04 Contract Specification Revised 1
04 Contract Specification Revised 1
04 Contract Specification Revised 1
CONTRACT SPECIFICATION
Revised SL # 1
Page 1 of 1
KUWAIT OIL COMPANY (K.S.C.)
(Register of Commerce No. 21835)
CONTRACT SPECIFICATION
- for –
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS
ASSOCIATED WITH 11kV AREA SUBSTATIONS 1 AND 2 IN S&EK AREA
TABLE OF CONTENTS
1. Scope of Work
2. Subcontracting
3. Superintendent and Superintendent’s Representative
4. Material Supplied by the Company and Contractor
5. Contractor’s Personnel
6. Kuwaitization
7. The Site and Temporary Works
8. Health, Safety and Environment
9. Insurance
10. Date for Commencement and Date for Completion
11. Program of Work and Shutdown
12. Contract Price and Method of Payment
13. Liquidated Damages
14. Incentives for Early Completion
15. Notices
16. Performance Bond
17. Modifications to the General Conditions of Contract
18. Specific Obligations under Kuwaiti Law
19. Compliance with New Public Tender Law
20. Works Not Included
21. Training of Company Personnel
22. Progress Reports and Review Meetings
23. Project Administration, Coordination Procedures, Documents & Submittals
24. Compliance to HSE Studies and Recommendations
25. Suspension Of Works due to Delay in Construction of Upstream Substation
26. Assistance By Company
27. Working Hours
28. Quality Assurance Plan
29. Technical Meetings and Workshops
30. Removal of Redundant Material
31. Readiness for Work
32. Concession
33. Tools, Transport and Equipment provided by the Contractor
34. Third Party Inspection
35. Inspection, Testing and Commissioning
36. Documentation and Submittals
37. Contaminated Soil Disposal
38. Type Test Certificates
39. Warranty
40. Certificate Of Completion, Final Acceptance Certificate And Defects Liability
Period
Revised SL # 1
Page 1 of 65
KUWAIT OIL COMPANY (K.S.C.)
(Register of Commerce No. 21835)
CONTRACT SPECIFICATION
- for -
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS
ASSOCIATED WITH 11kV AREA SUBSTATIONS 1 AND 2 IN S&EK AREA
1. SCOPE OF WORK
1.1 The Scope of Works shall include but not limited to field survey, Site investigation,
slit trench survey and geo-technical investigations, detailed design and engineering,
planning, procurement, factory acceptance tests, supply of materials, installation,
construction, and Site acceptance test, pre-commissioning and commissioning of the
facilities listed here under complete with all associated works as summarized below
and detailed in the contract for 11 kV power distribution network with associated
wellhead substations and all related Works.
1.1.1 The Works involve construction of new RMU substations and power distribution
network cable, complete in all respect, in order to feed number of ESP wells in
S&EK Area complete with electrical, civil, structural Works and all associated
Works as per Technical Specifications.
1.1.3 Design, detailed engineering of power distribution network complete with wellhead
substations with all associated Works;
1.1.4 The Contractor shall perform electrical system studies using ETAP™ software,
measurement of harmonic voltages and currents for existing ESP variable speed
drives and at main 11 kV intake substations;
1.1.5 All associated civil and structural Works as described in the Contract;
1.1.7 The Contractor shall carry out Health, Safety, Security and Environment (HSSE)
Works in accordance with Technical Specification.
1.1.8 The Contractor shall provide HSE services including development of HSE
management system and HSE plans. Carrying out activities as per the HSE plans
and Company’s HSE Procedures, surveying the Sites for carrying out Hazard
Identification Study (HAZID), Quantitative Risk Assessment (QRA), preparation of
HSE risk registers, and carrying out Project Health/Safety/Environment Reviews
(PHSER), HSE training etc.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
1.1.9 The design, construction and commissioning shall conform to the necessary health,
safety and environmental procedures to protect personnel and surrounding
environment.
1.1.10 The Works also include all general requirements such as mobilization of manpower,
plant and equipment, obtaining necessary licenses and permits, complying with
statutory requirements, transportation and accommodation of Contractor’s
manpower and management of subcontractors.
1.1.12 Carrying out Fire Safety Works for new wellhead RMU substations as per
Technical Specification involving provision of manual fire extinguishers, windsocks
and the like;
1.1.16 The Contractor shall perform the Works strictly in accordance with Drawings and
specification as stated in the Contract and shall be subject to written acceptance by
the Company upon its completion. The Company reserves its rights to refuse
payment to any unauthorized Works rendered by the Contractor, and shall not
accept any claim or request for Adjustment Orders under the pretext of an implied
acceptance unless the Superintendent had approved such Works in writing.
1.1.17 With reference to the ESP wells of the power network Works, Technical
Specification and Drawings regarding indicated location coordinates. The Company
is planning to drill a certain number of wells in future, and the location coordinates
of such wells indicated in Technical Specification and Drawings are tentative.
1.1.18 The Company does not guarantee that the number of wells included in the power
distribution scheme shall be exactly as per the details included in the Technical
Specification, and the number of ESP wells may vary. The Contractor’s work
locations in S&EK area can be Magwa, Ahmadi, Central Burgan or South Burgan,
depending on the final power distribution scheme accepted by the Company.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
1.1.19 The Contractor shall take single point responsibility for the execution of the Works
with no assistance from the Company other than that detailed in the Contract.
1.2 Engineering
1.2.1 The Contractor’s scope includes design and engineering work associated with the
new facilities as well as integration into existing systems, as more particularly
described in the Technical Specification.
The following new clause 57.0 (Contractor’s Design and Engineering) shall be
inserted into the General Conditions of Contract:
57.2 The Contractor, while performing design and engineering, shall ensure that
the facilities constructed upon completion of the Works meet the technical
requirements, performance criteria, performance guarantees, and the
necessary requirements of safe and efficient operation and maintenance;
all as required by the Contract, including the Contract Specification and
Technical Specification.
57.3 The Contractor, before finalising its design, shall propose appropriate
modifications and/or additions which it considers may achieve a better
integrated or optimised design. Where the Contractor wishes to make such
modifications and/or additions to the design detailed in the Technical
Specification, it shall promptly notify the Company pursuant to clause
33.1. The Company may either accept or reject such proposed
modifications and/or addition. Any proposed modification of or alteration
to the Contractor’s engineering or design work previously approved by the
Superintendent, with a view primarily to achieving efficiencies in cost to
the Contractor, shall not be approved by the Company, in its sole
discretion, if such proposals are submitted without a commensurate
reduction in the Contract Price. The Company may reject such proposals
without any reasons therefor.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
57.4 The Company may review both the nature and the progress of the
Contractor’s design and engineering work as it proceeds to the extent
deemed necessary by the Company. The Company in carrying out such
reviews, shall cooperate, to the extent possible, with the Contractor so as
not to increase unreasonably the Contractor’s engineering costs or delay
the Works.
57.5 The Contractor shall prepare and submit for the Company’s review and
approval all designs, calculations and methodology of computing the
calculations, drawings, data sheets, procedures, proposals, catalogues
including any other relevant document as deemed necessary by the
Company within the period specified in the Contract Specification, and
where no period is specified, the Contractor shall submit them within the
period specified in the Programme. The Superintendent shall notify the
Contractor of his approval or disapproval together with details of any
modification considered necessary within twenty-one (21) Days of receipt
of such design documentation.
57.6 The Contractor shall resolve and include the Superintendent’s comments
and the documentation revised by the Contractor shall be resubmitted
within fourteen (14) Days to the Superintendent for further review and
approval and the Superintendent shall respond within twenty-one (21)
Days of receipt of the revised documentation. In the event, however, that
the Contractor fails to comply with or include the Superintendent’s
comments referred to in clause 57.5, it shall provide the Superintendent
with justification for not complying. The Superintendent, where he does
not agree with the justification, shall advise the Contractor within twenty-
one (21) Days and the Contractor shall comply with the Superintendent’s
instructions. In the event the Contractor, on its own, introduces changes to
the documents previously reviewed and commented upon by the
Superintendent under clause 57.5, such changes shall be accompanied with
valid technical justification and the changes noted for further review. In
such event, the Superintendent shall respond to the new changes within
twenty-one (21) Days. The Contractor’s compliance with the procedures
described in this clause 57 herein shall be deemed to have been built into
the Contract Price, the Programme and the Date for Completion.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
57.7 The Contractor shall ensure that its design and engineering work are
carried out in proper sequence and in accordance with the Programme to
allow adequate review period for the Company, including any subsequent
Contractor’s amendment and re-submittal as directed by the
Superintendent for further review and approval until all Company
comments are finally resolved. The Contractor shall not be entitled to any
extension of time or resultant cost for any delay in the Works due to
Contractor’s failure to follow the proper sequence in preparing and
submitting the drawings, not obtaining adequate Site details, not
performing proper Site survey and slit trenching, late submission of the
engineering, design or drawings to be prepared and submitted pursuant to
the Contract.
57.11 The Contractor shall ensure that drawings submitted by it (including as-
built drawings pursuant to clause 9 herein) comply with the Company’s
Engineering Drawing Practice Code (Doc. No. EG-DO-C-001)
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
1.2.2 The Superintendent shall notify the Contractor of his approval or disapproval of
documentation under any of the following categories:-
The Contractor shall update all documents (other than ‘information’ category
documents) to category (A), and subsequently to ‘AFC’ status (‘Approved for
Construction’) after incorporation of all related engineering information. Similarly,
sub-contractors and vendors shall bring all documents to ‘AFM’ status (‘Approved
for Manufacture) / ‘AFF’ (‘Approved for Fabrication’). Site construction or
installation works shall consider AFC documents only, whereas manufacturing /
fabrication shall consider AFM / AFF documents only. In this Contract
Specification, reference to ‘AFC’ also includes reference to AFM / AFF.
1.2.3 The Contractor shall submit to the Company documents and drawings as listed in
Appendix I to Contract Specification and the Technical Specification including
Company’s Standards and International Codes and Standards.
1.2.4 The Contractor, within thirty (30) Days after the Date for Commencement, shall
submit to the Superintendent a schedule for submitting the Engineering Deliverables
specified in the Technical Specification.
1.2.5 The Contractor shall compile all the drawings, documents, vendor data sheets and
calculations under one master index and submit dossiers in the manner described in
Technical Specification Part I - General.
1.2.6 The Contractor shall verify and endorse all information given by the Company and
advise the Company of any omission or discrepancy and obtain approval prior to the
performance of any construction activities.
1.2.7 Approval given by the Company in respect of design calculation, Drawings, design
details, reports and specification shall not relieve the Contractor from any of its
responsibilities under the Contract nor from its responsibility for the accuracy of the
design and for providing workable facilities meeting the requirements of the
Contract.
1.2.8 Where the Technical Specification stipulate different standards relative to the same
matter, the most stringent of such standards shall apply, as directed by the
Superintendent.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
1.2.9 The Contractor shall obtain Company drawing numbers and shall incorporate the
number in the Contractor’s drawings prior to submitting the as-built drawings. The
Company's requirement for "as-built" drawing documentation, including prints,
electronic copies, project dossiers, operating and other manuals, reports and
inspection certificates are in Appendix I to Contract Specification.
1.2.10 The Contractor shall be responsible for the accuracy of all the approved Drawings
and documents comprising the deliverables.
1.3.1 With reference to clause 9 of General Conditions of Contract and clause 27 herein,
the Contractor shall ensure that all as-built Drawings shall comply with the
Company’s Standard Specification for Draughting and Microfilming. Revision
letters shall be alphabetical and not numerical and the drawings shall bear ‘‘AS-
BUILT’’ stamp. The Contractor shall supply reproducible and copies of as-built
drawings as well as electronic drawings file with same file name as drawing number
in Auto cad (latest version) on CD diskette unless stated otherwise in Technical
Specification. If there are no deviations, the Contractor shall provide the drawings
signed and marked with the words ‘‘AS-BUILT, WITHOUT DEVIATION FROM
THE ORIGINAL DESIGN.’’ As built drawings shall be prepared by Contractor,
incorporating the as built status of Works executed under this Contract, in the latest
as built drawings available (to be provided by Company) at that time. These shall be
submitted within one (1) month from the date of Certificate of Completion.
1.3.2 In addition to the requirement under clause 1.3.1 above, the Contractor shall also
submit the Company’s original Drawings marked up as-built
2. SUB-CONTRACTING
2.1 With reference to clause 5.1 of the General Conditions of Contract, the Contractor
shall subcontract the Works listed hereunder. The Contractor shall propose suitable
sub-contractors, subsequent to Contract award, and submit relevant details for
Company approval meeting the pre-qualification criteria provided for each category
of work as per Appendix VII to Contract Specification.
a) Health Studies
b) Safety Studies
c) Design and Engineering
d) General Inspection Services
e) Third Party Inspection
f) Soil Analysis (contaminated soil)
g) Civil works
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
2. SUB-CONTRACTING (CONT’D)
2.2 In the event that the Contractor intends to carry out any of the Works specified in
clause 2.1 herein by itself, the Contractor shall officially inform the capability to
perform these Works in line with clause 2.1 herein along with the relevant
supporting projects of comparable type, size and complexity for the Company’s
review and approval.
2.3 Subcontracting for specialized jobs such as HSE studies, thrust boring, and micro-
tunneling etc. shall be subject to prior approval of the Superintendent as per clause 5
of General Conditions of Contract.
2.4 The Contractor shall not sub-contract the whole of the Works. The Company may
approve Subcontractor for supply of non-key personnel and equipment for
additional quantum of Works only in case of increase in workload as per clause 24.3
herein
2.5 The Contractor shall submit details of the Subcontractor’s credentials in the
prescribed format provided in Appendix VII to Contract Specification along with
supporting documents for Company’s review and approval. The Contractor shall
sub-contract Soil Investigation to a reputed agency with proven experience in such
Works, with credentials accepted by the Company
2.6 The Contractor, after obtaining prior approval of the Company, shall subcontract
Civil Works as specified in Appendix VII to Contract Specification and obtain
Company’s prior approval to engaging such Subcontractor.
2.7 Electrical power system studies shall be sub-contracted to the Design & Engineering
sub-contractor pursuant to clause 2.3 herein or an independent consulting agency
with minimum 5 years relevant experience (with credentials accepted by Company),
and with the actual studies carried out by degree-qualified Electrical Engineers with
minimum of 12 years professional experience and with advanced certifications in
ETAP® power engineering software issued by authorized agencies of Operation
Technology Inc. (USA) or the licensor of ETAP®, with the credentials of the
proposed personnel requiring Company’s prior approval. Sub-contracting with
individuals will not be accepted.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
2. SUB-CONTRACTING (CONT’D)
2.8 The engineering coordinators of various engineering disciplines of the design and
engineering consultant, along with their support staff, shall be available in Kuwait
for the complete duration of engineering Works until the final approval of Vendor’s
documents, as well as during installation, testing and commissioning of Works.
2.10 Other specialized Works/ services to the Company’s list of approved contractors
under appropriate category and approved by the Superintendent.
2.11 The Contractor shall sub-contract the harmonic measurement Works as part of
Electrical Works to a reputed agency with proven experience in such Works, with
credentials accepted by the Company.
3.1 With reference to clause 22.1 of the General Conditions of Contract, the
Superintendent shall be the Company’s Team Leader Project Management I
(S&EK) or such other person as is notified in writing to the Contractor by the
Company.
3.2 With reference to clause 22.6 of the General Conditions of Contract, the
Superintendent’s Representative shall be the Company’s Senior Engineer Project
Management I (S&EK) or such other person(s) as is notified in writing to the
Contractor by the Superintendent.
4.1 With reference to clause 23 of the General Conditions of Contract, the Company
shall not supply any material for the Works.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
4.2 With reference to clause 16 of the General Conditions of Contract, the Contractor
shall provide all the material for the Works.
4.3 With reference to Clause 16.2 of the General Conditions of Contract, the Contractor
shall procure all materials and equipment for the Works only from the Company’s
approved manufacturers and vendors listed in Appendix II to Contract Specification,
unless the Superintendent otherwise authorizes in writing, and shall comply with the
requirements of the Technical Specification. If any material is not listed in
Appendix II to Contract Specification, the Contractor shall check with the Company
and obtain the list of the Company’s approved manufacturers. Alternatively, if the
Contractor likes to propose a manufacturer which is not listed in the particular
category of Company-approved Vendor/ manufacturers list; the Contractor shall
ensure that the manufacturer shall apply for the pre-qualification with the Company
and obtain Company approval prior to proposing such manufacturer. The
Contractor/ manufacturer can obtain prequalification evaluation questionnaires from
the Company website, www.ebusiness.kockw.com (by selecting “Manufacturers
PQ’s” tab). The Contractor acknowledges that such review/ approval period shall
not delay the Date for Completion of the Contract and shall not be attributable to the
Company. Without prejudice to this clause, any approved manufacturer or Vendor
has been recommended by the Company are independent entirely and are not agent
or deemed to be agent of the Company and shall be solely liable for their own acts
or omission towards the Contractor or any third party.
4.4 With reference to clause 16.4 of General Conditions of Contract, the change of
manufacturer to other Company approved manufacturer shall not require an
Adjustment Order. However, it shall require an approval from the Company as per
clause 16.4 of the General Conditions of Contract.
4.5 With reference to clause 35.3 of the General Conditions of Contract, the Contractor
shall ensure to transfer the manufacturer’s warranties, guarantees and software
licenses to the Company with respect to the equipment and software incorporated in
the Works before the issue of Certificate of Completion.
5. CONTRACTOR’S PERSONNEL
5.1 With reference to clause 10.1 and 10.2 of the General Conditions of Contract, the
Contractor’s Project Manager as listed in in clause 5.3.1 herein, may also carry out
the duties of the Contractor’s Representative.
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.3 With reference to clauses 10 and 11 of the General Conditions of Contracts, the
Contractor shall employ key personnel who shall be under the direct sponsorship of
the Contractor. The key personnel, based on the project organization structure, are
responsible for project management, construction management, technical
management, contract administration, Site administration, quality and HSE
management, overall Site supervision, design coordination, design quality assurance
etc.
5.3.1 With reference to clause 11 of the General Conditions of Contract, the Contractor in
particular shall employ the following key personnel on full-time basis throughout
the Contract Period as minimum. These key personnel shall be available on the Site
within thirty (30) Days from the Date for Commencement.
5.3.2 With reference to clause 11 of the General Conditions of Contract, the Contractor
shall deploy employ the following personnel as minimum, in addition to key
personnel as per clause 5.3.1 above, and mobilized prior to start of construction
works. These personnel shall be on the Site on the 1st day of start of construction
Works and shall be present whenever the respective Works are being executed as
per approved Work program:-
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.4 The Contractor shall increase the number of key personnel specified in clause 5.3
herein if required based on approved Work program, without any additional cost to
the Company.
5.5 Requirement of Environment Officer and Industrial Hygiene Officer specified in HSE
Guidelines for Contractor are not applicable for this Contract.
5.6 The Contractor, with reference to clause 11.2 of the General Conditions of Contract,
shall submit to the Company details of the personnel listed in clause 5.3 herein and
other supervisory personnel and the skilled tradesmen for Company’s approval.
5.7 With reference to clause 11.1 of the General Conditions of Contract, the
qualifications and professional experience requirements of the key personnel as
specified in clause 5.3 herein are as follows:
5.7.1 The Project Manager shall have at least a University Bachelor’s degree in Electrical
Engineering with a minimum of 20 years relevant experience in Oil & Gas Industry.
5.7.2 The Construction Manager shall have at least a University Bachelor’s degree in
Electrical Engineering with a minimum of 15 years relevant experience in
construction related works in Oil & Gas Industry.
5.7.3 The Procurement Engineer shall have at least a University Bachelor’s degree in
Electrical Engineering with a minimum of 7 years relevant experience in project
procurement activities.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.7.4 QA/QC Engineers shall have at least a University Bachelor’s degree in the
appropriate Engineering discipline with a minimum of 7 years relevant experience.
5.7.5 Design Coordination Engineers shall have at least a University Bachelor’s degree in
the appropriate Engineering discipline with a minimum of 7 years relevant
engineering design experience in Oil & Gas Industry.
5.7.6 Planning Engineer shall have at least a University Bachelor’s degree in Engineering
and with Primavera® software application certification, with a minimum of 7 years
relevant experience.
5.7.7 Draughtsman shall have at least a trade certificate in the appropriate Engineering
discipline, possess AutoCAD® software application certification, and with a
minimum of 5 years relevant experience.
5.7.8 Document Controllers shall have at least a High school diploma, possess software
application certification in Microsoft Office® package suite and other specialized
software applications for document control, and with a minimum of 3 years relevant
experience.
5.7.9 Material Controller shall have at least a high school diploma, with a minimum of 7
years relevant experience.
5.7.10 Surveyor shall be responsible for both land surveying and quantity surveying and
shall have at least a professional diploma in surveying or Civil Engineering, and
with a minimum of 7 years relevant experience.
5.7.11 Construction Engineers shall have at least a University Bachelor’s degree in the
appropriate Engineering discipline with a minimum of 7 years relevant experience
in Oil & Gas Industry.
5.7.13 Foremen shall have the relevant trade certification with minimum 7 years relevant
experience in in Oil & Gas Industry.
5.7.14 HSE personnel shall meet the qualification criteria as per the HSE procedure
KOC.GE.033.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.7.15 Paramedics shall have qualifications acceptable to Ministry of Health (Kuwait) and
approved by Company’s Ahmadi Hospital. Such approval by the Company is only
for the Contract, and does not authorize the paramedics to practice first aid
measures to the general populace of Kuwait.
5.8 The Contractor shall submit, within fifteen (15) Days starting from the date of the
signing of the Contract, detailed curriculum vitae with qualification and experience
certificates of the key personnel as specified in clause 5.3.1 herein and other
supervisory and skilled tradesmen for evaluation and approval by the Company.
Once approved by the Superintendent, the Contractor shall not replace or remove
the personnel without prior approval of the Superintendent in writing.
5.9 In addition to the personnel specified above, the Contractor shall keep additional
personnel of the same or any other category depending on the workload and shall
have adequate numbers of other engineers, supervisors, Foremen, and Site working
personnel of various trades and construction equipment. The Contractor shall have
enough manpower and other resources to handle the workload of the Contract.
5.10 All key personnel and additional personnel in those positions shall be subject to
interview and/ or trade tests and the Superintendent shall approve them prior to their
engagement on the Works.
5.11 The Contractor shall ensure that its 11 kV cable jointers have valid Company
approved certificates and are fully qualified with proven experience in similar type
of work. The Contractor shall arrange for their trade test and certification, if
required, by the Company.
5.13 During leave/ absence/ non-availability of the Contractor’s approved key personnel,
the Contractor shall arrange sufficiently similar and suitable replacement, and
obtain approval from Superintendent in writing well in advance. The Superintendent
shall be the sole authority to determine whether qualification of such replacement
personnel are sufficiently similar to that of the replaced personnel. The Contractor
shall not allow any approved person to proceed on leave without handing over of
the pending Works and duties to the approved replacement, otherwise the Company
will consider the person as absent and deduction for absenteeism shall be applicable
as indicated in the following clause.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.14 Where any of the personnel listed in clause 5.3.1 is absent from the Site without the
Company’s approval or the Contractor has delayed the mobilization of any key
personnel at Site, the Company shall deduct at the unit rates for such personnel
specified in Attachment No. 2 to Form of Tender.
5.15 The Contractor’s ambulance shall be available at Site within thirty (30) Days from
the Date for Commencement. The Company shall apply deduction of Kuwaiti
Dinars thirty (KD. 30/-) per day for non-availability/ or delay in mobilization of
ambulance at Site.
5.16 The Contractor accepts that reduction of the payment for absence or non-availability
of the key personnel specified in clauses 5.14 & 5.15 herein is a genuine pre-
assessed and pre-agreed Company’s losses in case of the Contractor’s default in not
providing the required personnel & vehicles, and is not intended nor is it to be
construed as a penalty in any way whatsoever. The reduction specified in this clause
shall be over and above the remedies and powers as per clause 34 herein.
5.17 All manpower necessary to execute the Works including the specified increased
volume of Works shall be under the direct sponsorship of the Contractor except for
the specified Works/Services which can be sub-contracted as per clause 2 herein.
5.18 The Contractor, together with approved Subcontractors, shall employ on the Works,
the required number of skilled and unskilled personnel including welders, riggers,
fabricators, painters, scaffolding personnel, carpenters, bar benders/placers, masons,
electricians and electrician mates, cable jointers, technicians, laborers, helpers,
crane operators, equipment operators, vehicle drivers and the like.
5.19 The Contractor shall employ one (1) Administration Officer (“Mandoub”), with
knowledge of Arabic language, and responsible for submission and collection of
documents from Company, restricted area passes etc. as well as transfer and
collection of documents between Company and any governmental agencies.
5.20 The Contractor shall employ Original Equipment Manufacturers (OEM) specialists
to provide assistance during installation, testing, pre-commissioning,
commissioning, and performance acceptance testing.
5.21 The Contractor shall have an appropriate organizational structure suited to manage
the Works in an effective manner, and the Contractor shall designate the concerned
personnel (senior engineer or manager level) with single point responsibility for:-
(a) HSE;
(b) QA/QC;
(c) Design and engineering coordination; and
(d) Materials procurement.
Such personnel shall carry out regular Site and vendor audits, and attend meetings
with Company as required.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
5.22 The Contractor shall have a design and engineering coordination department with
degree qualified engineers in various disciplines, well experienced in project
engineering and coordination of substation and power distribution related projects,
who shall be responsible for design and engineering coordination with sub-
contractors and manufacturers. This stipulation is in addition to the requirement of
sub-contracting of design and engineering works to a suitable consultant as per
clause 2 herein.
5.23 The Contractor shall provide adequate number of mobile phones to all its key
personnel and its other construction group personnel listed in clause 5.3 above for
proper communications between them and Company staff.
5.24 All key personnel who are required to visit remote locations on regular basis shall
have dedicated four-wheel drive vehicle for project coordination purpose.
5.25 The Contractor shall ensure the availability of the concerned personnel from the
design and engineering works sub-contractor (pursuant to clause 2 herein), as
required, for site surveys, installation inspection, site testing and commissioning,
meetings with Company, resolving technical issues and the like.
5.26 The Contractor’s key personnel as per clause 5.3 shall report to the Site offices for
time keeping, on daily basis, and shall be available there or at the work Sites.
5.28 The Contractor shall have the required personnel to execute the Works as per the
approved program of works as per clause 11 herein.
6. KUWAITISATION
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
7.1.1 With reference to clause 15.2 of the General Conditions of Contract in respect to the
Site office, the Contractor shall provide a fully furnished Standard Temporary Site
Office Installation Type (C) as specified in Appendix VI to Contract Specification
for Company use.
7.1.2 The Company shall not provide a land telephone line for the Site office and store
yard. It shall be the Contractor’s responsibility to provide mobile phones to his
personnel and computers with mobile internet connections and printers/copiers for
his site office.
The Contractor shall also provide mobile internet connections in all the computers
at the Site Office meant for the exclusive use of Company’s personnel as per the
description of the Site Office in Appendix VI to Contract Specification. The cost for
such shall be deemed to be included in the Contract unit rates. The Contract price
shall include the cost of such mobile phones, internet connections, subscription and
calling charges and the like for its personnel.
7.2 With reference to clause 15.11 of the General Conditions of Contract, the Company
shall not provide any electric power supply to the Site offices, workshop, stores and
the like, and Contractor has to make own arrangements for provision of power
supply through diesel-generator sets complete with electrical switchgear, power
distribution, diesel fuel storage tank with regular refueling of tank etc.
7.2.1 The Contractor shall make provision of regular supply of potable water to Site
offices, removal of waste and sewage, refueling of diesel tanks, maintenance of
installation and the like and cost for such shall be included in the Contract Price.
7.2.2 The Contractor shall provide temporary storage yards for materials/ equipment.
7.2.3 The Company shall provide free of cost to the Contractor, for use solely in
connection with this Contract, a suitable plot of land for the Contractor to build
storage yard and office facilities in South & East Kuwait area.
7.2.4 In case the Contractor requires telephone connections from Company telephone
exchange for its Site office, the cost of installation incurred by the Company for
providing telephone connection and subscription charges (if any) shall be charged to
the Contractor. The Company does not guarantee availability of such telephone
connections.
7.2.5 With reference to clause 23.5 of General Conditions of Contract, the Company shall
not provide cranes for loading/offloading of materials at the Site Office.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
7.2.6 With reference to clause 15 of the General Conditions of Contract, the Contractor
shall carry out necessary survey, Site exploration/investigation in liaison with the
Superintendent’s Representative, within fifteen (15) Days of the date of Contract
signature, and submit for approval within fifteen (15) Days thereafter, at least two
(2) locations for the Site offices, stores and fabrication facilities. Upon approval of
proposed locations, the Contractor shall install the Site offices, storage and
fabrication facilities. Any delay to the installation of the Site offices due to
identification of proper location, renew and approval of location land shall not affect
the commencement and progress of the Works.
7.2.7 The Contractor shall erect Site office after obtaining approval from the Company on
location and layout of the Site office.
7.2.8 With reference to clause 15.3.14 of the General Conditions of Contract, the
Contractor shall ensure that the required security personnel are available in the Site
office after working hours (overnight) and on non-working days and holidays for
the purpose of security of materials stored in the Site office.
7.2.9 With reference to clause 15.8 of the General Conditions of Contract, the Contractor
shall deliver the non-toxic/non-hazardous waste and rubble to the Municipality
approved waste dumping area on the Seventh Ring Road or any other approved
location.
7.2.10 The Contractor shall comply with the Company Standard KOC-C-35 for the Site
office, stores and workshop.
7.2.11 The Site office, stores and associated facilities shall have adequate artificial lighting
and fire detection system with remote alarm through GSM auto-dialer (SIM card
provided by the Contractor).
7.2.12 The Site offices shall be complete in all respects, within sixty (60) Days from the
date of approval of the Site office locations, failing which liquidated damages shall
apply in accordance with clause 13 herein.
7.3.1 The Contractor shall provide, for use of its and sub-contractor’s personnel, trailer
mounted Site offices for use at worksite area, complete with power supply (diesel
generator and fuel tank), lighting, air conditioning, potable water tank, toilets,
grounding system, first aid facilities and the like; and in addition, adequate number
of mobile toilets and wash room facilities at Site. All mobile urinals without water
supply shall be “chemical (waterless) type”.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
7.3.2 At worksite area, as required by Company, the Contractor shall provide, for
exclusive use of Company supervisors, trailer mounted Site office with adequate
space for two (2) persons or allocate a separate room in the Contractor’s mobile Site
office for key personnel. The separate Site office (when provided) for Company
personnel shall be complete with power supply (diesel generator and fuel tank),
lighting, air conditioning, potable water tank, toilet, grounding system, first aid
facilities and the like.
7.3.3 The Contractor shall provide, if required, mobile stores (lockable) at the worksite
areas for storing small tools, tackles, equipment and the like.
7.3.4 The mobile Site offices shall be equipped with First-Aid Box including venom
antidote doses to safe guard from poisonous creatures.
7.3.5 All Site office, stores and associated facilities shall have fire detection system with
remote alarm through GSM auto-dialer (SIM card provided by Contractor).
7.3.6 The Contractor shall also provide adequate number of sunshades (beach umbrellas)
and tents at the worksite for temporary resting of workers.
7.3.7 The Contractor shall provide battery operated lights for the mobile Site office and
stores, for safety and security lighting during hours of darkness.
7.3.8 The Contractor shall not store materials in the mobile Site offices.
7.3.9 The Contractor shall comply with the Company’s standard KOC-C-35 for the
mobile Site office and stores.
7.3.10 All the Site offices (Company, Contractor/sub-contractors) in each area shall be in
operation up to the last Date for Completion of the respective Works
7.3.11 The Contractor shall make provision for regular supply of potable water to all Site
offices, removal of waste and sewage, refueling of diesel tanks, maintenance of
installations and the like.
7.3.12 Upon completion of the Works, the Contractor shall clear away at its cost the Site
offices, stores and yards including the temporary fencing, the signboard and all
other temporary facilities, and leave the areas clean and tidy.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
7.4.1 With reference to clause 1.37 of the General Conditions of Contract, the Site
includes but not limited to Company’s operating areas within or in vicinity of the
following oil fields and operational areas:
7.5.1 The Contractor shall have equipment and material storage yard and other facilities
as described below in South & East Kuwait area, at its own cost, for which
Company shall allocate open plot of land.
7.5.1.1 Provide separate covered shed of adequate size for storage of all electrical
equipment such as Power Transformers, Ring Main Units, 440 Volts Switchboards,
light fittings and the like which could be damaged in hot weather & rainy season;
7.5.1.2 The Contractor shall protect, cover and preserve all materials and equipment from
damage and deterioration prior to installation. The Contractor shall implement all
Vendor-recommended storage and preservation procedures;
7.5.1.3 Under no circumstances whatsoever the electrical equipment and material shall be
stored exposed directly to the sun or rain;
7.5.1.4 Provide suitable racks for storage of cable jointing and termination kits etc. within
the covered shed;
7.5.1.5 All materials likely to deteriorate under the environmental conditions are to be
stored in accordance with each Vendor's storage and preservation requirements,
which the Contractor shall obtain from the Vendor;
7.5.1.6 Provide separate storage area for storage of HT and LT cables within the
Contractor’s allocated storage yard.
7.5.1.7 Provide security fencing, lighting inside the storage shed and flood lighting of the
storage yard area;
7.5.1.9 Provide suitable access ways for material handling equipment inside the storage
shed and open storage yard;
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
7.5.1.10 Provide necessary equipment for loading/unloading and proper arrangement of the
materials;
7.5.1.11 Provide any other facilities needed by the Contractor’s personnel manning the
storage yard for proper handling, identification and issuance of the same;
7.5.1.12 Provide adequate space for storing the Contractor’s equipment and tools as
necessary and with sufficient access space for material handling equipment mobility
to carry out retrieval of the materials;
7.5.1.13 The Contractor shall not use the storage yard for any purpose other than intended
for this Contract.
7.5.1.14 The Contractor shall plan for storage of materials in two (2) separate locations in
S&EK area in case Company has space restrictions in a particular storage location.
7.5.1.15 The Contractor shall maintain properly the storage yard and the adjoining areas by
preventing accumulation of rubbish and waste, maintain in good order the
arrangement or stock piling of materials with sufficient access space for material
handling equipment complete with water proof material identification signs and
card tags. The Contractor shall submit material-storage yard layout and the material
signs and card tags to the Superintendent for approval. At the end of the Contract,
the Contractor shall remove the offices, storage yard and shed, clean the area and
the adjoining area where applicable and hand it over to the Company.
7.5.1.16 The Company may inspect and audit the materials held in the Contractor’s storage
yard at any time until the Date for Completion.
7.5.1.17 Within thirty (30) Days from the date of signing the Contract, the Contractor shall
submit for the Superintendent’s approval a detailed material control procedure
covering all aspects of the materials management viz. procurement, receipt, storage,
inspection, acceptance, issue to Site, consumption records, record of rejected and
defective materials and the like. Contractor shall implement the approved procedure
The Contractor shall submit monthly material management status report.
7.5.1.18 The Contractor shall prepare and administer procedures that arrange for the
protection, handling, and proper storage of all materials and supplies delivered to
the Site.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
8.1 The Contractor’s attention is drawn to clause 18.3 of the General Conditions of
Contract and in particular the requirements of the Company’s HSE Management
System, HSE Procedures and HSE Guidelines for Contractors as specified in
Appendix VIII to Contract Specification. The Company’s HSE procedures are
appended to Technical Specification. The Contractor shall comply with Company’s
HSE Managements & Procedures and HSE Guidelines for Contractors and cost for
such shall be included in the Contract Price.
8.2 With reference to clause 18.6 of the General Conditions of Contract, the Company
shall issue work permit authorizations only to the approved discipline Engineers,
Supervisors and Foremen of the Contractor and not to the Project Manager,
Construction Manager, Safety Engineers/ Officers, Planning Engineer, Materials
Controller, QA/QC personnel and the like. Further, the Company shall not normally
issue work permit authorizations to Sub-contractor’s personnel except on a case-by-
case review of work circumstances.
8.3 With reference to clause 18.7.2 of the General Conditions of Contract, all crane
operators, riggers and the like shall be certified by a third party approved by the
Company.
8.4 With reference to clause 18.8 of the General Conditions of Contract, all personnel
working inside any existing process facility shall have individual personal toxic gas
(H2S) monitor. For work in any other field area, at least three personnel shall have
personal H2S monitors at each work location. Further, all personnel working during
cold weather shall be provided with suitable winter jackets. Personnel working on
or near live electrical switchgear, or in any area where fire risk from flammable or
combustible materials is present, shall wear inherently flame resistant coverall.
8.5 With reference to clause 18.10 of the General Conditions of the Contract, the
Contractor shall carry out the Works with the rules of safety, security and fire
provided by Law and in accordance with safe working practices. In particular, the
Contractor shall strictly comply with HSE Guidelines for Contractors specified in
Appendix VIII to Contract Specification, and the HSE Procedures appended to
Technical Specification Part I, all as may be updated from time to time and the
Contractor shall be obliged to comply with the latest version. The Contractor shall
be responsible for the consequences of violating such rules and regulations or any
instructions in respect thereto.
8.6 With reference to clause 18.11 of the General Conditions of Contract, the
Contractor shall collect and transport sewage from the Site offices and dispose it at
the Umm Al-Haiman Sewage Treatment Plant or some other approved municipal
facility, ensuring that industrial liquid wastes like oil, chemicals, effluents or the
like do not contaminate the sewage. In case of any such contamination, the
municipal sewage treatment plants may refuse such consignments, and the Ministry
may refuse to take further consignments of sewage from the Contractor.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
8.7 With reference to clause 18.19.1 of the General Conditions of Contract, the
Contractor shall provide first aid facility at two (2) central locations in South & East
Kuwait area, with each facility having an ambulance (vehicle), all medical
equipment and consumables, together with First Aid Medic and Driver.
8.8 With reference to clause 18.17 of the General Conditions of Contract, the
Contractor shall be Subcontract Site survey to Unexploded Ordnance (UXO) as per
clause 2.3 herein and cost for such shall be deemed included in Contract Price.
8.9 Any reference to ‘‘Fire and Safety Regulations’’ in the Contract document shall be
replaced by ‘‘HSE Procedures and Guidelines’’.
8.10 The Contractor shall comply with the Health, Safety & Environmental (HSE)
Requirements and Kuwait Ministry of Health Guidelines related to COVID-2019
pandemic inclusive of all COVID variants.
8.11 The Contractor shall not be entitled to claim for any extension of time or delay costs
and deemed to have made proper allowance in the Contract Price for delays in the
execution of the Works due to waiting time for issue of excavation permits and
work permits.
8.12.1 With reference to clause 18.18.1(d) of the General Conditions of Contract, the
Contractor shall provide and maintain Speed Monitors for Contractor-supplied and
subcontractor-supplied vehicles deployed in the Works in accordance with the
requirements stipulated in Appendix V to Contract Specification. The Contractor
shall be responsible to comply with the requirements for the vehicles deployed by
the sub-contractors. The cost of speed monitors including but not limited to
installation, maintenance and reporting shall be deemed included in the Contract
Price.
8.12.2 The Contractor shall submit over reports to the Superintendent every month as
directed by him. The Company shall not allow any vehicle under the Contract
without speed monitors and drive monitoring cameras (as applicable). In case the
Contractor fails to submit report on the scheduled date of the month, the Vehicles
shall not be allowed under the Contract from the next day till such over speeding
report is submitted by the Contractor to the Superintendent.
8.13 The Contractor shall submit HSE Plan & Risk Register addressing potential
hazards, associated with various phases of the Project. The Contractor shall perform
the required HSE studies for the Works in accordance with Technical Specification
(HSSE) and Company’s HSE Procedures and obtain Company approval of the
same.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
The Contractor shall conduct Health Risk Assessment study (as per KOC procedure
KOC.HE.018) in accordance with KOC.HE.007 to identify any hazardous
exposures to health of its employees and implement appropriate mitigation and
prophylactic measures to protect its personnel. Records of health risk assessment
shall be maintained and copies shall be submitted to Superintendent of Contract for
information.
8.15 If Contractor fails to comply with the obligations stipulated in this clause, it shall be
considered as breach of the Contract and the Company shall exercise its rights under
the provisions of the Contracts.
9. INSURANCE
9.1 With reference to Clause 39.2 of the General Conditions of Contract, the Erection
All Risk insurance shall be endorsed to include a limit of Kuwaiti Dinars two
hundred thousand (KD. 200,000/-) for any one occurrence and the number of
occurrences being unlimited.
9.2 With reference to Clause 39.3 of the General Conditions of Contract, the limit under
the Contractor’s General Third Party Liability Policy shall not be less than Kuwaiti
Dinars two hundred thousand (KD. 200,000/-) for any one occurrence and the
number of occurrences being unlimited.
9.3 With reference to Clause 39.4 of the General Conditions of Contract, the Employer
Liability Policy shall not be less than Kuwaiti Dinars fifty thousand (KD. 50,000/-)
for any one occurrence and the number of occurrences being unlimited.
9.4 The Third Party Motor Vehicle policy shall include full-unlimited passenger
liability cover for all vehicles supplied and used by the Contractor and sub-
contractors on or in connection with the works and in accordance with Kuwait Law.
9.5 If the Contractor fails to pay the insurance premium due to the insurance company,
the Superintendent of the Contract shall deduct the insurance premium payable to
the insurance company from the Contractor’s invoice under the Contract.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
9. INSURANCE (CONT’D)
9.6 The Contractor shall effect and maintain the insurance policies specified in this
Clause 8 with any of the Kuwaiti insurance companies listed in ‘KOC Contractor’s
Insurance Requirement Guidelines’ available in below link at Company’s
eBusiness website:
https://ebusiness.kockw.com/Document?SelectedDocCat=10619&SelectedDocType=10760
9.7 The Contractor shall carryout the amendments to the insurance policies as per the
review comments issued by Company’s Insurance team and resubmit the amended
policies for Company approval and records, within seven (7) Days from being
intimated in writing.
9.8 The Contractor shall be allowed to commence the Services only after approval and
acceptance of Insurance Policies by Company’s Insurance Team.
9.9 In the event of expiry of the Insurance policies before the completion of the
contract period, Certificates of Insurance or Renewal Endorsements must be
submitted for the Company’s review at least thirty (30) Days prior to the expiry of
the Insurance Policy.
9.10 The Company reserves the right to take appropriate action should the Contractor
fail to comply with the above contractual obligations.
9.11 The Contractor shall endorse the insurance policies to cover the entire Contract
Period.
9.12 The Contractor shall also execute suitable insurance policies to cover any thefts of
materials from storage yards or damage to stored material due to natural causes,
and for installed material (in substations) prior to commissioning and hand over.
10.2 With reference to clause 26 of the General Conditions of Contract, the Contractor
shall complete the Works within one thousand three hundred eighty (1380) Days
starting from the Date for Commencement.
10.3 In the event that the Contractor has completed all Works except the commissioning
due to non-availability of any existing facility for tie-in, the Company shall advise
the Contractor to complete the remaining Works as per clause 25 herein.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
11.1 With reference to clause 24 of the General Conditions of Contract, the Contractor
shall submit to the Company a fully detailed program of work in electronic and
hard copy with S-curve and manpower & equipment histogram using
Primavera P6® (Version 7 or the latest version), Level-4, for the
Superintendent's review and approval.
11.2 With reference to clauses 12, 24.1.10 and 24.2.5 of General Conditions of Contract,
the requirements for shutdown are as follows:
11.2.2 The Contractor shall coordinate shutdown Works that may be required with the
planned shutdowns of the Company for the existing facilities. With reference to
clause 12 of the General Conditions of Contract, the Contractor, after having
delivered the required materials at Site and completing all other pre-requisite
activities, shall give the Company in writing ninety-(90) Days’ prior written notice
for the Works that require shutdown.
11.2.3 The Contract Price shall include the cost of adequate resources for accelerating
progress of shutdown works, cost of performing shutdown works in a manner to
match with the Company’s shutdown dates, cost of mobilization, demobilization
and idle resources between shutdowns, if any, and cost of utilizing its resources on a
round-the-clock basis for shutdown work.
11.2.4 The general requirements of shutdown are included in the relevant document in
Technical Specification Part-I.
11.2.5 The Contractor shall carry out, as applicable, works of multiple engineering
disciplines associated with shutdown works when Company provides the shutdown.
This includes mechanical tie-in works, electrical tie-in works, instrument and
control system tie-in works and the like.
11.2.6 The Contractor shall mobilize the vendors during shutdown works as required. The
Contractor, along with required sub-contractors and vendors, is required to work 24
hours a day on all days including Fridays and holidays.
11.2.7 The Contractor shall carry out shutdown works with the minimum shutdown
duration consistent with vendors’ approved tie-in procedures and Company’s
operational requirements,
11.3 The detailed program of work shall show the sequence and duration of various
phases/ activities, the manner in which they will be carried out, and the start and
completion dates of all the major phases.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
11.4 The program of works shall include major milestones for design, engineering,
procurement, construction, commissioning activities, payment milestones of civil,
electrical, tie-ins, interfacing, shutdown works and handing over as governing
milestones for the program.
11.5 The Contractor shall prepare cost loading program by identifying various activities
and milestones and provide percentage weightage for each activity, totaling one
hundred percent (100%) of the Works. The cost loading program shall form the
basis for developing Progress Measurement Sheet (PMS).
11.6 The PMS shall show Physical percentage weightage and financial percentage
weightage for the activities in the approved program of work, each totaling one
hundred percent (100%) of the Works. The PMS shall assign physical percentage
weightage for activities based on the quantity and work effort of each activity, and
the financial weightage percentage assigned to the activities in the Program of work
and shall be subject to approval of the Superintendent.
11.7 Financial percentage weightage for activities shall be assigned as specified in clause
12 hereto, based on the proportionate value of the same in the Attachments to the
Form of Tender and shall be subject to approval of the Superintendent. The
Percentage Weightings as per the approved PMS shall form the basis for evaluation
of payments, financial progress and physical progress.
11.8 Where in the sole judgement of the Superintendent of the Contract, in case the price
breakdown in the Attachments to the Form of Tender is unreasonable and
inconsistent with the actual value of the relevant works, the Superintendent may
amend the percentage weightings accordingly.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
11.9 The program shall establish the percentage weightage for main item of work based
on proportionate value of the same in Attachment 1 to the Form of Tender and
clause 12 hereunder and shall be subject to the approval of the Superintendent.
11.10 The Contractor shall make allowance in its program for concrete casting
requirements at night when, in the opinion of the Superintendent, the daytime
ambient temperatures do not permit concrete casting to take place in accordance
with the specifications or to the satisfaction of the Superintendent.
11.11 The Contractor shall submit detailed Critical Path Method (“CPM”) program
covering a complete scope of work to the Company for approval. The Contractor
shall provide as part of the Program a PERT (Program Evaluation Review
Technique) diagram showing the logical relationships between activities. In
addition, the Contractor shall submit, as applicable, multiple paths of critical
activities with total float zero.
11.12 The Contractor shall submit a detailed method statement based on the methodology
for the procurement and delivery of the equipment and the method of achieving
completion and acceptance of the Works that includes design, engineering,
inspection, Site testing, Pre commissioning and commissioning.
11.13 The Contractor shall support activity duration estimate with method statement,
target quantities, target productivities, key personnel’s mobilization, crew’s
composition and resource loading along with resource.
11.14 The Contractor shall submit the detailed Organization Chart including the key
personnel and Resource allocation chart for the entire Contract, physical S- curve,
financial S-curve for overall project, while Construction S-curve, pre-
commissioning and commissioning S-curves shall be Portion basis.
11.15 The Contractor shall not amend the approved program of works as detailed herein
without the prior written approval of the Company.
11.16 The Contractor shall submit long lead items schedule with Critical Path of the
Project.
11.17 The Contractor shall follow the same methodology for all long lead items to furnish
the Company with contractual requirements with minimal time impact.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
12.2.2 The Company shall pay the Contractor Advance payments totaling to seven and half
percent (7.5%) of the Contract Price excluding amount specified in Item No. 10 of
Attachment No. 1 to Form of Tender. The Advance Payment shall be paid in three
(3) stages as follows:-
12.2.2.1 Two and half percent (2.5%) upon signing the Contract, approval of work program,
approval of Site Office / storage area layout drawings and approval of key personnel
as specified in clause 5.3.1 herein.
12.2.2.2 One percent (1%) upon completion of mobilization of key personnel as specified in
clause 5.3.1 herein, completion of Site offices for Company use and approval of
Subcontractor for design and engineering Works.
12.2.2.3 Four percent (4%) upon approval of technical specification and submission of
documentary proof for placement of purchase orders for 11kV power cables, power
transformers, Ring Main Units and 440V Switchboard.
12.2.3 The Contractor shall submit unconditional and irrevocable bank guarantee of
equivalent amount of advance payment issued by a Kuwaiti bank in a form
acceptable to the Company, which shall be valid until the expiry of Contract Period
including defects liability period. The bank guarantee value of two and half percent
(2.5%) of the Contract Price submitted for the 1st stage advance payment shall be
increased correspondingly prior to release of subsequent 2nd and 3rd stages of
advance payments and cumulative bank guarantee value shall be seven and half
percent (7.5%) of the Contract Price. The 2nd and 3rd stages of advance payment in
clause 13.2.2 are not meant to represent required order and sequence of actual
occurrence may change. The bank guarantees shall be from a single bank. Any
adjustments related to bank guarantee should be from the same bank with the same
number of the guarantee and the amount should be accumulative.
12.2.4 The Company will recover advance payment from the Contractor’s invoices at the
rate of seven and half percent (7.5%) of the invoice value. In the event of any
reduction of Contract value or an earlier termination, the Company shall recover the
advance payment amount at a higher rate of recovery.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
12.2.5 The Superintendent shall have the sole discretion to withhold payment of any of the
advance payment instalments, if the Contractor fails to comply with the specified
pre-requisites for the advance payments.
12.2.6 The Company shall not amend the advance payment amount for any reason
including increase of Contract Price resulting from Variation Orders.
The amount of Item No. 1 of Attachment No. 1 to the Form of Tender shall be
broken down on the basis of approved weightages for design and engineering
documents to be submitted by the Contractor and the Company shall pay 100% for
completed and delivered documents with status Approved as noted/ Reviewed no
comments accordingly.
The Company shall pay the amounts specified in Item No. 2 of Attachment No. 1 to
the Form of Tender upon approval by the Company of the corresponding HSE
studies and recommendation submitted by the Contractor as certified by the
Superintendent.
In respect of materials required for incorporation into the Works, payment of 50%
of the total value of materials and equipment excluding civil construction materials,
shall be upon delivery to Site and acceptance by the Company of the materials and
equipment and the balance of 50% shall be after incorporation into the Works.
Progressive payment for this item shall be based on the approved percentage
weightage as per clause 11 hereto.
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
12.3.8 Training
12.3.9 Variations
12.3.10.2 No changes in the item rates set out in the Contract shall be made on account of
any Variations in quantities to any extent due to development of design, detailed
working drawings, changes or Variation in design for technical reasons, errors or
omissions in the schedule of quantities attached to the Contract.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
12.4 The RMU Substation numbers specified in the Contract are subjected to change
based on the Site condition, accordingly the Contract Price shall be adjusted
through Variation as per clause 31 of General Condition of the Contract.
12.5 The Contractor shall be deemed to have made proper allowance in the Contract
Price for all of its obligations under the Contract and all matters for which the
Contractor is responsible and which are necessary for the proper execution of the
Works. The Contract Price is also deemed to include all risk and costs arising out of
the Contractor’s obligations under the Contract, and the Contractor is deemed to
have satisfied itself as to the correctness and sufficiency of the Contract Price.
There is no provision for payment for any material price escalation due to market
conditions.
12.7.1 Prior to submitting any invoice, the Contractor shall submit a payment application
to the Company for the superintendent in a format acceptable to the Company
detailing the progress and value of all work accomplished during the preceding
month/invoicing period. The Contractor shall make available any such other
documentation and materials as the Company may reasonably require substantiating
the Contractor’s right to receive the payment set forth in the payment application.
12.7.2 The Company shall review such payment application and shall issue to the
Contractor a corresponding payment certificate for the amount, which the Company
has approved for payment to the Contractor in respect of such payment application.
12.7.3 The Contractor shall sign the Payment Certificate confirming his acceptance thereof
and shall prepare an invoice in compliance with the details in the payment
certificate. The Contractor’s representative shall sign the invoice and the Contractor
shall submit the original invoice together with the Original Payment Certificate to
the Company’s Accounts Payable Team. The Contractor’s invoice shall consist of
an original plus two copies.
12.7.4 It is understood and agreed by the Contractor that any invoice which is not in
compliance with the clause 12.7 hereto shall not constitute a valid and proper
invoice and the Contractor shall be required to resubmit such invoice in valid and
proper form before the Company incurs any obligation to make payment in respect
thereof. The Company shall make payment of undisputed amounts certified or
correct by the Superintendent within sixty (60) Days of the receipt of each invoice
with Contract Receipt & Payment (CRP) by the Company’s Account Payable Team.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
12.8 The Company reserves its rights to refuse payment for any and all unauthorized
works rendered by the Contractor, and no claims or adjustment orders shall be
accepted under the pretext of implied acceptance by the Company, unless the
Superintendent had approved such works in writing.
12.9 The Contractor shall be deemed to have made proper allowance in the Contract
Price for all of its obligations under the Contract and all matters for which the
Contractor is responsible and which are necessary for the proper execution of the
Works. The Contract Price is also deemed to include all risks and costs arising out
of the Contractor’s obligations under the Contract, and the Contractor is deemed to
have satisfied itself as to the correctness and sufficiency of the Contract Price.
12.10 Any delay in payments or in processing the invoices or disputing the invoices on the
part of the Company shall not justify any delay or abstention on the part of the
Contractor in continuing to carry out its obligation under the Contract and any delay
or discontinuance of providing Services by the Contractor shall be deemed to be an
act of contractual breach by the Contractor.
13 LIQUIDATED DAMAGES
13.1 With reference to clause 43.1 of the General Conditions of Contract, liquidated
damages for delay in completion of the Works beyond the Date of Completion as
per clause 10 hereto, shall be Kuwaiti Dinars two thousand five hundred (KD.
2,500/-) per Day of delay of Works.
13.2 If the Contractor fails to provide the Site Offices complete in all respects for
Company’s use, within the period stipulated in clause 7.2.12 herein, liquidated
damages at the rate of Kuwaiti Dinars fifty (KD. 50/-) per Day of delay shall be
applicable.
13.3 The liquidated damages in clauses 13.1 and 13.2 shall be applied simultaneously (if
applicable) and shall be independent of each other.
13.4 With reference to Clauses 43.3 and 49 of the General Conditions of Contract, the
maximum amount of liquidated damages payable by the Contractor shall not exceed
10% of the Contract Price. Should the liquidated damages amount reach 10% of the
Contract Price, the Company reserves the right to terminate the Contractor by
exercising its right to default termination. Moreover, the Company shall be entitled
to full recovery of the liquidated damages imposed upon the Contractor in addition
to all other remedies for default provided by the Contract or by law.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
The Contract does not have provision of incentive for early completion.
15. NOTICES
With reference to clause 56.4 of the General Conditions of Contract, all notices to
be given by the parties shall be given at the following addresses, unless advised to
the contrary by either party. Where the parties do not advise of change of address,
any notice forwarded to the following addresses shall be considered properly
served:
The Company:
The Contractor:
Address: ____________
16.1 With reference to Clause 40 of the General Conditions of Contract, the Contractor
shall submit Performance Bond amounting to the value of ten percent (10%) of the
Contract Price.
16.2 The Performance Bond shall be valid from the date of its issuance until all the
obligations under the Contract are fully performed and complete including defects
liability / warranty / maintenance, period plus an additional three (3) Months period
for submission of social/ tax clearance certificates and other documentation as the
Contract requires. This includes also for any extension to the Contract Period made
through Adjustment Order.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
16.3 The value of the Performance Bond (10% of the Contract Price) shall be maintained
at this rate throughout the Contract Period. In case of increase of the Contract Price
subject to Adjustment Order, the Contractor shall adjust the value of the
Performance Bond to be ten percent (10%) of the Contract Price.
16.4 In the event of increase in Contract Price due to Variations, the Contractor shall
furnish Performance Bond from the same bank with the same number of Bank
Guarantee and the amount shall be cumulative.
17.1.1 In clause 1.24, the following new definition is included to the existing definition of
the term “local supplier”:-
17.1.2 In clause 1.41, the following new definition is included to the existing definition of
the term “Technical Specification”:-
17.1.3 “Small and Medium Enterprise” means any economic enterprise in Kuwait
certified as a small or medium enterprise by the National Fund for small and
medium Enterprise Development.
17.1.4 Definition of National Product (clause 1.27), National Origin (clause 1.27) and
National Industries (clause 1.28) shall stand deleted.
“The Contractor shall ensure that all subcontracts incorporate all applicable
engineering, technical data and requirements together with the relevant terms and
conditions provided for in the Contract to the extent applicable to such subcontract,
in order that, all Subcontractors are bound by the same terms and conditions.
Notwithstanding the provisions hereof, it is expressly agreed and understood that
such subcontracting shall not create any contractual relationship between any
Subcontractor and the Company or create any obligation on the part of the Company
to any Subcontractor of any tier.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
a) Subcontractor shall notify the Contractor and Company with any new
technologies readily available in the market pertaining to the materials and
products which are subject of the subcontract.
“The Contractor shall comply with the provisions of Article 87 of Public Tender
Law 49/2016 and the amended Law No. 74 of 2019 thereto, Executive Regulation
No. 30/2017, and any amendments thereto”
a) Subject to clause 5.1, the foreign Contractor shall subcontract not less than
thirty percent (30%) of the value of the Services to the Local Contractors, out
of which not less than ten (10%) of the value of the Services shall be
subcontracted to Small and Medium Enterprises(SME). The Contractor shall
select Local Contractor(s) as Subcontractors that are qualified as per Appendix
VII of Contract Specification.
b) The requirements stated in above clause (5.6.2.a) shall apply to the Local
Contractor if the scope of contract allowing to be partially subcontracted.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“The Contractor shall be obliged to notify the Company with any new technologies
readily available in the market pertaining to the materials and products. This shall
include all materials and products furnished by the Contractor and its Vendors and
Subcontractors. The Contractor shall notify the Company regarding any restrictive
patents, trademarks, licenses, intellectual property rights, copyrights, trade secrets, if
any, related to third parties associated with such new technologies of materials and
products”
“The Company, if the Contractor fails to comply with Clauses 15.7 and 15.8, may
after giving seven (7) Days’ notice to the Contractor have any rubbish and surplus
material cleared away and disposed of and shall deduct all costs so incurred, plus
ten per cent (10%) towards administrative costs, from any money due or which may
become due to the Contractor or recover it as a debt from the Contractor in
accordance with Clause 48.6.”
“Prior to excavation, the Contractor shall survey the area using Contractor-supplied
ground-penetration radar for ferrous and non-ferrous objects.”
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“The requirements of the clause 15.12.6 hereto shall not apply to Fibre Optics
cables. During the execution of Works, if the Contractor damages existing Fibre
Optics cables, the Contractor shall promptly inform the Company. The Company
shall arrange the repair of the damaged fibre optics cable, and all cost of repairs
including ten percent (10%) administrative cost shall be recovered from the
Contractor’s money due with the Company under this or any other contract between
the Company and the Contractor.
17.5.1 Title of Clause 16.8 is amended to read as: “Local Product preference”.
The Contractor shall procure not less than 20% of the products/materials from Local
Products and not less than 10% from Small and Medium Enterprises (SME)
products and services; if such product are not available, the Contractor shall procure
the (non-Local) products from the registered Local Supplier in the CAPT list or list
provided along with this tender document, provided that the Contractor shall submit
certified receipts from procurement party (i.e. the supplier) as evidence. the
Contractor fails to comply with the obligations stipulated under clause 5.6
(Preference to Local Contractors) and 16.8 ( Local Product preference).
17.5.4 New Clause 16.11, Price Preference for Local (National Industry) / GCC (National
Product) Materials, is added to read as follows:
I. Vendor or supplier shall notify the Contractor and Company with any new
technologies readily available in the market pertaining to the materials and
products which are subject of the purchase order.
II. Vendor or supplier shall notify the Contractor and Company regarding any
restrictive patents, trademarks, licenses, intellectual property rights,
copyrights, trade secrets, if any, related to third parties associated with such
new technologies of materials and products. “
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“The Contractor, without prejudice to the generality of clause 55.1, shall be deemed
to have acquainted itself, and shall comply in so far as applicable with the terms,
standards and specifications stated in Resolution No. 210 for 2001 and Resolution
No. 2 for 2015, issued by Kuwait Environmental Public Authority (K-EPA),
containing the Executive Terms of Reference for Law No. 42 for 2014 and its
amendments.”
“The Contractor and its Subcontractors shall full comply with the Company’s HSE
Management System and pertinent procedures with respect to all vehicles. In
particular, the Contractor, where the Contract specifies or utilizes supply of
equipment and/ or vehicles for the performance of the Works, shall mobilize the
equipment and vehicles in accordance with Company’s Mobile Equipment
Procedure KOC.SA.013, Driving Procedure (KOC.SA.016) and the requirements of
the Contract”
“18.18.2.1 All the Contractor’s and its Subcontractors’ (of all tiers) buses, cars,
vans and other personnel transportation vehicles (whether owned,
leased, borrowed or otherwise) used in the performance of the Works
shall:
b) not be older than seven (7) years at any time during the
performance of the Works;
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
18.18.2.2 All the Contractor’s and its Subcontractors’ (of all tiers) heavy
vehicles for material transportation(whether owned, leased, borrowed
or otherwise) including but not limited to trucks, trailers, tankers,
etc., and Mobile Equipment as defined in the Mobile Equipment
Procedure (KOC.SA.013), used in the performance of the Works
shall:
b) not be older than fifteen (15) years at any time during the
performance of the Works; and
18.18.2.3 The Contractor and its Subcontractors (of all tiers) shall install and
maintain Speed Monitoring Device (SMD) in accordance with the
Driving Procedure (KOC.SA.016) for all vehicles, including
replacement vehicles, and data shall be submitted to the
Superintendent on a monthly basis. The cost of implementation of
these provisions shall be deemed included in the Contract Price.
18.18.2.4 In the event the Contractor fail and such failure was attributable only
to the Contractor to install the Speed Monitoring Device (SMD) as
per Company’s Driving Procedure (KOC.SA.016) or to submit
reports to the Company in time, then the Company will not allow
entry of such vehicles. The Company reserves the right to stop
Contractor’s vehicle in case of found working without Speed
Monitoring Device (SMD) and subsequently such delay (if any)
related to this stoppage shall be solely attributed to Contractor only.
“The Contractor and its Subcontractors (of all tiers) shall ensure that all its drivers
comply with the State of Kuwait regulations and State Traffic Department rules.
The Contractor and its Subcontractors shall adhere to speed limits within the
Company’s areas and Ahmadi, as specified in the Driving Procedure
(KOC.SA.016). In the event that any of the Contractor’s or its Subcontractor’s
personnel do not follow the speed limits, traffic rules or Company’s Driving
Procedure (KOC.SA.016), the Company reserves the right to direct the Contractor
to replace such personnel at no additional cost to the Company”
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
17.6.5 It is hereby clarified that the on-site welfare facilities stipulated in clause 18.19.5
apply to Site office and other facilities required for execution of the Works, and
Contractor shall not establish housing facilities in Company areas.
17.7.1 In clause 19.2, the following sentence is added at the end of the clause:-
“The prescribed forms for restricted area passes are appended to the Contract
Specification.”
17.7.2 In clause 19.8, the following sentence is added at the end of the clause:-
“The Contractor shall not be entitled to claim any extension of time or delay costs
and shall be deemed to have made proper allowance in the Contract Price for delays
in the execution of the Works due to waiting time in respect of issue of Restricted
Area Passes by Company and issue of excavation permits and work permits.”
“The Superintendent, where urgent measures are necessary, may verbally order (and
as soon as reasonably practicable thereafter confirm in writing) the Contractor to
perform any Works which in the opinion of the Superintendent is necessary to avoid
the risk of an accident. The Contractor, on receipt of a verbal instruction from the
Superintendent, shall immediately carry out the Works as instructed. If the
Contractor fails to carry out the Superintendent’s orders immediately, the Company
may use its own or other resources and personnel to execute such emergency work.
If the Works executed by the Company is of the kind that the Contractor was liable
to perform, then all costs and expenses so incurred by the Company, plus
administrative costs, shall be recoverable from the Contractor as a debt and/or from
the Performance Bond and/or any money due or which may become due to it under
this or any other contract(s) between the Parties in accordance with Clause 48.6.
However, where the Contractor although not liable carries out the work it is directed
to perform, the Company shall pay the Contractor for such work at the rates set out
in the Contract for similar work. In the absence of availability of rates in the
Contract, the Contractor shall be paid the reasonable prevalent commercial market
rates agreed between the Superintendent and the Contractor.”
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“Ninety (90) Days prior to any shutdown, the Contractor shall submit for Company
approval, a detailed shutdown programme identifying all activities to be performed
during shutdown.”
“The Contractor, where its actual progress falls behind the approved Program of
Work, or it becomes apparent that it will so fall behind, shall prepare and submit to
the Superintendent a recovery Schedule, taking into account the prevailing
circumstances, and shall notify the Superintendent of the steps being taken by it to
expedite progress and shall ensure that a rate of progress satisfactory to the
Superintendent is maintained to attain completion of the Works by the relevant Date
for Completion.’’
“The Company shall deduct / recover all extra costs, expenses or damages incurred
by the Company resulting from any error or deficiency in the Works from the
Contractor in accordance with Clause 48.6”
“A tax retention of five percent (5%) shall be withheld from all payments made to
the Contractor, and such retention shall be released to the Contractor in whole or in
part (as the case may be) following submission by the Contractor of a valid Tax
clearance certificate from the Income Tax Control Office of Kuwait to the effect
that the Contractor has discharged its tax liability in relation to this specific Contract
with the Company.”
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“The Contractor may elect, at its option, to effect the release of the Tax retention
held under Clause 29.1 subject to the provision of a Tax Retention Bond. The Tax
Retention Bond shall be in the form of an unconditional and irrevocable bank
guarantee in favour of the Company in the amount of the retention held in
accordance with Clause 29.1. The Tax Retention Bond shall be furnished in the
format provided by the Company and issued by a bank licensed to operate in
Kuwait or endorsed by a bank branch in Kuwait (recognized by the Central Bank of
Kuwait) and shall be subject to the approval by the Company. The Tax Retention
Bond shall be valid until submission of a written notice of the issue of the final tax
clearance certificate by the Contractor from Income Tax Control Office of the
Ministry of Finance of Kuwait.”
“In the event the Contractor submits Tax Retention Bond to the Company, the stated
amount of such tax retention shall be released and paid to the Contractor. If at any
time it appears that the Tax Retention Bond provided in accordance with Clause
29.2 above will expire prior to submission of tax clearance certificate, the
Contractor shall, no later than one (1) month prior to the expiry date thereof, shall
submit either an appropriate extension of Tax Retention Bond or furnish a new Tax
Retention Bond issued in accordance with Clause 29.2 from the same bank. In the
event that the Contractor fails to extend the validity of Tax Retention Bond, the
Company reserves the right to draw down the full amount of the Tax Retention
Bond.”
“In case of a variation for which the relevant rates are not available in the
attachment no. 2 to form of tender, then the contractor shall submit three (3) priced
quotations from approved manufacturers for company’s review and acceptance. The
company shall select the particular manufacturer and contractor shall supply
materials accordingly. The contractor is entitled for CIF Kuwait price plus ten
percent (10%) which includes all customs duties/ clearance post handling local
transport to the site and other incidental expenses by the contractor including
contractor’s overhead and profit. The handling charges shall be reduced to five
percent (5%) of cost of materials/ equipment in case materials / equipment are
locally available.”
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
17.16 Clause 36: Defects Liability Period and Final Acceptance Certificate
“The Company, where the Contractor fails to remedy the Defect within the time
instructed by the Superintendent, shall perform such obligations and recover from
the Contractor the cost or any money due or which may become due to the
Contractor under the Contract or any other contract(s) in accordance with Clause
48.6.”
ii. If the Company has assisted the Contractor in obtaining the visas for its personnel
for entry to the State of Kuwait in relation to the Contract, the Contractor shall
submit a certificate from the Kuwait Public Authority for Manpower (PAM) stating
that the Contractor has satisfied all requirements related to its personnel under the
Contract.”
17.18.1 In clause 43.3, the “…Delay Liquidated Damages exceeds such maximum
amount…” is amended to read as “…Delay Liquidated Damages reaches such
maximum amount…”
“The Company, without prejudice to any other method of recovery and without the
need for judicial proceedings, shall deduct the amount of Delay Liquidated
Damages from the Performance Bond or any moneys due or which may become due
to the Contractor in accordance with Clause 48.6. No prior notice shall be required
for the application of Delay Liquidated Damages, which shall become due and
payable by the mere event of delay. The payment or deduction of such damages
shall not relieve the Contractor from its obligation to complete the Works or from
any of its other obligations and liabilities.”
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“The Superintendent, where work cannot be satisfactorily carried out at the Site for
an aggregate period equal to or exceeding four (4) hours on any Day due to weather
conditions such as severe sand storm or rain (notwithstanding the provisions of
clause 32.1), may instruct the Contractor to suspend the Works.”
“The Contractor shall notify and get Company’s approval of Suspension of Works
as per relevant appendix to Contract Specification. The Contractor in such event
shall be entitled to extension of time of one (1) Day and the Contractor shall not be
entitled to claim any additional cost whatever nature in respect of any extension
time granted due to such suspension.”
17.20.1 In clause 48.1.6, the “…Delay Liquidated Damages exceeds the maximum
amount…” is amended to read as “…Delay Liquidated Damages reaches the
maximum amount…”
17.20.2 In clause 48.1.7, the “…under the Contract exceeds the maximum liability…” is
amended to read as “…under the Contract reaches the maximum liability…”
17.20.3 Clause 48.1.12 is amended as: “the Contractor fails to comply with the obligations
stipulated under clause 5.6 (Preference to Local Contractors) and 16.8 ( Local
Product preference)”
The Company, notwithstanding any provision to the contrary, shall recover any
amount due to the Company under the Contract, including but not limited to
overpayments, Delay Liquidated Damages or any other damages, cost and expenses
incurred, as a debt without notice or judicial proceedings at the Company’s option
by deduction from the Performance Bond or any money due or becoming due to the
Contractor under this Contract or any other contract(s) with the Company whether
or not the Company has exercised its rights of termination in accordance with this
Clause 48.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
In clause 50.5.3 the “…liability under the Contract exceeds the maximum
amount…” is amended to read as “…liability under the Contract reaches the
maximum amount…”
“The Contractor shall comply with all relevant laws, rules and regulations of the
State of Kuwait regarding any matter affecting the Contract and shall indemnify the
Company against all penalties and liability of every kind for breach by it of any
such laws, rules and regulations.”
“55.3.1 The Company may, at its sole discretion, finance all or part Works
through ‘buyer credit facilities’ extended by Export Credit Agencies
(“ECAs”). In case the Company does not take financing from ECAs the
entire clause 55.3 stands deleted.
55.3.2 Upon Company’s written instruction, the Contractor shall provide (at its
own cost and without entitlement to time extensions or additional cost) all
reasonable assistance to the Company and/or its affiliates in connection
with the arrangement and utilization by the Company and/or its affiliates
of external financing. Such assistance shall include, but not limited to:
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
I. Invoicing formalities,
II. Reporting information on the status of Works,
III. The provision of sourcing information
IV. The facilitation of the access and inspection activities by the
representatives of ECAs;
II. Oblige the Contractor to give prior notice to such ECAs of any
potential termination of the Contract by the Contractor and to
suspend the exercise of any right of termination for a defined
period; and
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
“55.3.3 In case the Company does not take financing from ECAs the entire clause
55.3 shall stand deleted.”
With reference to clause 55.1.2 of the General Conditions of Contract, all relevant
Ministerial Orders regarding Labour laws shall apply, and any cost related thereto shall
be borne by the Contractor and shall be deemed included in the Contract Price.
The Contractor shall fully comply with the new Kuwait Public Tender Law No.
49/2016 including any amendments and its Executive Regulations as applicable and
any related cost impact shall be deemed included in the Contract Price.
20.1 The following works shall be undertaken by others and are not part of the Works:-
20.1.2 Third-Party inspection for the Company by any Third-Party Inspection Agency
appointed by the Company.
The Contractor shall fully co-operate and co-ordinate its activities with the
Company's appointed Third Party Inspection Agency.
However, the Contractor shall arrange their own Third-Party Inspections and Third-
Party certifications.
21.1 The Contractor shall arrange with its Vendors of the equipment provided under the
Contract, as may be appropriate, to prepare, develop and carry out a specialist
training program to impart all necessary skills and knowledge to the Company’s
operational and maintenance personnel such as to enable them to completely and
safely operate and maintain the facilities. The Contractor shall submit details of
such training program (syllabus, training schedule) to the Superintendent for review
and approval and shall provide as a minimum those requirements as stated in
Technical Specification Part I-General. The training program shall comprise
classroom training in Kuwait and on-Site training at the Site, as per the details
provided in Technical Specification Part I-General.
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
21.2 The Contactor’s Vendors shall issue participation certificates to the Company’s
personnel.
21.5 The Contractor shall arrange for all training resources comprising audio-visual
presentation system, computer aids for individual participant, training materials and
the like.
22.1 Format
The format of progress reports shall be submitted to the Superintendent for approval
within fourteen (14) Days after the Date of Commencement.
22.2 Reports
22.2.1 The Contractor shall submit to the Superintendent each Month five (5) copies of a
Works Progress report by reference to the Program which shall include the
following:-
b) Engineering progress;
f) Manpower status;
h) Safety issues;
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
o) One Month look ahead schedule of critical Activities and ongoing activities;
p) Any other item or requirements that may become critical in the immediate
future and state the Contractor’s proposed measures to mitigate the situation;
22.2.2 The Contractor shall submit to the Company a monthly detailed breakdown of the
work in Progress, in order to allow a time management analysis to be carried out in
detail as the Works progress.
22.3 Frequency
22.3.1 The Contractor shall submit to the Superintendent a detailed Monthly progress
report within the first seven (7) Days of each Month and a progress update on
weekly basis each Sunday.
22.3.2 The Contractor shall submit to the Superintendent’s Representative a detailed Daily
Site Activities report of the previous Day within 10 AM of each working Day.
22.4.1 The Superintendent shall convene a monthly progress review meeting within seven
(7) Days of receipt of each monthly progress report.
The Contractor shall include in its Monthly Report ‘Contractor Monthly HSE
Performance Report’ duly compiled and filled with supporting documents and
analysis in the appropriate Company format. The Company however retains the
option of requesting Health & Safety Report online with the prevailing HSEMS
Procedures and Standards of the Company during the course of execution
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
23.1 Within 14 calendar Days from the Date for Commencement, the Contractor shall
propose coordination procedure for forwarding and distribution of correspondence,
specifications, engineering data, drawings, calculations, requisitions, progress
reports, Progress Measurement Sheets, daily reports, Inspection Notices and other
documents. Following approval by the Superintendent, this procedure shall be
implemented.
23.2 A courier service shall be used by the Contractor for delivery and receipt of
drawings and other documents to and from the Superintendent. The delivery and
receipt of documents shall be through Company approved personnel only.
23.3 Correspondence
23.3.1 The Contract title shall appear on all correspondence, documents, drawings and
reports.
23.3.3 All correspondence shall be adequately identified and referenced with the Contract
Number, Contract title and specific subject covered.
23.3.4 Correspondence from the Company shall carry the following series of reference
numbers:
23.3.6 The Contractor shall always arrange collection of letters and document transmittals
from the Company’s offices located in Burgan.
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
23.3.8 The Superintendent or his authorized representative shall draw up the minutes of all
formal meetings held with the Contractor. The minutes of the meetings shall be
forwarded to the Contractor who shall sign and return such minutes to the Company
and retain a copy for its records.
23.4.1 The Contractor shall submit the documents, drawing, procedures, reports,
specifications, calculation, etc. as specified in Appendix I to Contract Specification
and the Technical Specification (various Parts) and the Company standards and
International Codes and Standards. If any additional documents/drawings are
required by the Superintendent, the Contractor shall submit the same without
additional cost to the Company.
24.1 The Contractor shall conduct the Health, Safety & Environment (HSE) studies as
per the requirements of the Technical Specification within the timeframe as per the
approved Program of Work, by engaging a Company approved third party
consultant having specialized knowledge and experience in such studies.
24.2 The Contractor shall promptly incorporate Company’s comments in the study
reports and make necessary changes in design for undertaking field implementation
of all the recommendations arising from the HSE study reports.
24.3 Where the recommendations of HSE studies and reports require any additional work
of significant cost impact beyond the requirements described in Technical
Specification, the Contractor shall implement any of such recommendations subject
to issuance of an Adjustment Order.
25.1 In case the Contractor has completed all Works excluding the pre-commissioning
and commissioning Works and the upstream substations (constructed by others) is
not ready due to operational reasons, the Company may advise the suspension of
Works. The Contractor shall:-
25.1.1 Demobilize all full time personnel specified in clause 5.3.1 herein, construction
equipment and other Site personnel who become idle for lack of Site activities
except the minimum number of personnel necessary for watch and ward of
materials, Site offices and storage yard maintenance and preservation of completed
Works including any specified resources that may need to be idle at the Site and
for all such resources the Contractor shall notify the Company and obtain
Company’s prior approval.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
25.1.2 Demobilize all construction equipment and associated manpower which become
idle.
25.1.3 The Company shall provide a notice of fourteen (14) Days or a shorter period as
may be dictated by Company’s operational exigency prior to commencement of
testing and commissioning Works for undertaking re-mobilization and preparatory
Works by the Contractor. The Contractor shall obtain Superintendent’s prior written
approval for size of resources required for testing and commissioning Works and
shall mobilize only such personnel and equipment approved by the Superintendent
for completing testing and commissioning Works and its supervision. The
Contractor shall mobilize and complete testing and commissioning Works in the
shortest possible period as may be directed by the Superintendent.
25.1.4 For the minimum personnel and equipment as specified in clause 25.1.1 above and
approved by the Company to continue till completion of tie-in activities, testing and
commissioning works, the Contractor shall be paid as specified in the Form of
Tender for actual number of approved personnel and equipment provided at Site
based on Company certified daily record of attendance/ availability;
25.1.5 The cost for re-mobilization and demobilization of resources, which are
demobilized and remobilized for testing and commissioning Works including any
standby resources at the Site held after Superintendent’s prior approval, shall be
calculated at 80% and 70% of the unit rates for personnel (other than the personnel
from Original Equipment Manufacturer) and equipment respectively specified in
Attachment No. 2 to the Form of Tender and no other costs of direct or indirect
nature shall be paid additionally. For those personnel and equipment that are re-
mobilized from the resources available within Kuwait for testing and
commissioning Works and subsequent demobilization the cost shall be calculated
using aforesaid unit rates for a maximum two (2) Days. No other direct or indirect
costs shall be payable for demobilization and re-mobilization;
25.1.6 For calculation of costs for the resources not covered in Attachment No. 2 to the
Form of Tender, the unit rates shall be assessed based on actual direct cost paid by
the Contractor based on supporting documentary evidences.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
25.1.7 The Contractor shall have no entitlement for cost for any standby resource which it
holds without Superintendent’s prior written approval. The signatures of Daily Site
Report by any of the Company authorized representative shall not be construed as
Superintendent’s approval of standby resources if any shown therein. The
Contractor shall not have any entitlement for costs of standby resources for testing
and commissioning Works if the upstream facilities are ready before the Date for
Completion and the Contractor is not ready for testing and commissioning Works.
25.1.8 If the Date for Completion is delayed solely due to non-availability of upstream
facilities for testing and commissioning Works by the Company, the Contractor’s
entitlement shall be for the extension of time equal to the extent of delays attributed
to the Company which the Contractor shall establish and demonstrate in respect of
for actual impact with reference to the approved Programme stating the following
costs incurred along with providing relevant documentary evidences:-
25.2 The Company shall not be liable to pay any of the above costs for period of
concurrent delay by the Company and the Contractor. The Contractor shall not have
any entitlement for any other direct or indirect costs, overheads and profits over and
above the aforesaid cost.
25.3 The Contractor’s entitlement for costs and time impact due to deferment of
shutdown of facilities by the Company under this shall be subject to Adjustment
Order.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
All valves of sizes 2” and above shall be pressure tested by the Company at
Company’s Central Workshop as per the relevant codes specified in the Contract.
The Contractor shall transport the valves to and from the Site for incorporation into
the Works. This is in addition to the testing carried out by the Contractor prior to
delivery at the Site. If any valve fails during the pressure test at Company’s Central
Workshop, the same shall be repaired or replaced by the Contractor as advised by
the Company at no additional cost to the Company.
Subsequent to delivery of materials from the Vendor’s shops, the Contractor shall
transport the following materials to and from Company’s Workshop in Ahmadi (or
some other alternative location in Ahmadi, Magwa or Burgan as directed by the
Company) for testing prior to incorporation into the Works:
Transformers
Transformer oil samples
The Company will carry out the above tests even if the materials have successfully
passed the tests in the Vendor’s shops prior to delivery.
Such testing by the Company does not diminish the Contractor’s obligations to
perform all tests at Vendor’s shops prior to delivery, and field tests on installation as
per the requirements of Technical Specification, Company’s Standards, Codes and
Regulations.
27.1 With reference to clause 20.2 of General Conditions of Contract, the Contractor,
where it is deemed to work outside normal working hours, work in shift and /or
during Fridays or public holidays, in order to complete the Works in scheduled time,
shall seek prior approval from the Superintendent in writing minimum three (3)
working days in advance. The Contractor shall perform such Works only after
approval of the Superintendent. However, it is the Contractor’s responsibility to
comply with Kuwait Labour Law.
27.2 The Contractor shall comply with provisions of Ministerial Order 535/2015 related
to summer working hours, noting that prohibited working hours in open areas are
11:00 to 16:00 during months of June, July and August.
27.3 The Contractor shall be responsible to arrange work shifts including overtime to
meet the Company requirements without prejudice to Labour Law provisions
Revised SL # 1
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
27.4 The cost for compliance with clauses 27.1, 27.2 and 27.3 shall be deemed included
in the Contract Price.
28.1 Within thirty (30) Days after signing of the Contract, the Contractor shall submit for
Company’s approval, its quality plan and inspection manuals. Each of these
documents shall be submitted in two parts; one for the material procurement and the
other for Site construction work.
28.2 The Contractor shall also submit to the Company for approval all the quality plans
of the Subcontractors, Vendors, sub-vendors or suppliers before award of the
purchase orders.
28.3 The Superintendent shall approve quality plan or provide comments within twenty
(20) Days of its receipt. In the latter case, the Contractor shall promptly discuss with
the Superintendent the comments and shall promptly resubmit after incorporating
changes for Company’s approval. The Contractor shall obtain Company’s approval
for all its quality plans before issue of purchase orders to its Vendor.
29.1 The Contractor shall arrange with its Sub-contractors, Consultants and Vendors
under the Contract, the required number of technical meetings and workshops with
the Company representatives as required per the details provided in the Technical
Specification and as required for expediting project design, in order to clarify and
resolve technical design and HSE matters.
29.2 Meetings shall be in Kuwait.
29.3 The Contractor shall arrange meeting and workshop resources comprising audio-
visual presentation system, computer aids, documentation and the like.
30.1 The Contractor shall remove and transport any of the Company supplied materials
that become redundant or surplus, or site demolished material or Contractor
supplied surplus materials (for which Company has paid) from the Site to the
Company’s Stores/Drilling Yard and/or Workshops in Ahmadi or as directed by the
Superintendent’s Representative. All redundant or surplus materials shall be off-
loaded and neatly stacked as directed by the Superintendent’s Representative. The
Contractor shall handle and transport the materials with care to avoid damage.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
30.2 The maximum continuous length of any redundant or surplus pipe sections to be
returned to Company’s Stores/ facilities shall be 12 meters. The Contractor shall cut
pipe as necessary to the required length. All cleaning & radiation test required shall
be carried out by the Contractor before transporting to Company’s stores / Drilling
Yard and/or Workshops in Ahmadi or as directed by the Superintendent’s
Representative. A receipt stating the quantity being handed over to the Company
shall be obtained by the Contractor from the Company storekeeper.
The Contractor shall acknowledge that timely execution of the Works is vital and
critical to the operations of the Company as it directly relates to oil production and
the revenue of the State of Kuwait. The Contractor shall undertake to have readily
available at all times adequate stock of materials, necessary tools, plant, equipment
and manpower to carry out the Works as directed by the Company.
32. CONCESSION
32.1 A concession is defined as a written agreement between the Parties to deviate from
a technical requirement, hereinafter referred to as “Concession”. Concession may be
applied for either in advance of a deviation or alternatively to deal with a non-
conformity. No such deviation from a technical requirement shall be permitted
unless approved by the Company.
32.2 The “Concession Request” is defined as a written request from the Contractor to the
Company to consider a Concession. Concession Request should clearly indicate
reasons and sources specified under ‘a’ to ‘d’ below to which it applies:
32.3 Concession Request requiring the Company’s approval shall be made on forms
agreed for use by the Company for this Contract and addressing the following
topics:
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
32.4 The Contractor’s comments shall be made on a checklist addressing the following
topics:
i. Cost
ii. Delivery
iii. Design Implications
iv. Health, Safety & Environment
v. Weight
vi. Reliability
vii. Maintenance
viii. Operational Performance
ix. Spares and Interchangeability
32.6 Superintendent has the sole discretion to reject or approve any Concession Request
for any reason, without providing any justification to the Contractor, in all cases the
Superintendent’s determination shall be final.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
32.7 Upon Superintendent’s rejection of any Concession Request, the deviation covering
such Works, material or service covered in such Concession Request shall be
deemed defective and shall be deemed Contractor’s failure to comply with the
obligations and requirements of the Contract.
32.8 Upon Superintendent’s request, the Contractor shall submit additional details,
justifications or International best practices pertaining to the Concessions Requests.
32.9 Any Concession Request, if acceptable to the Company, which impacts Contract
Price, Contract Period, quality of performance of the Works shall be processed as an
Adjustment Order in accordance with clause 31 of the General Conditions of the
Contract.
32.10 Any other Concession Request, if acceptable to the Company, other than stated
above shall be approved by the Superintendent without issuing an Adjustment
Order.
32.11 The Contractor shall keep records of all Concessions requested by the Contractor
either approved or rejected by the Company.
33.1 All the tools and transport and equipment deployed by the Contractor for the Works
shall be in good working condition and have valid test certificates where applicable.
Good working conditions shall mean that equipment must be working up to
originally rated capacity, having good standard of upkeep.
33.2 All the tools, and transport and equipment shall be inspected and offered for
approval by the Superintendent’s Representative before deploying on the Works,
and shall be available for inspection at all reasonable times until the Date for
Completion. All vehicles, equipment and tools shall be for exclusive use for the
Works under this Contract.
33.3 The Contractor shall provide adequate and suitable transport to all its personnel
from place of their residence to the Site and back, and between different work
locations within the Site, as necessary and shall ensure that its personnel shall be at
the Site during normal working hours and overtime hours.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
33.4 The Contractor shall maintain all air-conditioned transport vehicles as per
manufacturer’s recommendations. Such vehicles shall comply with the Company’s
applicable HSE Procedures and HSE Guidelines for Contractors and shall be subject
to periodic inspection by the Company’s Transport Operations Team on agreed
schedule.
33.5 Contractor’s drivers for each vehicle shall comply with State Regulations and State
Traffic Rules.
34.1 The Contractor shall be responsible for all inspection and expediting work including
witnessing of tests at the manufacturer’s facilities for critical items such as, HT &
LT power cables, control cables, Power Transformers, Ring Main Units, LT
switchgear, and other critical items specified by the Superintendent. No shipment
shall come into effect without Inspection Release Note from the Company and the
Contractor’s Third Party Inspector. Where the Company waives off the inspection
the Contractor’s third party inspector shall issue the inspection Release Note. The
cost of the Contractor’s third party inspection agency shall be borne by the
Contractor. The Contractor shall submit to the Company and obtain approval of its
un-priced agreement with the proposed Third Party Inspection agency including
scope, areas of operation, technical details, type of inspections, frequency or extent
of inspection visits, inspection formats, release notes, etc.
34.3 The Contractor shall forward copies of all stage and final inspection reports along
with Material Test Certificates, and Inspection and Test Plan followed during
inspection for the Company’s review and approval.
34.4 The Company may also appoint a Third Party Inspection Agency. The cost of the
Company-appointed Third Party Inspection Agency shall be borne by the Company.
Irrespective of whether Company appoints a third party inspection agency or not,
the Contractor shall employ its own third party inspection agency.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
35.1 With reference to clause 34 of the General Conditions of Contract, the Contractor
shall be responsible for all the quality assurance and quality control of all the Works
including but not limited to design, material handling, procurement and Site Works.
The Contractor shall be responsible for all inspection and testing required as per the
Contract and as per relevant Company and international standards and codes
stipulated in the Contract. Company’s acceptance, inspection, witnessing or non-
witnessing of any or all materials, equipment and works does not relieve the
Contractor from its responsibility in providing materials and facilities that satisfies
the Contract requirements. The Contractor shall carry out inspection, testing and
commissioning of the Works, to the satisfaction of the Superintendent’s
Representative, in accordance with the Technical Specification and other codes and
standard specified in the Contract. All the cost towards Inspection, Testing, Pre-
commissioning & Commissioning shall be deemed included in the contract price.
35.2 The Contractor shall prepare and administer procedures to ensure that all inspection
and testing requirements provided in the Technical Specifications, design
engineering, Drawings and documentation are complied with. The inspection and
testing procedures shall be submitted for Company review and approval. The
Contractor shall submit Inspection Test Plan (ITP) and Factory Acceptance Test
Procedure (FAT) for Company’s review and approval prior to any schedule testing to
provide whatever inspection and testing are required to discover any deviation from
the Contract or any defect in equipment, material or workmanship. All such FAT
inspection and testing shall be notified to Superintendent at least twenty one (21)
Days for outside country or three (3) Days for inside country for the FAT to take
place in time to avoid delaying completion of the Works and shall be performed at
no additional cost to the Company. A program for the testing shall be submitted for
approval of Superintendent.
35.3 The Contractor shall arrange for inspections of materials at Vendors’ factories in
accordance with the requirements stipulated in the Technical Specification. The
Contractor shall appoint an experienced Third party agency to carry out the
inspections on Contractor’s behalf. The Company will approve the inspection
agency. The Company also reserves the right to review the experience details of the
proposed inspectors and accord approval to only such inspectors who have the
requisite qualification and experience. The Contractor shall submit details of the
inspection agency and inspectors and obtain prior approval from Company.
35.4 The Company may also depute its own Third party agency for the factory
inspections. In addition, the Company may depute its own personnel for the
inspections.
35.5 The cost of travel, hotel lodging and boarding and other related costs of Company’s
personnel and Company’s Third Party Agency will be borne by Company and no
additional cost shall be charged to Company for factory inspection.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
35.6 Inspection or witnessing, or failure to inspect or witness, by the Company shall not
be construed as acceptance of any part of the Works or as relieving the Contractor of
its responsibilities under the Contract to procure materials, equipment, plant or
machinery that are free from defects and capable of performing their respective
functions safely and reliably.
35.7 The Contractor shall ensure that inspection from a Company approved third party is
carried out for all equipment and materials, including, but not limited to, the
following unless otherwise approved by the Superintendent of the Contract:-
35.8 The Contractor shall arrange for provision of electronic copies (CD) of all the
relevant approved documents for the inspection to the Company’s Third party
agency and Company personnel.
35.9 The Vendors shall provide all suitable offices at Vendor’s facility for Company’s
personnel and its Third Party Agency personnel during inspection and testing
services.
36.2 Within twenty-one (21) Days after the signing of Contract, the Contractor shall
supply twenty (20) reduced size and bound copies (11.7 inch x 8.3 inch) of the
Contract document. Copies shall be hard back with flexible woven binding enabling
document to lay flat back when open, double sided printing, in clear legible type,
with margin to facilitate photocopying. The Contractor shall also supply electronic
(soft copies) in optical-character-recognition software (OCR) format with search
facilities for all text and images, with content of each document linked
electronically by hyperlink (“book marked) between each index items and its
respective text and image content. Electronic copies of documents shall be in single
electronic file per document.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
36.3 The Contractor shall send all document transmittals to the Superintendent of
Contract, who is the only authorised person to provide review comments on
documents.
36.5 The Company shall approve or review engineering documents prepared by the
Contractor and his Vendors or Subcontractors at specific times. The review or
acceptance of the engineering documents shall not relieve the Contractor from any
responsibility under the terms of the Contract. The Contractor accepts that no
related design engineering and procurement work shall proceed until Company
releases approval or review category documents or drawings. On approval of the
documents without any outstanding comments, the documents shall be re-issued as:
“Issued for Construction”.
36.6 The Contractor shall be responsible for the correctness and accuracy of all
documents/ drawings prepared by the Contractor or Subcontractors or Vendors.
The Contractor shall transmit drawings/documents to the Company for review as
soon as possible in a logical sequence. In addition such prints issued to the
Company must show evidence of the Contractor’s review and design input and be
released in a logical sequence that supports the proper engineering development of
the detail design. Failure to meet these criteria may result in the Company returning
all documents as rejected.
36.7 The Company shall have the right to review and audit design engineering Works as
it proceeds at Contractor's office and Contractor shall cooperate with Company's
assigned personnel to facilitate such review and audit.
36.8 The Contractor shall prepare, within thirty (30) Days of signing of Contract, a
detailed and comprehensive document requirements submittal schedule for the
Contract. Schedule shall show the Contractor’s proposed document numbers and
titles.
36.9 The Contractor shall issue documents for construction after Company
review/approval or release.
36.10 The Contractor shall issue all necessary documentation to all Inspection Agencies
involved in the project including the Company’s Inspectors.
36.11 The Contractor shall provide all documents required for permit applications as well
as any documentation required by Government Authorities.
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CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
36.13 In addition to requirements stated herein, the Contractor may be directed by the
Company to provide up to an additional five (5) copies of a particular document, the
cost of which shall be deemed included in the Contract Price.
36.14 All documents/prints released or issued for construction shall show evidence of the
Company’s approval by way of stamps or noting of relevant communication (or
transmittal reference). The Company will approve the proposed method.
36.15 The Contractor shall supply Project Record Books and Plant Operating &
Maintenance Manuals in the manner indicated in Technical Specification.
36.16 Where modifications or revisions (i.e. As-built) take place after the submission of
these books, the Contractor shall update all copies in possession of the Company
with adequate replacement of revised portion of documentation.
36.17 The Contractor shall also supply electronic copies (CD ROM) of all text, documents
and drawings generated by the Contactor, Subcontractors, Vendors and sub-Vendors
contained in the Project Records Books and O&M Manuals. In addition, the
Contractor shall supply a signed document on CD ROM.
CONTRACT SPECIFICATION
CONSTRUCTION OF POWER DISTRIBUTION NETWORK FOR ESP WELLS ASSOCIATED WITH 11KV AREA
SUBSTATIONS 1 AND 2 IN S&EK AREA
38.3 If Type Test Certificates are available however, a switchgear typical of what is
proposed has not been operational elsewhere for two (2) years as required by clause
6.3 of KOC-E-002 Part-1, Contractor shall submit three (3) years Warranty from
Switchgear manufacturer.
38.4 The 11kV switchgear shall be warrantied for a period of three (3) years from the
Date for Completion and same warranty in original from Switchgear manufacturer
for a period of three (3) years shall be submitted.
39. WARRANTY
39.1 The Contractor shall execute the works as specified under clause 44.0 of the
General Conditions of Contract.
39.2 The Contractor shall provide the original certificate of warranty issued by the
Vendor to the Company for each equipment installed under the Contract.
39.3 Warranty of Contractor’s supplied materials/ equipment shall start from the date
specified in Certificate of Completion and shall be valid till the expiry of Defects
Liability Period.
40.1 The Contractor, when the Works at each Loop have been completed in accordance
with the Contract (except the punch list items that are minor and do not affect their
use for the purpose for which they are intended and save for the obligations of the
Contractor under clause 36 of General Conditions of Contract) and have
satisfactorily passed any final test that specified in the Contract, shall apply to the
Company for the Certificate of Completion for such Loop. The Superintendent shall
issue separate Certificate of Completion for each Loop subject to Contractor’s
compliance with the requirements of clause 35 of the General Conditions of
Contract.
40.2 Defects Liability Period for each Loop shall commence effective from the date as
specified in the Certificate of Completion of the respective loop and as further
referred to in clause 36 of the General Conditions of Contract.
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