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SECTION 5 – ADMINISTRATION PROCEDURES

SECTION 5

ADMINISTRATION PROCEDURES
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SECTION 5 – ADMINISTRATION PROCEDURES
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TABLE OF CONTENTS
1. INTRODUCTION..................................................................................................... 1
2. PARTIES CONCERNED AND ADDRESSES ......................................................... 1
2.1 MMHE ......................................................................................................................... 1
2.2 SUBCONTRACTOR ................................................................................................... 2
2.3 Reporting Relationships ............................................................................................. 2
3. PAYMENT CERTIFICATES AND INVOICES ......................................................... 2
3.1 General ....................................................................................................................... 2
3.2 Payment Process Flow ............................................................................................... 3
3.3 Payment Certificates .................................................................................................. 3
3.4 Contents of Certificate of Progress Claim .................................................................. 4
3.5 Invoices ...................................................................................................................... 4
3.6 SUBCONTRACT Closure ........................................................................................... 5
3.8 Final Account .............................................................................................................. 5
4. VARIATION ORDER .............................................................................................. 5
4.1 General ....................................................................................................................... 6
4.2 Administrative Forms .................................................................................................. 6
4.3 SUBCONTRACTOR’s Claims .................................................................................... 6
4.4 MMHE Initiated Variation: ........................................................................................... 7
4.5 SUBCONTRACTOR Initiated Variation ...................................................................... 8
4.6 Records ...................................................................................................................... 9
4.7 Invoice ........................................................................................................................ 9
5. LOAN OR RENTAL OF TOOLS ............................................................................. 9
5.1 Requisition for Loan or Rental of Tools ...................................................................... 9
5.2 Scope of Rental ........................................................................................................ 10
5.3 Availability of Stock................................................................................................... 10
5.4 Rental Charges ......................................................................................................... 10
5.5 Rental Period ............................................................................................................ 10
5.6 Expiry Period of rental Overdue ............................................................................... 10
5.7 Notification on Change of Address ........................................................................... 10
5.8 Damage Tools/Equipment ........................................................................................ 10
5.9 Sublet of tools/Equipment ........................................................................................ 10
5.10 Lost of tools/Equipment ............................................................................................ 10
5.11 Security of Tools/Equipment .................................................................................... 10
5.12 Requisition Form ...................................................................................................... 11
6. FEE AND CHARGES............................................................................................ 11
6.1 Welding Matters........................................................................................................ 11
6.2 Blasting/Painting Matters .......................................................................................... 11
6.3 Summary of fees and charges to SUBCONTRACTOR workers .............................. 11
APPENDIX 1 – MONTHLY PROGRESS MEASUREMENT FORMAT ................................. 1
APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM ...................................................... 1
APPENDIX 3 – MILESTONE PAYMENT SCHEDULE ......................................................... 1
SCHEDULE 3.01 – HSE MILESTONE ................................................................................. 1
SCHEDULE 3.02 – QA/QC MILESTONE ............................................................................. 4
APPENDIX 4 – CHANGE ORDER PROPOSAL ................................................................... 1
APPENDIX 4.01 – CHANGE ORDER NOTICE FORM ......................................................... 1
APPENDIX 4.02 – CHANGE ORDER PROPOSAL FORM (COP)........................................ 3
APPENDIX 5 – TOOLS LOAN / RENTAL REQUISITION FORM ......................................... 1
APPENDIX 6 – FEE AND CHARGES .................................................................................. 1
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1. INTRODUCTION
It is the intention of this section to advise the SUBCONTRACTOR of the required
method of SUBCONTRACT implementation with respect to administration functions.
All costs for the fulfillment of the requirements of this section shall be included in
Schedule of Compensation.
The SUBCONTRACTOR shall adhere to all procedures herein throughout the
SUBCONTRACT period unless MMHE has given prior written approval for alternative
procedures.
The attached appendices are recommended form to be used. Any other forms or
record format maybe use either from the SUBCONTRACTOR or MMHE, which that
necessary to address unique circumstances of a particular services. Others format of
form or record are acceptable provided that the contents of the information
available/relevant to validate the claims submitted by the SUBCONTRACTOR.

2. PARTIES CONCERNED AND ADDRESSES

2.1 MMHE
MMHE’s Representative
Name : Thierry Ravelet
Position : Senior General Manager, HEO
Address : PLO 3, Jalan Pekeliling, P.O. Box 77,
81700 Pasir Gudang, Johor
Telephone : +607 268 2111
Telefax : Not Available
E-mail Address : thierry.ravelet@mmhe.com.my

MMHE’s Site Representative

Name : Muhamad Adha Bin Abdullah
Position : Project Director
Address : PLO 3, Jalan Pekeliling, P.O. Box 77,
81700 Pasir Gudang, Johor
Telephone : +607 268 2111
Telefax : Not Available
E-mail Address : m.adha@mmhe.com.my
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2.2 SUBCONTRACTOR
SUBCONTRACTOR Site Representative
Name :
Position :
Address :

Telephone :
Telefax :
E-mail Address :

2.3 Reporting Relationships

The day-to-day administration of the SUBCONTRACT shall be the responsibility of the
MMHE’s Site Representative and the SUBCONTRACTOR’s Site Representative. On
all routine matters, MMHE’s Site Representative and the SUBCONTRACTOR’s Site
Representative shall represent MMHE and the SUBCONTRACTOR respectively.

3. PAYMENT CERTIFICATES AND INVOICES

3.1 General
(a) MMHE shall pay the SUBCONTRACTOR at monthly intervals:
(i) against progress percentage by weight/quantity completed during each
period. Unless otherwise agreed, the "Monthly Progress Measurement
Format" provided in Appendix 1 hereto shall be used for the measurement
of actual progress; and
(ii) against milestone payment and the payment shall be made and calculated
in accordance with Appendix 3 hereto
(b) Within seven days (7) after the end of each month, the SUBCONTRACTOR shall
submit a progress claim for the work done in the previous month as provided in
the SUBCONTRACT.
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3.2 Payment Process Flow

3.3 Payment Certificates

(a) The SUBCONTRACTOR shall liaise with MMHE Project Planner to obtain
Progress Certificate for WORK carried out under this SUBCONTRACT for
certified completion of the relevant stage of the WORK. The
SUBCONTRACTOR shall then attach the Progress Certificate to their monthly
progress claims which includes the Certificate of Progress Claim and submit to
online claim (e-Claim System).
(b) The SUBCONTRACTOR shall submit the Certificate of Progress Claim to online
for certification and approval as per format provided in Appendix 2 hereto
including any other summary or details or statement of billing, which is to be
determined by MMHE during the performance of SUBCONTRACT.
(c) Upon receipt of the approved Certificate of Progress Claim from MMHE, the
SUBCONTRACTOR shall submit its invoice together with the approved
Certificate of Progress Claim to MMHE Finance Services Department for
processing of payment:
(d) Should there be any dispute on any item on the Certificate of Progress, payment
in respect of the disputed items may be withheld by MMHE until the settlement
of such dispute by mutual agreement or should there be any disputed invoice
submitted after CPC approved, MMHE have the right to reject the invoice.
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3.4 Contents of Certificate of Progress Claim

(a) The values of the following ‘additions’ which are relevant during the preparation
of a Certificate of Progress Claim must be included:
(i) Cumulative value of the work done by the SUBCONTRACTOR at the cut-
off date as certified by MMHE based on approved Progress Certificates.
(b) The values of the following ‘deductions’ which are relevant during the preparation
of a Certificate of Progress Claim must be deducted:
(i) The cumulative value of the work done as certified under the previous
Certificate of Progress Claim.
(ii) A percentage of the value of the Certificate of Progress Claim in
accordance with the retention amount as stated in General Conditions of
Subcontract.
(c) MMHE may exercise the following deductions to the SUBCONTRACTOR’s
progress claim in addition to those stated under Sub-Clause 3.4(b):
(i) Compensation for delayed completion by the SUBCONTRACTOR as
provided in this SUBCONTRACT.
(ii) The adjustment in the value of the finished work due to a breach of the
provisions of this SUBCONTRACT by the SUBCONTRACTOR.
(iii) The cost of rectifying a breach of the provisions of this SUBCONTRACT
by the SUBCONTRACTOR for which MMHE employed other parties to
rectify as provided in this SUBCONTRACT.
(iv) Compensation for expenses incurred by MMHE, as valued by MMHE,
following termination of the SUBCONTRACTOR as provided in the
General Conditions of Subcontract.
(d) The net amount due is the total ‘additions’ minus total ‘deductions’. The net
amount due must be stated in the Certificate of Progress Claim and shall be the
same amount stated in the undisputed invoice.
3.5 Invoices
(a) The SUBCONTRACTOR shall submit undisputed invoice attach with approved
Certificate of Progress Claim to MMHE’s Finance Department according to
clause above. MMHE shall pay the SUBCONTRACTOR the net amount due in
the undisputed invoice according to the payment terms in General Conditions of
Subcontract.
(b) The first invoice from SUBCONTRACTOR shall be accompanied with copy of the
following documents:-
(i) Performance Bond
(ii) Security Bond (where applicable)
(iii) Insurance Policies
(iv) Subcontract document/Service Order duly signed between MMHE and
SUBCONTRACTOR
Failure to provide all the information required above may result in the
SUBCONTRACTOR's invoice being returned.
(c) The CPC and invoice from the SUBCONTRACTOR for 100% completion of the
WORK shall be accompanied with a copy of the Certificate of Completion as per
format provided in General Conditions of Subcontract.
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(d) All payments by MMHE to the SUBCONTRACTOR under this SUBCONTRACT

shall be made in Malaysia currency unless otherwise provided in the
SUBCONTRACT.
3.6 SUBCONTRACT Closure
(a) MMHE shall certify the release Guarantee Bond after the expiring of Guarantee
Period and signing of the Subcontract Closure Certificate.
3.7 Not Used
3.8 Final Account
(a) Not later than 30 days after achieving Sailaway of the WORK,
SUBCONTRACTOR shall submit the draft final accounts. SUBCONTRACTOR’s
proposal shall include an itemised breakdown of the total compensation sought
by SUBCONTRACTOR for the WORK, less any amounts due to MMHE.
(b) The draft final accounts shall be prepared and summarised in the same format
as the Bill of Quantities/Package Pricing and shall include all necessary
supporting documents, where applicable:
(i) Lump sum items: with summary of deliverables and evidence of
completion.
(ii) Measured items: quantity take-off with cross-referenced to drawings and
summarised as per the Bill of Quantities.
(c) MMHE and SUBCONTRACTOR will review and agree the final accounts and
following MMHE approval, SUBCONTRACTOR shall submit its final CPC and
invoice and Certificate of Completion and settlement of all claims from the
SUBCONTRACTOR.
(d) The Final CPC and Invoice shall contain the following statement on the front page
of the invoice signed by SUBCONTRACTOR’s Site Representative:
“This invoice covers the entire remaining compensation due to the
SUBCONTRACTOR for the WORK under SUBCONTRACT No………………”
(e) The format for the Final Invoice shall be agreed between MMHE and
SUBCONTRACTOR and the invoice shall as a minimum have the following
supporting documentation:
(i) The invoice shall contain a brief description of the subject matter of the
invoice, actual submittal date, purpose of invoice, complete current amount
payable calculation, current amount payable in numbers and words, and
applicable invoice payment instructions.
(ii) A reconciliation identifying the following data:
 Original SUBCONTRACT PRICE
 Listing of all Variation Orders and agreed amounts
 Adjustments to all Provisional Sums (if any)
 Deductions for any liquidated damages
 Agreed Final SUBCONTRACT PRICE
 Listing of all invoices previously submitted, with invoice dates, invoice
amounts and paid amounts
 Current invoice amount
4. VARIATION ORDER
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4.1 General
This Clause describes the procedures for processing Variation Orders by the MMHE
and the SUBCONTRACTOR that impact the cost or schedule required to complete the
WORK.
4.2 Administrative Forms
SUBCONTRACTOR shall verify with MMHE that the most current Change Order
Proposal Form (COP), as provided in Appendix 4 hereto, are used on the project.
SUBCONTRACTOR shall utilize only the forms currently approved by MMHE
designated specifically for such purpose.
4.3 SUBCONTRACTOR’s Claims
(a) If the SUBCONTRACTOR considers himself to be entitled to any extension of
the Completion Date and/or any additional payment in connection with the
SUBCONTRACT, the SUBCONTRACTOR shall give notice to the MMHE’s Site
Representative using the COP, describing the event or circumstance giving rise
to the claim. The notice shall be given as soon as practicable, and not later than
period stated in General Conditions of Subcontract.
(b) If the SUBCONTRACTOR fails to give notice of a claim within such period stated
in General Conditions of Subcontract, the Completion Date shall not be
extended, the SUBCONTRACTOR shall not be entitled to additional payment,
and MMHE shall be discharged from all liability in connection with the claim. The
SUBCONTRACTOR shall also submit any other notices which are required by
the SUBCONTRACT, and supporting particulars for the claim, all as relevant to
such event or circumstance
(c) The SUBCONTRACTOR shall send to the MMHE’s Site Representative a fully
detailed claim which includes full supporting particulars of the basis of the claim
and of the extension of time and/or additional payment claimed. MMHE Contract
Administrator shall consult with each party in an endeavour to reach agreement.
If agreement is not achieved, the MMHE’s Site Representative shall make a fair
determination in accordance with the SUBCONTRACT, taking due regard of all
relevant circumstances. . MMHE Contract Administrator will prepare the internal
approval and a Service Order (SO) will then be issued after approval of the SVOA
by the various signatory levels in MMHE.
(d) SUBCONTRACTOR shall only have the right to propose a claim for the changes
in the WORK only after SUBCONTRACTOR has demonstrated that it has
investigated all possible solution to mitigate the consequences of such changes.
The following conditions shall not constitute a Variation Order:
(i) Any additional design details to be included in Approve For Construction
(AFC) drawings or shop drawings resulted in the change in joints details,
such as welding joints details, additional and reduction in number of joints,
that are made prior to the commencement of the subject change portion of
the WORK by the SUBCONTRACTOR, unless such changes have caused
the SUBCONTRACTOR to modify or replace or repair the portion of WORK
that has been completed.
(ii) Where the substitution of materials in term of equivalent or near in
size/scantling or equivalent grade is due to the non-availability of materials
but not due to engineering/design change, unless such substitution has
resulted in change of weight (for structural work), size (for piping and
electrical/instrumentation works) or surface area (for blasting and painting
work).
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(iii) Subsequent inclusion of size (for piping, electrical and instrumentation) or

surface area (for blasting and painting work) or fabrication details to those
items “ON HOLD” in the AFC drawings.
(iv) Any other changes in the fabrication details or shop drawings to the areas
where the WORK has not commenced.
4.4 MMHE Initiated Variation:

4.4.1 MMHE shall have the right at any time to issue instructions to the SUBCONTRACTOR
and the SUBCONTRACTOR shall do any of the following:

(a) Make any revision to the WORK, which may include additions, omissions,
substitutions and changes in quality, form, character, kind, position, dimension,
level or line and changes in any method of construction specified by MMHE.
(b) Revise elements of the WORK already completed in accordance with the
SUBCONTRACT.
(c) Delete from the SUBCONTRACT any WORK specified to be completed but
which is not completed by the Completion Date. MMHE shall have the right to
have such deleted WORK be carried out by its own employees or by third parties.
(d) Reprogram the WORK and reschedule its resources within the limits of
practicality in order to complete the WORK or any part thereof in accordance with
any amendment to the Completion Date which MMHE requires.

4.4.2 On receipt of the Instruction, the SUBCONTRACTOR shall proceed immediately as

instructed even though the amount of any adjustment to the SUBCONTRACT PRICE
and/or the Completion Date may not have been determined.

4.4.3 If MMHE and the SUBCONTRACTOR cannot agree on any specific conditions
contained in the Instruction, the SUBCONTRACTOR shall, if so requested by MMHE
proceeds to perform the work included in such Instruction pending resolution of such
disagreement.

4.4.4 If the SUBCONTRACTOR is of the opinion that the instruction given in writing by MMHE
Authorised Personnel is a Change, the SUBCONTRACTOR shall submit a Change
Notice to MMHE. The Change Notice shall specify:

(a) Description of Change

(b) Portion of Specification Affected
(c) Reason for Change
(d) Initiator of Change
(e) Payment Method

Failure to submit the Change Notice in 3 working days of the change by the
SUBCONTRACTOR will not impact the SUBCONTRACT PRICE and Completion Date
and the SUBCONTRACTOR shall consider this as part of SUBCONTRACTOR’s
original scope.

4.4.5 MMHE shall evaluate the Change Notice and inform SUBCONTRACTOR of the result:
(a) If accepted, the SUBCONTRACTOR shall submit its Change Order Proposal
(COP) upon completion of the work.
(b) If rejected, MMHE shall respond to the Change Notice by written confirmation.
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4.4.6 For the COP, the SUBCONTRACTOR shall submit:

(a) Description of the WORK to be performed under the Variation.
(b) Detailed schedule for the execution of the Variation showing the resources to be
employed.
(c) The effect on the SUBCONTRACT price (if any).
(d) The effect on the WORK Program and the Completion Date (if any).

4.4.7 MMHE shall evaluate the Change Order Proposal and call the SUBCONTRACTOR for
finalisation. Upon agreement by both parties, MMHE shall issue an official Variation
Order (SVOA). If in the opinion of MMHE that the Change Notice submitted by the
SUBCONTRACTOR does not qualify to be a Change i.e. it is considered as
SUBCONTRACTOR’s obligation under the base scope to carry out such works, MMHE
shall reject and return the COP to the SUBCONTRACTOR.

4.5 SUBCONTRACTOR Initiated Variation

4.5.1 If the SUBCONTRACTOR considers that an occurrence has taken place for which it is
entitled to receive a Variation, the SUBCONTRACTOR shall submit a request in writing
to MMHE for a Variation within 14 days of occurrence via submission of a Change
Notice. The Change Notice shall specify:
(a) Description of Change
(b) Portion of Specification Affected
(c) Reason for Change
(d) Initiator of Change
(e) Payment Method
Failure to submit the Change Notice within 14 days of occurrence by the
SUBCONTRACTOR will not impact the SUBCONTRACT PRICE and Completion Date
and the SUBCONTRACTOR shall consider this as part of SUBCONTRACTOR’s
original scope.

4.5.2 MMHE shall evaluate the Change Notice and inform the SUBCONTRACTOR of the
result:
(a) If accepted, the SUBCONTRACTOR shall submit its Change Order Proposal
(COP) upon completion of the work.
(b) If rejected, MMHE shall respond to the Change Notice by written confirmation.

4.5.3 For the COP, the SUBCONTRACTOR shall submit:

(a) Description of the WORK to be performed under the Variation.
(b) Detailed schedule for the execution of the Variation showing the resources to be
employed.
(c) The effect on the SUBCONTRACT PRICE (if any).
(d) The effect on the WORK Program and the Completion Date (if any).
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4.5.4 MMHE shall evaluate the Change Order Proposal and call the SUBCONTRACTOR for
finalisation. Upon agreement by both parties, MMHE shall issue official Variation Order
(SVOA). If in the opinion of MMHE that the Change Notice submitted by the
SUBCONTRACTOR does not qualify for a Change i.e. it is considered as
SUBCONTRACTOR’s obligation under the base scope to carry out such works, MMHE
shall reject and return the COP to the SUBCONTRACTOR.
4.6 Records
MMHE may instruct SUBCONTRACTOR to keep such contemporary records as
reasonable and which may be material to any Variation instructed by MMHE or a claim
by SUBCONTRACTOR for a Variation. SUBCONTRACTOR shall supply copies of
such records to MMHE as MMHE may direct.
4.7 Invoice
The SUBCONTRACTOR shall submit invoice to MMHE for any approved Variation
Order after the work specified in the Variation Order has been completed and accepted
by MMHE unless progressive payments are specified in the Variation Order. MMHE
shall have the right to deduct a certain percentage from the said invoices as retention
money in accordance with Conditions of Subcontract.

5. LOAN OR RENTAL OF TOOLS

5.1 Requisition for Loan or Rental of Tools
(a) The loan/ rental of tools are governed by the terms and conditions as stipulated
in MMHE TOOLS POLICY AND PROCEDURES.
(b) All loan of tools/ equipment to SUBCONTRACTOR shall subject to MMHE
approval and shall strictly in adherence with MMHE procedures for loan of tools/
equipment. The MMHE reserved the right to charge the SUBCONTRACTOR for
the cost of all tools taken on loan reported lost, damaged, or not returned on date.
The SUBCONTRACTOR shall also comply with MMHE procedure with regard to
any material and tools/ equipment, which the SUBCONTRACTOR is
contractually, obliged to bring into MMHE yard or to bring out of the MMHE yard.
(c) All tools must be returned in good condition together with the loan chit. MMHE
reserves the right to charge for cleaning and repairing cost.
(d) For overdue tools:
(i) Due date is to be strictly observed. If overdue, MMHE may treat the tools
as lost and the SUBCONTRACTOR shall compensate accordingly.
Subsequently if the tools concerned are found, they remain the property of
MMHE and should be returned immediately. No refund shall be made for
such return.
(ii) On expiry of the due date, debit note will be raised and charge at the
Weighted average cost plus 20% or replacement cost whichever is higher
will be imposed.
(e) For damaged/lost tools:
(i) Tools lost should be reported to MMHE safety and Security Department
within 24 hours.
(ii) Should tools be damaged or lost, the SUBCONTRACTOR shall be charged
accordingly for repair or replacement.
(iii) Tools damaged or found facility should be returned immediately to the Tool
Centre for maintenance or replacement.
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(f) Sub-letting of tools on loan is strictly prohibited. SUBCONTRACTOR shall

inspect/test the tools before leaving Tools Centre.
5.2 Scope of Rental
This shall apply to rental of tools and equipment to SUBCONTRACTOR and other
parties who are involved in works in connection with MMHE business activities in which
tools and equipment are contractually to be supplied by the SUBCONTRACTORs.
5.3 Availability of Stock
MMHE shall not be responsible to guarantee that all required tools and equipment for
works are available in the stock.
5.4 Rental Charges
Rental charge is calculated on a daily based on calendar day inclusive of Sundays and
Public Holidays. The rental charge per day unit basis shall be made known to the
SUBCONTRACTORs prior to rental. Only upon agreement of the rental charge, the
tools and equipment shall be issued to the SUBCONTRACTOR.
5.5 Rental Period
Maximum period of rental shall be 3 (three) months or duration of the contract works
whichever is earlier. The rental charge shall be effective from the date of issuance until
the date return of the tools and equipment to MMHE (Tools Centre)
5.6 Expiry Period of rental Overdue
It is the responsibility if the SUBCONTRACTOR to keep on track of the tools/equipment
rental expiry date or date or return. However, upon due date, reminder will be sent to
the SUBCONTRACTOR who will be decide either to return the tools/equipment or
renew the rental period. A grace period of 14 (Fourteen) days will be given and if
exceeding the grace period a Debit Note will be issued to the SUBCONTRACTORs for
the costs of tools/equipment plus 20% penalty/admin charges for non-return of the
tools/equipment by the SUBCONTRACTOR.
5.7 Notification on Change of Address
It is the responsibility of the SUBCONTRACTOR to notify MMHE in writing of any
change of correspondence address so that notification/reminders could be served.
5.8 Damage Tools/Equipment
If the tools/equipment returned are found damage, charges shall be imposed on the
damage part replacement plus 30% of labour/administration charges.
5.9 Sublet of tools/Equipment
SUBCONTRACTOR are strictly prohibited to sublet the rental tools & equipment to
other parties. If such practice is discovered, the tools shall be confiscated and rental
plus any damage shall be charged accordingly.
5.10 Lost of tools/Equipment
Any loss of tools/equipment must be reported to MMHE Tools Centre & Security
Department within 24 hours. Rental charges shall apply until the report is lodged with
the Tool Centre.
5.11 Security of Tools/Equipment
It shall be the responsibility of the SUBCONTRACTOR to take due care of the tools
and equipment and to abide strictly to the safety rules and regulations of MMHE.
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All tools & equipment on rental irrespective whether the SUBCONTRACTOR had been
charged for loss/non-return or lost and found tools/equipment are still remain the
property of MMHE.
5.12 Requisition Form
The SUBCONTRACTOR shall verify with MMHE that the most current forms, as
provided in Appendix 5 hereto, are used. SUBCONTRACTOR shall utilize only the
forms currently approved by MMHE designated specifically for such purpose.

6. FEE AND CHARGES

6.1 Welding Matters
(a) Welder’s Qualification Test – MMHE will absorb the cost for pass WQT at first
time test only while for the failed WQT shall be charged to the
SUBCONTRACTOR at the rate for each test as specified in Appendix 6 Fee and
Charges.
(b) Fail to turn up within 2 weeks after the date of WQT approval (without reason
acceptable) MMHE will impose penalty charges – RM 50.00 per welder.
(c) MMHE will imposed summon for any faked documents submission on pre-qualify
welder from the SUBCONTRACTOR – RM 50.00 per welder.
6.2 Blasting/Painting Matters
(a) Blaster/Painter Qualification Test – RM 1,700.00 per assessment only Commented [MP1]: This is the old rate. The new rate charged by
IMM is RM1700.00 for assessment only, Training is charge
6.3 Summary of fees and charges to SUBCONTRACTOR workers separately. Total Training Fee is around RM4500.00

- e PASS Form - RM 50/50 pcs

- Medical Form - FOC

Fees

Safety Induction Course - RM 53.00 (inclusive 6% GST) Commented [MP2]: Safety Induction fee:
ePASS Card - Inclusive above cost New: RM53 (inclusive 6% GST)
Repeat: RM21.20 (Inclusive 6% GST)
Induction Book - RM 5.00 (Total RM 41.00) This fee inclusive of e-pass card.
Repeat Course - RM 21.20 (inclusive 6% GST)
For NIOSH/CIDB holder - RM20.00 for e PASS card process. Commented [MP3]: Please clarify this statement. The custodian
(Verified by QHSE) of e-Pass is Security department, please refer to them.
Local Application.

1. Copy of IC
2. 2 pcs of Photo
3. Medical checkup complete with x-ray result
4. CIDB/Green Card
5. Slip of coverall
6. Payment Slip

(Original IC/ MyCard must be verified using the MyCard reader)

The e PASS form must stamp/verified by PMT for the Project. (Bottom of the Application form)
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Foreigner Application

1. Photo 2 pcs,
2. Medical with x-ray
3. NIOSH/Safety Course
4. Slip of coverall
5. Valid W/Permit Verified by Manager/Officer of Security Department
6. Passport
7. Agreement between Company
8. Payment slip

The form must stamp/verified by PMT for the Project. (Bottom of the Application form)

Safety Induction (MMHE’s Safety Course, NIOSH)

All subcontractors – compulsory (either 1 of the above)

Client – Less than 7 days (no payment)
More than 7 days less than 1 month (RM 21)

Temporary Pass

If the company is registered with MMHE - Approved by Manager of Security.

Non Register Company - requested by PMT through e mail to Security.

Validation for Temporary Pass depend on Approval by Manager of Security and Manager of
QHSE (after the expiry or any other reason).
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SUMMARY OF SAFETY INDUCTION IN MMHE

Induction/Briefing Payment
NO Entrants Type of Courses
By for Induction
Subcontractor and WGO Employees
NOSP + 1 hr Safety
√ (RM150)
Briefing (Project QHSE Department
(PPE + e
Core activities such Requirements) for +
pass card)
as Engineering & Engineering &
1.1
Construction, Marine Construction OR
Repairs or Conversion MMHE Induction for HSE Executive in
√(RM 21)
Marine Repair & charge
Conversion
1.
Non-Core activities CIDB
such as workshop 1 hr Safety Briefing
1.2 HSE Executive in χ
construction, earth (Project
charge
works, road works etc. Requirements)
Short term (<7 days)- Divisional
1.3 1 hr Safety Briefing χ
working on specific job Coordinators
Registered participants
Divisional
1.4 (Awaiting for 1 day 1 hr Safety Briefing χ
Coordinators
Safety Induction)

HSE Executive in
2.1 Client χ
charge
Specialist MMHE Special
- Engineers Induction but within a
Divisional
2.2 - Maker or short period. √ (RM 21)
Coordinators
Appointed (Valid for 2 years)
Agents
Ship Divisional
2. 2.3 1 hr Safety Briefing χ
Agent/chandler/supplier coordinators
Government Agencies
- Customs & 1 hr Safety Briefing
2.4 Exercise Dept (Project χ
- Chemist Requirements)
- Pilots QHSE Department
Janitorial/Canteen
2.5 χ
workers 1 hr Safety Briefing
2.6 Visitors (Official) χ
[Open]
TENDER TITLE: PIPING WORKS FOR CPP KASAWARI PROJECT
TENDER NO: MMHE/FIN/SCS-KSDP-A/20/0015
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 1 – MONTHLY PROGRESS MEASUREMENT FORMAT

APPENDIX 1 – MONTHLY PROGRESS MEASUREMENT FORMAT

MONTHLY PROGRESS MEASUREMENT FORMAT

Contract No :
Contract Title :
Project :

CUMULATIVE PROGRESS COMPLETION % AS OF

(WORK ACTIVITY A) (WORK ACTIVITY B) (WORK ACTIVITY C) (WORK ACTIVITY D) (WORK ACTIVITY E) (WORK ACTIVITY F)
ITEM PROGRESS
(% weightage for this activity) (a2) (% weightage for this activity) (b2) (% weightage for this activity) (c2) (% weightage for this activity) (d2) (% weightage for this activity) (e2) (% weightage for this activity) (f2) COMPLETION
ITEM NO. WORK DESCRIPTION WEIGHTED
COMP'N WEIGHTED COMP'N WEIGHTED COMP'N WEIGHTED COMP'N WEIGHTED COMP'N WEIGHTED COMP'N WEIGHTED
%
% % % % % % % % % % % %
(Sum = A + B + C + D + E + F)
(a1) (A x W x a1 x a2) (b1) (B x W x b1 x b2) (c1) (C x W x c1 x c2) (d1) (D x W x d1 x d2) (e1) (E x W x e1 x e2) (f1) (F x W x f1 x f2)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
TOTAL COMPLETION % 100%
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM (CPC)

APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM

CHECKLIST FOR CERTIFICATE PROGRESS CLAIM (CPC)

Among others, the following are the list of documents typically to be submitted by
SUBCONTRACTOR. One or more of the following documents will be submitted to Cost Control for
periodic billing depending on the terms and conditions of the SUBCONTRACT and whichever is
relevant to the services performed. Sequence – Refer as follow:-

CPC FOR MANPOWER SUPPLY, RENTAL OF EQUIPMENT AND CRANE, BLASTING &
PAINTING, SCAFFOLDING, LUMPSUM, MONTHLY PROGRESS FOR CONTRACT, VO,
PERFORMANCE BOND AND RETENTION MONEY AND OTHERS

Item No. Description Remark (/)

1. Original Certificate Progress Claim (CPC)
2. Copy Of Approved Service Order (SO)
3. Copy Of Approved Variation Order (VO)
Copy Of Subcontract document duly signed between MMHE and
4.
SUBCONTRACTOR
Summary Of Timesheet –Approved By Head Of Department (HOD)
5.
/Project Manager (PM) For Manpower Supply And Scaffolders
Punch Card Or Time & Attendance (T&A) Approved By Head Of
6. Department (HOD) /Project Manager (PM) For Manpower Supply And
Scaffolders
Supporting Original Document I.E Overtime Sheet – Saturday Alternate
7. / Public Holiday Approved By GM, Offshore Overtime Or Leave, Single
Swipe Verification, Medical Chit, Etc.
8. Delivery Order, Services Chit And Progress Report
9. Copy Of Approved Variation Order (VO) / Service Order (SO)
10. Word Done Report For VO Approved (If Any)
11. Summary Progress Report
12. Other Supporting Document (If Any)
13. Copy Of Letter Of Award (LOA)
14. Copy Of Certificate Of Acceptance For Claimed 100%
15. Contract Closure Certificate For Claimed 5% Retention

CHECKED BY : ...……………………….
DATE : ………………………….
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM (CPC)

CERTIFICATE OF PROGRESS CLAIM

To : Malaysia Marine & Heavy Engineering Sdn. Bhd.

Plo 3, Jalan Pekeliling
P. 0. Box 77
81707 Pasir Gudang
JOHOR DARUL TAKZIM

ATTENTION : PROJECT MANAGER

Contract No. :
Contract Title :

Date

Expiry date of Performance Bond

Expiry date of Security Bond
Expiry date of Insurance Policies - WC
- PL

RM

Original Contract Sum

Add / Less Variation Order(s) Nos.
New Contract Sum

Value of work done to date - Materials ( %)

Value of work done to date - Labour and Installation ( %)
Total value of work done to-date ( %)
Less : Retention Sum ( %)
Amount Payable
Less Amount Previously Billed
AMOUNT NOW DUE

Ringgit Malaysia :

Claimed by : Date :
(CONTRACTOR Rubber Stamp & Signature)
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

SCHEDULE 3.01 – HSE MILESTONE

Percentage
Milestone Activities of HSE Timeline
Milestone
 MMHE approval of HSE Plan & Programs
 MMHE approval of Safety Promoter
 MMHE approval of PPE to be used for the Project
(list)
 MMHE approval of tools & Equipment to be used
for the Project (list)
 Submitted HSE Evaluation Questionnaires to
MMHE
 All mobilized workers have valid CIDB Green Card
 All mobilized workers have passed the Medical
check-up by the doctors and the drug and alcohol
test by MMHE
 Maintained daily safety meeting/briefing diary
 Provided workmen compensation
 Provided MMHE with list of competent person (i.e
30 Days
No. 1 qualified grinders, riggers and scaffolders) 1% After
 100% closure of Work Readiness Review (WRR) Mobilization

findings.
 Sufficient ratio of Safety Promoter, Fire Watcher,
First Aider, Cleaner & General Worker per mobilized
worker.
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

Percentage
Milestone Activities of HSE Timeline
Milestone
Maintained site HSE controls (i.e. fire extinguisher at
site office, first aid kit/log book, smoking area, etc.)
Consistently submitted weekly HSE report up to this
point
All workers mobilized up to this point must have valid
CIDB Green Card
All workers mobilized up to this point must have
passed the medical check-up by the doctors and drug
and alcohol test by MMHE
Attended HSE training required for relevant personnel
Consistent attendance of SUBCONTRACTOR Top
Management (MD/CEO/GM and PM) in Monthly HSE
Meetings and Walkabout and relevant HSE
Engagements.
Initiate Subcontractor HSE Campaign
Maintained compliance to Permit To Work System
Consistent in meeting Project HSE KPI (UAUC, BOT,
ZeTo Rules Audit, PTW Verification Audit, Near Miss 50%
No. 2 1%
Progress
Reporting Awareness, Touch The Heart) minimum as
per base target.
Administered corrective actions on the findings during
the audit and 100% findings closure within agreed
timeframe.
Maintained compliance on housekeeping program
including ratio of cleaner and general worker per
workers.
Maintained daily safety meeting/briefing diary up to
this point.
Consistently updated and displayed HSE statistics
and updates on a weekly basis up to this point
Maintained sufficient ratio of Safety Promoter, Fire
Watcher, First Aider, Cleaner & General Worker per
mobilized worker.
Maintained Zero (0) LTI Incident.
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

Percentage
Milestone Activities of HSE Timeline
Milestone
 Improved/maintained site HSE requirements
 Consistently submitted weekly HSE reports up to
this point
 Consistent attendance of SUBCONTRACTOR Top
Management (MD/CEO/GM and PM) to in Monthly
HSE Meetings and Walkabout and relevant HSE
Engagements.
 All workers mobilized up to this point must have
valid CIDB Green Card
 All workers mobilized up to this point must have
passed the medical check-up by the doctors and
drug and alcohol test by MMHE
 Maintained compliance of HSE training and
competency requirement.
 Improved/maintained compliance to Permit To Work
System
 Consistent in meeting Project HSE KPI (UAUC, Project
No. 3 BOT, ZeTo Rules Audit, PTW Verification Audit, 0.5%
Completion
Near Miss Reporting Awareness, Touch The Heart)
minimum as per base target.
 Consistently updated and displayed HSE statistics
and updates on a weekly basis up to this point
 Administered corrective actions on the findings
during the audit and 100% findings closure within
agreed timeframe.
 Maintained compliance on housekeeping program
and requirements including ratio of cleaner and
general worker per workers.
 Maintained daily safety meeting/briefing diary up to
this point
 Maintained sufficient ratio of Safety Promoter, Fire
Watcher, First Aider, Cleaner & General Worker per
mobilized worker.
 Maintained Zero (0) LTI Incident.

Note: Above percentage of QHSE and QAQC Milestone shall be prorated based on 10% of
SUBCONTRACT PRICE
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

SCHEDULE 3.02 – QA/QC MILESTONE

Percentage of
Milestone Activities QAQC Milestone Timeline

 Mobilization of QC Technician, Clerk and QC

Coordinator
No. 1  Inspection Tools available. 1%
30 Days After
 Attendance of Project Manager in QA/QC Mobilization
Meeting.

 All Quality summons closed.

 All NCR responded within stipulated times
 All CAR responded within stipulated times
 50% progress inspection report submitted.
No. 2  Leading Indicator above 80 % 2% 50% Progress
 Weld Rejection rate within range ( as agreed
in project TBC )
 Attendance of Project Manager in QA/QC
Meeting.

 All NCR closed

 All CAR closed
 All Quality Summon closed Project
No. 3 5%
 All Inspection reports submitted. Completion
 All punchlist closed.

Note: Above percentage of QHSE and QAQC Milestone shall be prorated based on 10% of
SUBCONTRACT PRICE
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 4 – CHANGE ORDER PROPOSAL

APPENDIX 4 – CHANGE ORDER PROPOSAL

APPENDIX 4.01 – CHANGE ORDER NOTICE FORM

[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 4 – CHANGE ORDER PROPOSAL
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 4 – CHANGE ORDER PROPOSAL

APPENDIX 4.02 – CHANGE ORDER PROPOSAL FORM (COP)

[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 5 – TOOLS LOAN/ RENTAL REQUISITION FORM

APPENDIX 5 – TOOLS LOAN / RENTAL REQUISITION FORM

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P) L/C NO :

TOOLS LOAN / RENTAL REQUISITION - SUB CONTRACTOR CTLR No. :

NO. TOOL CODE DESCRIPTION UNIT QTY REMARK
1.
2.
3.
4.
PROJECT / VESSEL : JOB NO: DEPT. WORKED FOR: COST CENTRE
SUB JOB NO :
BORROWER'S PARTICULAR MMHE APPROVAL
COMPANY NAME : AUTHORISED SIGNATURE :
NAME / EMP. NO :
BORROWER'S CODE : DESIGNATION :
BORROWER'S NAME : ISSUED DATE : EXPIRY DATE :
BORROWER'S I/C NO : ISSUED BY : NAME / EMP NO.
BORROWER'S SIGNATURE : SIGNATURE :
REMARK / MARKING NO. :

MMHE TOOLS CENTRE

DISTRUBUTION - WHITE (STORE COPY)
- GREEN (ORIGINATOR COPY)
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 5 – TOOLS LOAN/ RENTAL REQUISITION FORM

NAME OF COMPANY (SUB-CONTRACTOR) :

BORROWER'S CODE :

SPECIMEN SIGNATURES OF MMHE PERSONNEL TO AUTHORISE

NO. NAME EMP. NO. DESIGNATION SIGNATURE
1.
2.
3.
4.
6.
FOR PROJECT ONLY
APPROVED BY
MAIN JOB NO. SUB JOB NO.

HEAD OF DEPT / PROJECT MGR

[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 5 – TOOLS LOAN/ RENTAL REQUISITION FORM
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 5 – TOOLS LOAN/ RENTAL REQUISITION FORM
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 5 – TOOLS LOAN/ RENTAL REQUISITION FORM
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 6 – FEE AND CHARGES

APPENDIX 6 – FEE AND CHARGES

Welder’s Qualification Test Fee

Partially Supply by
Partially Supply by MMHE
Fully Supply MMHE
Ref Process / Position (without Electrode/wire &
by MMHE (without
Preparatory Works)
Electrode/wire)
1 SMAW 3F or 4F 340 335 318
2 SMAW 3F & 4F 420 409 374
SMAW 1F,2F,3F &
3 479 476 406
4F
4 SMAW 5F 345 340 322
5 SMAW 3G or 4G 468 439 404
6 SMAW 3G & 4G 718 659 588
7 SMAW 6G 8”Sch 80 568 538 502
8 SMAW 6G 8”Sch 120 653 621 586
9 SMAW 6G 8”Sch 160 732 689 654
10 SMAW 6G 6”Sch 80 494 468 433
11 SMAW 6G 6”Sch 120 538 495 460
12 SMAW 6G 6”Sch 160 574 527 492
SMAW 6G 6”Sch
13 700 641 606
XXS
14 SMAW 6GR 575 547 512
SMAW 6G 6”
15 Stainless Steel Sch 2206 2118 2082
160
SMAW 6G
16 6”Stainless Steel Sch 3407 3295 3260
XXS
17 FCAW GS 3F or 4F 326 314 296
18 FCAW-GS 3F & 4F 411 387 352
FCAW-GS 1F,2F,3F
19 647 635 565
& 4F
20 FCAW-GS CS 5F 354 331 313
21 FCAW-GS SS 5F 438 414 396
22 FCAW-GS 3G or 4G 445 421 386
23 FCAW-GS 3G & 4G 664 616 546
24 FCAW-GS 6G 532 495 460
25 FCAW-GS 6GR 809 749 714
26 FCAW-SS 6G 506 476 441
27 FCAW-SS 6GR 791 734 699
28 GTAW 2” CS Sch 40 325 315 298
29 GTAW 2” CS Sch 80 333 321 304
GTAW 2” CS Sch
30 339 325 307
160
GTAW 2” CS Sch
31 358 339 321
XXS
32 GTAW 2” SS Sch 80 461 447 429
GTAW 2” SS Sch
33 549 531 513
160
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 6 – FEE AND CHARGES

Partially Supply by
Partially Supply by MMHE
Fully Supply MMHE
Ref Process / Position (without Electrode/wire &
by MMHE (without
Preparatory Works)
Electrode/wire)
GTAW 2” SS Sch
34 600 581 564
XXS
GTAW + SMAW
35 2205 2120 2085
6GSS 6” Sch 160
GTAW + SMAW
36 3432 3293 3258
6GSS 6” Sch XXS
GTAW + SMAW 6G
37 555 525 489
8” Sch 80
GTAW +SMAW 6G
38 636 606 571
8” Sch 120
39 SAW 1G 805 746 711

Note: MMHE will absorb the cost for pass WQT at first time test only while for the failed WQT shall be
charged to the SUBCONTRACTOR at the rate for each test as specified above.
[Open]
SECTION 5 – ADMINISTRATION PROCEDURES
APPENDIX 6 – FEE AND CHARGES

Provisions by MMHE:

No Description Qty Unit Specification

1 Test Coupon Assembly 1 set Pipe 8" sch 120 ( 1pcs)
2 Electrode (3.2mm) 10 pcs Ø3.2mm
3 Electrode (2.6mm) 10 pcs Ø2.6mm
4 Disc Grind 1 pce 4" x 6mm
5 Cutting disc 8 pcs 4" x 2mm
6 Welding Shield (c/w Clear & dark glass) 1 set 3 clear glasses & 1 Dark Glass
7 SMAW Welding Machine 1 unit Machine & Electricity
8 FCAWSS Welding Machine 1 unit Machine ,Electricity & Accessories
9 Core wire 1 roll Ø1.2mm
10 Grinding machine 1 Unit Machine & Electricity
11 Baking & Holding Oven 2 Unit Machine & Electricity
12 Hand glove 1 Pair Leather Gloves
13 Quiver 1 Unit Quiver & Electricity
14 Power/cup Brush 1 Unit
15 Hand Wire brush 1 Unit
16 Chipping hammer 1 Unit
17 Hand file 1 Unit
18 Pre-heat 1 Unit
19 Man Power 1 per

Preparation Test Coupon

Pipe 8" sch 120
Gas Oxy - CNG
Pipe Cutting Machine
Grinding Machine
Grinding Disc 4" x 6mm
Glove
Visor
Welding Machine
Electrode
Manpower