setting up, aligning, orientating, jigging, making joint, tack welding, temporary jointing, final welding of any wall thickness or rating

weld O-lets including cutting and preparation of the main pipe, alignment and making of the joint between the O-let and main

non destructive testing

stress relieving

7.7.2 Welding of Alloy Steel Piping – Method of Measurement

Small bore socket and butt weld joints are enumerated with reference to the pipe diameter

Large bore butt weld joints are enumerated with reference to the pipe material, diameter and wall thickness

In circumstances where a butt weld joint is executed to small bore pipe-work the charges shall be the equivalent socket weld rate plus 20%

The welding of a slip on flange for each diameter of pipe shall be paid at the unit rate of a butt weld for pipe of STD wall thickness

The welding of O-lets/half couplings are enumerated stating the material and branch diameter

In circumstances where a reinforcing/ compensating plate is required the Charges shall be paid at an addition of 20% to the rate for a welded branch joint of the same pipe diameter and wall thickness

In circumstances where an angled welded branch joint is executed the Charges shall be paid at an addition of 40% to the rate for a welded branch joint of the same pipe diameter and wall thickness

Straight length of pipes in excess of 6 meters will be based on a weld every 6meters without re-measure

Enumeration will include only welds properly recorded on the engineering isometric drawings

7.8 BOLTED JOINTS

7.8.1 Bolted Joints – Specific Charges

Page 27 of 60



None

Charges included:

Bolted joints shall include for cleaning, preparation and dressing of flange faces; installation of gaskets or ring type joints, nuts, bolts and washers, spacers, blinds, orifice plates etc.; final adjustment and tightening of the joint

Where a bolted joint involves the installation of spacers, a spectacle blind, an orifice plate or similar an addition of 20% to the rate for a bolted joint for the same pipe diameter and joint rating will apply

7.8.2 Bolted Joints – Method of Measurement

Bolted joints are enumerated with reference to the pipe diameter and flange rating as per ISO

7.9 HYDROTESTING, ALL GRADES OF PIPING

7.9.1 Hydrotesting, All Grades Of Piping - Specific Charges

Charges excluded (item included elsewhere):

None

Charges included:

the work required to complete test, test documentation and sign-off of pipe-work

Preparation of test packs from P&I diagrams

The planning and progressive execution of testing operations to meet the testing priorities of COMPANY and/or to support pre-commissioning activities

Providing adequate test valves complete with supporting documentation and test certificates

Pre-flushing of pipe-work prior to testing for removal of debris

The provision, installation and subsequent removal of test equipment (pumps, gauges, recorders etc.) manifolds and hoses.

The removal and reinstallation of in-line equipment and instruments

Supply and installation of spool pieces for testing across in-line instruments and control valves removed testing purposes

Provision, installation and subsequent removal of stud bolts, bolts, special bolts, nuts, blanks, blinds, spades, caps, plugs, strainers, additional temporary valves and/or safety valves and necessary temporary gaskets

Supply and installation of bolts for testing including bolts to be installed at flanges which have to be split for testing (e.g. control valves test limits etc.)

Necessary disconnection of flanges and subsequent re-jointing

Provision of testing water

Provision of air where required

Provision of N2 where required

Filling up and subsequent draining and disposal of test water

Page 28 of 60


Venting of lines during filing and drainage

Pressurization and execution of pipe-work testing

Inspection and making good all leaks

Leak testing of joints in the system not subject to the hydrotest has been performed in sections

Reinstatement of the system including making good any joint inclusive of materials, that is leaking, passing or in any way defective and which has been executed by Contractor

Provision of test records

7.9.2 Hydrotesting, All Grades Of Piping - Method of Measurement

Hydrostatic, service or pneumatic testing of pipe-work is measured in linear meters by diameter. The length to be measured through the centerline of the pipe including fittings, flanges and in line items as per ISO

7.10 UNDERGROUND PIPING

7.10.1 Underground Piping - Specific Charges


Cathodic protection

Coating and wrapping

Charges included:

work required to install underground piping including the excavation and backfill

laying of fabricated piping and spools underground with required excavation, bedding positioning and backfilling

thrust blocks, anchors, supports

connection to underground structures and components

7.10.2 Underground Piping - Method of Measurement

Underground piping installation is measured on the basis of linear meterage of fabricated piping measured through flanges and fittings including in-line items as per ISO

Straight length of pipes in excess of 6 meters will be based on a weld every 6 meters without re-measure

Page 29 of 60


7.11 VALVES

7.11.1 Valves - Specific Charges


Jointing activities (welding or bolted joints) are measured separately

Charges included:

work required for the installation of safety and self regulating valves, instrument valves and instrumentation in-line

handling of valves and instrumentation items including lifting to required locations

cleaning and preparation of flanges prior to fitment of valves and instruments

fittings and flanges including handling in any location is to be included in the linear rate for pipe-work. (fittings and flanges are not measured separately)

control/ motorized valves including handling, placing, and aligning all types, grades, ratings and weights per diameter

safety valves including handling, placing and aligning, dismantling for testing, testing, transportation to and from a testing shop and re-installation after testing

in-line instruments including handling, placing and aligning all types, grades, ratings and weights per diameter

7.11.2 Valves - Method of Measurement

Safety and self-regulating valves, instrument valves and instrument in-line item installation will be measured on an item installed basis with respect to nominal diameter as per ISO

Page 30 of 60


8. MECHANICAL EQUIPMENT8.1 REFERENCE SPECIFICATIONS

KE01-00-000-KD-V-SS-0001-000 Specification for Surface Preparation and External Coating

KE01-00-000-KD-V-SS-0005-000 Welding of Structural Steel for Packages and Equipment

8.2 SPECIFIC CHARGES FOR THE INSTALLATION OF EQUIPMENT

The unit rates for the installation of equipment shall include, but not be limited to, the following:

Charges for necessary cranes, lifting frames, spreaders, eyes, hooks, wires, shackles, slings, ropes and other rigging equipment.

Charges for rigging studies and calculations for lifts

Charges for checking of levels and elevations prior to erection and in particular the positions and levels of foundations and main structures

Charges for checking location and elevation of anchor bolts, removing protective covers to anchor bolts, greasing anchor bolts and trial fitting nuts prior to equipment erection

Charges for checking the dimensional correctness of the bolt hole positions of items of equipment that require to be mated and bolted together prior to final positioning of the equipment

Charges for multiple handling of equipment to be welded or bolted on site

Charges for removal and disposal of any temporary protection, framing, transportation saddles, bracing and packing

Charges for erection, alignment, plumbing and leveling of equipment in final position including any limitations placed upon erection as a consequence of restricted access and workspace

Charges for shims and leveling plates and setting to correct elevation, centre line and orientation

Charges for installation of sliding plates

Charges for erection and fixing of accessories and ancillary items normally provided with the equipment but packed separately for transportation and checking of internals where existing

Charges for installation and tightening of nuts, washers and other holding down devices

Charges for internal cleaning of equipment to ensure removal of debris

Charges for opening nozzles, manholes etc., service gaskets and to ensure that access ways have been correctly mounted and closed

Welding and testing of equipment supplied in two or more Sections at site. Welding procedures (WPS, WPQ & PQP) shall be provided by the vendor/supplier.

Charges for hydraulic and pneumatic testing of equipment shall include for the provision of necessary consumables, labour, material, equipment, temporary gaskets and other apparatus for setting up and carrying out the complete test and cleaning away on completion under the supervision of a vendor/supplier.

Charges for collection from the transport barge or vessel.

8.3 VERTICAL EQUIPMENT

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8.3.1 Vertical Equipment - Specific Charges


Grouting of base-plates

Installation of platforms, stairs, handrails and ladders (not supplied by equipment vendor)

Charges included:

work necessary to collect for COMPANY delivery point to a completed assembled and erected component.

erection of vertical equipment including accessories supplied in one section of any weight and/or shape e.g. columns, reactors, accumulators, vessels, separators, heat exchangers, ejectors and other similar equipment.

installation of platforms, stairs, handrails and ladders supplied by equipment vendor

8.4 HORIZONTAL EQUIPMENT

8.4.1 Horizontal Equipment - Specific Charges



Installation of platforms, stairs handrails and ladders (not supplied by equipment vendor)

Charges included:

work necessary to collect from COMPANY delivery point to a completed assembled and erected component

erection of horizontal equipment including accessories supplied in one section of any weight and/or shape e.g. columns, reactors, accumulators, vessels, separators, heat exchangers, ejectors and other similar equipment

Installation of platforms, stairs, handrails and ladders supplied by equipment vendor.

8.5 EQUIPMENT REQUIRING ASSEMBLY

8.5.1 Equipment Requiring Assembly - Specific Charges



Installation of platforms, stairs, handrails and ladders(not supplied by equipment vendor)

Charges included:

work necessary to collect from COMPANY delivery point to a completed assembled and erected component .

Charges for installation of vertical and horizontal equipment including accessories supplied in two or more sections of any weight and/or shape to be welded or bolted at site e.g. vessels, columns, reactors, accumulators, heat exchangers, separators and other similar equipment.

Charges for welding, bolting and testing of equipment

Welding and performance of NDE under the supervision of a vendor/supplier


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8.6 INTERNAL FITTINGS

8.6.1 Internal Fittings - Specific Charges



Charges included:

work necessary to collect for COMPANY delivery point to a completed assembled and erected component

lifting and installation of tray beams and tray segments

assembly of the prefabricated items by bolting, clamping or welding

installation of weir plates, down-comers, demisters; internal piping distributors supplied in prefabricated sections to be bolted or welded together

installation of bubble caps/trays, sieve or similar trays including leak testing and leveling or trays

installation of loose materials such as catalysts, powders, granules and spheres or rings of ceramic, plastic or metal laid on supporting beds or grills

lifting and installing the internal fittings in equipment located at any height and any plant location

provision of blowers and extractor fans if required

necessary tests


8.7 PUMPS AND COMPRESSORS

8.7.1 Pumps and Compressors - Specific Charges




Charges included:

work necessary to collect from COMPANY delivery point to a completed assembled and erected component

installation of pumps consisting of driving and driven components supplied to site already assembled or requiring assembly and/or coupling

installation of machinery supplied in several large pre-assembled sections to be placed on separate foundations

installation of reciprocating compressors consisting of main compressor skid, motor skid, lube oil air cooler, control panel

installation of Centrifugal Large Compressors consisting of main compressor/motor skid, lube oil skid, lube oil air cooler, control panel

provision and installation of brass and/or stainless steel shims and leveling plates where required

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bodies, casings, motors etc. to base plates, vessel nozzle flanges (include drilling base plate if required) and setting driven items if supplied separately

disassembly where applicable and examination of machinery supplied per-assembled, inspection of parts for corrosion or defects, re-alignment check with the driving machine after grouting and both before and after the connection to the piping (cold alignment) has been completed.

examination of machinery supplied in a non assembled condition, inspection of the parts for corrosion or defects, assembling the machines and checking the alignment of driving and driven machines when coupled together after grouting and both before and after the connection to the piping (cold alignment) has been completed

Checking for cleanliness, lubrication, correct order of assembly and any other measures required to ensure a satisfactory working condition prior to bringing into operation

First fill of oil to gearboxes and oil tank (if applicable) in accordance with the lubrication specification

Installation of guards and covers

Providing attendance for the testing of the machinery

Carrying out the work under the direction of equipment manufacturer’s representative when specified

Clocking of pumps and machinery rotating parts prior to and post installation and the rotation of turbines and compressors etc. periodically up to handover

Installation of platforms, stairs, handrails and ladders supplied by equipment vendor

8.8 PACKAGES

8.8.1 Packages - Specific Charges




Erection of the prefabricated interconnecting pipe-work

The fabrication and erection of the bulk piping material

Connection of elements external to the packages

Electrical works on packages /skids are contained within the Electrical BOQ and therefore exclusive of the Mechanical BOQ

Instrument works on packages /skids are contained within the Instrument BOQ and therefore exclusive of the Mechanical BOQ

Charges included:

work necessary to collect from COMPANY delivery point to a completed assembled and erected package

installation of packages supplied prefabricated as single modules

installation of packages supplied prefabricated in two or more modules requiring direct interconnection by bolting and/or welding

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installation of packages supplied prefabricated in two or more modules

installation of packages supplied in two or more modules

installation of packages supplied as loose materials (Note: Package- type units are defined as those items which arrive at site as one or more pre-assembled skids ready for erection )

alignment and plumbing of the skid or equipment in final position

welding including NDE under the supervision of Vendor/ Supplier

Nuts, bolts, washers, gaskets or ring type joints for flanged pipe-work shall be provided by vendor/ supplier

Installation of platforms, stairs, handrails and ladders supplied by equipment vendor

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9. ELECTRICAL, INSTRUMENT & TELECOM WORKS9.1 ELECTRICAL

Reference is made to Schedule B – Attachment 2 (2C-PRE-GC-CC-8012) attached here below.

9.2 INSTRUMENTATION & TELECOM

Reference is made to Schedule B – Attachment 1 (2D-PRE-GC-CC-8010) attached here below.

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10. PAINTINGReference specification:

KE01-B0-000-KD-V-SP-5003-000 Offshore Coating Systems Specification

The purpose of this document is to define the costs which are deemed to be included in the unit rates for the Direct Costs and to define the method of measurement.

10.1 Painting – Specific Charges

The rates shall exclude the following:

o none

Items not in the Scope of WORK

o Internal coatings of steel tanks

o application of equipment identification panels, labeling and lettering to pipe-work, flow direction arrows to pipe-work and product color banding

10.2 Painting – Painting Work Classes

The painting work is divided by the various types of surface preparation and according to each painting system. Winter grade quality paint products shall be included, to optimize painting activities at site.

10.3 PAINTING – INCLUSIONS & EXCLUSIONS

The unit rates shall include, but not be limited to, the following:

o supply of all materials

o application of all coats required for the coating system

o prequalification tests

o repair work to previously blasted, primed or painted surfaces to ensure the integrity of the finished painting system

o preparation of surfaces including blasting, washing, solvent wipe or tool cleaning and the application including but not limited to brushing, roller, or spraying

o working around obstructions, projections, beams etc.

o protection of items not to be coated, such as flange faces, etc.

o work to wide or narrow widths and curved or flat surfaces

o coating weld location on underground piping

o transportation and handling of material to/from galvanizing facility

o application to the irregular surface of solid chequer plate flooring and for painting all surfaces and all edges

o application to the full girth of all members of rigid open grate flooring

o Repairs to CONTRACTOR applied coatings shall be deemed to be included in the rates. The rates shall include any costs associated with repairs to painting damage not specifically attributable to COMPANY

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o Repairs of COMPANY supplied material will be limited to the touch up of vendors applied coating or galvanization. Painting damage attributable to COMPANY (e.g. damage to COMPANY supplied material resulting from COMPANY managed handling or transportation) shall be reimbursed using the rates after agreeing to the extent (m2) of damage.

o weather and dust protection to protect the painting works

10.4 METHOD OF MEASUREMENT

10.4.1 Pipe-work (Painted or galvanized)

o Work shall be measured based on the external diameter of pipe times the effective length. There will be no increase in the line diameter to account for the small components in the line.

o Effective length will be calculated using the center line length shown on the piping isometrics

o The effective length will exclude equipment but will include valves, flanges, fittings and other small components

10.4.2 Structural steelwork and metalwork items

o Work shall be measured based on the perimeter length of the primary member times the effective length

o Effective length will be calculated using the center line length shown on the AFC drawings

o The area calculation shall not include any area for stiffeners, brackets, etc.

o The area calculation shall not include any deduction for holes or penetrations.

10.4.3 Equipment

COMPANY supplied equipment shall be supplied fully painted and areas of repair will be agreed between CONTRACTOR and COMPANY.

10.4.4 Motors, pumps and machinery in general

COMPANY supplied equipment shall be supplied fully painted and areas of repair will be agreed between CONTRACTOR and COMPANY.

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11. INSULATIONThe purpose of this document is to define the costs which are deemed to be included in the unit rates for the Direct Costs and to define the method of measurement.

11.1 INSULATION - CHARGES EXCLUDED:

The unit rates shall exclude the following:

none

11.2 INSULATION - METHOD OF MEASURMENT

The method of measurement for each class of work and work element is described hereafter.

11.3 INSULATION - CLASSES

Enclosure is the terminology used in KE01-00-000-KD-V-SS-002-000, also generally called flange or valve boxes. The thickness would be same thickness of the insulation on the line for which it is provided .

The price list for insulation work is divided by the various types of insulation and different thicknesses into the following classes:

Acoustic insulation

Cold insulation

Cold insulation incorporating Acoustic Insulation

Hot or Winterization insulation

Hot or Winterization Insulation incorporating Acoustic Insulation

Personnel Protection Guard

Personnel protection insulation

Personnel protection guard incorporating acoustic insulation

Underground insulation

In each of the categories above a separate line in the Pricing List is included to indicate the cost of insulated enclosures.

11.4 INSULATION WORK - SPECIFIC CHARGES

11.4.1 Insulation Works - Specification Reference

KE01-B0-000-KD-V-SS-5001-000 Offshore Piping & Equipment Thermal Insulation Specification

KE01-00-000-KD-V-SS-002-000 Piping and Equipment Insulation Specification

KE01-00-000-KD-C-SP-002-000 Specification for Drainage Materials and Construction

11.4.2 Insulation Works – Inclusions in the rates

Rates and prices are fully inclusive for the supply and installation of required insulation works including, but not limited to, the following:-

work to prepare and install a complete insulation or fireproofing system

insulation of entire line including pipe, jacketed pipe, fittings, valves, tracers, etc. and equipment

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aluminum or stainless steel jacketing as required

checking and cleaning surfaces prior to installation of insulation

support rings if required including the supply and installation of material for fixing cladding to the support ring

fixings and fastenings including but not be limited to: tape, ware, adhesives, sealant, jointing material and ancillary material

taping, wiring, banding, fixing, sealing and jointing including necessary overlapping of material

forming of laps, welts, cut-outs, recesses, ends, etc.

working insulation, cladding around obstructions, projections, brackets, beams, supports, support rings, branch pipes, small drains, vents, etc.

working around trace heating

execution of “flattening” due to interference with other material or other lines

insulation of supports

insulation of nozzles, manholes, manhole covers, pipe collars, pockets, blanked off branches, projections and the provision of removable covers , etc. of equipment

provision of the required thickness of insulation in more than one layer where required.

provision of any masking or similar special pieces

execution of special shapes e.g. curve, conical or spherical

provision of materials for removable sections of insulation where required, such as boxes and covers to valves, flanges, etc. including trial erection, subsequent dismantling, identification, storage and final erection. Works will include for correctly terminating (e.g. end stops) the insulation and cladding adjacent to removable sections

sealing, pointing, trowelling smooth chamfered and sealed edges and the like and generally ensuring a sound and watertight seal to joints

ring spacers, expansion, contraction and proprietary joints

protection of the work including covering unfinished insulation, taking necessary precautions against damage to painted surfaces, and providing adequate temporary weatherproofing when work is not being performed.

insulating of vessels inside the skirt

ensuring that nameplates, code inspection plates, stamping, etc. are visible or suitably marked and identified after insulation is applied.

Jacketing for hot, cold and acoustic applications may be either aluminum or stainless steel (refer Spec KE01-00-000-KD-V-SS-0002-000 sect. 6.4.1.2)

Jacketing for personnel protection (PG and PP) applications is stainless steel perforated sheeting, (refer Spec KE01-00-000-KD-V-SS-0002-000 sect. 5.1.4.) except when it incorporates hot or acoustic cladding in which case it shall revert to item above

Cold insulation will be cellular glass (foam glass) (ref Spec KE01-00-000-KD-V-SS-0002-000 sect. 6.2.1). PIR/PUR may be used for class CC & CA applications with COMPANY approval only

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Hot insulation and Acoustic Porous Layer will be stone wool (ref Spec KE01-00-000-KD-V-SS-0002-000 Annex 5,54.2)

11.4.3 Insulation Works - Method of Measurement

Insulation of Pipe-work, Valves and Small Components

Work shall be measured based on the external diameter of the pipe times the effective length

There will be no increase in the diameter to account for the small components in the line

Effective length will be calculated using the center line length shown on the piping isometrics

The effective length will exclude equipment but will include valves, flanges, fittings and other small components

Reducers will be sized based on the larger diameter

Insulation of Equipment

There shall be no decrease of area for nozzles

Insulation of Vessels, Tanks and Spheres

Work shall be measured based on a nominal surface area of the vessel, tank or sphere. The nominal area for a vessel is the outside diameter of the vessel times the length plus the area of the heads at each end

No additional area is added for protrusions. These neglected areas should be accounted for in the rates

Valve and Flange Boxes

Work shall be measured on the center line length of the boxes multiplied by the end perimeter length. This will neglect the end areas of the boxes. The work for the end areas should be accounted for in the rates.

Tubing

Work shall be measured on length of tubing requiring insulation.

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12. FIREPROOFING12.1 FIREPROOFING - SPECIFIC CHARGES

Reference Specification:

KE-A0-000.KD.C.SP.0005.000

KE.B0.000.KD.H.SF.5001.000 Fireproofing Functional Specification

Charges excluded (included elsewhere):

none

Rates and prices are fully inclusive for the supply and installation of required fireproofing works including, but not limited to, the following:-:

Supply of all materials

Protection of machinery, equipment, instruments and/or piping already installed

Fixing of the welded wire fabric by means of tying wires

Plates, rod pieces and/or chairs for fixing the reinforcement to the metal

Formwork

Casting and vibration of concrete

Sealant over fireproofing

12.2 FIREPROOFING - METHOD OF MEASUREMENT

Area shall be calculated based on the perimeter of the structural steel primary member times the length

Area shall be calculated based on the vessel skirt area (inside and outside of skirts, as required

Area calculated shall not include any deductions for openings

Area calculated shall not include any increase for bolts, nuts, washers, stiffeners, brackets

Volume of fireproofing will be calculated on the design thickness times the area.

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13. DAY-WORK PRICES13.1 INTRODUCTION

For the pricing of Direct Prices (whether on unit rates, day-works or lump sum) CONTRACTOR is referred to the following documents enclosed herewith:

Part 3 Price List for Day-works

CONTRACTOR should note that documents listed above are COMPANY standard developed to cover a comprehensive Schedule of Rates the WORK “elements”, comprising Civil, Mechanical, Electrical and Instrument works. Where there is any apparent conflict between the information included in this or any other sections of Schedule “B”, CONTRACTOR shall bring any such difference to the immediate attention of the COMPANY.

CONTRACTOR shall price the labor and material content of each unit rate item. Where the cost of CONTRACTOR’s construction plant is relevant, it shall be included in the labor section of the unit rate. The total unit rate for each Price List item shall remain unaltered notwithstanding any anomalies between the sum of the labor and material unit rates and the total unit rate.

Unit rates, day-works and lump sums shall be inclusive of safety requirements for the protection of personnel, small tools and equipment and the FACILITIES throughout the construction and pre-commissioning of the WORK and during the CONTRACTOR’s support to commissioning.

The purpose is to define the costs which are deemed to be included in the prices for the Direct Costs and to define the method of measurement.

13.2 CONTENT OF DAY-WORK RATES

The work in the Price List is divided into work elements, and each work element is further subdivided into work classes (where applicable)

A unit rate and percentage (in respect of the Indirect Costs) shall be entered by CONTRACTOR against each item in the Price List against which the COMPANY has indicated a quantity of work, either specifically, or at summary level for the class, or where the COMPANY has indicated that a price is required. The grouping of items or designating an item “Included’ is not acceptable. If an item within the Price List is not priced as required the cost of the item shall be deemed to be covered by other items which have been priced by the CONTRACTOR in the Price List.

The descriptions attached to the respective items within the Price List Guides are intended to be sufficient only for identification of an item of work. The descriptions do not provide exhaustive detailing of each and every operation required to carry out the WORK. For the full obligations of each item the CONTRACTOR is referred to the documents forming the CONTRACT. The unit rate entered by the CONTRACTOR against each respective item in the Price List shall be deemed to be a fully inclusive rate for the finished work described in the respective item including matters set out in these pricing preambles and including everything which is contingent to and indispensable in the construction and completion of the WORK to be carried out under the CONTRACT, and shall be deemed to include for CONTRACTOR’s acceptance of that part of WORK previously performed by COMPANY’s other contractors. Unless COPMANY is notified in writing to the contrary within ten (10) days, CONTRACTOR is deemed to have warranted aforesaid WORK as if performed directly by CONTRACTOR.

Notwithstanding the omission from an item description in the Price List Guides of an individual operation or operation considered necessary for the execution and completion of

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item, the cost of such operation shall be deemed to be included in the applicable item in the Price List, and the CONTRACOTR shall be deemed to have made allowance for the cost of such operations in each applicable item. No claim will be accepted on the grounds of defective description or omissions that further operations other than those described are required.

Where the specific charges/method of measurement state that the unit rate for an item shall include for work which will not be separately measured or paid for, then the extent of the included work within the unit rate shall be assessed by the CONTRACTOR and no claim for additional cost will be entertained by the COMPANY should be extent of the included work actually executed, vary from that assessed by the CONTRACTOR.

CONTRACTOR shall be deemed to have allowed for checking of drawing dimensions and any and all applicable dimensions prior to commencing work. CONTRACTOR shall further be responsible for checking documentation issued to him by COMPANY and shall draw the attention of the COMPANY to any discrepancies or omissions therein within ten (10) working days of COMPANY’s issue to the CONTRACTOR of documentation or revisions to and/or supplements to documentation. COMPANY will not be liable in respect of costs or schedule impact incurred by the CONTRACTOR due to errors, conflicts omissions in drawings, other documents or dimensions the effects of which were avoidable had the CONTRACTOR checked such documents and dimensions beforehand and notified the COMPANY within the timeframe stipulated above.

Where proprietary names or products are quoted in an item in the Price List Guides such proprietary names or products shall be taken as indicating a required class of quality of finished work. The proprietary name or product may only be changed by the CONTRACTOR with prior approval in writing of the COMPANY.

Except as provided in Section 15 “Payment Rules”, the rates shall apply equally to executing work in large or small quantities, in difficult or easy situations, in any sequence and at grade or any elevation above the ground unless stated to the contrary in the CONTRACT and no claim will be allowed which arises form the proportion of the finished work actually falling into these categories. In the course of the development of the construction drawings, the proportion and complexity of the various operations included within the items described in the Price List Guides may vary from the proportions or complexity which may have been inferred from the CONTRACT drawings or from the CONTRACTOR’s assessment of the proportions and complexity. The unit rates are deemed to include provisions for all risk and all advantages that may arise from any such changes in proportions and complexity and thus unit rates shall apply equally to the tender quantities and the finished quantities of work.

The rates apply equally to executing the WORK at any time prior to completion irrespective of whether the various work items have programmed continuity or not, or performed in a different season, or in a different proportions in different seasons and/or weather conditions, or performed in different sequences, from that initially envisaged in the CONTRACT. No claims will be accepted by the COMPANY for remobilization of labour or equipment, additional access and the like, as full entitlement under the CONTRACT shall be deemed to have been made by application of the relevant unit rates. No claims will be accepted by the COMPANY for schedule extension, as CONTRACTOR shall be deemed to have included in CONTRACTOR’S schedule full allowance for any and all such eventualities.

The rates and prices shall include for liaison with COMPANY and the COMPANY’s Other Contractors and the Regulatory Authorities, and obtaining COMPANY and Regulatory Authorities approval at all stages according to the requirements of the CONTRACT.

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When the CONTRACTOR is require by the CONTRACT to seek approval, the CONTRACTOR shall do so in writing at least seven (7) working days before such approval is required.

The CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning of every item description in the Price List Guides and of the completeness of his unit rate or price for the work described therein. No claim for additional payment, as a consequence of any error or misunderstanding on the part the CONTRACTOR to fully determine the scope of work and his CONTRACT obligations with regard to a Price List Guide item description, will be considered by the COMPANY

Rates for the items of work to be undertaken by CONTRACTOR as a consequence of a variation and not listed in the Price List shall be analogous to existing rates for similar items of work. Should there be no such similar item in the Price List then a new rate shall be determined mutually between CONTRACTOR and COMPANY based on the reasonable interpolation or extrapolation of the rates included in the Price List or, falling which, recourse will be made to COMPANY establishing a reasonable fully inclusive rate based upon the reasonable expenditure of labour, plant and material resources.

CONTRACTOR shall provide any details required by the COMPANY of the CONTRACTOR’s rates prior to the acceptance of same by COMPANY. This shall apply solely to tendered rates and prices and to variation rates and prices as appropriate to facilitate the development of supplementary rates and prices during the duration of the CONTRACT.

The quantities indicated in the Price List are approximate only and are not to be taken as final quantities of work to be executed for any Price List item. The range of work may vary to the extent that new items and/or sections may be added to the Price List and existing items or sections may not be used. Any variations, omissions or additions shall be dealt with in accordance with CONTRACT. Save as provided in Section 5, remuneration for the unit rates work shall remain valid regardless of any variation between the estimated and actual quantities of work executed against the unit rates, and no variation of the items or quantities give in the Price List shall in any way affect the validity of the relevant price in the Price List.

The quantities contained within the Price List shall not be used for the purpose of ordering any materials that CONTRACTOR is required to provide under the CONTRACT except as provided herein. The CONTRACTOR shall order CONTRACTOR supplied material based on “Approved For Construction” (AFC) documents issued by Company.

The quantities of work actually executed in accordance with the CONTRACT shall be measured or calculated in accordance with the method of measurement defined in the Pricing List Guides. COMPANY computer programs for the re-measurement of work shall be used where possible. Quantities not detailed on drawings or derived from computer programs shall be determined by joint measurement by the CONTRACTOR and the COMPANY. No allowance shall be made for waste in the re-measurement of the quantities. The CONTRACTOR shall be deemed to have included in the Price List for Indirect Costs for the provision of personnel and other recourses necessary for the re-measurement of the WORK and CONTRACTOR’s commercial administration of the CONTRACT.

Except as provided in Section 15 “Payment Rules”, the amounts of money to be paid to the CONTRACTOR for unit rate measured work in accordance with the CONTRACT, shall be the product of the total quantities of work correctly executed by the CONTRACTOR, in accordance with the CONTRACT drawings and specifications and measured in

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accordance with the applicable method of measurement, and the pertinent total unit rates defined in the Price Lists.

Works rejected by COMPANY for reasons ascribable to CONTRACTOR shall not be computed and taken into account (not even provisionally), regardless of the progress reached at the time of COMPANY’s rejection.

In the event that works already progressed and taken into account, at any stage of progress, are subsequently rejected by COMPANY for reasons ascribable to CONTRACTOR, all the related quantities and compensation already taken into account shall be nullified and the Payment Certificate as detailed in Section 7 shall be amended to reflect such adjustments.

Compliance with CONTRACT drawings and technical specifications and quantity assurance requirements.

The prices in the Price List are deemed to Include for the execution of the WORK and the supply of materials (where specified as CONTRACTOR supplied in the CONTRACT), strictly in accordance with the CONTRACT drawings and specifications.

13.3 RATES TO INCLUDE

The unit rates included in the Price List for Direct Costs and referred to in this document shall include, along with the other CONTRACT provisions, for costs in connection with the complete performance of the WORK described in the respective Price List Guides descriptions including, but not limited to, the following:

Cost of skilled, semi-skilled and unskilled labor for trades up to and including the level of working foreman

Salaries, wages, bonuses, allowances, fringe benefits, incentive payments, overtime and shift payments, offshore rotations for 46raveling personnel, local 46raveling time and fares (in particular: to and from the Crew Change Facility), public holiday entitlement, paid holiday, sick pay, insurances, pensions, recruitment, passports, visas, residence and work permits, training and other emoluments, contributions, taxes, levies or expenses that CONTRACTOR may make in respect of labour in accordance with national or local agreements or with statutory provisions.

Cost of providing construction equipment and plant (delivery point: the ONSHORE SUPPORT BASE in Kuryk) of adequate type, quality and quantity for the execution of the WORK (including ensuring remains valid) including maintaining and repairing the plant and equipment, road tax, insurance and providing sufficient spare parts, fuel, fuel oil, lubricants, other consumables and any tackle normally associated with the equipment and sufficient contingency for the equipment to ensure work continuity.

Cost of providing and replacing “small tools” required for trades.

Cost of providing cranes, crane mats lifting equipment, lifting/spreader beams, slings and shackles and other ancillaries and sufficient contingency for the equipment to ensure work continuity. Delivery point: the ONSHORE SUPPORT BASE in Kuryk.

Cost of materials required for the WORK, unless started to the contrary in the CONTRACT, including any necessary insurance, packing for transport, transportation up to the ONSHORE SUPPORT BASE in Kuryk, customs duties and clearances, off loading, handling and waste (COMPANY supplied materials are separately addressed in the CONTRACT).

Cost of consumables including but not limited to nails, wood spreader, ties, stake-brace, studs, wire clamps, wing nut, plate washer, spacers, polyethylene sheets, waterproof

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paper, wet burlap. Hessian cloth, welding electrodes, fluxes, compressed air, oxygen, and other gases, temporary supporting materials and fastenings, wood, water cleaning materials, clothes, sponges, degreasants, blasting materials, solvents, brushes, etc.

Cost of collecting COMPANY supplied materials and equipment after transportation to either Island D or A including traveling, loading, transporting within the OFFSHORE SITE of fabrication facility, unloading, storing if required, unpacking, removal of protection used during transportation, distributing, making good any losses, faults or damages which occur after CONTRACTOR has taken delivery, handling and fixing in final position.

CONTRACTOR costs shall include for ensuring that COMPANY SUPPLIED MATERIALS are utilized in a manner consistent with INTERNATIONAL GOOD OIL FIELD PRACTICE, to avoid unreasonable wastage and/or depletion of COMPANY’s materials contingency, CONTRACTOR shall ensure that it notifies COMPANY without delay of any projected or actual shortfall in COMPANY SUPPLIED MATERIALS, arising from such CONTRACTOR’s use of material contingency, in order not to jeopardize CONTRACTOR’s progress of the WORK.

Cost of storing, protecting, handling, preservation and managing COMPANY and CONTRACTOR supplied materials, equipment, machinery, prefabricated and fabricated components to be incorporated into the WORK by the CONTRACTOR, in accordance with the CONTRACT procedures and specifications.

Cost of transporting labour, plant and materials to and from the ONSHORE SUPPORT BASE in Kuryk, and then around the OFFSHORE SITE including travel allowances and expenses and the traveling time of personnel to and from their temporary accommodation and the SITE including complying with the COMPANY’s SITE security regulations and SITE transportation regulations

Costs of electrical power, lighting – including workface lifting – compressed air and water for SITE construction and fabrication activities including connections thereto.

Costs of temporary works including, access roads, hard-standings, hoardings, screens, dustsheets, fences, bridges, traffic and other diversions, lighting, storm drainage, maintenance of public and private roads and measures to prevent the pollution of the soil and any water courses. Maintenance to roads and storage areas shall include where necessary water sprinklers, dust sweeping, dust suppression, snow and ice removal, and prompt repairs to potholes or washouts. Temporary vents to the atmosphere shall be checked by the CONTRACTOR to prevent air NTRACTOR during all phases of the WORK, as may be required by the CONTRACT.

Cost for providing pollution.

Cost for setting out, leveling and marking of the WORK including the use of instruments and equipment required for the taking of measurements and the like.

Costs for checking drawing dimensions and any applicable site dimensions and site levels, including partial works performed by other contractors, prior to commencing work

Cost of checking by CONTRACTOR for any discrepancies between or within the CONTRACT specifications and the construction drawings issued by the COMPANY and liaison with the COMPANY with regard to the resolution of same. The COMPANY will not be liable in respect of costs incurred by the CONTRACTOR as a result of a failure on the part of the CONTRACTOR to notify COMPANY on such matters in the timeframe stipulated in the CONTRACT.

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Cost of undertaking full liability for any COMPANY nominated subcontractor assigned to or novated to the CONTRACTOR in an identical manner as for the CONTRACTOR’s SUBCONTRACTORS.

Cost of government and local taxes, duties, levies, insurances and permits for which the CONTRACTOR may be liable.

Cost of working in accordance with any applicable COMPANY Work Permit Procedure and any and all limitations imposed by SIMOPS.

Cost of complying with government and local regulations pertaining to the SITE and payments of fines for breaches found by Regulatory Authorities.

Cost of quality assurance and quality control and the provision of as-built drawings, certificates, reports, chemical analysis, test certificates and the like, and other documentation as required by the CONTRACT or the statutory authorities.

Cost of implementing “material identification and traceability” for materials supplied and/or incorporated by the facilities for use by COMPANY and COMPANY appointed third parties during its inspection of the execution of work at any CONTRACTOR offsite facilities

Cost of providing progress and planning reports and other such reports and other such reports and certificates required by the CONTRACT, and attendance by appropriate CONTRACTOR’s personnel at meetings required by the CONTRACT or as directed by COMPANY.

Cost of interfacing with and working in close proximity with Other Contractors of COMPANY and re-sequencing CONTRACTOR’s activities, as required, to avoid disrupting COMPANY’s Other Contractors who may be working on the SITE concurrent with the CONTRACTOR.

Cost of interfacing with the Regulatory Authorities and for complying with the requirements of the Regulatory Authorities including training and examinations of CONTRACTOR’s personnel to meet Regulatory Authority requirements for supervision of work (including RoK “Blue Book”)

Cost of implementing technology / knowledge transfer and Local Content commitments in accordance with the CONTRACT requirements.

Cost of testing of materials, welding procedure qualifications, welder qualifications and work in accordance with the CONTRACT including the provision of necessary testing equipment and facilities, and the submission to the COMPANY and the Regulatory Authorities (as applicable) of the appropriate test or calibration certificates. Provision of samples where required by the CONTRACT.

Cost of preparation of Welding Procedure Specifications and obtaining COMPANY approval

Cost of performing Non Destructive Examination (NDE)

Cost of collecting up scrap, recoverable and surplus material and delivering same to the CONTRACTOR’s and/or the COMPANY’s designated storage points

Cost of promptly making good damages to existing structures, roads, fences and any other work constructed, fully or partially, by Other Contractors, which are to be retained, caused by or attributable to the actions or the omissions of the CONTRACTOR

Cost of making good or reworking any item not executed in accordance with the CONTRACT

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Cost for protecting, preserving and maintaining the WORK at all stages as required or as inferred by the CONTRACTOR including the provision of sufficient watching, flood lighting, general lighting, fire fighting capabilities, general security and weather protection to avoid damage to the WORK and delay in the execution of the WORK. This cost includes preservation of COMPANY supplied equipment and material in accordance with manufacturers’ recommendations and/or as specified in the CONTRACT.

Cost for the impact on the program and cost of time lost and/or inefficiency due to inclement weather and for all other periods of non productive time of labour and construction plant for which the COMPANY is not responsible including mechanical breakdown of plant and equipment; industrial disputes; and attendance of CONTRACTOR’s personnel at tool box meetings and induction and training courses, COMPANY instituted safety meetings, idle time and travel time.

Cost of increasing the number and/or capacity of CONTRACTOR’s labor and construction plant as applicable, and/or execution of weekday, weekend or holiday overtime and shift working where necessary to complete the construction work in accordance with the current program in the PROJECT SCHEDULE (or as revised from time to time with COMPANY’s agreement) except where liability for the delay in the PROJECT SCHEDULE does not lie with CONTRACTOR under the provisions of this CONTRACT.

Cost of keeping the SITE clear of rubbish, cleaning up upon completion of the WORK and at all times removing rubbish and waste material to RoK approved disposal areas

Cost associated with the incidental demobilization of CONTRACTOR’s personnel and/or equipment during execution of the WORK for whatever reason including any request by COMPANY for the replacement of CONTRACTOR’s personnel. Also any other incidental costs associated with the mobilization of replacement personnel and/or equipment.

Cost of preparing any necessary field sketches, fabrication drawings, engineering calculations, crane lift studies and details of work and “red line” mark ups for as built documentation

Cost of compilation of mechanical completion dossiers for staged completion of the WORK as defined by COMPANY.

Cost of any insurances required to be provided by the CONTRACTOR, whether under this CONTRACT and/or by government or local laws, regulations or decree

Costs for preparing and working to CONTRACTOR’s safety plan

Costs for providing free access to the WORK for COMPANY personnel

Costs for constructability, accessibility and other studies required to optimize the WORK and improve the PROJECT SCHEDULE.

Unit rates and percentages included in the Price List are defined in Part 2A “Indirect Costs”.

13.4 DAY-WORK RATES – PREAMBLES

Day-work rates shall be used in case any part of the WORK cannot be performed on the basis of Unit Rates and there is no possibility to establish new Unit Rates on the basis of existing ones. In such case, COMPANY will issue an Instruction in order that certain parts of the WORK are executed on a Day-work basis.

COMPANY will then instruct CONTRACTOR to prepare an estimate of the number of days, number and type of equipment, category of personnel that are necessary to execute the work.

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Prior to CONTRACTOR commencing such work, COMPANY and CONTRACTOR shall agree on this base estimate.

In addition, COMPANY may request CONTRACTOR for a period after Pre-Commissioning primarily of any system to provide labor and construction plant and equipment on a “as required” basis to assist COMPANY generally in connection with the PROJECT and in particular to provide resources to assist COMPANY during the Commissioning of the completed system.

Work performed on Day-works (irrespective of the timing thereof) shall be excluded from the adjustment mechanism for overall remuneration by element for items performed using Unit Rates.

CONTRACTOR shall prepare his labor/discipline estimate at least two days in advance and notify the relevant discipline supervisor of the COMPANY on a daily basis of CONTRACTOR personnel who will be working on a Day-work basis. CONTRACTOR shall further notify the relevant supervisor of the COMPANY about changes in CONTRACTOR’s personnel, who will be working on a Day-work basis. The latest updated information shall correctly cross check with the Daily Labor and the Daily Plant and Equipment Record Sheets.

CONTRACTOR shall submit on a daily basis Daily Record Sheets in duplicate for each activity, which COMPANY has instructed to be carried out on a Day-work basis.

The Daily Record Sheet shall identify:

Reference to COMPANY Instruction

activities being carried out with a full and accurate description including its location

Name and craft level of each of CONTRACTOR personnel engaged

Their badges and trade discipline

Actual hours spent and locations

Number and accurate description of each type of CONTRACTOR construction plant and equipment engaged on the WORK in each location

Actual hours of each equipment

Quantities of materials used

Daily Record Sheets shall be submitted to the relevant COMPANY Supervisor by 12 (noon) on the following day in which the WORK has been carried out, even if the WORK is not completed. COMPANY Supervisor will review, correct if necessary, sign and return the Daily Record Sheets to CONTRACTOR.

Daily Record Sheets shall be summarized on a Day-works Sheet

The Day-works Sheet shall be priced and extended in accordance with the rates set out in the CONTRACT and checked, signed and approved by the authorized CONTRACTOR REPRESENTATIVE prior to submission to the COMPANY. CONTRACTOR shall submit the overall Day-work Sheet on a weekly basis within two (2) working days of the completion of the weekly report period (or such as COMPANY may instruct). CONTRACTOR shall submit the complete and fully priced Day-works Sheet to the COMPANY REPRESENTATIVE for COMPANY’s counter-signature and approval. CONTRACTOR shall attach to each priced Day-work Sheet the applicable Daily Record Sheets, previously approved by the relevant COMPANY Supervisor, together with the applicable originals of the invoices for materials. Payment of Day-works will only be approved following the submission by CONTRACTOR to COMPANY of correctly completed, fully priced Day-work Sheets signed by the COMPANY REPRESENTATIVE.

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Although the COMPANY may at times instruct CONTRACTOR labor working on Day-work, with such instruction conveyed through the CONTRACTOR supervision, CONTRACTOR shall understand that his responsibilities for his labor, plant and equipment and activities performed thereby are entirely unchanged. Statutory requirements including the safety of CONTRACTOR’s labor, plant and equipment, civil and penal liabilities remain at the sole responsibility of CONTRACTOR.

13.5 DAY-WORKS

A list of personnel and construction plant and equipment is included in Table 5 of the Unit Price List. CONTRACTOR may add items in the Unit Price List in order to include items of personnel and construction plant and equipment more appropriate to his intended execution of the scope of WORK of the CONTRACT.

13.5.1 Classification of Day-works

Day-works carried out either during construction or after the Handover to Commissioning of each system will fall under the following categories:

Labor

Plant / Equipment

Supply of Materials / Services

13.5.2 Specific Charges for Day-works

Labor

Rates included in Table 5 are deemed to be inclusive of any overtime or out of work time working hours, inclusive of Indirect Costs inferred as required in the Sect. 2 hereof. Day-works shall, on a general basis, be carried out within daytime hours from 6:00 to 18:00 and up to 7 (seven) days a week. However the Day-works can be carried out at any time outside daytime hours if COMPANY deems it necessary at the same Day-work rates.

Skilled personnel shall be fluent in English with a minimum of 5 (five) years working experience in his appropriate trade.

The rates for labor shall include for, but not be limited to, the following:

o Management, supervision (above foreman level) and administration, save where CONTRACTOR is solely providing Assistance to Commissioning, where COMPANY and CONTRACTOR shall agree appropriate non direct labor and foremen personnel payment (i.e. the management, supervision above foreman level and administration who may be compensated on Day-work)

o Basic salaries (basic wage, contingency allowance, seniority, condition money, piece work, production bonus and further specially agreed rates, overtime working hours, national insurance, etc

o Payroll burdens (annual leave, national holidays and weekend holidays, bonuses, seniority, training board levies, redundancy payments, pensions, insurances in accordance with the requirements of the CONTRACT and/or the applicable law, absence due to sickness or accident, absence for study purposes, for workers meetings, time lost due to inclement weather

o Social and assistance charges (all contributions to pension funds, unemployment funds, etc)

o Travelling time and expenses between the home base / temporary accommodation and the ONSHORE SUPPORT BASE and for complying with SITE security, including

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entry and exit from the SITE, together with and periodic leave and rotational leave allowance

o Safety and welfare facilities

o Mobilization and demobilization costs for substitute or replacement personnel

o Any additional subsistence and accommodation expenses

o Protective clothing and environmental protective clothing and safety requirements

o Charges for small tools

o Charges for consumables and minor construction supplies / erection accessories

o CONTRACTOR’s Indirect Costs (in accordance with the CONTRACT parameters) including CONTRACTOR’s overhead and profit

o All other liabilities and obligations whatsoever as per the CONTRACT and applicable law.

Plant and Equipment

Plant and Equipment Rates shall apply to CONTRACTOR’s plant and equipment already at the OFFSHORE SITE. The rates shall exclude the cost of the drivers, operators and attendants, which will be priced separately at the appropriate rates inside the Day-work Rates for Labor.

Payment for plant and equipment on Day-work rates shall be only made for the actual productive hours worked by the item of plant and equipment. Mobilization / demobilization of plant and equipment to the ONSHORE SUPPORT BASE is deemed to be included in the Day-work Rates (i.e. chargeable time commences at the specific Day-works work location). Transport from the ONSHORE SUPPORT BASE to the OFFSHORE SITE will be performed by COMPANY.

The rates stated in the Day-works Rates shall be deemed to be applicable to any hours of the 24 hour day, or any day of the week/month.

Equipment mobilized under an Instruction to carry out Day-works, shall be compensated at:

o hourly rates for up to 12 hours per day

o daily rates for up to 4 days per week

o weekly rates for up to 18 days per month

The list of plant and equipment is a selection only of construction plants and equipment and is not meant to be either comprehensive or particular to the CONTRACTOR’s plant and equipment. Consequently, CONTRACTOR may add to the items in the Price List. Any item not listed but related to an item in the agreed list shall subsequently deemed to be small tool, construction supplies and consumables and as such shall be deemed to be included for in the applicable Day-work Rate.

The Day-work Rates for Plant and Equipment shall include for, but not be limited to, the following:

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o Charges for road tax, insurance (in accordance with the requirements of the CONTRACT and/or applicable law) fuel, lubricants and consumables

o Maintenance and repair (including those carried out by the operator or driver or CONTRACTOR’s own fitters or CONTRACTOR’s plant repair and maintenance organization)

o Any tackle normally associated with the equipment (ropes, pulley blocks, slings, hooks, etc)

o CONTRACTOR’s Indirect Costs (in accordance with the CONTRACT parameters) including CONTRACTOR’s overheads and profit

o Spare parts

o All other liabilities and obligations whatsoever as per the CONTRACT and applicable law.

Supply of Materials and / or subcontracted services/works

In case of supply of materials and/or services that are not within the CONTRACTOR’s scope of supply and which are requested by COMPANY, CONTRACTOR shall evaluate the number of days required and the personnel involved in the supply of these materials and/or services. Their payment shall be in accordance with the Day-work Rates for Management, Engineering, Construction and Administration Personnel. CONTRACTOR shall submit such evaluation to COMPANY REPRESENTATIVE for approval. COMPANY REPRESENTATIVE will review, correct if necessary, sign and return the evaluation assessment to CONTRACTOR.

The price of the materials to be supplied by CONTRACTOR, in this case, shall be agreed by COMPANY prior to issue of the purchase order. Payment for such materials will be based on the net documented cost (including delivery costs) incurred plus the applicable mark-up stated below, consistent with the material price agreed with the COMPANY, once the materials are incorporated into the WORK, in accordance with the CONTRACT provisions for payment.

The net price of materials shall not include import duties or taxes, and if these are unavoidably incurred, they will be reimbursed to CONTRACTOR at cost (i.e. without application of any mark-up).

The following mark-up shall be fully inclusive of all other costs associated with supply of materials including but not limited to Overhead and Profit:

Mark-up: 15 % (fifteen percent)

In case of services provided by a THIRD PARTY or of works performed by a Subcontractor, these shall occur only in the event that a variation to the WORK is instructed by COMPANY which necessitates the use of a specialist lower tier subcontractor not envisaged at CONTRACT award stage and for which no applicable Unit rate exist or can be agreed. The price of such services shall be agreed by COMPANY prior to CONTRACTOR contracting with such THIRD PARTY and the net documented cost plus the applicable mark-up stated below, consistent with the services price agreed with the COMPANY, once the services have been performed, shall be paid to CONTRACTOR in accordance with the CONTRACT provisions for payment. Such services shall be paid as if such THIRD PARTY was CONTRACTOR’s subcontractor. The above provisions shall not be applicable to subcontractors whose employment is envisaged at CONTRACT award stage. Any Day-work carried out by such subcontractors of CONTRACTOR shall be

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subject to this procedure and will be paid for the Day-work rates included in the CONTRACT.

The following mark-up shall be fully inclusive of all other costs associated with supply of services including but not limited to Overhead and Profit:

Mark-up: 15 % (fifteen percent)

13.5.3 Method of Measurement for Day-works

Labor

Payment shall only be made for productive hours actually worked by CONTRACTOR’s labor, in accordance with the authorization mechanism in this document and as recorded on the relevant Daily Record Sheet and approved by the relevant authorized COMPANY supervisor.

Foremen shall be paid for in similar manner to the other personnel being paid for at Day-work rates. The cost of supervision above foreman level, for personnel being paid at Day-work rates, is deemed to be included in the Unit Rate for Day-works and consequently no separate payment shall be made for Supervision.

Plant and Equipment

Payment shall only be made for productive hours actually worked by CONTRACTOR’s plant and equipment, in accordance with the authorization mechanism in this document and as recorded on the relevant Daily Record Sheet and approved by the relevant authorized COMPANY supervisor.

Miscellaneous Support Services

If instructed by COMPANY, CONTRACTOR shall provide Miscellaneous Support Services on an ad hoc basis and CONTRACTOR shall be reimbursed for on a net documented cost basis plus percentage mark-up as defined in Attachment 1 hereto.

The net price of services shall not include import duties or taxes, and if these are unavoidably incurred, they will be reimbursed to CONTRACTOR at cost.

All CONTRACTOR’s invoices for reimbursement for agreed Miscellaneous Support Services shall be presented with a certified copy of the original invoice.

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13.6 ASSISTANCE TO COMMISSIONING

COMPANY may request CONTRACTOR to provide dedicated services for Assistance to Commissioning.

In such case, the Day-work Rates quoted by CONTRACTOR shall be reduced by XX% (double ics percent), i.e. the portion of the Indirect Costs therein contained.

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14. MANHOURS FOR EACH ITEM IN THE PRICE LIST14.1 CONTRACTOR shall state alongside each priced item in the Price List the number of man-

hours that he has allowed for the execution of the work described in the applicable priced item. The man-hours will be included in the CONTRACT for reference purposes only, to assess productive factors, but also to ensure that the CONTRACTOR’s supervision levels are in accordance with the CONTRACT requirements. The sum of the man-hours so listed alongside each item in the Price List for Direct Work shall be the same as the total number of direct man-hours shown by the CONTRACTOR in the direct labor histogram to be submitted in Section 9.3 of the Letter of Request for Quotation and the Instructions to Tenderers.

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15. PAYMENT RULES15.1 GENERAL

All Unit Rate payments made to the CONTRACTOR will be based on the following rules:

0%-95% Up to Mechanical Completion notification by CONTRACTOR (as defined in Schedule A – terms & Conditions) by monthly progress invoices

2.5% At Pre-Commissioning Completion

2.5% At COMPANY’s acceptance of completed QA/QC and Project Documentation for the system (signified by COMPANY issue of the pertinent MECHANICAL ACCEPTANCE CERTIFICATE to the CONTRACTOR)

COMPANY and CONTRACTOR agree that the sole purpose of the above milestone payments of 5% is to reimburse CONTRACTOR for completing Pre-Commissioning and QA/QC and Project Documentation deliverables to COMPANY. PARTIES agree also that the above milestone payments of 5% shall be used only for its intended purpose and no other.

The aforementioned payments shall be subject to 10% retention. In lieu of retention CONTRACTOR may provide a Bank Guarantee that will be released in accordance with Articles 22.1 of the Schedule A – Terms & Conditions.

Final payment for work executed under the CONTRACT shall only be made when all applicable quality assurance requirements have been complied with and approved quality assurance documentation, including all as built drawings, have been submitted by CONTRACTOR and the Regulatory Authorities (as applicable).

The Indirect Running Costs will be paid to CONTRACTOR based on the following mechanism: the total of Indirect Running Costs will be divided by the no. of months of duration of the WORKS as per attached PROJECT EXECUTION PLAN and this will be the monthly amount that COMPANY will pay to CONTRACTOR. CONTRACTOR to submit invoice at the end of each month. As for the Indirect Mob / Demob costs, they will be paid in accordance with the attached Table 7 – Mob / Demob Milestone Payments.

In addition, COMPANY agrees to grant to CONTRACTOR an Advance Payment equals to 10% (ten percent) of the estimated CONTRACT PRICE against an ADVANCE PAYMENT BANK GUARANTEE for the same amount in accordance with Schedule C2 of the CONTRACT. Such advance payment shall be offset on a monthly basis throughout the duration of the CONTRACT by reducing each payment by 10% (which is the advance payment percent out of the estimated total cost) up to the recovery of the total advance payment.

15.2 PREPARATION OF PAYMENT CERTIFICATE

Refer also to the Contracts Administration Procedure included in Section 10 Schedule F

15.2.1 The COMPANY and the CONTRACTOR shall upon commencement of the CONTRACT agree a schedule of monthly cut-off dates for the purpose of valuing the Works correctly executed in accordance with the CONTRACT. The schedule shall take into account any instances where the SITE/Offices will be closed due to a holiday period and such closures are likely to affect the submission and/or processing of payment documentation. Agreement of such a schedule will provide the framework for the CONTRACTOR invoices to be submitted within the stipulated period.

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15.2.2 The CONTRACTOR shall prepare within seven (7) working days of each agreed monthly cut-off date, a complete and comprehensive financial statement of the WORK executed to the cut off date, complementing the CONTRACTOR’s monthly report.

15.2.3 The CONTRACTOR shall submit the statement to COMPANY at SITE in one original and two copies together with an electronic copy in a format agreed with the COMPANY. Pages of the statement shall be sequentially numbered, signed on each page by the CONTRACTOR and shall be sectionalized as described below.

15.2.4 The financial statement shall be accompanied by each of the following documents, where applicable:

Indirect Costs - A schedule of the facilities provided by the CONTRACTOR in accordance with lump sum portion of the Price List for Indirect Costs and a contractual evaluation of same. The schedule shall take the form of a cumulative valuation, such that it will ultimately constitute the final account of the lump sum portion of Indirect Costs.

Direct Costs - Detailed measurement sheets and priced billing of work which is the subject of unit rates. COMPANY computer programmes for the measurement of completed work shall be used where possible. The actual quantities of work completed shall have been subject to the prior agreement and signature of the COMPANY REPRESENTATIVE. The measurement and billing shall take the form of a cumulative valuation, such that it will ultimately constitute the final account of measured work of the unit rate portion. Progress reports shall state the percentage complete of WORK for the period and cumulative valuation of the unit rate portion of WORK based on CONTRACTOR’s estimated bill of quantity quantities where the drawings are issued or COMPANY’s preliminary quantities for the balance, where such quantities are not yet finalised.

In respect lump sum portion of the direct cost WORK (if any are agreed between COMPANY and CONTRACTOR during the duration of the CONTRACT), progress reports shall record the percentage complete of work in accordance with the COMPANY agreed weighting mechanism. The CONTRACTOR shall similarly record the progress complete of any COMPANY approved Variation Order, a copy of the executed front sheet of which should be incorporated in the statement. The percentage complete shall have been subject to the prior agreement and signature of the COMPANY REPRESENTATIVE. The CONTRACTOR’s billing shall take the form of a cumulative valuation, such that it will ultimately constitute the final account of lump sum work (including Variation Orders, as applicable).

Day-works costs: A list of Field Instructions and the like issued by COMPANY and the amounts being claimed for by the CONTRACTOR against each Field Instruction. Each Field Instruction shall be fully substantiated by a measurement of the work executed, Day-work Sheets or invoices as applicable. Field Instructions shall be priced in accordance with the Unit Rates wherever possible or as pre-agreed Lump Sum and by exception using Day-works. Field Instructions shall be listed and approved as a VARIATION ORDER prior to being submitted for payment.

Fully complete and priced Day-work Sheets with supporting Record Sheets and original material invoices. The Record Sheets shall have been previously agreed and signed by COMPANY REPRESENTATIVE and the Day-work Sheets shall have been previously approved and signed by the COMPANY REPRESENTATIVE. Day-work Sheets shall refer to a Field Instruction No. issued by COMPANY. The Day-work billing shall take the form of a cumulative valuation, such that it will ultimately constitute the final account of reimbursable work of the Day-work portion.

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Original material invoices of any material purchased by the CONTRACTOR on the instructions in writing of COMPANY (not included in an applicable unit rate). The material invoice shall refer to a Field Instruction No. issued by COMPANY.

The valuation of any THIRD PARTY Services provided to the CONTRACTOR (offset) or by the CONTRACTOR in accordance with PRE.GC.CC.8020. The invoice for the THIRD PARTY Service shall refer to a Field Instruction No issued by COMPANY.

Any credits that are due from the CONTRACTOR to the COMPANY or back-charges from the COMPANY to the CONTRACTOR

15.2.5 Each of the items stated in 6.4 shall be separately totaled by the CONTRACTOR and the totals of each carried to a statement summary. Each statement submission shall bear the CONTRACTOR’s full title and address, place of registration and be serially numbered and dated, and refer to both the Contract No. and the time period for which the submission is being made, in accordance with the provisions of the CONTRACT. COMPANY will review the CONTRACTOR’s statement and determine the amount which in the opinion of the COMPANY is due from the COMPANY to the CONTRACTOR, making amendments where required to the statement. The COMPANY will return such amended statement (as applicable) to the CONTRACTOR, for the CONTRACTOR to issue, without delay, a credit note to the COMPANY, reflecting the COMPANY’s notified valuation position, together with an amended CONTRACTOR period/cumulative invoice, in order to regularize payment

COMPANY will prepare a Payment Certificate recording the amount which in the opinion of the COMPANY is due from the COMPANY to the CONTRACTOR. The Payment Certificate shall record the gross value of work completed to the cut off date, the amount of retention withheld, the value of previous payments and the net amount due to the CONTRACTOR for the current period, allowing for any back-charge. The Payment Certificate shall be signed by the CONTRACTOR and COMPANY. The statement and the signed Payment Certificate shall be presented together with the CONTRACTOR’s signed invoice, in the same amount as the Payment Certificate, to the COMPANY REPRESENTATIVE for forwarding to COMPANY’S Accounts Department.

15.2.6 Failure to observe the above requirements may lead to delays in agreement of the amount of the statement, issue of the signed Payment Certificate, and processing of the CONTRACTOR's invoice and credit note, and invoice payment by the COMPANY.

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PRICE TABLESTable 0 GRAND TOTAL

Table 1 INDIRECT COSTS

Table 2 DIRECT COSTS – TRAIN 2 PIPE-RACKS & MODULES

Table 3 DIRECT COSTS – RISER ISLAND

Table 4 OPTIONAL WORKS – ISLAND A

Table 5 DAY-WORK RATES

Table 6 SUMMARY OF PROVISIONAL ITEMS

Table 7 MOB / DEMOB MILESTONE PAYMENTS

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2009-0363 - Schedule B_19.03.2010

Documents

work rates rates

introductionthis schedule

instrumentation works

direct work rates

civil works

contract currency

electrical works preambles

unit rates