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The following Terms and Conditions of this sub contract
agreement are established by RAK Precast FZC
hereinafter referred in this document as Second Party to
govern the subcontract works at the below stated project
which are processed through the Second Party
Project Name :
Client :
Consultant :
This contract was prepared on ----------------------by and
between--------------------------- as “First Party” and
represented by ----------------------------- and with postal
address--------------------------------------------
And
Messrs RAK Precast FZC as “ Second Party” and
represented by Mr. Emad Abdullah, Managing Partner
with postal address 29109, Ras Al Khaimah, United
Arab Emirates.
1. PLACING
of ORDERS:
Orders are normally accepted only after the Second Party
submits a written proposal also known as quotation or offer
to its customer. Quotations may be revised until all
technical and commercial issues are mutually agreed between
the First Party and the Second Party
Once all issues are mutually agreed upon and are included in
a final proposal made by the Second Party the First Party’s
authorized representative and the Second Party’s .authorized
representative shall sign a standard contract as per the
blank form of the contract enclosed with all proposals.
2. ACCEPTANCE OR ORDERS
2.1 The Sales and Marketing Department shall register
the job once the Signed and Dated Contract is received.
2.2 The Sales and Marketing Department shall not
proceed with any of the activities for all incomplete
contracts.
3. STANDARD PAYMENT TERMS
3.1 Letter of Credit and Validity
Payment of the full contract price shall be settled by the
First Party through irrevocable Letter of Credit (L/C)
confirmed by the negotiating bank in United Arab Emirates.
All the L/C Charges shall be borne by the First Party and
the validity period for the L/C shall be established at the
time of signing the contract. The minimum validity
period of the L/C shall be 90 days for shipment and 111 days
for negotiation.
3.2 Correspondent Banks
Following is a list of UAE correspondent banks, their
addresses and account numbers holded by the Second Party.
L/C openers are free to choose any of these banks at their
convenience.
3.2.1
Bank : HSBC
Post Box No. : 9
Branch :
Ras Al Kaimah
Account No. :
128971-001
3.2.2
Bank : Union National Bank
Post Box No. : 7138
Branch :
Abu Dhabi
Account No. : 650
1889578
3.2.3
Bank : First Gulf Bank
Post Box No. : 6316
Branch :
Abu Dhabi
Account No. :
101-100-1161054-010
3.3 Mode of Payment
A.
For Ex-Factory Contracts:
The L/C value should be payable according to and against
presentation of the documents specified hereinafter.
25% of the L/C Value shall be due immediately upon signing
the contract, where the Second Party shall commence the
basic process such as design, drawings, submissions etc.,
only upon receipt of advance payment. Should any delay in
settlement of this payment, the Second Party shall at its
own discretion will reschedule the works as per the priority
basis and the revised schedule of production and delivery
shall be mutually agreed upon after settlement.
75% of the
balance payment (i.e., for the produced elements) shall be
settled by revolving Letter of Credit which will be opened
by the First Party payable at sight as per the delivery
milestone agreed prior to collection of precast element from
the plant. The First Party shall with the precast element
collection representative present the required authorized
representative’s signed L/C documents to Second Party on a
daily basis or as per the agreement made between both the
parties in order to collect the precast element from the
factory and continue the process until completion of agreed
quantity.
B.
For Supply and Erection Contract:
25% of the L/C Value shall be due immediately upon signing
the contract, where the Second Party shall commence the
basic process such as design, drawings, submissions etc.,
only upon receipt of advance payment. Should any delay in
settlement of this payment, the Second Party shall at its
own discretion will reschedule the works as per the priority
basis and the revised schedule of production and delivery
shall be mutually agreed upon after settlement.
75% of the balance payment shall be settled within 30 days
as per the progress of works and shall be subject to the
following:
·
Second Party shall submit the invoice as per the progress of
works i.e., delivery or execution
·
First Party shall sign and return the relevant documents not
later than 7 days. If any disputes in the claim of Second
Party, the First Party shall notify the Second Party within
3 days from the date of receipt of invoice.
·
Second Party shall not accept any dispute claim after that
date and shall be mutually agreed upon in the next progress
claim, subject to receipt of documents as stipulated above.
·
Second Party shall be entitled to claim up to 65% from the
above said balance 75% of the agreed contract sum against
complete delivery precast elements to the job site.
3.4 Other Terms:
Should any of the Payment method not in line with the above
said two contract conditions(Ex-Factory or Supply and
Erection Contract), the Second Party shall reserve its
rights to hold the production / delivery / erection works,
where the First Party shall compensate the Second Party with
the following without holding any liability, loss or damage
claims:
·
Settle the relevant interest charges for the delayed payment
prior to the next invoice.
·
Storage Charges as stipulated in Clause 27.
·
Revised delivery and execution schedule should be agreed
upon
·
Any other overhead charges
·
Mobilization and Demobilization Charges
·
Can reserve its right to stop or hold the production and
erection works if the overall payment delays exceed a period
max. of 30 days on overall invoices submitted.
·
Can reschedule the production and erection works as per the
schedule of RAK Precast and if the days are extend after the
agreed final date due non-payments / stoppages, new rates
will be applicable.
Second Party shall not commence the “On Hold” works due to
the non settlement of payment by the First Party unless the
above conditions are fulfilled or any mutual written
agreement made between both the parties for the settlement.
4. APPROVAL OF DRAWINGS
4.1
Approval drawings shall be prepared to ensure that the
Second Party interpretation of all the First Party’s
requirements is accurate if and when requested by the First
Party or if considered necessary by the Second Party.
4.2
If the building is tied up to an existing building,
the Second Party will not issue approval drawings until a
report from a certified surveyor or third party report is
received by Second Party or through an undertaking letter
holding all responsibilities by First Party for any disputes
which may arise of.
4.3
The First party shall provide the Second Party with
approved issued for construction drawings upon which the
Second Party will base its design. Second Party shall not
hold any liability for the accuracy of the datas and
information received from First Party.
4.4 The First party or its nominated project
representative must keep the Second Party supplied with
up-to-date documents and written information. The Second
Party should not be held responsible for issues arising from
outdated or obsolete contract documents.
4.5 When approval is required two (2) sets of drawings
are provided free of charge to the First Party, of which one
set must be signed by the First Party or its nominated
project representative and returned to Second Party’s office
stating “Approved” or “Approved As Noted”.
4.
6 The Second Party shall immediately proceed with
contract works upon receipt of such drawings. Should any
changes made to the earlier issued “Approved” or “Approved
As Noted” drawings, the Second Party shall reserve its right
to claim for the relevant cost and time to execute such
works through Change Order Request and shall execute such
works subject to approval of Change Orders.
4.7 The information presented in the approval drawings
is preliminary in nature and is not to be used for the
purpose of setting anchor bolts, design of foundations and
other construction activities, unless confirmed in writing
by the Second Party to execute such works.
4.8 Approval of the submitted drawings shall be
accepted by the Second Party only in the form of the First
Party’s authorized or nominated project representative
signature within the “Approved” or “Approved As Noted”
stamp. Approval by any other means shall not be accepted by
the Second Party.
4.9 Should if the drawings issued by the Second Party
“For Approval” and delayed by the First Party or its
nominated project representative for more than 60 days, the
Second Party shall reserve its right to reschedule the price
which was mutually agreed upon to the price that is in
effect at the time of drawings returned to Second Party’s
Project Management Department. The Second Party at its sole
discretion shall cancel the orders for the drawings delayed
more than 90 days awaiting receipt of response from the
First Party or its nominated representative or otherwise,
where the relevant Engineering Charges shall be settled by
the First Party immediately upon issuance of Invoice by the
Second Party.
4.10 Comments on returned approval drawings with changes
on the previously agreed scope of work must be in
highlighted in “RED INK” and should be covered by a change
order for any major works which is duly signed and accepted
by the First Party prior to commencement of such works.
4.11 Approval drawings for standard buildings shall be
submitted for approval within 2 weeks, subject to the
availability of all required details and for complicated
buildings it requires longer period for submission, which
shall be mutually, agreed upon.
4.12 It is recommended by the Second Party that Approval
drawings should be returned to its Area Office/ Head Office
within 2 weeks of receipt by the First Party or its
nominated representative and any delay in returning approval
drawings may affect the overall project cycle.
5.
Manufacture:
Except as expressly noted otherwise Precast Concrete
Elements shall be manufactured in accordance with the Second
Party’s standard Quality Control Procedures and shall be
presented if requested.
6. DESIGN CALCULATIONS (Optional)
6.1
For jobs requiring structural design calculations for
approval may be included with the approval drawings if
requested.
6.2
Two (2) sets of structural design calculations are provided
for approval
6.3 Standard structural design calculations shall
include:
a) Material specifications & design assumptions
b) Design of the primary and secondary structural
framing
c) Wind bracing design
d) Column reactions.
6.4
Additional Engineering fees may be levied for design
calculations, which require more analysis than what is
included in the standard calculations if required by First
Party.
7.
Work schedule
7.1 Second Party shall submit the detailed programme
of works based on the First Party’s master schedule of works
and as mutually agreed dates. The First Party shall issue
the Second Party, together with the contract drawings the
provisional work schedule for the supply and erection of
elements for each phase apart. Drawings relating to each
phase should be completely approved by First Party atleast
________ days prior to the confirmed delivery and erection
date.
7.2
First Party shall in writing periodically inform the Second
Party for any changes made to the original agreed work
schedule.
7.3
Any works extended the agreed completion date due to reasons
which the issues not related to Second Party, the Second
Party shall revise the price for the balance works as per
the market rates at that time.
8. CHANGE OF ORDERS
8.1
Any works deviated from the originally agreed contract or
any additional works requested by requested by the First
Party or its nominated project representative which need to
be executed apart from the original agreed contract, the
First Party shall agree with Change Order for the price,
time for execution of works and the method of payment prior
to commencement of such works.
8.2
Second Party reserves its right to submit Change Orders as
per the market rate fluctuation at the time of receipt of
request for executing such additional works and not as per
rates which was already agreed upon.
8.3
The Second Party shall also submit Change Orders for any
cancelled works which is already casted and ready for
delivery as per agreed schedule.
8.4
The First Party has the right to increase or decrease the
scope of works of a contract within 10% of contract
value plus or minus without changes in the contract unit
rates and in case of increase or decrease of scope of works
beyond 10% of contract value, where the Second Party
has the right for re-pricing.
8.5
Should any change to Second Party approved submittals be
notified at any time after manufacturing of elements, Second
Party shall be entitled to submit a claim for any cost
incurred with respect to abortive works carried out to the
date of notification by the First Party.
9. JOB ON HOLD
9.1
All costs (material, workmanship, storage, overhead
etc.,) incurred when a job is placed “On Hold” by the First
Party, after the commencement of manufacturing will be to
the First Party’s account.
9.2
A Job that is not released for production within 90
days from the date of its entry in the sales register, for
whatever reason (including lack of technical clarification)
will be put “On Hold” status by the Second Party and shall
also reserve the right to re-price such job according to the
rates that are valid at the time of release its “On Hold”
status.
9.3 Jobs kept “On Hold” by the Second Party due to
non-settlement of dues as per the terms and conditions
agreed by the First Party shall be released as per the terms
and conditions stipulated in Clause 3.4.
10. MATERIAL DESPATCH
10.1 The material dispatch commitment is measured, in
weeks from the date of the latest receipt and acceptance by
Second Party of all the following job related documents.
·
Signed contract
·
Acceptable Letter of Credit/ Final Accepted Amended L/C
·
Final change order including any amendments to L/C price
·
Approval drawings signed as “Approved” or “Approved As
Noted” where applicable
10.2
Production and dispatch schedules shall be determined when
all of the followings are fulfilled.
·
Receipt of the final “Approved” or “ Approved As Noted”
drawings by Second Party, where applicable (see Clause No.4)
·
Receipt and acceptance of the final change order, where
applicable (see Clause No.4 & 8)
10.3
The Second Party’s Project Management Department regularly
notifies its plant for all production and dispatch schedules
on jobs entered.
11. DESIGN AND SUPPLY EXCLUSIONS
11.1
Second Party’s supply includes only materials, which are
clearly described in its proposal or should be covered by
written accepted and signed change orders.
11.2
Second Party does not supply nor does it accept
responsibility for the design or any other works which is
not included in its scope of works.
11.3
Second Party’s does not supply, nor does it accept
responsibility for plumbing services, electrical services,
air conditioning services, or any other material or service
not specified in the final accepted proposal contract or
change order.
12. MISCELLANEOUS OBLIGATIONS OF THE SECOND PARTY
12.1 Shall employ skilled labour forces, who comply with
the rules and regulations of the United Arab Emirates,
sufficient to execute and maintain the works.
12.2 Shall provide technical tests and certificates from
its In-House laboratory only, however, tests and
certificates from Independent Laboratories (if required) can
be arranged by First Party at its own cost.
12.3 To inform the First Party at least 2 days in advance
regarding the requirement of crane such as its type,
capacity, and duration based on erection programme.
12.4 The Second Party’s technical representative shall
visit the site as and when required by the First Party or
its nominated project representative, and also shall verify
the as-built dimensions and co-ordinate with First Party.
12.5 Although the Second Party is completely covered
through First Party’s insurance policy, Second Party also
shall have its own insurance policy to cover its works.
13. MISCELLANEOUS OBLIGATIONS OF THE FIRST PARTY
13.1 Access roads for the trailers and crane to the
nearest unloading point clear from obstacles and
restrictions.
13.2
To Provide Second Party the temporary Site facilities
(office, water, electricity. Etc) free of charge.
13.3
Shall provide established reference points for horizontal
and vertical control to enable Second Party to proceed with
the work.
13.4
All finishing works including but not limited to painting,
water proofing and other protective coatings, etc.
13.5
All fees required for consultants and for building permits
along with any other charges that may be applicable by the
authorities due to the construction of the building.
13.6
Third party inspection, testing of precast concrete elements
and other related tests.
13.7
Structural or non structural screed.
13.8
All accessories such as bearing pads, steel brackets, steel
hangers etc. except for the supply of hollow core slabs
plugs, along with the panels, where applicable.
13.9
Precast concrete element and works associated with the
supply and installation of MEP works, such as but not
limited to conduits, boxes, fixtures, etc. First Party has
to depute his nominated representative to fix all MEP works
in the precast elements at his own cost if not agreed in the
contract.
13.10
Concrete special additives or admixtures, GGBS and micro
silica.
13.11
Provision and maintenance of access roads and hard standing
areas.
13.12
The First Party shall provide good and suitable protection
for all completed and on going works by the Second Party,
where the Second Party shall not hold any responsibility on
damages which occurs after completion of erection (if
erected by Second Party) or after the delivery to precast
elements job site.
13.13
Supply and assembling of scaffolding (if required ) are
First Party’s responsibility.
13.14
Supply and fixing of all embeds in the CIP Concrete (such as
steel plates, starter bars, dowel bards. Etc) are First
Party’s responsibility.
13.15
Technical tests, approvals or certificates by Third Party(if
required).
13.16
Painting, skim coating and finishing works, grouting,
screed, signboards, logos and all CIP works.
13.17
Cranes for whole erection period till the Preliminary
Handing Over date (P.H.O)
13.18
Excavation, backfill, bitumen, blinding, foundation, fence
footings, fencing, damp and waterproofing, slab on grade,
ground beams and all civil works.
13.19
Site accommodation with necessary facilities for Second
Party’s erection crew for whole erection period.
13.20
Foundation system of connection materials required are First
Party’s responsibility.
13.21
Supporting structure (concrete or steel), beams, ring beams,
columns and all other supports to fix Precast Concrete and
Hollow core slabs are First Party’s responsibility.
13.22
Floor and roof slabs, ornamental steel works, fence steel
grills, signs, aluminum and stainless steel works, block
works, chain link fence, soil mix, filter cloth, embedded
Pvc drainage pipes, coarse sand mulch, beach land mark and
other works not mentioned in this contract scope of works
are all First Party’s responsibility.
13.23
Preparation of mock-up samples (if required) and associated
visits expenses by concerned party.
13.24
All accessories such as bearing pads, steel brackets, etc.
except for the supply of hollow core slabs plugs, along with
the panels, where applicable.
13.25
All fees and duties that may be levied by customs and free
zone authorities for permits, gate passes, custom duties,
etc. or the like.
13.26
Holes 50 mm in diameter or less shall be made by First Party
if required unless specifically mentioned otherwise.
13.27
Extra or additional openings or cutouts after production of
the precast concrete walls, slabs, columns, foundations
elements, etc.
13.28
All earth works including but not limited to site clearance,
cutting, filling, compacting, leveling, etc.
13.29
Entrance gates, wicket gate columns, Barbed wire fencing,
metal grill works to be installed on the panels, etc.
13.30
Expansion joint boards, sealants, metal inserts, GRC works,
plot number plate.
13.31
Increase in foundations depth, in excess of the design depth
due to site conditions.
13.32
Setting out points, Municipality surveys and soil
investigation reports.
13.33
Demolition of any existing structures or temporary fencing.
13.34
Additional structural works to our proposal required for
jointing the fence with other structures.
13.35
The joints between the panels are designed with open free
expansion joints and do not require any sealant filling. If
required, sealant works between the precast elements shall
be done by Second Party subject to receipt of required
materials from First Party.
13.36
Additional concrete works required to support or protect the
boundary wall if not included in the scope and if required
shall be done subject to approval of Change Order Request.
13.37
All works that are not specifically mentioned to be included
in the Scope of Works
13.38
Props required to support all types of precast elements
during erection unless specifically mentioned to be included
in the scope of works.
14. Insurance
Second Party will be covered through First Party’s insurance
policy for any loss or damages of any nature which might
occur during the execution of works.
15. PERMITS AND FEES
15.1 First Party shall obtain and pay for all building
permits licenses public assessment, prorated utilities,
utility connections, occupancy fees and any other fees
required by any government authority in connection with the
work provided for the contract.
15.2
If erection contract is assigned to Second Party’s erection
crew, the First Party shall provide a copy of the building
permit prior to commencement of works. Should the erection
works to be kept on hold due to building permit issues, the
cost of such stoppages, standing time or demobilization
charges shall be settled by the First Party.
16.
INSPECTION OF FABRICATED MATERIALS
16.1
The Second Party is an ISO 9001 certified company and has
its own standard Quality Plan, which outlines the quality
control procedures that are followed during the production
and shipment of its products. This plan describes the
sampling techniques, types of tests conducted, control
procedures and reporting format used in the production of
all manufactured components. The approved procedures
described in this Quality Plan are maintained within the
Second Party’s Quality Control Department.
16.2
For a specific contract, inspection of Second Party’s
products at their plant by First Party, or by its nominated
project representative if required may be arranged. Such
inspection will be scheduled after receipt of a written
request for such inspection by the First Party or its
nominated project representative. Inspections will be
arranged in such a manner so as not to delay production and
/ or shipment in the event that the customer or his
representative fails to conduct inspections as scheduled or
prior to shipment the goods shall be considered “ Release By
Concession”.
17.
DELIVERY NOTE
17.1
The Second Party’s Planning Department advises the concerned
internally of the actual dispatch date agreed between the
First Party.
17.2
The Second Party shall notify the First Party the actual
dispatch date upon receipt of confirmation from its plant.
18. PARTIAL DELIVERY
18.1
On large jobs, it is the standard practice of Second Party
to make partial deliveries.
18.2
When partial shipments are requested or agreed between the
First Party and Second Party, the Second Party shall claim
the prorated value of the dispatched materials according to
the accepted terms of payment covering the total job value.
19. Ex-stock
DELIVERIES
19.1 The Second Party does entertain any First Party pick
up precast elements from its plant, unless agreed through
written contract. In the event of an agreement made between
both the parties, the First Party shall obtain a specific
date and time for the collection of precast elements from
the Project Management Department.
19.2 The First Party should provide suitable trailers for
loading by Second Party. The Second Party will not load any
of the precast elements in a closed van trailers and
trailers with sidings.
19.3 The First Party’s assigned driver or its authorized
representative must check and sign a receipt for the
materials collected and after signing the receipt, it shall
relieve the Second Party from all its obligations against
the delivered material from the time of loading.
19.4
Should the First Party not familiar with the pick up
procedures, this information can collected from the
responsible at material dispatch section.
19.5
Second Party will not hold any responsibility for any
materials after loading the vehicle provided by the First
Party.
20. UNLOADING OF PRECAST
ELEMENTS AT JOB SITE FOR
Supply only contracts
20.1 For the supply only contracts, it is the
responsibility of the First Party to unload the materials at
their respective job site. The First Party should arrange a
suitable equipments for the unloading of material under
their supervision. In such a case if a site is inaccessible
or not ready to accept the material the First Party shall
arrange an accessible unloading area at a nearer location
within the agreed area of delivery.
20.2 The First Party shall be solely responsible for the
condition of job site as far as the safety of the trucking
company driver and the Second Party’s material is
concerned.
20.3 The First Party shall assign its representative to
check for the accuracy and for any damages to materials upon
arrival at the job site and prior to offloading. Any
discrepancies must be noted on the material dispatch note
prior to offload of materials. The Second Party will not
entertain any complaints or defects claim on its materials
after signing the material dispatch note.
20.4 The First Party’s assigned representative to receive
the material cannot refuse to accept an entire shipment due
to damages of some portion or missing. As stated above, any
damages can be noted on the material dispatch note and to be
reported to Second Party’s office immediately.
21. ERECTION OF
PRECAST ELEMENTS for supply only contracts
21.1 The First Party shall be fully responsible for the
quality of erection precast elements when the erection is
not carried out by the Second Party.
21.2 Second Party assumes no liability for and the First
Party shall not hold the Second Party harmless on account of
any defects in the erection of buildings or such defects as
loose connections, missing parts, roof leaks, damaged
sheets, omission of sealer, scratched surfaces, poor
alignment, inadequate drainage and defects caused by others.
The First Party shall permit the Second Party’s personnel to
inspect the erection work at any time during the erection
process if required.
21.3 The Second Party will not be responsible for the
quality of erection or damages made to the precast elements
during erection process arranged by the First Party.
22. ERECTION OF PRECAST ELEMENTS BY SECOND PARTY
22.1 Second Party’s erection crew shall undertake
building erection only on a clear, leveled and unobstructed
concrete slab with suitable clear access.
22.2 The First Party shall provide specified clear
storage area to Second Party for all its materials required
for erection including precast elements. The ground of all
working areas shall be clearly compacted for the use of
forklifts or cranes or any equipment required for erection
works.
22.3 Prior to the arrival of Second Party’s erection crew
on site, the First Party shall ensure the scheduled erection
works at the agreed areas which are ready to receive the
precast elements. In the event of any delay occurs due to
setting up works or due to the non-completion of First
Party’s scheduled works or other caused, the Second Party
shall claim for the additional working hours used to
complete the scheduled works. In such a case if the
additional worked hours are not accepted or approved by the
First Party, the Second Party shall reserve its right to
claim for the time extension with related overheads to
complete its agreed scope of works
22.4 Second Party’s erection team may check the position
and level of the anchor bolts prior to the pouring of the
concrete foundations. This does not absolve the contractor
from the responsibility for accuracy. Any rework required
due to misplacement of anchor bolts or faulty concrete shall
be the responsibility of the customer.
22.5 If at the sole discretion of Second Party’s erection
team, erection takes place on footings and beams prior to
pouring of the concrete slab, Second Party shall not be
responsible for any cleaning of the steel columns or
cladding after pouring of the concrete slab.
22.6. The Second Party shall not be responsible for the
repair of damages caused by others to its erected or stored
precast elements.
22.7 Any repairs necessary shall be undertaken due to
damages caused by other parties only after receipt of
written acceptance by the First Party for the charges in the
form of a Change Order.
22.8 Any deviation from these standard erection
conditions shall be subject to price review.
22.9 The Second Party if required shall subcontract part
or all of its erection contract to a qualified contractor
who will execute the job professionally and in accordance
with Second Party’s strict erection requirements and
guidelines.
23. SHORTAGE OF MATERIALS
23.1
On contracts where a material consignment is received on
site by anyone other than Second Party’s erection crew, the
First Party or his nominated project representative’s dated
signature constitutes a formal acknowledgement of the
correct receipt of the consignment on both quality and
quantity.
23.2
It is the First Party’s (or his representatives)
responsibility to check the materials before signing and
dating acceptance Second Party’s material dispatch note.
23.3
Claims of shortages by the First Party shall only be
accepted by Second Party, if received in writing within
seven (2) days of the date of the material dispatch
signature by the First Party’s representative.
23.4
If after receipt of such claims, the Second Party shall
verify its bills of materials and shipping lists and if its
record are found to be correct, replacement materials shall
be supplied at the earliest possible schedule, after receipt
of First Party or its nominated project representative’s
written acceptance or the additional ex works costs and
delivery costs for such replacement material.
23.5
The Second Party shall not accept any consequential claims
or liabilities alleged to arise from losses or shortages.
24.
FIELD MODIFICATIONS
24.1 Minor field modifications and adjustments in any
precast concrete elements are to be anticipated. Minor field
work does not constitute grounds for back charges. This
field work should be provided for within the contingency
element of any construction estimate.
24.2 Only repairs due to casted errors may be cause for
filing a claim. Such repairs shall only be undertaken after
consultation and consent with Second Party.
25.
COMBINED SHIPMENTS
Second Party if required shall include a shipment destined
to another customer in the same shipment of material
consigned to First Party.
26.
STORAGE
26.1 Should the First Party advise the Second Party to
hold any supply of precast elements which is already casted
and ready for delivery as per the agreed schedule, the
Second Party shall levy the storage charge as 1% of stored
element (cumulative) per week up to a maximum of 10% of the
total contract value until receipt of confirmation to
deliver.
26.2 Second Party shall not be held responsible for any
type of damages caused to the exposed precast elements after
it has been stored longer than 10 days.
27.
WARRANTY
27.1
Second Party shall provide the warranty for the precast
elements one year from the date of dispatch from its factory
(for ex-factory and supply only contracts) and one year from
the date of completion of erection works (for supply and
erection contracts) and this warranty extends only to
materials casted at Second Party’s factory in that such
material shall not fail due to defective materials or
workmanship when utilized in the intended manner and shall
not be limited up to damages caused due to force majeure.
27.2
Second Party warrants that the structure shall support the
loads described in approved drawings and contract. If
properly erected, as part of a complete structural system
designed Second Party and comprising only of parts included
by Second Party and the structure is used in the manner and
the purposed for which it was designed.
27.3
No warranties are expressed or implied other than those
described in these terms and conditions of sale.
27.4
In the event of breach of warranty the limit of any claim
shall be the correction or replacement of defective
materials and correction of defective workmanship.
27.5 Under no circumstances shall the Second Party be
responsible for consequential damages that are alleged to
arise from any such claim of breach or warranty.
28.
FORCE MAJEURE
Second Party shall not be held accountable for delays or
damages to its precast concrete elements resulting from
circumstances outside its control, such as strikes acts of
war revolution, riot or civil disturbance trade sanctions or
restrictions occurrences of meterorological or geophysical
nature etc. to the extent that these affect transport
communications, manufacturing and/or erection by Second
Party or its suppliers and its sub contractors.
29. LAW
Any other terms and conditions which is not included in
this agreement shall be construed and interpreted in
accordance with the law and regulations of the United Arab
Emirates.
30. ADDITIONAL CLAIMS
Any claim(s) for
additional expenses, losses, or damages that either party
may consider itself entitled to, under the terms and
conditions of this contract shall be presented in writing
by the affected party (as full and detailed as possible) to
the other party. Both parties shall discuss and settle such
claim(s) within reasonable time. Unresolved claims shall be
considered disputes provided always that neither party is
entitled to withhold or deduct amounts in respect of such
claims from any sums due or may become due to the other
party under the contract.
31.
SUSPENSION OF THE WORK AND/OR TERMINATION OF THE CONTRACT
and/or cancellation of contract
31.1 If the progress of the works is suspended by the
First Party and if permission to resume is not given by the
First Party within a period of ten (10) calendar days
from the date of suspension, Second Party may issue a
written notice on the First Party requiring permission to
proceed with the work, and if such permission is not granted
within four (4) calendar days, Second Party may by further
written notice, treat the suspension as a termination of the
Contract.
31.2
In the event if the First Party failed to pay any sum due
within the maximum 15 days period from the date of
receipt of Invoice, may at the option of Second Party be
treated as a suspension of the Work by the First Party that
may lead to termination under Article 7.1 unless otherwise
clarified.
31.3
In the event of suspension of the Work, leading to
termination of the Contract by the First Party or the notice
issued by Second Party due to non-settlement of payments,
release of shop drawings etc., the Second Party shall be
entitled to full reimbursement of the value of the work
completed as of that date of such termination.
32. Additional Claim Due to INCREASE IN COST OF RAW
MATERIALS
In the event of increase of market’s materials prices (i.e.
steel, cement, diesel, transportation etc). Second Party
will re-price the contract rates accordingly with any
increase in cost of raw materials as per the percentage
associated with the production and delivery of the works for
the un-cast elements, at the date of price increase
regardless of the amount of paid advance payment or as per
the agreement mutually made upon.
33. Arbitration
In the event of any conflict between any of the documents
comprised in the Subcontract they shall prevail over each
other in the order in which they are set out in this Clause.
The final interpretation shall be made through mutual
agreement and if differences and disputes continue to
persist then the same shall be referred to an Arbitrator
appointed through Mutual consent among the parties and the
decision of such Arbitrator so appointed shall be final and
binding on the parties
34. DELAYS AND EXTENSION OF TIME
34.1
Any delay caused to the Work and approved by First Party or
by others employed or retained by the First Party.
34.2
Late payment of invoices as stipulated in Clause 3, will
lead to revision of schedule of works.
34.3
Additional work directed by the First Party, which will
cause/ effect extension of performance time, equivalent to
its work content or value of the whole scope of work.
34.4
Instructions from the First Party to postpone, delay or
suspend the Work or any portion thereof.
34.5
Failure of First Party to fulfill in a timely manner any
obligation set forth in this agreement.
34.6
In the event of delay of the progress of the Work being
caused by force majeure or any other circumstances beyond
the control of either Second Party or First Party, the
Second Party shall be entitled to a corresponding extension
of performance time only.
No changes in these terms and conditions shall be allowed
unless agreed to in writing, by the Second Party’s
authorized representative.
IN WITHNESS WHEREOF, the First Party and the Second Party
hereby affix their signatures in two copies both intending
to act as originals. All pages of this Contract Document
have been initialed by both Parties.
(FIRST
PARTY)
(SECOND PARTY)
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