Tender Ref.: Marine Department Shipbuilding Tender No. 2/2014

Part V - Schedule 4 - Liquidated Damages for Certain Breaches of Contract Page 1 of 2

Supply of Two Units of Aluminium Fast Pursuit Crafts for Customs & Excise Department

Schedule 4

Liquidated Damages for Certain Breaches of Contract

Part Item Liquidated damages (not as penalty)

Part 1 Item 1 and Item 2 as specified in Part

1 of Schedule 1 but excluding the final

version of the As-Fitted Plans and

Drawings

If the Contractor fails to deliver to the Delivery Location a Vessel with

all Equipment installed thereon, by the Delivery Date stipulated in

Schedule 2, in Ready for Use condition, whether because of any failure

of any part of the tests and trials in the Technical Acceptance or

otherwise, or even if such delivery has been made, but fails to procure

and ensure that the Vessel with all Equipment installed thereon passes

the Delivery Acceptance to the satisfaction of the Government by the

same Delivery Date (Delayed Vessel), the Contractor shall pay to the Government for each day or part thereof of delay for that Delayed Vessel

an amount equal to 0.125% of the vessel unit price as quoted in Part 1 of

Schedule 1 (Vessel Unit Price).

The aggregate amount payable by the Contractor in respect of a Delayed

Vessel shall be capped at a maximum of 15% of the Vessel Unit Price.

Part 2

Items 3 to 6 in Parts 2, 3 & 4 of

Schedule 1

If the Contractor fails to deliver to the Delivery Location one set of any

of the items 3 to 6 by the Delivery Date stipulated in Schedule 2, in

Ready for Use condition, or even if such delivery has been made, but

fails to procure and ensure that any of the items 3 to 6 passes the

Delivery Acceptance to the satisfaction of the Government by the same

Delivery Date (Delayed Deliverables), the Contractor shall pay to the Government for each day or part thereof of delay for that Delayed

Deliverables an amount equal to 0.2% of the price for one set of the

relevant item as quoted in Part 2, 3 & 4 of Schedule 1, subject to a

maximum cap of 15% of the price for one set of the relevant item.

Part 3 The final version of the As-Fitted

Plans and Drawings as specified in

Annex 14 of the Technical

Specifications

If the Contractor fails to deliver to the Delivery Location the final

version of the As-Fitted Plans and Drawings described in Annex 14 of

the Technical Specifications within two (2) months after the delivery of

the Vessel to the Government Dockyard, the Contractor shall pay to the

Government for each day or part thereof of delay an amount equal to

0.1% of the Vessel Unit Price specified in Part 1 of Schedule 1, subject

to a maximum cap of 1% of the Vessel Unit Price.

Tender Ref.: Marine Department Shipbuilding Tender No. 2/2014

Part V - Schedule 4 - Liquidated Damages for Certain Breaches of Contract Page 2 of 2

Supply of Two Units of Aluminium Fast Pursuit Crafts for Customs & Excise Department

Part 4

If, after the Government chooses to exercise its options under Clause 12 of the Conditions of Contract

(including without limitation requesting the Contractor to take all necessary remedial actions to address

the failure in achieving the Contract Speed) the Vessel still fail to achieve the Contract Speed in the

Official Sea Trial to be conducted as part of the Technical Acceptance, without prejudice to other rights

and claims of the Government, and if the Government does elect to accept that Vessel notwithstanding

the deficiency (and for the avoidance of doubt, the Government may alternatively choose to reject that

Vessel and may terminate the Contract for failing to achieve the Contract Speed and therefore failing the

Technical Acceptance), the Contractor shall pay to the Government an amount at the rate as specified

below as liquidated damages for such failure but not as a penalty.

The liquidated damages shall be the percentage of the Vessel Unit Price of the Vessel which has failed to

achieve the Contract Speed:

Speed deficiency (from the Contract Speed) Liquidated damages (not as penalty)

(as a percentage of the Vessel Unit Price

of the relevant Vessel)

0.25 knot 3

> 0.25 knot but 0.50 knot 6

> 0.50 knot but 0.75 knot 9

> 0.75 knot but 1.00 knot 12