Laboratory Testing Services Contract
Laboratory Testing Services Contract
Laboratory Testing Services Contract
Whereas;
C. Subcontractor has examined the provisions of the RFP Documents and has
satisfied themselves as to the nature and location of the work, and the general
and local conditions to be encountered in the performance of the work.
The purpose of this Subcontract is to carry out laboratory testing services for the
JEDDAH CENTRAL OCEANARIUM Project on JEDDAH in strict compliance with the
requirements and procedures stated under this Subcontract and the Main Contract to
assure the project Fit for Purpose, including without limitation supply, installation,
execution, completion, testing, labor, materials, tools, supplies, supervision of all
personnel, technical, professional and administrative services and other required
services for performing all OCEANARIUM Project as necessary for the job.
2.2. The Subcontract documents shall constitute an integral whole, and all
documents therein shall be considered as an integral part of the Subcontract,
such that all the said documents shall mutually interpret and complement
each other.
Any disputes or claims arising out of, or in connection with this Subcontract, which
has not been amicably settled, between Contractor and Subcontractor shall be
finally settled by the competent Saudi courts of Jeddah.
Contractor: Subcontractor:
Modern Building Leaders Advanced Construction Technology
Co. Services
Authorized Authorized
Signature: Signature:
Scope of Work:
XXXXXXXXXXXX
XXXXXXXXXXXXXXXX
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Liquidated Damages (% of the 0.1% of the Subcontract Price per day. If the Subcontract Price is not
Subcontract price/day) defined at the time of concluding of the Subcontract, SAR 10,000 per
day
Max Liquidated damages 10% of the Subcontract Price
Commencement Date April 25, 2024
Completion Date July 30, 2027
Governing Laws The Kingdom of Saudi Arabia
Ruling Language (English)
Language of Communication (English)
Method of Measurement as per Annexure D1: Method of Measurement
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SC-1 DEFINITIONS
In this Subcontract, the following words and expressions shall have the meaning stated below:
1.1. "Applicable Laws" means all laws, legislation, ordinances, statutes, rules,
regulations, resolutions, directives, circulars, by-laws, orders, charters, or decrees in
effect at the time the Work is performed and applicable to the Work or any portion
thereof, including without limitation those of the Kingdom of Saudi Arabia.
1.2. "Back-to-back" means the flow-down of all the duties, obligations, and
responsibilities of the Subcontractor, as per the Mandatory Flow-Down of the Main
Contract Provisions annexed with this Subcontract.
1.3. "Contractor" means the entity set out in the Subcontract Form of Agreement and all
its authorized representatives acting in their professional capacities.
1.4. "Country" means the Kingdom of Saudi Arabia.
1.5. “Claim” means a request or assertion by one Party to the other Party for an
entitlement or relief under any Clause of these Conditions or otherwise in
connection with, or arising out of, the Subcontract or the execution of the
Subcontract Works.
1.6. “day” means a calendar day.
1.7. "Defect" means any defect, imperfection, deficiency, or other fault, in or affecting
the Subcontract Works or any part thereof, including any element therefrom which
the Subcontractor is required to provide under this Subcontract.
1.8. "Defects Notification Period" or “DNP” means the period for notifying defects
and/or damage in the Subcontract Works or a Section or a Part (as the case may be)
and Completion of Outstanding Work and Remedying Defects, this period is
calculated from the Date of Completion of the Works or Section or Part under the
Main Contract.
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1.17. “Interim Payment Certificate” or “IPC” means a Payment Certificate issued by the
Contractor for an interim payment for the Works done by the Subcontractor after
applying any related deductions or back charges.
1.18. " Main Contract " Means the Contract between the Employer and the Main
Contractor (MBL).
1.19. “Notice” means a written communication identified as a Notice and issued in
accordance with the Clause (Communication & Notification).
1.20. “Notice of Dissatisfaction” or “NOD” means the Notice one Party may give to the
other Party if it is dissatisfied with any determination.
1.21. “Payment Certificate” means a payment certificate issued by the Contractor to the
Subcontractor.
1.22. “Party” means the Contractor or the Subcontractor, as the context requires.
1.23. “Parties” means both the Contractor and the Subcontractor.
1.24. “Particular Conditions” means the document entitled Particular Conditions.
1.25. "Project" means the Project as defined within the Particular Conditions for which the
Subcontract Works under this Subcontract is being performed.
1.26. “Programme” means a detailed time programme prepared and submitted by the
Subcontractor to the Contractor, which shall show all essential construction activities
and sequence of operations needed for the orderly performance and completion of
the Subcontract Works under this Subcontract and the Mandatory Flow-Down of the
Main Contract requirements.
1.27. “Section” means a part of the Subcontract Works specified in the Particular
Conditions as a Section (if any).
1.28. “Site” means the places where the Permanent Subcontract Works are to be
executed and to which Plant and Materials are to be delivered, and any other places
specified in the Subcontract as forming part of the Site.
1.29. "Subcontract" or "subcontract" means this agreement, made up of the Subcontract
Documents.
1.30. "Subcontractor" means the entity set out in the Subcontract Form of Agreement, its
authorized representatives, successors, and permitted assigns.
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1.31. “Taking-Over Certificate” means a certificate issued by the Employer or the Project
Manager under Clause (Taking-Over of The Works)
1.32. “Time for Completion” means the time for completing the Subcontract Works or a
Section (as the case may be) under Clause [Time for Completion], as stated in the
Particular Conditions, calculated from the Commencement Date.
1.33. “Variation” means any change to the Works, which is instructed as a variation.
1.34. “Subcontract Works" means the Permanent Works and the Temporary Works, or
either of them as appropriate which are to be executed and delivered by the
Subcontractor under this Subcontract and in accordance with the Mandatory Flow-
Down of the Main Contract Provisions.
1.35. “year” means 365 days.
3.1 Subcontractor shall, within seven (7) calendar days of the effective date if this
Subcontract, submit to Contractor for its written approval a detailed
Subcontract Schedule(Programme) meeting the dates established in the
Special Condition titled "COMMENCEMENT, PROGRESS AND COMPLETION OF
THE WORK" and shall show all essential construction activities and sequence of
operations needed for the orderly performance and completion of any separable
parts of and all the Work in accordance with this subcontract.
4.1 Unless otherwise provided herein in this SUBCONTRACT or its documents, Parties
also agree that the Subcontractor shall be deemed to be subject to the same
obligations which apply to the Contractor under the Terms and Conditions of
the Main Contract against the Employer.
4.2 Progress Payment
The certified value for the Services actually provided by the Subcontractor during the
period starting from the twenty-first (21st) day of the previous month and ending on
the twentieth (20th) day of the month in which the invoice is issued (the “Progress
Payment Period”) shall be paid to the Subcontractor by the Contractor in installments
(the “Progress Payment”).
100% of the Subcontract Price shall be paid in accordance with the approved rates
within 28 days following the receipt of the invoice under special forms specifying the
actual work performed and approved by the representative of the Contractor.
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5.1 If the Subcontractor fails to supply/provide the Services in compliance with this
Subcontract and in a timely manner as instructed by the Contractor, the
Contractor shall notify the Subcontractor to take immediate corrective action(s)
within 3 days, in case of the Subcontractor’s failure to take the corrective
action(s) within the time stated above, the Contractor shall apply a deduction by
the way of liquidated damages with 0.1% of the Subcontract Price per day ( If the
Subcontract Price is not defined at the time of concluding of the Subcontract, SAR
10,000 per day) for each day of the Subcontractor’s delay following the above-
stipulated period. Provided that the total liquidated damages shall not exceed
10% of the Subcontract Price.
5.2 Notwithstanding any limitations stated under this Clause, the Subcontractor shall
indemnify, hold harmless, and compensate the Contractor for any losses and
damages incurred by reason of the Subcontractor’s failure to execute its works in
accordance with this Subcontract, the Main Contract, or the project standards.
This includes without limitation any fines, deductions, or back charges imposed on
the Contractor under the Main Contract as a result of the Subcontractor’s non-
compliance with the Subcontract, Main Contract or the project standards.
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1.2 Subcontractor shall perform the Work in accordance with the highest industry
standards as required by this Subcontract. Subcontractor has also represented
to Contractor that it is able to perform the Work with the highest regard to the
safety of all persons and the property of third parties.
2.1 Subcontractor represents that it is familiar with, shall be subject to, and shall
comply with all Applicable Laws in effect at the time the Work under this
subcontract is performed. Subcontractor shall pay any penalties, fines, or
assessments levied by any competent authority resulting from any breach of
this clause by Subcontractor or any lower-tier subcontractor or supplier and
shall indemnify, defend and hold harmless the Indemnified Parties from and
against any Liabilities resulting from such a breach.
2.2 Except as otherwise specified, Subcontractor shall pay all taxes, levies, duties,
and assessments of every nature due in connection with the Work, including
without limitation zakat and social insurance contributions, and shall make any
and all payroll deductions and withholdings required by Applicable Law.
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3.2 If the Employer issues a Change for the omission of any or all Works from the
Subcontractor, Contractor may instruct Other Subcontractors to carry out such
omitted Works, and Contractor shall have no liability to the Subcontractor for
any loss of profit or overhead, loss of opportunity or any other Losses
whatsoever or howsoever arising from the omission of such Works.
3.3 The Subcontractor shall notify the Contractor within 3 working days of
receiving any instruction that in the Subcontractor's opinion is deemed a
change. The Subcontractor shall provide his final cost assessment for such
potential change within 7 days following the notice. In the event of the
Subcontractor’s non-compliance with the stipulated time limits, the
Subcontractor will be deemed waived his right to claim any additional costs.
3.4 Such Change Order shall be in a written form issued by Contractor and signed
and stamped by both parties, specifying the date of such change, the effective
date of Change Order, scope of the Change Order, its time impact, and price
impact (if any), and changed/amended, added or omitted conditions (if any).
(a) All Subcontract Documents and subsequently issued Change Notices,
Change Orders and Amendments are essential parts of this Subcontract.
In resolving conflicts or discrepancies between any of the Subcontract
Documents the following order of precedence shall be used:
4.1 Subcontractor shall at all times conduct its operations under this subcontract in
a manner to avoid the risk of endangerment to health, bodily harm to persons,
and property damage. Subcontractor's failure to correct an unsafe condition
after notice thereof shall be grounds for an order to suspend the affected
operations until the unsafe condition is corrected. In the event of any damages
occurring as a result of this error, the Subcontractor shall be solely responsible
for compensating others for such damage.
GC-5 WARRANTY
Subcontractor warrants to Contractor and Employer for a period from Work
commencement until the expiration of the Defects Liability Period that:
(1) All services will be of the highest professional standard and will comply
with this subcontract.
(2) All supervisors and employees assigned to perform services under this
subcontract shall be fully qualified in their respective categories and will
perform the assigned services with care and diligence.
GC-6 CLEANING UP
Subcontractor shall, at all times, keep its work areas in a neat, clean, and safe
condition. Upon completion of any portion of the Work, Subcontractor shall
promptly remove from the work area all its equipment, construction plant,
temporary structures, and surplus materials not to be used at or near the same
location during later stages of the Work.
GC-7 CONDITIONS
7.1 The Subcontractor acknowledges that he has seen the site and that he is fully
aware of the working conditions, its technical aspects, and the circumstances
of the work area. As well, he acknowledges that he bears the responsibilities
and obligations of the Contractor towards the owner in all matters relating to
the items within his scope of work, and the Subcontractor is responsible for
any damages caused to him within or outside the boundaries of the work
area of the project. Therefore, he is not entitled to return to the Contractor
for any costs or claims resulting from the lack of knowledge of the
Subcontractor of the circumstances of the site and the aspects/customs of
the work and its technical circumstances.
7.2 The Subcontractor acknowledges that he, himself, or his representatives have
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investigated the nature of the work and its circumstances and that he has
obtained all the necessary information that would in any way affect the prices
or the risks of his obligations. Therefore, he is no longer entitled to utilize any
reason, whatsoever, to make the claim of price increases. Furthermore, the
Subcontractor acknowledges that the agreed prices have taken into account all
these circumstances and details and that these prices are not subject to
adjustment, and that the Subcontractor is not entitled to stop working for any
of these reasons.
7.3 The Subcontractor is responsible for all his workers, employees, and
equipment in terms of compliance with regulations and laws, as well as
being responsible for all their rights ensured to them by the labor bureau,
from insurance, valid residences, and other official requirements.
7.4 The Contractor has the right to terminate the works mentioned in this
Agreement, if the owner asks him to do so, without the Subcontractor having
any right other than the work carried out on the site before the suspension of
work.
7.5 The Subcontractor must abide by the rules of security, safety, and
environmental health and must bear any damages resulting from its violation.
7.6 The Subcontractor is obliged to insure all his workers according to the labor
system and in the event of the death of a worker - God forbid - the
Subcontractor is fully responsible for the expenses and compensation for
this work.
7.7 The Subcontractor has no right to request the Ministry of Labor for the
issuance of work visas based on this Agreement.
7.8 The duration of the Agreement may only be exceeded by the approved
consent of both parties.
7.9 In the event that the Subcontractor does not carry out the work in the
required duration or quality, the Contractor has the right to carry out such
work or to assign another contractor to carry out that work, with the
Subcontractor being charged any additional expenses resulting from this, as
a discount from his invoices.
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GC-9 SUSPENSION
9.1 Contractor may by written notice to Subcontractor suspend the Work under
this subcontract in whole or in part at any time. Upon receipt of such notice,
Subcontractor shall discontinue Work to the extent specified in the notice;
continue to protect and maintain the Work; take any other steps to minimize
costs associated with such suspension, and provide suspension costs
estimates.
9.2 Upon receipt of such notice, the Contractor shall pay the Subcontractor all the
Works completed up to the date of suspension.
9.3 Upon receipt of notice to resume suspended Work, Subcontractor shall
immediately resume performance under this subcontract to the extent
required in the notice.
GC-10 TERMINATION
10.2 The Contractor has the right to terminate this Subcontract and to claim
compensation against the Subcontractor in case the Subcontractor
communicates with the Employer of any kind without the prior consent of the
Contractor.
10.3 The Contractor has the right to terminate the Subcontract and to claim
compensation against the Subcontractor in case the Subcontractor discloses
any Confidential Information or document to the Employer without the prior
written consent of the Contractor.
11.2 Any work covered prior to any quality surveillance or test by Contractor or
Employer shall be uncovered and replaced at the expense of Subcontractor if such
covering interferes with or obstructs such surveillance or test. Failure of Contractor
or Employer to make such quality surveillance or to discover defective design,
equipment, materials or workmanship shall not relieve Subcontractor of its
obligations under this subcontract nor prejudice the rights of Contractor or
Employer thereafter to reject or require the correction of defective work in
accordance with the provisions of this subcontract
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This Subcontract shall be governed by and construed in accordance with the applicable
laws of the Kingdom of Saudi Arabia.
GC-13 Waiver
No relaxation, forbearance, delay, or indulgence by the Contractor in enforcing any of the
terms and conditions of the Contract or the granting of time by the Contractor to the
Subcontractor shall prejudice, affect or restrict the rights of the Contractor under the
Subcontract, nor shall be considered as a waiver or implied acceptance by the Contractor
of any breach of the Subcontract.
Any waiver of a Contractor’s rights, powers or remedies under the Contract must be in
writing, dated and signed by the Contractor's Authorized person of the Contractor
granting such waiver, and specify the right and the extent to which it is being waived
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The quantity of the Subcontract's Services will be measured per “hour/test/Each”. The Subcontractor
will be responsible for providing the mentioned full services to the Contractor/his Representative and
will be liable to rectify any remarks.
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Not used
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