TOF10-133-Daweoo Equipment-piping offer.docx

DaewooMay 26, 2010

Ruwais- RRE Project Structural steel, Mechanical and piping erection works

Reference: TOF-10-133

Date: 03 May 2023Ref: ME/TOF10-133To :

W. B. KIMMANAGER SUBCONTRACT ADMINISTRATION TEAMDAEWOO E&C CO.,LTD+822-2288-3512 Phone+822-2288-5115 Facsimile+8210-4912-9331 [email protected]

Subject :Ruwais Tank Farm Project RRE4 – UAE–Equipment-piping and Steel erection works

Following to your enquiry of above, we are pleased to submit you our quotation. INCO quotation is summarized as following:

Section A. Scope of work A.1) Project Management and engineering servicesA.2) Site mobilization / demobilization and site servicesA.3) Erection at Site worksA.4) Other Inco responsibilities

Section B. Terms and Conditions

Section C. Exclusions / Client scope of works

Section D. Attachments

1. Price Schedule 2. Preliminary Project Schedule 3. Preliminary Manpower Histogram 4. Preliminary Equipment Histogram 5. Project Organisation chart6. HSE Management7. QA/QC Manual 8. Workloads9. Certificates 10. INCO Catalogue

We hope that our proposal is in line with your requirements and we are at your disposal for any clarifications you may require.

Awaiting your reply, Kind Regards

Abdo Karadag Managing Director

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INCO INTERNATIONAL FZ. CO. P.O. Box. 16971, Junction 12, Jebel Ali Free Zone Dubai United Arab Emirates

Tel : +971 4 883 21 82 Fax : +971 4 883 21 71 Email : [email protected] www.inco.com.tr

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Section A - Scope of Work

A.1) Project Management and engineering services Project Handling and Project Management Preparation of Work procedures / PQR- WPS / Welding books / Work Instructions..etc Preparation of QA QC documentation Respect of safety regulations including:

Provision of appropriate protective clothing. Provision of adequate welfare and first-aid facilities. Compliance with permit-to-work procedures as required by particular location. Regular inspection and certification of lifting equipment, scaffolding etc. Respect of the internal conditions of work.

As built drawings completion indicating the eventual variations.

A.2) Site mobilization / demobilization and site services Mobilization works

o Site Mobilization for INCOo Mobilization for Camp Facilities

Client to provide free area for camp next to job site.o Mobilization for Client offices (NOT REQUIRED)

Materials handling at site. Other temporary facilities, Water and Power connections. Maintain the job site clean from scraps and all kind of garbage during the erection

works and especially leave the site in clean conditions at the end of the works. Hand back to the company any spare bulk materials which are not utilized.

A.3) Erection works

The services to be provided by INCO for the package will include;

Unloading of Client Supplied and INCO Supplied materials Equipment Erection works Piping works Structural steel erection works Site Erection and welding works including

Mobile Cranes Scaffolding Hydrostatic Testing

A.4) Other Inco responsibilities

Payment of all salaries to their personnel Provide food & accommodation for all INCO personnel Provide transportation from & to site & accommodation Provide all lifting equipments such as cranes, forklifts with operator and diesel through-out the

project and other lifting equipments / tackles (self loader truck) All small equipments and hand tools and welding machines required for erection works Provide consumable materials such as electrodes welding rods, gases (Oxygen, Acetylene,

argon, carbon dioxide), cutting stones, grinding stones and drill bits. We have foreseen to use our own scafolders and scaffolding materials We have foreseen to use own cranes and equipment We are going to use our own personnel having valid UAE working permits

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Notes; Inclement weather conditions, such as heavy snow, heavy rainfalls, flood, storm, sand storm,

persistent fog, which adversely affect progress of works, should be considered as additional conditions to the international Force Majeure conditions. In case of such an occurrence a time extension accordingly will be granted to INCO to compensate delays occurring.

In case delays occur due to reasons not attributable to INCO such as delays in provision of Client supply equipment, machinery or drawings, appropriate time extensions have to be granted to INCO and compensation will be claimed by INCO for such delays in case INCO’s continuous attendance on site is requested by the Client.

General Scope of Supply: In case any extra materials are required for erection and installation works which are in Client’s scope of supply and Client requests INCO to procure the same, INCO will arrange the procurement if available from local market and site delivery of the materials, which will be charged with invoice face value Plus 25% overhead charges for INCO.

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Section B – Commercial Terms and Conditions

B.1) Price Schedule

See Attachment D1

B.2) Payment Terms and Conditions

The Total Contract Price (hereinafter TCP) is payable by the COMPANY to the CONTRACTOR as follows:

15 % of TCP as down payment at the coming into force of the CONTRACT against presentation of the commercial invoice and of the following Bank Guarantee:

An Advance payment Bank Guarantee of the same amount valid from the date of the payment until completion of the WORKS, to be discharged pro-quota of the payments invoiced by the CONTRACTOR to the COMPANY against progress of the WORK

10 % of TCP after mobilization against presentation of the commercial invoice

The balance amountof TCP, by unconditional, divisible, confirmed Letter of Credit, payable as follows:

70 % of TCP pro-quota of the progress of WORKS, against presentation of the commercial invoice and copy of the relevant P.O.W.C. signed by the ENGINEER, stamped and signed for approval by COMPANY. Payment at 30 days from approved invoice.

05 % of TCP (balance) upon release of the P.T.O.C. by the COMPANY, against presentation of the commercial invoice and copy of the original P.T.O.C. released by the COMPANY. Payment at 30 days from approved invoice.

B.3) Time for Completion

See attached project schedule

B.4) Price validity

Price Validity:3 months from the date of issue

Note:The bidder reserves the right to ask for modification of the price due to increasing of primary material cost if any.

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B.6) Monthly Progress reports:

Unless otherwise agreed with the Client, monthly progress of work reports shall be prepared by INCO and submitted to the Client. The first report shall cover the period up to the end of the first calendar month following the commencement date. Reports shall be submitted monthly thereafter, each within 7 (seven) days after the last day of the period to which it relates.

Each report shall include:

Estimated total value of the Works executed in the months of reference, using weighed mean values to be agreed upon.

Charts and detailed description of progress, including each stage of prefabrication, construction, erection, pre-commissioning and testing.

Photographs showing the status of the progress of the Works. Copies of the quality assurance documents, as applicable Safety information such as details of hazardous accidents, etc. Comparison of actual and planned progress of the Works with details of any events or

circumstances which may jeopardize the completion of the Works according to the Contract, and measures proposed to overcome delays.

B.7) Plant Mechanical Completion

Upon reaching the Mechanical Completion of the plant, the Client will issue a certificate stating that the Plant erection is completed (Provisional Take Over Certificate P.T.O.C.) and indicating the list of the minor interventions and/or adjustments, if any, still to be carried out by the Contractor in order to consider the Plant Erection as fully executed (“punch list”) and fixing the maximum time granted to the Contractor to execute such “punch list”. The “punch list” shall be jointly prepared and signed by the Contractor’s, Client’s and Supplier’s representatives.

Should the Contractor has fulfilled all his contractual obligations, after 12 (twelve ) months from the date of the Mechanical Completion Certificate the Client will issue to the Contractor the “Works Acceptance Certificate”, provided that the Works has been implemented to the satisfaction of the Supplier and Supplier shall issue to the Contractor respective “Good Workmanship Certificate”.

B.8) Changes to the work

Client / Supplier may request the Contractor, any changes / addition in the scope of work.

For changes/additions worth USD 25,000 (twenty five thousand) or more, the Contractor shall timely provide Client with an offer indicating price, time required and a brief description of the works to be done, and obtain the written acceptance by Client’s Project Manager before their execution.

For changes/additions worth less than USD 25,000, the Contractor may proceed after having obtained the written approval of Client’s Site Representative.

The amounts charged to Client for changes in the scope of work shall be based on the Unit Rates enclosed in Annex or, if such unit rates are not applicable, to reasonable market prices previously agreed with Client.

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B.9) CONTRACT

Lump-Sum quote based on the BOQ given (limit +-5%)

B.10) GUARANTEE’S

The Contractor guarantees that the WORK will be performed to the highest standards of quality and in compliance with the TECHNICAL DOCUMENTATION and the instructions of Supplier’s Supervisor(s).

The Contractor hereby undertakes to remedy at its own cost any defects or deficiencies in the WORK which may arise in the 12 (Twelve ) months following the date of release of the P.T.O.C. released by Client, provided that such defects or deficiencies are attributable to the Contractor’s responsibilities.

Note: This price quotation does not constitute a valid contract and will not become so without pre-contractual negotiations and agreement by both parties upon terms and conditions of such a contract.

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Section C - Client Responsibilities &Exclusions

The following is excluded from scope of INCO and considered in scope of Client (client to provide free of charge)

1. All project Materials except pipe support

2. Design Calculations

3. Drawings and specifications including workshop drawings

4. Obtain approval for the drawings from government/ municipality

5. Civil works

6. Electrical works

7. NDE / PWHT

8. Third party inspections if required

9. Work-permits for the Site access by client. Visas etc. for workers by INCO.

10. Camp Area within 25km to Construction site (to be discussed)

11. Site Lay down and temporary workshop near Construction site (to be discussed)

12. Test water and discharge

13. Any work which is not specifically mentioned in our quote.

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Documents

TOF10-133-Daweoo Equipment-piping offer.docx