loa- corrected-26-09-2012

Shandong TIEJUN Electric Power Engineering Company Limited IL&FS Cuddalore Project site office, Cuddalore, Tamil Nadu, India

To:LARSEN & TOUBRO LIMITED, (L&T)

From:Shandong TIEJUN Electric Power Engineering Company

Kind Attn: N Suresh Kumar Name: Wang Wenhui

Tel: 09600118822 Tel: 0091-9585595150

Fax: +91 4422526966 Fax:

Pages: 18 Date: 26th September 2012

E-mail: nsk@lntecc,com E-mail: [email protected]

Reply or not: Yes□ No√Our Ref:

TIEJUN-L&T-C0002

LETTER OF AWARD

Dear Sir,

We, Shandong TIEJUN Electric Power Engineering Company, (hereinafter called "Employer"), are pleased to inform you, Larsen & Toubro Limited “L&T Power, TPPC” (hereinafter called "the Contractor" ), that by this Letter of Award dated 26 th September, 2012 , Shandong TIEJUN Electric Power Engineering Company confirms its intention to award L&T the Contract for the construction of the Unit #1&2 Boiler System and balance of plant in the Area of Cuddalore 2×600MW ITPCL Power Plant Project Site (hereinafter called "the Contract") strictly in accordance with the corresponding Detailed Main Contract, technical Specifications and all MOMs signed between TIEJUN & L&T subject to following broad terms and conditions:

1.0 Scope of Work

1.1 The detailed scope of the work is as given in the rate schedule of BOQ and Technical Specifications. The work has to be carried out as per terms and conditions brought out in documents referred in the Agreement. Employer reserves the right to award a part of the scope of work mentioned in the BOQ to other party/parties if Contractor does not comply with the construction progress and quality as per technical specification and drawings. 1.1.1All Works such as: Boiler steel structure, stairs, platform, walkway, handrails and the supports for these, ceiling girder, structure of Roof, pent house, water wall, Lower temperature superheater, wall enclosure superheater, buckstay, divisional superheater, platen superheater, final superheater, ceiling superheater, sealing device, wall enclosure reheater, platen reheater, final reheater, economizer, fixed device, Anti-erosion device, supporting tube/hanger, Hanger and support for boiler top, soot-blower system, connection pipe, main steam pipe, main feed water pipe, final reheater outlet pipe, fuel oil pipes & valves & supports in boiler, accessories of boiler proper (including silencer, safety valve, drain steam piping of safety valve, pressure gauge, expansion indicator, fitting, manhole gate, sealing device etc ), drain water pipe , cross-connected spray desuperheater, desuperheater spray pipe of superheater and reheater, Instrument sampling for I&C, sampling pipe, downcomer, Air Preheater, piping of pulverized coal, air & gas ducts system, burner, closed cycle cooling water pipe, auxiliary steam pipe, flush pipe of air preheater, furnace inspection system (windlass, inspection platform, boom sheave, sling, etc.. ), Electrostatic Precipitator, elevator of boiler, compressed air pipe at boiler area, primary air fan(PAF), Forced draft fan(FDF), Induced draft fan(IDF), Scanner cooling air fan(SCAF), Seal air fan(SAF), medium speed mills, belt coal feeder, erection of the platform and handrail of mills and air & gas duct, fuel oil system, coal handling system, fly ash handling system, the equipment and pipe in diesel generator house etc. Contractor shall extend only man power

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assistance (with normal construction tools, and material) for pre-commissioning, commission and trial operation activities and shall be paid on man hour basis. NCR due to contractor’s problem will be resolved by contractor as free of cost. If the NCR is due to the equipment/materials problem modifications/rectifications shall be paid by Employer.1.1.2Temporary platform/ reinforcement for pre-assembly works shall be erected and removed by the

contractor. Temporary platform and reinforcement material are included in contractor’s scope. The contractor

can use packing materials supplied by the employer.

1.1.3The contractor will be responsible for transportation, unloading, stacking, assembling, erection,

alignment, welding, storing, keeping, safeguarding and maintenance of project materials and equipment

issued by Employer to contractor. After the equipments and materials are delivered from employer's

warehouse, the preservation and management as per Good Industry Practice is all contractors’ scope by

free. If there any special preservation required both sides shall mutually discuss and solved.

1.1.3Fabricate .prefabricates, construct and carry out the testing of works in accordance to the project

specification and /or local rules and regulations up to the satisfaction of the employer.

1.1.4All related work, including administrative, managerial and supervisory work connected with the

requirements and obligations of the Scope of Work.

1.1.5Povide documentation in accordance with the Contract.

1.1.6Suply all the equipment and consumables which are not specified by Employer, in a new and unused

condition of common first quality.

1.1.7The contractor should supply all necessary temporary work for proper execution of the Contract at his

own cost and inclusive of all materials, labour, supervision and other facilities, which are not specified by

Employer.

1.1.8contractor shall provide all tools, timber, scaffolding/scaffold board and other means, temporary

materials and labour necessary the proper execution of the Work within required period of time up to final

completion.

1.1.9The Drawings attached with this contract provide a general description and interface boundary line

about the work to be performed under the scope of this contract. However, the work has to be executed

according to the drawings “Released for Construction” from time to time supplied by the Employer.

1.1.10The contractor should provide operators and maintenance persons and should be responsible for

installation, disassembly, test, safety and certificate obtained for use from relevant authority for all elevators

be installed by contractor.

1.1.11Comprehensive Project Management in a fully coordinated manner.

1.1.12The contractor shall get the statutory approvals for erection work at his cost.

1.1.13The RT, UT, Heat treatment, hardness will be provided by contractor. All tests will be done by

contractor. All the welding joints of P91/T91 shall be tested hardness after PWHT. If any failure, the same

shall be repaired by contractor free of cost. All materials for the piping of SA213-T91/SA335-P91 which after

welding and heat treatment completion should carry on 100% joints of hardness checks. Others shall be as

per the document, All tube materials and welds for boiler heating surface tubing and headers shall be 100%

examined by NDT method with the certificate of conformity. Before signing the contract the time schedule will

be mutually discussed and agreed. After signing the contract the change in schedule is not acceptable.

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1.1.14During heating treatment of welding joint, contractor shall provide the computer automatic temperature

controller free cost, and contractor shall carry out for multiple joints with single recorder after getting the

permission from employer depends upon the size, and every joint must use the separate thermocouple and

graph.

1.2 In addition, The Contractor shall be responsible for installation and testing of hoisting equipments in this

contract. The Contractor shall also responsible for costs associated with the inspection and testing by

government or third party for ensuring quality of erection. All required documents like Test Certificates from

the manufacturer etc. shall be provided by Employer in English. However all required test load & documents

shall be provided by Employer for getting the third party certification.

Employer will provide one tower crane (75t) and one tower crane 40t for each unit boiler construction, and

provide gantry crane capacity 40t and 20t each for pressure part assemble, one 40t or 20t gantry crane is

used for flue & air duct assemble; The Contractor should provide operators, riggers and maintenance

persons for the cranes supplied by Employer and should be responsible for installation tower crane (not

including gantry crane), disassembly all the cranes (including tower and gantry crane), test, safety and

certificate obtained for use from relevant authority. Required spares for maintenance of Tower Crane and

Gantry crane will be supplied by Employer free of cost to Contractor. And the Employer shall not be

responsible for any result which is brought on the failure of the Employer’s machines due to contractor

failure.

Employer will provide one tower cranes capacity 8t for ESP construction, the Contractor should provide

operators, riggers and maintenance persons for the cranes supplied by Employer and should be responsible

for installation, disassembly, test, safety and certificate obtained for use from relevant authority. Required

spares for maintenance of Tower Crane will be supplied by Employer free of cost to Contractor. And the

Employer shall not be responsible for any result which is brought on the failure of the Employer’s machines

due to contractor failure.

Tower crane (75t) should be disassembled by contractor when heating surface lifting completed, tower crane

(40t) should be disassembled by contractor within two months after boiler hydraulic test completed. Tower

crane (8t) should be disassembled by contractor when key body of ESP (not including heat-insulating

materials) lifting completed.

Provide equipment and consumables for the tower crane construction in a new and unused condition of

common first quality. The guide pieces will be supplied in pieces which will be assembled by contractor at

site. Regarding maintenance of the crane STEPC will provide the spares required. Contractor to replace the

items . The period during which the crane is not available should not be claimed by contractor

2.0 Standard of Performance

The award has been made to L&T (Larsen & Toubro Limited) considering Following:2.1 L&T will deploy adequate manpower and machinery to meet the job requirements of the scope and shall exercise utmost importance to the Quality Assurance Programme.2.2 L&T will ensure that the construction and Erection of Boiler Unit #1&2 Boiler System and balance of plant shall conform in all respects to high standards of engineering, best accepted practices and standard

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regulations of Indian Standards and as well acceptable to STEPC. 2.3 L&T will send appropriately qualified, experienced and competent engineers to the site during construction.

3.0 Contract Price

The Total Provisional Contract Price under this Contract shall be Rs.1098599945/- (Indian Rupees One hundred nine crores eighty five lakh ninety nine thousand nine hundred forty five only) as per item rates and tentative quantities mentioned in the BOQ. The unit prices listed in the BOQ are inclusive of all charges, taxes and duties applicable as per rules whether leviable by Central, State or local authorities in India with exception of service tax and labor cess.. The Employer shall have the right to deduct TDS from the payment due to Contractor according to applicable laws and regulations.The final total contract price will be finally worked out by multiplying actual completed quantity as of work of in the BOQ, with by the accepted the rate of in BOQ, and may be adjusted according to relevant clauses of the contract. The rates will remain firm during the currency tenure of the contract and no escalation shall be payable under whatever reasons

4.0 Terms of Payment

Subject to any deductions/adjustments from the Contract Price as per the Contract, the Contractor shall be entitled to receive the Contract Price from the Employer in the following manner:

4.1 Advance payment

Advance payment (5% of Contract value) shall be paid against submission of the following documents:Advance bank guarantee equal to 5% of the provisional total contract price.Performance bank guarantee equal to 10% of the provisional total contract price valid up to Final acceptance.Resource mobilization plan.Submission of Quality & HSE Plan.Remaining 5% of the advance will be paid on:Advance bank guarantee equal to 5% of the provisional total contract price. Submission of copies of insurance certificates or insurance policies under the Contract. Insurance certificates or insurance policies should issued by a recognized first class insurance company approved by the Employer.Submission of scheduled planSubmission of related taxation documentsMobilization of required staff, workmen and equipments.Construction of the site officeThe Advance Payment shall be paid within 30 (thirty) days from the date of receipt of the above documents, correct invoice and signing the Contract.For each interim payment based on the payment schedule, pro-rata 10% (ten percent) will be deducted as the repayment of the said Advance Payment, the Advance Payment Guarantee will be reduced accordingly every three months, and all the Advance Payment shall be paid back before the issue of Provisional Acceptance of Work.

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4.2 Interim payments

a) 90% of quoted rate of each item against monthly erected tonnage achieved and approved and protocol signed bill will be submitted by contractor .However further Billing break up can be discussed and agreed

upon at site。b) 5% of quoted rate of each item after completion of steam blowing and restoration.c) 5% of quoted rate of each item after issue of provisional acceptance certificate against the Performance Bank Guarantee is issued for 10% of Contract Value in the initial stage itself valid up to Final Completion (i.e Warranty Period completion).- On or before the 26th of each month the Contractor shall submit to the Employer his payment planning covering the cost of the work as same determined, for the previous calendar month. The Contractor shall submit to the Employer on a regular basis his forecast of interim valuations related to the Works including budgetary advice on variations (if any).

5.0 Completion Dates:

Section G: Unit 1&2 Boiler System Schedule & Milestone

NO. Task NameUnit 1 Unit 2

RemarksStart Completion Start Completion

1

erection of sole plates of boiler

steel structure (alignment

included)

20/1/2013 31/1/2013 20/2/2013 31/2/2013

2start column erection of steel

structure1/2/2013 1/3/2013

3 ducting assemble & erection 20/12/2012 30/1/2014 20/1/2013 30/2/2014

4

the first tier steel structure

erection and alignment, bolt

tighting , along with the major

platform and handrail

1/2/2013 25/2/2013 1/3/2013 25/3/2013

5

the second tier steel structure




28/2/2013 17/3/2013 28/3/2013 17/4/2013

6

Bottom and upper girder,

pedestal ,axletree and rotor post

of air preheater erection etc.

18/3/2013 1/5/2014 18/4/2013 1/6/2014

7

the third tier steel structure




19/3/2013 4/4/2013 19/4/2013 4/5/2013

8 the fourth tier steel structure



5/4/2013 19/4/2013 5/5/2013 19/5/2013

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9

the fifth tier steel structure




20/4/2013 4/5/2013 20/5/2013 4/6/2013

10

the sixth tier steel structure




5/5/2013 18/5/2013 5/6/2013 18/6/2013

11

the seventh tier steel structure




19/5/2013 1/6/2013 19/6/2013 1/7/2013

12

the eighth tier steel structure




2/6/2013 11/6/2013 2/7/2013 11/7/2013

13 ceiling girder erection 12/06/2013 15/06/2013 12/07/2013 15/7/2013

14

The other beams and all

remaining platform(suspension

beam/tip bearing/bearing

girder/enclosure support steel

etc.)

16/6/2013 31/7/2013 16/7/2013 31/8/2013

15 prepare the assembly bed for

pressure part10/4/2013 25/4/2013 10/5/2013 25/5/2013

16start assembly of boiler heating

surface1/5/2013 1/6/2013

17

2000 nos. of the heat surface

welding joint have been

completed

1/5/2013 28/5/2013 1/6/2013 28/6/2013

18 completion of boiler drum lifting 25/6/2013 25/7/2013 Milestone point

19



completed

29/5/2013 28/6/2013 29/6/2013 28/7/2013 Milestone point

20start lifting of Header and tube

panel of the heat surface 30/6/2013 30/7/2013

21



completed

15/7/2013 31/8/2013 15/8/2013 30/9/2013

22



completed

1/9/2013 30/9/2013 1/10/2013 31/10/2013 Milestone point

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23



completed

1/10/2013 31/10/2013 1/11/2013 30/11/2013

24



completed

1/11/2013 30/11/2013 1/12/2013 31/12/2013 Milestone point

25The Boiler backstay erection

completed10/5/2013 20/12/2013 10/6/2013 20/1/2014

26 Pressure part lifting complete 30/6/2013 10/1/2014 30/7/2013 10/2/2014

27All the heat surface welding joint

have been completed 10/2/2014 10/3/2014

28 boiler hydraulic test finish 15/3/2014 30/3/2014 15/4/2014 30/4/2014 Milestone point

29The sootblower system erection

completed15/4/2014 10/6/2014 15/5/2014 10/7/2014

30 Installation of ESP equipment 15/7/2013 30/6/2014 15/8/2013 30/7/2014 Milestone point

31Completion of ESP electrical

step-up test 1/7/2014 30/7/2014 1/8/2014 30/8/2014

32installation of f bottom slag

handling system1/3/2014 25/4/2014 1/4/2014 25/5/2014

33the diesel generator system

eretion01/02/2014 28/02/2014 1/3/2014 28/3/2014

34 coal mill erection 30/10/2013 30/4/2014 30/11/2013 30/5/2014 Milestone point

35 FD Fan erection 30/12/2013 20/3/2014 30/1/2014 20/4/2014

36 PA Fan erection 10/1/2014 20/3/2014 10/2/2014 20/4/2014

37 ID fan erection 15/11/2013 25/2/2014 15/12/2013 25/3/2014

38 the elevator of boiler erection 1/11/2013 15/12/2013 1/12/2013 15/1/2014

39Completion of boiler chemical

cleaning25/6/2014 10/7/2014 25/7/2014 10/8/2014 Milestone point

40 boiler light up 1/8/2014 1/9/2014

41 Completion of steam blowing 1/82014 10/8/2014 1/9/2014 10/9/2014

42Start general Startup and trial operation

1/9/2014 1/10/2014

Note: The balance of plant Construction Schedule and Mobilisation & Deployment will be discussed and get agreement with both sides in the site.

6.0 Effective Date and Commencement Date

6.1 The Commencement Date of the Contract shall be the date of Letter of Award (LOA) issued by Employer.The Effective Date of the Contract shall be the date of Commencement Date.6.2 The Contractor will submit detailed work schedule, key personnel list, the main machine and facility availability and deployment scheme, and safety management regulation and quality assurance programme

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within 10 days from effective date. Notwithstanding the approval of the documents proposed by the Employer will not relieve or discharge the Contractor of its liability to perform its obligations under this Contract.

7.0 Mobilisation and Deployment

All the manpower, material, machinery etc. shall be provided by L&T. The deployment of above list of plants and equipments is the indicative requirement, Employer will check the schedule and performance at site every half month, if cannot match with the actual requirement, L&T must increase relevant resource as per actual requirement at site free of cost.

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Manpower mobilization schedule

#1Boiler system manpower shcedule

Date 2012 2013 2014

position11

12

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

Project

manager1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Vice manager 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Quality

manager1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Quality

engineer1 1 2 2 3 3 4 5 5 5 5 6 6 6 6 6 6 6 6 6 6 4 2

Planning

engineer1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Safety

manager1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Safety

engineer1 1 2 2 3 3 4 5 6 6 6 6 6 6 6 6 2 6 6 6 6 2 2

Structure

engineer1 1 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2

ESP engineer 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Rotary

engineer1 2 2 2 2 2 2 2 2 2 2 2

Ducting

engineer1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Welding

engineer1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

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Pressure part

engineer1 1 1 2 4 6 8 8 10 10 10 10 10 10 8 8 8 8 4

electrician 1 1 1 1 1 1 1 1 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4

Store in

charge1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skilled

technical

worker

1 5 10 20 30 40 50 60 60 70 80 90 100 110 140 140 100 100 909

0

4

0

2

0

10

Labour 20 50 100 200 300 400 500 600 600 700 800 900 1000 1100 1400 1400 1200 1000 900

9

0

0

4

0

0

2

0

0

1

0

0

HP welder 5 10 15 20 25 30 40 50 60 70 70 50 40 20 5 5 5 5

IP/LP welder 4 6 10 15 20 25 30 40 50 50 50 50 80 80 80 80 80 807

0

6

0

4

04

SR& Pre

heating

technicians

1 2 8 8 10 16 30 30 30 30 30 30 30 201

5

1

04 2

NDT in charge 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1

NDT operator 2 4 6 8 8 8 8 8 8 8 8 8 8 8 8 8 4 4

#2Boiler system manpower shcedule

Date 2013 2014position 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10

Vice Manager 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Quality engineer 1 2 2 3 3 4 5 5 5 5 6 6 6 6 6 6 6 6 6 6 4 2

Safety engineer 1 2 2 3 3 4 5 6 6 6 6 6 6 6 6 2 6 6 6 6 2 2

Structure engineer 1 1 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2

ESP engineer 1 1 1 2 2 2 2 2 2 2 2 2 2 1

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Rotary engineer 1 2 2 2 2 2 2 2 2 2 2 2

Ducting engineer 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Welding engineer 1 1 1 1 1 1 2 4 6 8 8 10 10 10 10 10 10 8 8 8 8 4

Pressure part engineer 1 1 1 1 1 1 1 2 2 2 4 4 4 4 4 4 4 4 4 4 4 4

electrician 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Store in charge 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skilled technical worker 5 10 20 30 40 50 60 60 70 80 90 100 110 140 140 100 100 90 90 40 20 10Labour 50 100 200 300 400 500 600 600 700 800 900 1000 1100 1400 1400 1200 1000 900 900 400 200 100

HP welder 5 10 15 20 25 30 40 50 60 70 70 50 40 20 5 5 5 5IP/LP welder 4 6 10 15 20 25 30 40 50 50 50 50 80 80 80 80 80 80 70 60 40 4

SR& Pre heating

technicians1 2 8 8 10 16 30 30 30 30 30 30 30 20 15 10 4 2

NDT in charge 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1

NDT operator 2 4 6 8 8 8 8 8 8 8 8 8 8 8 8 8 4 4

#1Boiler system machinery shcedule

Date 2012 2013 2014Item name 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9

Welding machine 4 4 10 15 20 40 60 80 80 80 160 160 160 160 160 160 130 100 70 10 10 10

SR

machine（automatism

and computer control

heating treatment

machine）,30KW/set

1 1 4 4 6 8 12 16 16 16 16 16 12 12 6 2 1

150t crawler crane 1 1

75t crawler crane 1 1 1 2 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

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50t crawler crane 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

50t auto crane 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

25t auto crane 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Hydra (14t/16t) 1 2 4 6 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 8 2

Hydra (8t) 1 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Hydra(20t) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

40t full trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

25t full trailer 1 1 1 2 2 4 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

10t full trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Tractor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

20t chain block 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 4 4

10t chain block 20 20 20 20 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 10 10

5t chain block 30 30 30 30 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 20 20

3t chain block 30 30 30 30 30 30 30 30 100 100 100 100 100 100 100 100 100 100 100 100 20 20

2t chain block 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 20 20

1t chain block 30 30 30 30 30 30 30 80 80 80 80 80 80 80 80 80 80 80 80 80 20 20

100t shackle 12 12 12

50t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

35t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

25t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

20t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

10t shackle 20 40 40 40 40 40 40 40 40 40 40 40 40 40 40

5t shackle 20 20 20 20 20 30 40 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50

2t shackle 20 20 20 20 30 60 80 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Air compressor(250cfm) 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1

Theodolite 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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100-meter steel

measuring tape1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

50-meter steel measuring

tape1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1


tape1 2 2 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 2

5Kg plumb bobs 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

1Kg plumb bobs 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

Grinding machine 20 20 40 60 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 10

PUG cutting machine 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

oxygen acetylene(oxygen

acetylene hose, cutting

torch)

20 40 60 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 20

10t boom sheave 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 4

5t boom sheave 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 4

12t Power winch 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

5t power winch 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Hydraulic pipe bender 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Magnetic dive drill 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

jack 3T,5T,10T,50t 10 10 10 10 10 10 10 10 10 10 10 10

gamma ray source 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

ultrasonic flaw detector 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

magnetic detector 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

thickness gauge 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

hardness tester 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

spectrograph 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

#2Boiler system machinery shcedule

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Date 2013 2014Item name 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10Welding machine 4 4 10 15 20 40 60 80 80 80 160 160 160 160 160 160 130 100 70 10 10 10

SR machine（automatism

and computer control

heating treatment

machine）,30KW/set

1 1 4 4 6 8 12 16 16 16 16 16 12 12 6 2 1

150t crawler crane 1 1

75t crawler crane 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

50t crawler crane 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 150t auto crane 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

25t auto crane 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Hydra (14t/16t) 1 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 2

Hydra (8t) 1 1 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Hydra(20t) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

25t full trailer 1 1 1 2 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 1

10t full trailer 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Tractor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

20t chain block 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 4 4

10t chain block 20 20 20 20 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 10 10

5t chain block 30 30 30 30 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 20 20

3t chain block 30 30 30 30 30 30 30 30 100 100 100 100 100 100 100 100 100 100 100 100 20 20

2t chain block 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 30 20 20

1t chain block 30 30 30 30 30 30 30 80 80 80 80 80 80 80 80 80 80 80 80 80 20 20

50t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

35t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

25t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

20t shackle 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

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10t shackle 20 40 40 40 40 40 40 40 40 40 40 40 40 40 40

5t shackle 20 20 20 20 20 30 40 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50

2t shackle 20 20 20 20 30 60 80 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Air compressor(250cfm) 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1

Theodolite 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


tape1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1


tape1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1


tape1 2 2 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 2

5Kg plumb bobs 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

1Kg plumb bobs 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

Grinding machine 20 20 20 40 60 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 10

oxygen acetylene(oxygen

acetylene hose, cutting

torch)

20 20 40 60 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 20

10t boom sheave 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 4

5t boom sheave 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 4

12t Power winch 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

5t power winch 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

Hydraulic pipe bender 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

gamma ray source 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

ultrasonic flaw detector 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

magnetic detector 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

thickness gauge 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

hardness tester 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1

spectrograph 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

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8. Liquidated damagesIf the performance of the Contract is delayed, caused by the Contractor, beyond the dates stipulated on the Milestone Schedule, the Contractor agrees for payment of liquidated damages not as a penalty at a rate of 0.5%(zero point five percent) of the Provisional Contract Price per week per Milestone of delay.The maximum amount of liquidated damages payable by the Contractor is limited to a maximum of 7.5% (seven point five percent) of the Provisional Contract Price of the work. The Employer may, without prejudice to any other method of recovery, deduct the amount of such liquidated damages due to delay from any money due or which becomes due to the Contractor. The payment or deduction of such liquidated damages shall not relieve the Contractor from the obligation to complete the Works or from any other of his obligations or liabilities under the Contract. If the contractor fails to achieve in any of the intermediate mile stone dates agreed and subsequently achieve the final milestone completion date as agreed the LD recovered for intermediate mile stones will be reimbursed.

9. Tax and Duties ,imports and Levis

With exception of service tax and labor cess, the Contract Price shall include Contractor’s payment, without reimbursement by Employer, including of all taxes, Withholding Taxes, assessments and contributions, duties, octroi or cess, fees, and any other taxes or duties assessed or levied by any competent authority prescribed under any Law etc duties, tariffs, fees and other charges imposed by any Governmental Authority in connection with the construction work, and/or on the performance of the construction work and/or on payment of the Contract Price. Such taxes shall include but not limited Value Added Tax, IT TDS and all other applicable taxes. Contractor hereby warrants that it has recognized all taxes & duties applicable as on date & included in the firm Contract Price. The Employer may withhold or deduct from the payment of any amount otherwise payable to Contractor under this Contract or pay on Contractor's behalf such taxes and other sums, if any, as Employer may be required to withhold or deduct under Applicable Law particularly Income Tax Act , 1961 and amendments from time to time, as applicable in India. Employer shall furnish Contractor with appropriate tax receipts of all sums so withheld or deducted or paid on Contractor's behalf.Regarding the new taxes/ levies/ duties,1). Any variation on account of changes in rates of Taxes & Duties shall be the Contractor’s account.2). Any new taxes / duties / levies imposed later to the Effective Date due to enactment of Applicable Law after the Effective Date, shall be the Employer’s account with the only exception of income tax. 3). Any new methodology of tax incidence, including but not limited to Value Added tax, resulting in variation in the Contract Price shall be the Contractor’s account.The Contractor shall comply with any and all of his tax and fiscal obligations according each time to the standing legislation. No payments whatsoever shall be made to the Contractor unless the Contractor presents to the Employer appropriate evidence that he is up-to-date in respect to his income tax or any other tax or fiscal obligation either existing at the day of the signature of the Contract or to be enacted at any time during the term thereof.The Contractor solely is charged with any and all contributions, charges, deduction and payments in general in favour of the Social Insurance Fund or in favour of any other institution, organization of fund or main or auxiliary insurance and in general in favour of any third party, legal entity or public or private law, deriving from or in connection with the Contract or the Work performed thereby.

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The Contractor is obliged to proceed promptly and unfailingly to all above payments and upon request of the Employer shall submit to it the supporting date of each payments. The refusal or delay or unwillingness of the Contractor to submit to the Employer above data grants to the latter the right to retain the moneys to be paid from any and all sums due or that may be due to the Contractor. No final settlement of the Contractor's accounts can be made according to Article 36 herein unless the Contractor submits to the Employer appropriate receipts and evidence that he has complied with any and all of his obligations deriving from this Article and particularly from this paragraph.Exemptions and Concessionsa) The benefit of any Tax exemption, concessions, rebate or any other incentives available when the Contractor or its Sub-Contractors are performing their obligations under the Contract, shall be passed onto the Employer.b) The benefit of any Tax exemption or concessional rate available when the Contractor purchases construction equipment must, as far as possible, be passed onto the Employer if the cost of the relevant construction equipment is charged to the Employer in accordance with the Contract.c) Where the Employer or the Contractor are entitled to an exemption or concession concerning any Tax in respect of the execution of the Works under the Contract, the Employer shall use reasonable endeavours to enable the Contractor to avail such concession or exemption.d) In the event the Contractor fails to obtain a concession or exemption to which it is entitled, the cost of the Tax payable as a result will not be paid by or passed onto the Employer but will be the responsibility solely of the Contractor.e) For facilitating the avail of a refund, exemption, rebate, set-off, credits, incentives, drawback or like equipment available to the Employer, the Contractor will facilitate the Employer by providing the necessary documentary and/or procedural support. In any process of assessment or re-assessment, of Taxes payable by the Employer, the Contractor will facilitate the Employer by providing the necessary documentary or procedural support;f) The Contractor warrants that any incremental cost in relation to any Taxes, duty, liability, denial, refund, exemption, rebate, set-off, credits, incentives and any compensation or interest related thereto arising on account of any lapse in relation to the notification of its Sub-Contractor shall be born by the Contractor.

10. Confidentiality

Please note that L&T will maintain strict confidentiality and will not divulge any information about the project without prior consent from STEPC.

11.Power OF Attorney

You are requested to send your Power of Attorney in favour of the person who is authorized to sign the Contract and measurement book, bills, receipts and other vouchers connected with this work on behalf of your organization on STEPC’s request.

12. Agreement to Enter into the contract

STEPC and L&T shall enter into a legally binding contract with in 30 (thirty) days from the date of acceptance of this Letter of Award. The Contract Documents are being sent to you separately, which will form the part of the agreement.

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13. Miscellaneous

13.1 This Letter of Award and the documents referred to herein constitute the entire obligation of the Parties with respect to the subject matter hereof and shall supersede any prior expressions of intent or understandings. Any amendment hereto shall be in writing, signed by or on behalf of both Parties. 13.2 This Letter of Award shall be binding upon and shall be enforceable by the Parties and their respective heirs, successors and assigns.

14. Confirmation of Receipt

L&T is requested to start mobilization and commence site activities immediately in coordination with STEPC’s Mr. Yang Wenhui –Chief Engineer-Project / Mr.Yang Zhimin -Boiler Manager and submit the detailed program for completion of all works as per the intermediate project Milestone Schedule mentioned in this LOA. This Letter of Award is issued to enable you to facilitate mobilization at site and to request mobilization advance after fulfilling the contractual requirements.

This Letter of Award is being issued in duplicate. L&T is requested to return the duplicate copy duly signed on each page as a proof of the unequivocal acceptance.

Thanking you!

Yours truly,

----------------------------------------

Shandong TIEJUN Electric Power Engineering Company

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