project b warranty

8/19/2019 Project B Warranty

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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


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


2/20

· · · ·

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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

of

Qurayyah Open Cycle Power

Plant

Schedule


3/20

SCHEDULE A

i -I.;1J453t

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:a.S _;..it,tl

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

A-28



4/20

SCHEDULE A

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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

..

g

.


5/20

/::_:;.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


6/20

/

SCHEDULE

A

1.:1 >P ~ . : l ~ l ' a ~ 1


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


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

of Qurayyah

Open Cycle Power

Plant-

Schedule A


7/20

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


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8/20

SCHEDULE A

9 l : 1 ~ ~ ~ ~ · ; a s ~


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.:·:.:·:.·:.:

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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9/20

SCHEDULE

A

4 1 \ . ; 1 ~

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Saudi

Electricity

Company


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



10/20

SCHEDULE A

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: a s ~ t

Saudi

Electricity Company


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

Construction

of

Qurayyah Open Cycle Power Plant- Schedule A


11/20

· · · ·

·----------- · · - - · - - - ~ - ~ = · ' - : ' * . ~ , , 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


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

Construction

of

Qurayyah Open Cycle PowerPlant Schedule A

~ ]

f.

'


12/20

. 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


.;

*

_________

I


13/20

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.

Page 3 of 330 PTS # 06EG902 - PROJECT-B, VOL-2CONSTRUCTION OF QURAYYAH OPEN CYCLE POWER PLANT


14/20

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.



15/20

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).



16/20

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



17/20

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.



18/20

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.



19/20

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.



20/20

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.

Page 319 of 330 S # G O C O

project b warranty

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