project b warranty
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8/19/2019 Project B Warranty
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t - ~ ~ . 1 1 ~ 1
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Saudi Electricity Company
SCHEDULE A CONTRACT
NO.
30621090/00
Title
Page
15.5
Appoint
COMP NY
REPRESENT TNE
A-19
15.6 Provide Bench Marks and Survey Points A-19
16.
Changes
A-20
16.1
CH NGE ORDER
A-20
16.2 Basis
for
Determining Compensation
for
Changes A-20
16.3
CH NGE ORDER Signature A-21
16.4 No Compensation for performing Changes without a
CH NGE
A-21
ORDER
16.5
Changes Required by Poor Design and Specifications
A-21
16.6 Failure by CONTR CTOR and COMP NY to Agree on a Change A-21
16.7 Failure
by
CONTR CTOR
&
COMP NY
to
Agree on A-21
Compensation for Change
16.8
Changes In Saudi Laws of Income Tax and Custom Duties
A-22
17.
Completion and
Acceptance
A-22
17.1 Substant ial Breach
of CONTR CT
A-22
17.2 Design Completion A-22
17.3
Technical Complet ion of the
PROJECT
PORTIONS A-22
17.3.1
Power Plant Units
A-22
17.3.2 Non-Power Plant Facilities
A-23
17.4
Notice of Technical Completion and Corrective
WORK
A-23
17.5
CONTRACTOR's Failure to Perform Corrective WORK
A-25
17.6 CONTR CTOR
shall perform
start-up
and
trial
operation
of
A-25
Power Plant Units
17.7
Preliminary Acceptance of
the PROJECT
PORTIONS A-25
17.7.1
Power Plant Units
A-25
17.7.2
Non-Power Plant Facilities
A-25
17.7.3
Preliminary Acceptance Date A-26
17.8
Final Acceptance of
the PROJECT
PORTIONS and the
WORK
A-26
17.8.1 Final Acceptance of the Power Plant Units
A-26
17.8.2
Final Acceptance
of the
Non-Power Plant Facilities
A-26
17.8.3
Final Acceptance
of the WORK
A-27
17.9
Adjustment
to Final Acceptance Date
A-27
17.10
Readiness
for
Commercial Operation
of
Power Plant
Unit
A-27
17.11 Running
the
Unit(s)
after
Readiness
for
Commercial A-28
Operation
18.
Warranties and Remedy Of
Defects
A-28
18.1
Warranty Coverage
A-28
18.2
Warranty
Duration
A-29
18.2.1
For Power Plant Units
A-29
18.2.2 For Non-Power Plant Facilities
A-31
18.3
Other
Special Warranty Items
A-32
18.4
Submission
of
Warranty Certificates
A-33
18.5
Rights and Remedies Provided
by
Law
A-33
18.6
Repair Latent Defects
A-33
TC 4
Construction of Qurayyah Open Cycle Power Plant Schedule A
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· · · ·
~ . . 4 S l t ~ . 1 ~ · :a.s.. .Mt
Saudi Electricity Company
SCHEDULE A
CONTRACT NO. 30621090/00
17.7.3
Preliminary
Acceptance Date
The date on which all of the conditions in Paragraphs 17.7.1 and
17.7.2 of this Schedule A have been fulfi lled shall be deemed
as
Preliminary Acceptance Date , even if the Preliminary Acceptance
Certificate is issued
at
a later date. Within two (2) weeks after the
Preliminary Acceptance Date,
COMPANY
shall issue
the
Preliminary
Acceptance Certificate to CONTRACTOR. However, Preliminary
Acceptance Certificate can be issued with minor punch list items
which do
not
hinder safe and reliable operation of the PROJECT as
determined by the COMPANY.
17.8 Final Acceptance of the PROJECT PORTIONS and
the WORK
17.8.1 Final Acceptance
of
the Power Plant Units
Final Acceptance
of
each Power Plant
Unit
(Power Plant
Unit
Final
Acceptance) shall be achieved when:
17.8.1.1 Technical Completion for the Power Plant Unit has been
achieved, and
17.8.1.2 Preliminary Acceptance for the Power Plant Unit has been
achieved, and
the
CONTRACTOR has completed all the
remaining punch list items, and
17.8.1.3 The Performance Testing is complete, and
17.8.1.4 All defects found during the warranty period have been
repaired, replaced
or
as otherwise have been taken care
of to the satisfaction of COMPANY and
17.8.1.5 All final as-built drawings and the Operation and
Maintenance Manuals for the Power Plant Unit have been
received by COMPANY and
17.8.1.6 In the case of Power Plant Unit No. 01, the
COMPANY
personnel have completed training on operation and
maintenance of the PROJECT as described in the Scope of
Work and Technical Specifications, PTS No. 06EG902.
17.8.2 Final Acceptance of the Non-Power Plant Facilities
Final Acceptance
of
each Non-Power Plant Facility (Non-Power Plant
Facility Final Acceptance) shall be achieved when:
17 8.2.1 Technical Completion
for the
Non-Power Plant Facility has
been achieved, and
17.8.2.2 Preliminary Acceptance for the Non-Power Plant Facility
has been achieved, and the CONTRACTOR has completed
all the remaining punch list items, and
17.8.2.3 All defects found during the warranty period have been
repaired, replaced
or
as otherwise have been taken care
of to the satisfaction of COMPANY and
A-26
Construction
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Qurayyah Open Cycle Power
Plant
Schedule
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SCHEDULE A
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Saudi Electricity
Company
CONTRACT NO.
30621090/00
17.11
Running
the Unit(s) after
Readiness
for
Commercial Operation
I f COMPANY,
after
the Readiness for Commercial Operation of any Power
Plant Unit(s), runs
the
Power Plant Unit(s)
for
Commercial Use prior
to
or
during carrying out
the
Performance Test or Reliability Run,
the
following
conditions shall govern:
17.11.1 COMPANY shall issue the Preliminary Acceptance Certificate (PAC) for
this particular Power Plant Unit(s)
after
successful operation for a
period of fourteen
(14)
days from the Readiness
of
Commercial
Operation Date.
17.11.2 In case there is a shut down due
to
failure which is attributed to
CONTRACTOR
during the fourteen
(14)
days period of Commercial
Use mentioned in Paragraph 17.11.1 above, the date
of
the issuance
of Preliminary Acceptance Certificate shall be postponed by the
number
of
days the Power Plant Unit remains shutdown
for
repair.
17.11.3
I f
the Performance Test could not be performed within the first 600
operating hours after the Readiness for Commercial Operation Date,
for
reasons attributed
to
COMPANY only, then the degradation curve
shall be applied based on
the
actual fired hours achieved
at
the time
of the test exceeding 600 hours as per Paragraph 8.4.3
of
Schedule
C
of the
PURCHASE CONTRACT. The Reliability Test run for the
particular Power Plant Unit(s) shall be carried out after the Power
Plant Unit(s) is no longer used for Commercial operation.
17.11.4 Warranty period shall commence in accordance with Paragraph 18
of
Schedule A unless the Power Plant Unit(s) is used for Commercial
Operation, in which case the warranty period shall commence from
the Readiness
for
Commercial Operation date
of
the Power Plant
Unit.
18. Warranties and Remedy
of
Defects
The SELLER's warranties and remedy of defects
for the
EQUIPMENT i t shall provide and
which
CONTRACTOR
shall install,
test
and commission under this CONTRACT are set
forth in
the
PURCHASE CONTRACT. This Paragraph
18
of Schedule A describes the
CONTRACTOR's warranty obligations with respect to the materials and equipment i t
shall provide and the WORK it shall perform under this
CONTRACT.
18.1
Warrantv
Coverage
CONTRACTOR warrants:
18.1.1 that it shall perform the WORK in a competent, diligent and
workmanlike manner; and in accordance with prudent industry
practices, CONTRACT specifications, and SELLER's officially provided
manuals, guidance and acceptance criteria;
18.1.2 that the PROJECT shall be engineered and designed in accordance
with good quality, efficiency, design and engineering practices
as
agreed in the specifications; shall meet the design criteria described
in the Scope
of
Work and Technical Specifications,
PTS
No. 06EG902
and any additional design criteria agreed to by COMPANY; and as
engineered and designed, shall be
fit
for the
purposes intended;
18.1.3 that the materials for the PROJECT shall be merchantable,
fit
for the
purposes
of
generating electric
power when
operated in
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Construction of Qurayyah Open Cycle Power Plant Schedule A
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SCHEDULE A
~ ~ · · i
; · · ~ ·
.
t - l ; 1 ~ a 5 ~
Saudi Electricity Company
CONTRACT
NO. 30621090/00
accordance with CONTRACTOR's and manufacturer's specific
operating instructions, free of defects in design, material or
workmanship, and conform
to the
standards and specifications
contained or referred to in
the
Scope of Work and Technical
Specifications,
PTS
No. 06EG902 and any additional standards and
specificatioQs
contained
or
referred
to
in
Schedule B ; and
18.1.4
that the fabrication of all parts, systems and units of
the
PROJECT
shall be free of defects in workmanship and
in
accordance
with the
designs, drawings, and specifications prepared by
CONTRACTOR
and
with good and efficient fabrication and craft practices, and
18.1.5 that
all materials and
equipment
provided
by CONTRACTOR
under
this CONTRACT
are compatible
with
the
International
Standards, and
that
test certificates are provided where requested by
the
Specifications.
18.2 Warranty Duration
18.2.1
For Power Plant
Units
18.2.1 .1 The warranties described in Paragraph 18.1 of this
Schedule A shall become effective
for
each Power Plant
Unit upon the issuance
of
Preliminary Acceptance
Certificate by COMPANY for that Power Plant Unit
indicating that the Power Plant Unit has complied with the
commissioning and performance acceptance test and is
taken over
by the COMPANY for
Commercial Use.
18.2.1.2 As
soon as the warranty period starts,
CONTRACTOR
shall
establish special coordination and liaison
with
the
COMPANY s
operators and maintenance crew on matters
of
operation and maintenance.
18.2.1.3 CONTRACTOR
agrees that the warranties shall survive
acceptance of any payment for equipment and any other
parts of the Power Plant Units, whether any defect shall
be patent or latent, for twelve-thousand (12,000)
operating service hours or
twenty-four (24)
Gregorian
months excluding time
out
of service for modification,
design, erection
or
breakdown problems, whichever shall
occur first, after issuance of Preliminary Acceptance
Certificate and
for
a similar period with equipment
repaired
or
replaced pursuant
to the
provisions
of
Paragraph 18.2.1.6 below.
However, these warranties shall expire in any case after
the
lapse of
forty-eight
(
48)
Gregorian months from the
date
of issuance
of the
applicable Preliminary Acceptance
Certificate. ·
18.2.1.4
The
CONTRACTOR s
entire obligation
with
respect to
these warranties shall be to repair', i.e. to remove, to
repair
and reinstall, or to replace , i.e. to remove and to
reinstall with new element, any
part/system of
the
equipment
which, under the specified use and proper
maintenance by COMPANY, proved defective during the
warranty period, provided
COMPANY
gives
CONTRACTOR
A-29
Construction
of
Qurayyab Open Cycle
ower lant
- Schedule A
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g
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/::_:;.J
SCHEDULE A
l;t_. oSSlt a s ~ t
Saudi
Electricity
Company
CONTR CT
NO 30621090/00
prompt written notice and satisfactory
proof
of such
defect.
18.2.1.5 f any
equipment
part
or
system is proved upon
examination to be defective, COMPANY and CONTRACfOR
will mutually agree that CONTRACfOR shall either repair
such defective
part or
system or replace it and in such
case
CONTRACTOR
shall
bear
all of
the
repair and
replacement costs including sh ipping, packing and ·
handling costs up to
WORK
SITE.
18.2.1.6 The same warranties shall cover any part or system of
the Power Plant Unit that shall be replaced or repaired by
the
CONTRACfOR under
the
above conditions and shall
be in effect
for
a period
of
twelve-thousand
12,000)
operating hours or
twenty-four
24) calendar months
whichever occurs first, except as otherwise specified,
effective as from the day when said replaced or repaired
parts
or
systems are reinstalled.
If the
said replaced
or
repaired part
or
system fails
to
meet the warranty period for a second time,
CONTRACfOR shall
either modify the
said
part or
system
or replace the
part/system
with a new one, free of any
charge
to
COMPANY However, the
total
warranty period
shall in no case extend beyond forty-eight
48)
Gregorian
months
from the
date of Preliminary Acceptance
of the
Power Plant Unit.
In
order to assure and give maximum obtainable
availability
of
the Power Plant Units and to speed up the
permanent
repair
on any defective
part/system,
CONTRACfOR shall keep the defective
part/system
temporarily
repaired and available
for
Commercial Use
of
COMPANY until a permanent
remedy
is made.
For the permanent remedy of
the
problem, CONTRACfOR
shall arrange immediate services
of the
specialist
engineers and required material.
18.2.1.7 f the defect is determined to be due to improper design
or manufacture and
i t
can be reasonably determined that
such a defect exists in other elements of the equipment,
CONTRACTOR
shall replace or modify such elements as
mutually agreed, even if such elements have not yet
failed. CONTRACfOR shall
bear
all costs associated
with
such repair
or
replacement.
18.2.1.8 CONTRACfOR disclaims any respons ibility and liab ifity for
defects or deficiencies during
the
warranty period
for the
relevant Power Plant Unit, which are due
to
faulty
operation and maintenance, as well as major repair
works carried
through by the COMPANY not
in accordance
with the operation and maintenance manual and
recommendations or any recognized method.
18.2.1.9
During the Commercial Use in which
the
Power Plant
Units have been operating, from Preliminary Acceptance
Date up to
the
end
of Warranty
Period for the· relevant
Power Plant Unit, the warranty engineer shall also be
A 30
Construction
of
Qurayyah Open Cycle Power Plant Schedule A
·
v
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/
SCHEDULE
A
1.:1 >P ~ . : l ~ l ' a ~ 1
Saudi Electricity Company
CONTRACT NO.
30621090/00
responsible for supervision of any routine inspection,
trouble shooting, scheduled maintenance, overhauls
(minor
and major) which has been recommended by any
of
the equipment manufacturers which will be carried
out
by COMPANY personnel. CONTRACTOR acknowledges that
a warranty engineer shall be provided by both
the
CONTRACTOR
for the complete WORK and by the SELLER
for the EQUIPMENT supplied under
the
PURCHASE
CONTRACT. The warranty engineers shall be available
during the Warranty Period to provide advice and counsel
only and not to supervise or manage the work of Other
Contractors.
18.2.1.10 To meet spare parts requirements during the Warranty
Period,
CONTRACTOR
shall be fully responsible and shall
not depend on COMPANY s stock in any way.
CONTRACTOR shall make
the
spare
part(s)
required
to
return
the
Power Plant Unit/equipment
to
service
available
at the WORK
SITE within
a
reasonable period of
time dependent on
the
circumstance
of
the repair or
replacement required.
18.2.1.11 During the Warranty Period,
CONTRACTOR
shall provide
all and any consumable material and parts related its to
warrantv obligations such as but
not
limited to all fuel
filters, air intake filters, lubricants, insulation oils, C0
2
halon, foam concentrate water and sewage
treatment
chemicals, laboratory chemicals, etc ... all in addition
to
first fills but excluding fuel and fuel additives.
18.2.2 For Non-Power Plant Facilities
18.2.2.1 The warranties described in Paragraph 18.1 of this
Schedule
A
shall become effective for each Non-Power
Plant Facility upon the issuance of Preliminary Acceptance
Certificate by COMPANY for that Non-Power Plant Facility
indicating that it has complied with the
CONTRACT
requirements and is taken over by the COMPANY
for
occupancy or use or operation.
18.2.2.2 CONTRACTOR
agrees that the warranties shafl survive
acceptance
of
any payment for equipment and any
other
parts of the
Non-Power Plant Facilities
1
whether any
defect shall be patent
or
latent
1
for twelve 12) Gregorian
months
after Issuance of Preliminary Acceptance
Certificate and
for
a similar period with the
equipment/material/structure repaired or replaced
pursuant to the provisions
of
Paragraph 18.2.2.5 below.
However, these warranties shall expire in any case
after
the lapse of twenty-four
(24)
Gregorian months from the
date
of
issuance
of the
applicable Preliminary Acceptance
Certificate; except for the silencing equipment and
building roofs as described in Paragraph 18.3
of
this
Schedule A .
18.2.2.3
The CONTRACTOR s entire obligation wlth respect to
these warranties shall be
to
repair'. i.e.
to
remove, to
repair and reinstall, or to replace , i.e. to remove and to
A-31
Construction
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Open Cycle Power
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Schedule A
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SCHEDULE
A
9 - ~ ~ ~ ~ ~ ~ ; a s ~
Saudi
Electricity Company
CONTRACT
NO.
30621090/00
reinstall with new element
any
part/system
of
the Non
Power Plant Facility which under
the
specified use and
proper maintenance by
COMPANY
proved defective
during the
warranty
period provided COMPANY gives
CONTRACTOR prompt
written
notice and satisfactory
proof of such defect.
18.2.2.4
I f
any
part or system of
the
Non-Power Plant Facility is
proved upon examination to be defective
COMPANY
and
CONTRACTOR will
mutually
agree that CONTRACTOR
shall either repair such defective part or system or
replace i t and in such case CONTRACTOR shall bear all of
the repair and replacement costs including shipping
packing and handling costs up
to
WORK SITE.
18.2.2.5 The same warranties shall cover any part or system of
the Power Plant
Unit that
shall be replaced
or
repaired by
CONTRACTOR
under
the above conditions and shall be in
effect for a period
of
twelve
(12)
Gregorian months
effective as from the day when said replaced or repaired
parts or systems
are
reinstalled.
I f
the
said replaced or repaired part or system fails
to
meet the
warranty
period for a second time,
CONTRACTOR shall
either modify
the said
part/system
or
replace the part/system with a new one free
of
any
charge
to
COMPANY. However the.total
warranty
period
shall in no case extend beyond twenty-four (24)
Gregorian months from
the
date
of
Preliminary
Acceptance
of
the Non-Power Plant Facility.
18.2.2.6
I f
the defect is determined to be due to improper design
or manufacture and it can be reasonably determined that
such a defect exists in
other
elements
of
the equipment
CONTRACTOR shall replace or modify such elements as
mutually agreed even
if
such elements have not yet
failed. CONTRACTOR shall bear all costs associated with
such repair or replacement.
18.2.2.7 CONTRACTOR disclaims any responsibility and liability for
defects or deficiencies during the warranty period for the
relevant Non-Power Plant Facility which are due to
faulty
operation and maintenance as well as major repair
works carried
through
by the COMPANY not in accordance
with the operation and maintenance manual and
recommendations or any recognized method.
18.2.2.8 During the Warranty Period CONTRACTOR shall provide
all and any consumable material and parts related
to its
warrantv obligations.
18.3 Other Special Warranty
I tems
18.3.1
Not Used
18.3.2
All building roofs shall have guarantee against water leakage for
ten
(10) years after the Preliminary Acceptance of each building.
18.3.2
Notwithstanding Paragraph
17.8.2
of
this Schedule A , COMPANY
shall issue the applicable Final Acceptance Certificate after one (1)
A-32
Construction of Qurayyah Open Cycle Power Plant Schedule A
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SCHEDULE A
9 l : 1 ~ ~ ~ ~ · ; a s ~
Saudi Electricity Company
r . - ~ :
.:·:.:·:.·:.:
CONTRACT
NO. 30621090/00
Gregorian
year
from Preliminary Acceptance Date
of the
Non-Power
Plant Facility If
there
are no warranty defects but in no case beyond
two 2) Gregorian years from the date of issuance of the applicable
Preliminary Acceptance Certificate.
18.4 Submission of
Warranty
Certificate
All · warranties obtained by CONTRACTOR for materials
or
equipment
purchased
by CONTRACTOR for
installation
in the
PROJECT shall be deemed
to be for the benefit of COMPANY and shall on Preliminary Acceptance of the
PROJECT
be made available to COMPANY.
18.5
Rights & Remedies Provided
by law
The rights and remedies of COMPANY provided by this CONTRACT are in
addition to any
other
rights and remedies provided by
law or
in Sharia
or
otherwise.
18.6
Repair Latent Defects
CONTRACTOR
is obliged
at
any given
time
to
repair
Latent Defects for a
period of
three
3) Gregorian years from the
expiry
date
of
the Warranty
Period of the respective Power Plant Unit and Non-Power Plant Facility. Latent
Defects means a substantial defect in the equipment/WORK that
materially
affects the operation/ use or performance of the equipment/WORK, or any
part thereof, which appears after expiry of the Warranty Period and would not
have been disclosed by normal inspection procedures by COMPANY and was
caused by or arises from the
CONTRACTOR s
Gross Negligence.
19. Subcontracts
19.1 COMPANY
Authorization
and
Subcontracting
Plan
Any subcontract for the performance of any portion of the
WORK
shall be
procured only
after CONTRACTOR
has received
written
authorization from
COMPANY to subcontract
that
portion of the WORK.
I f not
already
accomplished
prior
to the effective
date
of
the CONTRACT,
then promptly
thereafter, CONTRACTOR
shaH
submit to COMPANY REPRESENTATIVE for
COMPANY s
approval, the CONTRACTOR s subcontracting plan. This
subcontracting plan shall specifically identify those
portions
of
the WORK
that
CONTRACTOR
proposes to subcontract. In procuring subcontracts/
CONTRACTOR
shall select
SUBCONTRACTOR
solely on
the
basis of financial and
technical considerations.
This Paragraph shall be
limited
to
major
subcontracts and
SUBCONTRACTORS
included in CONTRACTOR s list of major subcontractors which shall be deemed
approved
by the
COMPANY
with the
effectiveness
of the
CONTRACT.
19.2 Subcontracting
Notice to
COMPANY
19.2.1
After receiving COMPANY s written authorization that a portion of the
WORK may
be subcontracted/
CONTRACTOR
shall, before procuring
any subcontract, submit a notification to COMPANY containing the
following
information
(This Paragraph shall only apply to
major
equipment
and such
SUBCONTRACTORS
who are present on site.):
a] I f the proposed SUBCONTRACTOR is a sole proprietorship or
partnership
1
the name and address of the proprietor or each
member of
the partnership, as
the
case
may
be. ·
A-33
Construction
of Qurayyah
Open Cycle Power Plant Schedule A
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SCHEDULE
A
4 1 \ . ; 1 ~
~ ~ ~ ~ : a s ~
Saudi
Electricity
Company
CONTRACT NO. 30621090/00
20.9 Consequential Damages
CONTRACTOR,
its agents and SUBCONTRACTORS, shall not be liable in any
event to COMPANY nor
shall
COMPANY
be liable
to CONTRACTOR,
Its agents
and
SUBCONTRACTORS,
for any indirect, special, consequential losses or
damages including,
but not
limited
to,
loss of
profit or
products, whether such
liability is based, or claimed to be based upon any breach of either party's
obligations
under the CONTRACT, or whether
such liability is based,
or
claimed
to be based, upon any negligent act
or
omission of a party,
its
personnel,
agents, appointed representatives or SUBCONTRACTOR.
20.10 Maxjmum l iabi l i ty
Except as provided in Paragraph 20.7 and notwithstanding anything contained
elsewhere in this CONTRACT to
the contrary,
the total
liability
of CONTRACTOR
and his
SUBCONTRACTORS
to
COMPANY under this CONTRACT
shall
not
exceed the amount
of
the
CONTRACT
Price set forth in Paragraph 1.1 of
Schedule C
as
may be modified
from
time to time. All liabilities under
this
CONTRACT shall
terminate
four (4) years from Final Acceptance of the WORK
except for
the
warranty liabilities contained in Paragraphs
18.3
and
18.6
of
Schedule A .
21.
Insurance
21.1 Carrv and Maintain Insurance at all Times
CONTRACTOR shall, at
its
own expense, carry and maintain in force at all
times
the
following insurance policies:
21.1.1 Comprehensive General Liabil ity Insurance CCGLl
a) Coverage
Comprehensive General
Uability
Insurance coverage with
limits
of no less than twenty mil l ion Saudi Riyals (SR 20,000,000)
per occurrence for
bodily
injury, death or property damage
during the performance of the WORK. CONTRACTOR represents
and warrants that the aforesaid insurance covers,
without
limitation,
loss of,
or
damage
to
COMPANY's
other
property
for
which CONTRACTOR is responsible
pursuant
to Paragraph 20.5 of
this
Schedule
A .
b) Term
CONTRACTOR shall carry and maintain this insurance in full force
at
all times from
the
effective date
of
the
CONTRACT
through the
Preliminary Acceptance of all the PROJECT
PORTIONS
and
thereafter during the Warranty Period, and until CONTRACTOR has
fully demobilized from the
WORK
SITE.
c)
Designation
of SELLER and
COMPANY
as Additional
Insured
in
CGL
Comprehensive General Uability Insurance shall designate
SELLER and COMPANY as additional insured as regards SELLER's
and COMPANY s liabilities for WORK performed by CONTRACTOR
pursuant to
the CONTRACT.
A 37
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SCHEDULE A
; . 1 . ; 1 ~ ~ . 1 ~ 1
: a s ~ t
Saudi
Electricity Company
CONTRACT NO. 30621090/00
Such policy shall contain a cross-liability clause so that SELLER,
COMPANY
and
CONTRACTOR
are regarded as
third
parties to
each
other.
21.1.2
CONTRACTOR s
All Risk Insurance
a)
Coverage
CONTRACTOR's
All Risk Insurance (CAR) coverage for
the
entire
PROJECT. The sum insured
per
occurrence shall be no less
than
the
total
CONTRACT
Price or replacement cost of the PROJECT
and the cost of removing debris following an insured loss.
b) CAR - Policy to be extended
to
cover In-Land Transit with a
sub-limit of estimated value of items carried at any one
time.
c) Term
CONTRACTOR shall carry and maintain this. insurance in full force
·at all times from the effective date of the
CONTRACT
through the
Preliminary Acceptance of all the
PROJECT
PORTIONS and
thereafter during
the
Warranty Period, and until
CONTRACTOR
has
fully demobilized from the WORK SITE.
d) Designation
of SELLER
and
COMPANY as Additional
Insured
in CAR
CONTRACTOR's
All Risk Insurance shall designate
SELLER
and
COMPANY as additional insured as regards
SELLER's
and
COMPANY's liabilities for WORK performed by CONTRACTOR
pursuant
to
the
CONTRACT.
Such policy shall contain a cross-liability clause so that SELLER,
COMPANY and
CONTRACTOR
are regarded as
third
parties to
each other.
21.1.3 Professionallndemnitv Insurance
21.1.4
CONTRACTOR shall effect and maintain [a single
project]
Professional
Indemnity insurance from the effective date of this CONTRACT until the
date three (3) years from Final Acceptance
of
the
WORK
in the names
of
the
CONTRACTOR,
its
SUBCONTRACTORS
and consultants to
indemnify
them
in respect
of
their legal liability for claims made against
them during
the
period
of
insurance for any negligent act,
error or
omission by the CONTRACTOR, its SUBCONTRACTORS and consultants
in the conduct and execution
of
their
professional activities and duties
relating the design and/or supervision
of
installation and/or testing and
commissioning
of the WORK.
This insurance shall be in
the amount
of
SR: 2 000 000 in respect of each claim and SR: 20 000 000 in the
aggregate for all claims during
the
period
of
insurance, and shall be
subject to worldwide jurisdiction. The deductible shall
not
exceed SR:
25 000
in respect of each claim
or
such other amount, which
the
COMPANY, acting reasonably, may approve in writing.
Completed Operations
Third
Party Liabil ity
Insurance
CONTRACTOR shall effect and maintain in the joint names of the
COMPANY,
the CONTRACTOR, its
SUBCONTRACTORS, and
S - Ch
other
persons
or
parties
as the COMPANY may
choose Completed
A 38
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· · · ·
·----------- · · - - · - - - ~ - ~ = · ' - : ' * . ~ , , f :
~ ~ ~ ~ j j ~ ~ ~ ·
Saudi Electricity
Company
SCHEDULE A
CONTRACT
NO.
30621090/00
31. Taxes
final certificates from
the
Directorate
of
Zakah and Income Tax
as
well
as
the
General Organization
of
Social Insurance (GOSI) which confirm
that
all
applicable Zakah and CONTRACTOR income
tax
obligations have been paid by
CONTRACTOR through the previous Hijra year period.
These certificates shalt be delivered to:
The Manager
Controller's Department
Eastern Operating Area
Saudi Electricity Company
Room 2-215E,
SEC-EOA
Headquarters
P.
0. Box 5190, Dammam 31422
Kingdom of Saudi Arabia
31.1 Payment
of
Taxes
CONTRACTOR, or CONTRACTOR s
personnel, shall pay all taxes, penalties,
customs duties, fees, levies, assessments and charges required or levied by
the
Government
of the
Kingdom
of
Saudi Arabia and
the
government
of
any
country, or any political subdivision thereof, arising out of or relating to the
performance
of the
WORK, without claim
for
reimbursement from COMPANY.
31.2
Withholding
Tax
Pursuant to pertinent provisions of the Income Tax Law of the Kingdom of
Saudi Arabia issued under Royal Decree No. M/1 dated
15/1/1425,
an
income
tax
will be deducted if the CONTRACTOR is considered as a Non-Resident in the
Kingdom
of
Saudi Arabia (as defined
in
Article 3 of the Income Tax Law), in
accordance with Paragraph 4.11 of Schedule C of this CONTRACT.
32. Bank
Guarantee
32.1
Amount and Validity
Jo¢ z¢:?;r ~
CON?;CTOR has presente,d Bank Guarantee
,
dated / :1 « «
2
t : X ~ 7
~ . i # e . s - ~ / ~ t ; 9 ' ~
issue by ~ a s . F ~ a n k , for Saudi Riyals, representing five
percent '(5%) of the
CONTRACT
Price, as guarantee
for
CONTRACTOR s
performance
of
the WORK. CONTRACTOR undertakes to keep the bank
guarantee valid throughout the CONTRACT Term and
for
twenty-four (24)
Gregorian months following
the
actual Preliminary Acceptance of all PROJECT
PORTIONS. Upon
written
request
of
the
CONTRACTOR,
the
value
of the
Bank
Guarantee may be reduced at
the
end of the Warranty Period
of
relevant
PROJECT PORTION(S) by an amount equal to five percent
(5%)
of the
CONTRACT PRICE
of the relevant PROJECT PORTION{S) or
to
an amount
judged by COMPANY to be adequate to cover the value
of
any uncompleted
portion
of the WORK or the
corrected/rectified WORK as mentioned in
Paragraphs 18.2 and 18.6 of this Schedule A .
32.2 Extension
of
Bank Guarantee
In
the event
that the CONTRACTOR s
Bank Guarantee needs
to
be extended,
as a result of delayed Preliminary Acceptance due to any reason whatsoever,
CONTRACTOR shall, no later than seven (7) days after the actual Preliminary
A-49
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~ ]
f.
'
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. f ) ; ( ~ : : ~ ~ ; ; ; f f : g ~ g :
fSC)
f:_,\ ;.}l
~ ~ K
SCHEDULE A
~ ~ ~ 4 S ~ I
Saudi
Electricity Company
CONTRACT
NO.
30621090/00
Acceptance,
submit
to
COMPANY
an extension
of
the
Bank Guarantee covering
the entire
warranty period.
32.3 Failure by CONTRACTOR
to Extend
i ts Bank Guarantee
Should
CONTRACTOR
fail to extend the validity of its Bank u a r a n t ~ e as
required, COMPANY shall
draw
down
the
full amount
of the
Bank Guarantee.
The CONTRACTOR shall be provided in any event, thirty (30) calendar days
advance
written
notice during which time
the
CONTRACTOR must commence to
cure the default to avoid the COMPANY drawing down on the Bank Guarantee.
After
expiration
of the warranty
period specified
in
Paragraph 18, Schedule A
of the CONTRACT and if the COMPANY has
drawn
down the Bank Guarantee,
then COMPANY shall refund to
CONTRACTOR
that
amount
of the Bank
Guarantee which was drawn down, less that amount which COMPANY, in
its
full
and absolute discretion, deems necessary to retain In
order
to
meet the
CONTRACTOR s
warranty
obligations.
33. Validitv of
Commercial Registration
CONTRACTOR shall ensure
that
Its Commercial Registration (CR) or License is valid
throughout the entire duration of the
CONTRACT
and any extension(s) thereof. In the
event
that its CR
or
License expires during the duration of
the CONTRACT
and any
extenslon(s) thereof,
CONTRACTOR
shafl
submit
to COMPANY a copy
of its
application
form or
proof for
renewal
prior
to
the
expiration of
its
CR or License and shall submit
its new or renewed
CR
or License
within forty-five (45)
days
after the
expiration
of its
previous CR or License. Failure
by CONTRACTOR
to submit such
document
may cause
COMPANY to withhold
its
invoices until its new or renewed
CR
or License is submitted
to COMPANY.
34.
CONTBACT
language
This Schedule A has
not
been translated
into
Arabic.
CONTRACTOR
and COMPANY
agree to be bound by the English text.
35. General
Provisions
The CONTRACT supersedes all previous agreements, correspondence and
understandings between the parties concerning
the WORK,
and constitutes
their
entire
agreement concerning the
WORK
to be performed hereunder. No promise, agreement,
representation
or
modification
to the CONTRACT
shall be of any force
or
effect
between the parties, unless set forth or provided for in the
CONTRACT,
a CHANGE
ORDER
or an
AMENDMENT.
36.
Packing and Deliverv
Afl
equipment
must be packed in accordance
with COMPANY
general packing
specification No. IO No. 0011 (6/82) which by this reference is
made
part of this
CONTRACT.
All shipments and deliveries shall be
in strict
accordance with the
requirements of the CONTRACT.
37. Protection Against
Infringement
CONTRACTOR warrants that the WORK does not infringe any patent rights, copyrights,
trademarks, or
trade
secrets owned or controlled by
any
Third Party, either in the
country
of
manufacture
or
use.
CONTRACTOR
agrees
to
defend,
indemnify
and hold
COMPANY harmless against any and all liability, loss
or
expense arising out of patent,
copyright, trademark infringement or trade secret misappropriation claim relating to
the
WORK.
A 50
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2. PLANT DESIGN CRITERIA
2.1 General
This Specification calls for the erection of gas turbine power plant and associated
equipment and the design and supply of supporting services which shall initially be installed in open
cycle configuration with the intention to convert to combined cycle at a later date. The design shall be
modern, well proven, safe, economically attractive both in capital cost and running cost and offering a
high availability with low forced outage rate. The plant shall be fully automated and require minimum
operator intervention for normal operation. Contractor B shall comply with the Specification unless
compliance would for any reason put at risk safety, reliability and economy due to deviation from
standard practice of Contractor B. However, the intent of the Specification shall always be complied
with.
Any deviations from the Specification shall be clearly identified in Schedule FF, which shall
be completed and returned as part of the Tender.
Any new and additional equipment supplied under this Contract shall be designed and
selected to ensure high reliability and availability of the complete plant with low forced outage rates and
minimal maintenance over the lifetime of the power station, which shall be defined as 40 years.
An appropriate level of redundancy shall be included in each new system; the Works shall
be designed so that no single auxiliary plant failure shall result in the total loss of the unit generating
capability. In this context, it is required that with agreed exceptions, all unit auxiliaries will be provided
with at least one installed spare (N+1). For the station auxiliaries, no single equipment failure shall
result in any loss of station generating capability.
Prototype plant will not be acceptable, and plant that is offered with limited operating
experience must be fully supported by manufacturer’s warranties and indemnities.
2.2 Unit rating
The gas turbine units, rated at the site ambient condition given in Schedule AA, shall meet
the nominal power requirement range of 1900 MW ± 80 MW open cycle and shall be installed to
provide 500 MW available generation by 1 June 2008 and further 350/400 MW available by 1 August
2008, and with a further 1016 MW, ± 40 MW open cycle plant to be available for generation by 1 June
2009. The CIF delivery dates for the gas turbine units, generator transformers, unit transformers and
IPBs shall be as stated in Schedule BB.
The gas turbine generators shall be suitable for outdoor installation and conversion to
combined cycle operation 3+1 configuration at a later date.
The guarantee and warranty for the gas turbines and associated equipment shall be the
responsibility of the gas turbine generator supplier Contractor A without exception. The guarantee and
warranty for any new and additional equipment supplied under this Contract shall be the responsibility
of Contractor B and in the event that any other requirements of this Specification are in conflict with
Contractor B’s ability to meet the performance requirements contained in Schedule CC1, such
exceptions shall be identified. It is the intent that the gas turbine supplier supplies his standardmodular gas turbine design to the maximum extent possible.
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4.9 Spare parts
Contractor B shall provide with his tender, for the equipment in Contract B, a complete
priced list of spare parts, in Schedule HH. The list shall be developed on an estimated usage basis and
supporting data from existing plants shall be provided to substantiate the spares holding and usage
proposed.
The priced list of spares shall include a recommended stockholding to cover all initial
inventory, planned maintenance and strategic reserves up to and including the first 2 years of operation
from plant takeover.
Contractor B shall provide all the commissioning consumables and spares up to take over
of the works.
4.10 Special tools and lif ting devices
Contractor B shall supply, for the equipment in Contract B, a complete set of any specialtools and other equipment necessary for the dismantling, work storage, re-erection and adjustment of
any part of the plant. Tools shall be provided in new condition, adequately labelled to their use and
contained in stout and suitable padlocked boxes.
Any special lifting devices/slings required shall be provided and clearly marked by
embossed labels which show safe working loads. Test Certificates shall be provided where applicable.
Suitable lifting equipment shall be provided to facilitate removal and maintenance of plant
and equipment. Lifting devices shall be designed in accordance with the latest editions of the relevant
ISO standard or equivalent. All electrical and mechanical functions shall be tested before despatchfrom the manufacturer’s works. Operational and overload tests shall be carried out on site.
Suitable lay down areas and methods of retrieving the equipment should be included to
support the integrated approach to the crane facilities.
4.11 Warranty engineer
A warranty engineer shall be located on site for a period of one (1) year following the date
of Takeover to cover the equipment in Contract B. The warranty engineer shall have not less than eight
years experience of power plants similar to the Facility and shall act proactively to ensure the best
performance and availability of the plant is achieved. A CV for the proposed engineer shall be
submitted for approval prior to him taking up the appointment.
The Contract shall include for all travelling, accommodation and subsistence costs of the
engineer and for his replacement by a similarly experienced engineer during periods of leave or long-
term sickness. The replacement engineer shall be to approval. Such approval shall not be
unreasonably withheld.
The warranty engineer shall be available on site between 0800 – 1700 hours Saturday to
Thursday, and available for callout duty outside of these hours.
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The warranty engineering shall be responsible for the following throughout the warranty
period:
i. Ensuring that the O&M operator is operating and maintaining the entire plant in
accordance with the manufacturers’ instructions, and notifying the Owner (SEC)
and the O&M operator of any shortcomings.
ii. Providing technical advice and support to the O&M operator.
iii. Monitoring the performance and availability of the plant.
iv. Assisting with troubleshooting.
v. Acting as liaison with Contractor B’s head office for the clearance of any defects
existing on Takeover or occurring during the warranty period, to ensure that they
are cleared promptly.
The Owner (SEC) will monitor the performance of the warranty engineer. Should his
performance be unsatisfactory, Contractor B shall provide a replacement engineer to the satisfaction of
the Owner (SEC).
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s. Assorted glass “T” and “Y” pieces.
t. Separating funnels.
u. Volumetric flasks.
v. Reagent bottle.
w. Funnels.
x. Gas sample tubes.
y. Dissolved oxygen sample tubes.
6.4.8.5 Reagents
A complete listing of all reagents required for the analytical equipment, reagents for manual
analysis, standard reference solutions, and others required for a complete functioning laboratory shallbe provided for Owner (SEC) review. The reagents shall be of the required purity for the instruments
and as required by ASTM test methods. The listing shall include the reagent name, and quantity
recommended. Sufficient reagents shall be furnished for 2 years of operation after the warranty period.
Contractor B shall advise the Owner (SEC) of reagents with shelf lives shorter than the warranty period
plus 2 year period.
6.4.8.6 Ancillary equipment
The following ancillary equipment represents the minimum to be furnished. Ancillary
equipment needed to provide a complete and functioning laboratory shall be furnished. A complete
listing of this equipment shall be provided for Owner (SEC) review and acceptance. The listing shall
provide a brief description, type, size, model number and quantity of each item:
a) Analytical balance
b) Electronic balance
c) Calibration masses
d) Westfall type specific gravity balance
e) Camel’s hair balance brushes
f) Balance desiccators
g) Centrifuge, oil
h) Muffle furnace
i) Gas pressure regulator for oxygen cylinders
j) Three-beam balance
k) Portable sample cooler
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6.4.8.8 Accessories and spare parts
Equipment furnished shall be provided with all required accessories and spare parts
sufficient for 2 years of operation after the warranty period.
6.4.9 Waste water systems
A site effluent disposal system for 15 gas turbine open cycle configuration is required to
ensure that all potentially contaminated wastes generated by the construction, operation and
maintenance of the power station shall be controlled in accordance with World Bank guidelines and
local legislation. This layout and arrangement of the waste water system shall take into account the
requirement to extend the system for combined cycle conversion.
Effluent from the drains of the laboratory, battery room, plant and chemical dosing drains
shall also be suitably treated.
Surface water with the potential of oil contamination shall be directed to an oil/waterseparator prior to discharge. All waste oil shall be collected for off-site disposal.
Gas turbine compressor wash effluent shall be segregated and stored at a suitable location
for off-site disposal.
Sampling and instrumentation shall be included in the final discharge to ensure compliance
with the requirements of relevant legislation. As a minimum, this shall include equipment to measure
flow, temperature and pH. Provision to take a manual sample shall be provided. Discharge of
wastewater outside agreed limits shall be prevented by the control system.
For Qurayyah OCGT plant no discharge sewer is available, the final effluent disposal shall
be routed to an evaporation pond. Two 100 per cent evaporation ponds shall be provided for the
OCGT plant installation and the proposed site layout should take into account the requirement to
construction additional evaporation pond(s) for the combined cycle plant conversion. Details of the
proposed discharge system shall be provided within the Tender.
For further details of the site waste water systems, refer to Section 9 of this Specification.
6.4.9.1 Packaged sewage treatment plant
A packaged sewage treatment plant shall be provided to cater for the total foul watertreatment requirements of the station, with adequate margins, under all conditions of operation. The
plant shall be complete with sanitary drainage piping, manholes and grease traps required for
conveying sewage, comminutor and bar screen, pre-engineered activated sludge modules, chlorination
equipment, treated sewage holding facility, treated sewage transfer pump sets, interconnecting piping
valves and supports, associated instruments and controls, associated electrical work, associated civil
work and all tanks shall be fitted with access ladders, platforms, vents and access ports. Level and
contents gauges shall be located for operational convenience.
The plant shall be capable of treating 300 litres per day of raw sewage per person during
normal operation together with a provision for peak demand at 2.5 times normal operational flow.
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8. INSTRUMENTATION AND CONTROL
8.1 Introduction
This Section describes the technical requirements for the supply and installation of
instrumentation and control (I&C) for the open cycle power plant. All I&C equipment necessary to allow
the safe and efficient operation of the power plant shall be supplied, installed, commissioned and
tested.
Gas turbine generators (GTGs) and ancillary equipment, a hydrogen plant and ancillary
equipment and a CEMS system together with all associated I&C equipment and systems will be
supplied under a separate contact by Contractor A. Contractor B will be responsible for interfacing to
and/or integrating these I&C systems into the DCS and other control/monitoring systems being supplied
to provide an integrated system for the control and monitoring of the power plant.
The DCS will provide control, monitoring, alarming, trending, logging, archiving and data
acquisition and storage for the gas turbines and associated equipment for each combined cycle block.
A consistent control, instrumentation and data acquisition philosophy shall be applied
throughout the power plant. The objective shall be to standardize all equipment, wherever possible,
throughout the power plant in order to rationalize operation, maintenance and reduce spare parts. In
general, all equipment shall be of modern compact design, incorporating proven technology and
supplied from one composite range as marketed by a reputable international manufacturer. The DCS
Vendor shall be from a short list of reputed manufacturers approved by SEC.
The hardware and software for DCS shall be the latest available at the time of system
installation. The latest system software version shall be made available for all units prior to the
completion of warranty period so as to have an identical and latest software version for all systems of
the plant.
Contractor B shall be responsible for liaising with Contractor A and Owner (SEC) to obtain
all data and information necessary to allow for the design, build and commission of his I&C systems,
DCS and interfaces required to connect to Contractor A’s equipment and SEC existing equipment.
8.2 Scope of supply
The extent of supply described shall be the minimum necessary to achieve the required
objectives and shall consist of, as a minimum, the following:
a. Complete control, protection and monitoring systems for the plant being provided
including the fuel systems, gas detection, fire detection, common services and
auxiliary equipment.
b. Interfaces to and integration into the DCS and other control and monitoring systems
of equipment provided by Contractor A.
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h. Packing for shipment including check for completeness of shipment, handling
requirements, and case markings and identification.
Contractor B shall keep the Engineer/Owner (SEC) informed in advance of the time of
starting and of the progress of the work in its various stages so that arrangements can be made for
inspection and for test. Contractor B shall plan the performance of inspection and tests so as to avoid
the delaying of the work.
All of the required inspections and tests shall be made at Contractor B's expense.
Contractor B shall include for all travel and accommodation costs incurred by the Owner (SEC) in
attending inspection visits and including the cost of all samples used. Contractor B shall be responsible
for any additional costs incurred by the Engineer/Owner (SEC) arising from the postponement, re-
inspection or additional inspections or visits attributable to Contractor B, subcontractors or suppliers’
performance as deemed necessary by the Engineer/Owner (SEC). Contractor B shall also provide,
without charge, all reasonable facilities and assistance for the safety and convenience of the
Engineer/Owner (SEC) in the performance of his duties.
If the plant or any portion thereof fails under test to give the required performance, such
further tests which are considered necessary by the Engineer/Owner (SEC) shall be carried out by
Contractor B and the whole cost of the repeated tests shall be borne by Contractor B. This also applies
to tests carried out at subcontractor’s works.
10.6 Non-conformances
Non-conformances identified by the Engineer/Owner (SEC) shall be notified to Contractor B
by issue of the Engineer’s Non-Conformance Report. Contractor B shall receive and action all non-
conformance reports and re-inspection shall not be notified until the completed non-conformancereport, together with any applicable re-work or concession application, have been accepted by the
Engineer/Owner (SEC)
Where applicable, rejection of materials, equipment and/or components will be made as
promptly as practicable following any inspection or test involvement by the Engineer/Owner (SEC)
Failure to inspect and or reject materials, equipment and/or components shall neither relieve
Contractor B from responsibility for such items which may not be in accordance with the specified
requirements, nor impose liability for them on the Engineer/Owner (SEC)
Contractor B and subcontractors quality assurance programme shall identify and isolate
raw materials and components not conforming to the Design Book. All such items shall be reported to
the Owner (SEC) via a non-conformance report.
Approval of a concession application is the prerogative of the Engineer/Owner (SEC) and
approval of a particular case shall not set precedent.
The Engineer/Owner (SEC) shall have complete authority to accept or reject any
equipment or part thereof considered unsatisfactory and/or not in accordance with the contract
requirements.
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The witness of any inspection and tests by the Engineer/Owner (SEC) of any components
or lots thereof does not relieve Contractor B of any responsibility whatever regarding defects or other
failures which may be found before the end of the warranty period.
10.7 Quality control records, certificates and certificates of conformance
At the end of each visit to a manufacturer to carry out quality control activity, the Engineer’s
Representative will complete a Quality Control Record and hand one copy to a responsible
representative of the Manufacturer.
The Quality Control Record (QCR) will identify the item inspected, the stage of
manufacture, and the nature of the QC carried out, and will list all points which require remedial action
by the manufacturer, before the subject item can be released.
When each item of equipment is ready for despatch from the place of manufacture and the
Engineer/Owner (SEC) has verified compliance with specified requirements up to that point, a Quality
Control Certificate will be issued to Contractor B.
The Quality Control Certificate (QCC) will identify the item to which it applies and will
release that item from the Engineer’s control only. The QCC does not constitute any form of
acceptance of the item by either the Engineer or the Owner (SEC).
Contractor B shall provide a Certificate of Conformance confirming compliance with the
Contract requirements and as detailed in the manufacturing record data book.
Sets of all test records, test certificates and performance curves, whether or not they have
been witnessed by the Engineer, shall be supplied for all tests carried out in accordance with theprovisions of this Contract.
Sets of all test certificates shall be endorsed with sufficient information to identify the
material or equipment to which the certificates refer, and shall carry in the top right hand corner the
following reference:
Owner’s name
Project title
Engineer’s reference number.
All test documentation shall be in the English language.
No materials or equipment shall be shipped to the site until all tests, analysis and
inspections have been made and Contractor B's Certificate of Conformance has been reviewed and
released by the Engineer/Owner (SEC) or unless otherwise agreed by the Engineer/Owner (SEC)
10.8 Specif ic tests and inspections
Refer to Schedule GG for details of specific tests and inspections.
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