Doc Ref : QAP-16

QUALITY ASSURANCE
Date: 1
st
January 2009
Kencana Infrastructure
PROCEDURE
Revision No : 0

Cover Page
I
COpy NO.
SUBCONTRACTING PROCEDURE

KENCANA INFRASTRUCTURE SDN BHD
REV NQ DATE
PREPARED BY
REVI EW ED BY APPROVED BY
NAME SIGN DATE NAME
Slq N
DATE NAME SIGN DATE
0 29.12.08 CCK

15.12.08 YLP

23 12 08 TKH
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29.12.08
'----'"
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I""""
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SUBCONTRACTING
PROCEDURE

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TABLE OF CONTENTS


SECTION DESCRIPTION PAGE

1.0 PURPOSE 2

2.0 SCOPE 2

3.0 REFERENCE 2

4.0 DEFINITION 2

5.0 PROCEDURE

5.1 ORGANIZATION STRUCTURE
3

5.2 SUBCONTRACTING PROCESS 3
5.2.1 SELECTION OF BIDDER 3
5.2.2 REQUEST FOR QUOTATION
5.2.3 BID OPENING
5.2.4 ISSUANCE OF LA / LOI / SO

3
4
4 - 5
5.3 SUBCONTRACTOR EVALUATION 5

6.0 SPECIAL REQUIREMENT 5

7.0 RECORDS 6


APPENDICES

APPENDIX 1 ORGANIZATION STRUCTURE
APPENDIX 2 ISSUANCE OF LA / LOI / SO FLOW CHART
APPENDIX 3 SUBCONTRACTING REGISTRATION FORM
APPENDIX 4 SUBCONTRACTING PROCESS FLOWCHART
APPENDIX 5 SERVICE REQUISITION
APPENDIX 6 TENDER COMMITTEE APPROVAL FORM
APPENDIX 7 COMMERCIAL EVALUATION FORM (CBE)
APPENDIX 8 SERVICE ORDER
APPENDIX 9 LETTER OF AWARD
APPENDIX 10 SUBCONTRACTOR ASSESSMENT REPORT
APPENDIX 11 FINAL SUBCONTRACTOR SELECTION REPORT



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SUBCONTRACTING
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1.0 PURPOSE

The purpose of this procedure is to establish the required activities involved in the
subcontracting process commencing from the subcontractor planning, receipt of service
requisition (SR), sourcing, and selection of subcontractor until issuance of Service Order
(SO) or Letter of Award (LA).

This procedure also outlines the evaluation of subcontractors key performance index to
ensure only the best subcontractor is employed for the work.


2.0 SCOPE

The scope of this procedure covers the subcontracting process for specific contract
undertaken by Subcontracting Team of Kencana Infrastructure Sdn Bhd.


3.0 REFERENCES

ISO 9001:2008
Quality Manual (QM)


4.0 DEFINITIONS

KI - Kencana Infrastructure Sdn Bhd
SR - Service Requisition
RFQ - Request for Quotation
ITB - Instruction to Bidder
TBE - Technical Bid Evaluation
CBE - Commercial Bid Evaluation
LA - Limit of Authority
SO - Service Order
LOA - Letter of Award
LOI - Letter of Intent
LS - Lump Sum
T/C - Terms and Conditions




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5.0 PROCEDURE


5.1 ORGANIZATION STRUCTURE

The organization structure of subcontracting team is as per stipulated in Appendix 1. The
role and responsibility of each subcontracting personnel is clearly defined.


5.2 SUBCONTRACTING PROCESS

The subcontracting process for subcontract is summarized in the flowchart attached in
Appendix 4.

The Project Engineer or Site Contract Administrator shall initiate the SR, as enclosed in
appendix 5, for specific subcontracting package together with clear description of the
Scope of Work. The SR shall be approved by the GM and SGM prior to issuance to the
Subcontracting Team.

Upon receipt of SR, the Subcontracting Team shall initiate the bidding process.

5.2.1 SELECTION OF BIDDER

All new subcontractors are required to register with KI and be evaluated before
being eligible to participate in the subcontracting exercise. Information on the
companys background will be submitted by subcontractors using the Application
for Subcontracting Registration Form stipulated in Appendix 3 and shall be
assessed and approved using Final Subcontractor Selection Report in Appendix
11.

A database will be maintained and record will be updated yearly for all registered
subcontractors.

The list of bidders for a specific subcontract work will be selected from the
database. The list will then be submitted for management approval using Tender
Committee Approval Form (Appendix 6). Upon management approval, a complete
tender document will be issued out to the selected bidders.


5.2.2 REQUEST FOR QUOTATION

Subcontracting Team will compile the tender documents comprise of drawings,
plans, schedule, specifications and / or special provisions as appropriate.

The ITB shall specifically instruct the bidders to submit the bids in two separate
envelopes clearly identified as priced and unpriced for technical intensive bid or
contract requirement, otherwise only priced bid will be required.

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5.2.3 BID OPENING

The technical bid (if applicable) shall be opened and witnessed together with the
Project Manager or the General Manger In-charged. Upon receipt of the technical
bid proposal, the Subcontract Executive shall forward the unpriced copy of the bid
proposals to relevant dept. / Originator for TBE purposes.

A technical meeting will be arranged with the selected bidders to discuss in detail
the technical proposals submitted (if applicable).

When all the requirements are satisfied, Subcontracting Team shall proceed with
the commercial evaluation. The commercial bid will be opened together with the
Project Manager/GM (Tech), Subcontracting Manager/Procurement Manager and
GM (Commercial) for those bids with priced and un-priced approach.
Otherwise, the subcontracting team shall compile all quotations and proceed with
CBE.

Subcontracting Manager shall initiate further negotiation with the shortlisted
bidders as indicated in the CBE for the best price together with PM, GM
(commercial), GM (Tech) or Procurement Manager. The result of the negotiation
shall be recorded in the CBE.

The CBE, enclosed in Appendix 7, together with the TBE compliance (if
applicable) shall then be forwarded to the management for approval.

5.2.4 ISSUANCE OF LOI / LOA / SO

Upon LOA approval, Subcontracting Team shall proceed with Letter of Award
(LOA) or Letter of Intent (LOI) or Service Order (SO) acknowledgment and
acceptance by successful subcontractor. A sample of SO and LOA is enclosed in
Appendix 8 and Appendix 9, respectively.

Service will be entered with successful subcontractor by means of document
based on the following level of transaction amount and flowchart stipulated in
Appendix 2:

Value of Subcontract Document

< RM250, 000 (Known LS) SO with optional T/C

< RM250, 000 (Unknown LS) LOA and T/C

*Note: If the value of contract is less than RM250, 000.00 the documents will be
approved by Managing Director or Executive Director (Operation).



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Value of Subcontract Document

RM250, 000 (Known LS) LOI/LOA and T/C

RM250, 000 (Unknown LS) LOI/LOA and T/C

*Note: If the value of contract is above RM250, 000.00 the documents to be
approved by Managing Director and Executive Director (Operation).

Letter of Intent shall only be issued if the subcontract is unable to finalize prior to
physical work done by the subcontractor.

Copies of the above documents shall be distributed to Project Manager and
Account Department.

Project Manager shall initiate the kick-off meeting with successful subcontractor.

The progress of subcontracting works shall be monitored by the Project Manager
office and relevant departments directly involved in the works.


5.3 SUBCONTRACTOR EVALUATION

Upon project completion, all subcontractors shall be assessed on their performance
throughout the project duration using the Subcontractor Assessment Report stipulated in
Appendix 10. Each criterion carries score points and overall assessment score will be
recorded.

The purpose of the subcontractor performance evaluation program is to provide the
history of the subcontractors performance for future reference.

The Subcontracting Team is responsible for carrying out the evaluation of the
subcontractors performance.


6.0 SPECIAL REQUIREMENT (if any)

Unless otherwise specified in the contract, priority of selection of bidders shall comply
to the following level of sequence.

1. Preferred vendor / subcontractor in the contract.
2. Vendor Development Programme (VDP) sub-contractor.
3. Petronas Licensed subcontractor if specified.
4. Client preferred subcontractor.




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7.0 RECORDS

Title Responsibility Retention Period

SR Engineering Department At least 1 year after
Project Manager completion of project

TBE Engineering/Project Department

CBE Subcontracting Team

LOA / LOI or SO Subcontracting Team
























APPENDICES























QAP -16 Rev-0
Appendix 1
SUBCONTRACTING ORGANIZATION STRUCTURE
Snr. / Subcontract Executive
Subcontract Regulator
Ensure subcontract document are legally stamped.


Compile all documents into a subcontract document.
Ensure all the agreeable terms and conditions are
captured in the subcontract document.
Liaison with subcontractor for subcontract signing.
Prepare Service Order / L.A.
Maintain record of subcontract requisition.
Perform subcontractor KPI upon project completion.

Source for subcontractor.
Prepare CBE.
Organize technical clarification meeting.
Liaison with subcontractor.
Liaison with Service Intiator and PM.
TITLE JOB DESCRIPTION

GENERAL MANAGER

SUBCONTRACTING
MANAGER

SNR. SUBCONT.
EXEC.

SUBCONT. EXEC.

SUBCONT. EXEC.

SUBCONT. REGULATOR
QAP-16 Rev-0
Appendix 2
ISSUANCE OF SO/LA/LOI FLOW CHART
Approved by Managing Director
or Executive Director (Operation)

SUB-CONTRACT
CONTRACT VALUE
ABOVE 250K ?
LOI / LOA & T/C
LOA & T/C SO
YES
NO
LUMP SUM AMOUNT
KNOWN ?
NO YES
Approved by Managing Director
and Executive Director (Operation)
QAP-16 Rev-.0
Appendix 3
Page 1 of 9




APPLICATION FOR SUBCONTRACTOR
REGISTRATION WITH
KENCANA INFRASTRUCTURE SDN BHD


Corporate Office - Lot 50, J alan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai
Buloh, Selangor Darul Ehsan, Malaysia. Tel: (03) 6140 5801 Fax: (03) 6140 5810


INSTRUCTIONS

1. PLEASE READ INSTRUCTIONS CAREFULLY BEFORE FILLING THIS FORM.
2. FORMS SHOULD BE CLEARLY TYPEWRITTEN.
3. PLEASE ENCLOSE THE NECESSARY DOCUMENTS.
4. APPLICATIONS WHICH ARE IN INCOMPLETE WILL NOT BE REGISTERED.
5. PLEASE INDICATE YOUR COMPANY'S SCOPE OF MANUFACTURE AND / OR SUPPLY & ATTACH
NECESSARY CATALOGUES / BROCHURES TO SUPPORT YOUR COMPANY'S REPRESENTATION OF
THESE PRODUCTS.



NOTE: YOU ARE REQUESTED TO SUBMIT FULL DOCUMENTARY INFORMATION AS REQUIRED.



NEW REGISTRATION

UPDATED REGISTRATION



















REGISTRATION NUMBER: SR / KI________________
CONFI DENTI AL
QAP-16 Rev-.0
Appendix 3
Page 2 of 9





SUB-CONTRACTOR INFORMATION

A. COMPANY PARTI CULARS

(1) NAME OF COMPANY : _________________________________________________

_________________________________________________

(2) REGISTERED BUSINESS ADDRESS : _________________________________________________

_________________________________________________

_________________________________________________

(3) CORRESPONDENCE ADDRESS : _________________________________________________

_________________________________________________

_________________________________________________

(4) TELEPHONE NO : _________________________________________________

_________________________________________________

(5) FAX NO : _________________________________________________

_________________________________________________

(6) EMAIL ADDRESS : _________________________________________________

_________________________________________________

(7) NATURE OF ORGANISATION :
(Thick where appropriate)





(8) DATE OF INCORPORATION : _________________________________________________

(9) PLACE OF INCORPORATION : _________________________________________________
( A true certified copy of Certificate of Incorporation and Articles of Association must be enclosed )




PUBLIC LIMITED
PRIVATE LIMITED
PARTNERSHIP
SOLE PROPRIETOR
QAP-16 Rev-.0
Appendix 3
Page 3 of 9





B. FI NANCI AL I NFORMATI ON

(1) CAPITAL STRUCTURE (Please state the currency)

(1.1) AUTHORISED CAPITAL : __________________________________

(1.2) PAID-UP CAPITAL : __________________________________

(1.3) ANNUAL TURNOVER : __________________________________

(1.4) WORKING CAPITAL : __________________________________

(1.5) NET PROFIT LAST THREE YEARS

20___ : __________________________________

20___ : __________________________________

20___ : __________________________________

(2) EQUITY PARTICIPATION
(State value and currency. A true certified Form 24 must be enclosed)


CATEGORY VALUE %
LOCAL
( I ) BUMIPUTRA
( II )NON-BUMIPUTRA

FOREIGN

TOTAL








(3) ACCOUNT DETAILS

(4) Please enclose true certified copies of audited account of your company for the last three years.





BANKERS
NAME
BANKERS
ADDRESS
ACCOUNT
NO.
AMOUNT OF LOANS /
OVERDRAFT

QAP-16 Rev-.0
Appendix 3
Page 4 of 9





(C) FACI LI TI ES AND SERVI CES PROVI DED

(1) CATEGORY OF WORKS : -

1 STRUCTURAL STEEL
2 PROCESS PIPES & FITTINGS
3 ELECTRICAL AND INSTRUMENTATION
4 FIRE FIGHTING, PROTECTION & DETECTION SYTEM
5 HEATING, VENTILATION & AIR CONDITIONING
6 MECHANICAL EQUIPMENT
7 INSULATION
8 INSPECTION AND TESTING
9 CORROSION PROTECTION
10 ARCHITECTURAL & FURNISHING
11 CIVIL WORKS
12 SCAFFOLDING & RIGGING
13 TRANSPORT
14 OTHER: (please specify)



NOTE: 1) Please tick where appropriate.


(2) TYPE AND VALUE OF PRODUCTS/SPARES NORMALLY HELD IN STOCK

PRODUCT TYPE PRODUCT BRAND VALUE




QAP-16 Rev-.0
Appendix 3
Page 5 of 9





(3) LOCATION OF WAREHOUSE

ADDRESS CONTACT NO.



(D) REGI STRATI ON WI TH STATUTORY AUTHORI TI ES/ COMPANI ES


STATUTORY
AUTHORITIES/
COMPANIES
REGISTRATION
NUMBER
EXPIRY
DATE
REMARK
PETRONAS
TREASURY
PUSAKABUMI







NOTE : 1. Please include Documentary Proof (License/ registration confirmation letter )
2. Others, please specify in space provided.



(E) OTHER RELEVANT INFORMATION

_____________________________________________________________________________________________

_____________________________________________________________________________________________

_____________________________________________________________________________________________


QAP-16 Rev-.0
Appendix 3
Page 6 of 9





(F) BUSI NESS RELATI ONS WI TH KENCANA I NFRASTRUCTURE SDN BHD

F.1 TERMS OF PAYMENT : ____________

F.2 CREDIT LIMIT : ____________


DECLARATI ON

I, the undersigned hereby declare to the best of my knowledge and belief that all particulars furnished under this
application are true and accurate. I also authorize Kencana Infrastructure Sdn Bhd and its representatives and assign to
undertake further investigation if so desired, I also agree that any incorrect information stipulated in this form may
render our registration invalid.

SIGNATURE : _______________________________

NAME : _______________________________

I.C. NO. : _______________________________

DESIGNATION : _______________________________

DATE : _______________________________

___________________________________________________________________________

LIST OF ENCLOSURES REQUIRED

(1) CERTIFIED COPY OF REGISTRATION OF COMPANY CERTIFICATE.
(2) CERTIFIED COPY OF CERTIFICATE OF INCORPORATION AND ARTICLES OF ASSOCIATION.
(3) CERTIFIED COPY OF FORM 49
(4) CERTIFIED COPY OF FORM 24
(5) CERTIFIED COPY OF AUDITED ACCOUNT FOR THE LAST THREE YEARS.
(6) COMPANYS ORGANIZATIONAL CHART.
(7) RELEVANT LICENCE/ REGISTRATION CONFIRMATION LETTER.
(8) COMPANY BROCHURES AND AGREEMENT/AGENCY APPOINTMENT.















QAP-16 Rev-.0
Appendix 3
Page 7 of 9





CURRENT EMPLOYMENT STRUCTURE

J OB CATEGORY TOTAL BUMIPUTRA %
NON-
BUMIPUTRA
%
FOREIGN
EMPLOYEE
%
MANAGERIAL

SKILLED/TECHNICAL

CLERICAL

GENERAL WORKER/
OTHER

TOTAL:


NOTE: A copy of the Organization Chart must be enclosed.


OTHER KEY PERSONNEL

NAME NATIONALITY DESIGNATION ADDRESS TEL.NO.
TECHNICAL
PERSONNEL

SALES
PERSONNEL

If insufficient space, please attach another sheet with the same format.
QAP-16 Rev-.0
Appendix 3
Page 8 of 9





OTHER KEY PERSONNEL

NAME NATIONALITY DESIGNATION ADDRESS TEL.NO.
TECHNICAL
PERSONNEL

SALES
PERSONNEL


QAP-16 Rev-.0
Appendix 3
Page 9 of 9





LIST OF MAJ OR SUBCONTRACTING WORKS

PRODUCT**
TYPE BRAND
MANUFACTURERS
NAME, ADDRESS AND
CONTACT NUMBER
*OIL COMPANIES/AGENCIES
SUPPLIED


* Please list the major oil companies / agencies that you have supplied your product to, e.g. CARIGALI,
PETRONAS, SHELL, etc.
If insufficient, please attach another sheet with the same format.

**Please provide documentary proof of agency or distributorship arrangements.
QAP-16 Rev-0
Appendix 4
SUBCONTRACTING FLOW CHART
PROCESS TURN AROUND
ABOUT 7 - 10 DAYS
RESUBMISSION OF QUOTE
PROCESS TURN AROUND
ABOUT 7 - 14 DAYS
BY PROJ ECT MANAGER / ASSIGNED
(IF REQUIRED)
REVIEW AND APPROVAL BY CLIENT
(IF REQUIRED)
PROCESS TURN AROUND
ABOUT 7 - 10 DAYS
PROGRESS MONITOR BY PMT
CLIENT
CONTRACT AWARD
SR BY PMT
RFQ
RECEIVED BIDS
BID OPEN
TECHNICAL MEETING
PRICE IMPACT
TECHNICAL BID EVALUATION
CLIENT
APPROVAL
COMMERCIAL BID
EVALUATION
MGMT
APPROVAL
LETTER OF AWARD /
SERVICE ORDER
SUBCONTRACTOR
DEVELOP SOURCE LIST
MGMT
APPROVAL
PROJECT SOURCE LIST
YES
NO
NO
NO
YES
YES
NO
YES
COMMERCIAL BID OPEN
QAP-16 Rev-0
Appendix 4
QAP-16 Rev-0
Appendix 5
No.
Approved by:
Name: Name: Name:
PROJECT MANAGER GENERAL MANAGER (TECH) SENIOR GM
Date: Date:
Cost Code:
Date:
Certification / Documents Required: (if none, state "None")
SERVICE REQUISITION
SR No.:
Project:
Suggested Sub-contractor:
KENCANA INFRASTRUCTURE SDN. BHD.
Lot 50, Jalan BRP 8/2, Pesiaran Bukit Rahman Putra 3, Perusahaan Bukit Rahman Putra,
47000 Sungai Buloh Selangor Darul Ehsan, Malaysia.
Tel: 03-6140 5801 Fax: 03-6140 5810
Work Start Date:
Backcharge:
Completion Date:
Reason :
Requested by: Verified by:
Name:
Date: Date:
Position:
Attachment List Description
QAP-16 Rev-0
KENCANA INFRASTRUCTURE SDN BHD Appendix 6
Lot 50, J alan BRP 8/2,
Persiaran Bukit Rahman Putra 3,
Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh,
Selangor Darul Ehsan, Malaysia.
Tel : (03) 6140 5801 Fax : (03) 6140 5810
PROJ ECT :
CONTRACT NO:
J OB NO :
TENDER COMMITTEE APPROVAL Ref No.:
SUB-CONTRACTING BIDDERS LIST Date:
Dear Sir,
Please find below proposed subcontractor bidders list for your kind approval.
NO NAME
APPROVED LIST
YES NO N/A
1
2
3
4
5
6
7
8
9
10
11
12
13
14
REMARKS:
RECOMMENDED BY APPROVED BY
SIGNATURE : ________________________ SIGNATURE : ______________________________
Sub-Contracting Manager : General Manager :
DATE
:
DATE
:
SIGNATURE : ______________________________
REVIEWED BY
Senior General Manager :
SIGNATURE : ________________________ SIGNATURE : ______________________________
Project Manager : Managing Director
:
DATE
:
DATE
:
SIGNATURE : ______________________________
Executive Director
:
DATE
:
Project: QAP-16 Rev. 0
SR No:
C O M M E R C I A L B I D E V A L U A T I O N ( C B E )
Appendix 7
LOA Ref:
Scope:
QUOTATION 1 QUOTATION 2 QUOTATION 3 QUOTATION 4
BUDGET CURRENT
NO. ITEM DESCRIPTION Qty uni t
Currency: RM
Qty uni t
Currency: RM Currency: RM Currency: RM Currency: RM
Uni t Pri ce Total Pri ce Uni t Pri ce Total Pri ce Uni t Pri ce Total Pri ce Uni t Pri ce Total Pri ce Uni t Pri ce Total Pri ce
Initial Allocated Budget
Extra Allocated Budget 0.00
Total Budgeted amount 0.00
This Sub Contract Amount 0.00
Total Amount Previously Awarded
Total Amount Awarded
Total Budget Bal ance - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) - TOTAL AMOUNT(RM) -
QUOTATION REF:
QUOTATION VALIDITY
DELIVERY TIME
WORK/ DELIVERY LOCATION
TERM OF PAYMENT
PETRONAS LICENCE
REMARKS
RECOMMENDATION:- BASIS OF RECOMMENDATION: APPROVED BY : UP TO 250K APPROVED BY : ABOVE 250K
PREPARED BY : INITIATED BY: REVIEWED / CHECKED BY : VERIFIED BY : MANAGING DIRECTOR :
DATE :
MANAGING DIRECTOR/
Name : SUBCONTRACTING HOD GM : SGM : FINANCE CONTROLLER: EXECUTIVE DIRECTOR OPERATION : EXECUTIVE DIRECTOR OPERATION :
Date : DATE : DATE : DATE : DATE : DATE : DATE :
QAP-16 Rev-0
Appendix 8
Kencana I nfrastructure Sdn Bhd
Name SO No.
Company Date
Address PR No.
Supplier's Quotation
Project Reference
Phone Terms of Payment
Fax Cost Code
Uni t Cost Amount
RM RM
Project:
Re:
AA. Scope of work Qty Unit U/Rate/Day Total Day
Ri nggi t Mal aysi a:
-
BB Addi ti onal Terms and Condi ti ons
CC Mobi l i sati on
DD Worki ng Hours
EE Warranty Peri od
FF Pri ce and Currency
Price quoted in Ringgit Malaysia (RM)
GG Payment Terms
30 days upon approved invoice
HH Invoi ci ng Instructi ons:-
Submit the Original Invoice, Purchase Order and Supporting Documents to:
KENCANA INFRSSTRUCTURE SDN BHD
Lot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3,
Perusahaan Bukit Rahman Putra, Sg Buloh 47000, Selangor Darul Ehsan.
Tel: 603-61405801 Fax: 603-61405810
Attention: Accounts Department
II References :-
The following documents contain herein and shall be read and interpreted as whole :
1 This Service Order
RFQ Ref.
Verified By : KENCANA INFRASTRUCTURE SDN BHD
AUTHORISED SIGNATURE
General Manager Seni or General Manager Managi ng Di rector / Executi ve Di rector (Operati on)
NAME : NAME :
DATE : DATE :
ACKNOWLEDGEMENT RECEIPT
Signed by : Company Official Stamp:
Designation :
Date :
The undersigned hereby acknowledges receipt of this Service Order (a copy of which has been retained by us) and accept the award in accordance
to the specified term and conditions.
Rate ONLY
Lot 50, Jalan BRP 8/2, Persiaran Bukit Rahman Putra 3, Perusahaan Bukit
Rahman Putra, 47000 Sungai Buloh, Selangor D.E. Malaysia.
Tel : (03) 6140 5801 Fax: (03) 6140 5810
Provi si onal Pri ce For Thi s Servi ce Order (RM)
SERVICE ORDER
Item Qty Descri pti on OF Works
QAP-16 Rev-0
Appendix 9
Page 1 of 6

Our Ref: Proj ect Ref No

Date

Name and
Address of sub-contractor

Attention: Name of Person in Charge

Dear Sir,

NAME OF PROJ ECT

SUB-CONTRACT: SCOPE OF WORKS

- Letter of Award

We are pleased to award the above mentioned Works to you for a sum of Ringgit
Malaysia: Description of Sub-Contract Sum only (RM xxx,xxx.xx) (the SUB-CONTRACT
Sum) and subject to the term and conditions of the SUB CONTRACT and the MAIN
CONTRACT and the following terms and conditions set forth herein below:

1. Definitions

CONTRACTOR shall mean Kencana Infrastructure Sdn. Bhd. (594894-P)
MAIN CONTRACTOR shall mean Kencana HL Sdn. Bhd. (83307-K)
SUB-CONTRACTOR shall mean XXXXXXXXXXXX (XXXXXX-X)
COMPANY shall mean xxxxxxxxxxxxxxxxxxxxxx or his joint venture that
entered into the Main Contract with the Main Contractor.
MAIN CONTRACT shall mean the contract signed between the MAIN
CONTRACTOR and the COMPANY for the above-mentioned Project.
SUB CONTRACT shall mean the contract signed between the CONTRACTOR
and the SUB-CONTRACTOR for the above-mentioned Project.

2. Firm Price Contract

This is a firm price Bills of Quantities Contract (Provisional Quantities unless
otherwise specified), all rates and prices stated in the Bill of Quantities are
firm and shall not be subjected to adjustment and fluctuation.

3. Scope of Works

The SUB-CONTRACT scope of works comprises of provision to
.. A Scope Matrix between
the SUB-CONTRACTOR and the CONTRACTOR is enclosed together with the
Schedule of Prices.
QAP-16 Rev-0
Appendix 9
Page 2 of 6

4. SUB-CONTRACT Documents

The following documents (the SUB-CONTRACT Documents) shall form an
integral part of this SUB-CONTRACT and are listed in;

This Letter of Award.
Schedule of Prices and Scope Matrix.
Sub-Contract Conditions (Page SCC 1/11 to SCC 11/11).
Supplementary Conditions (Page SUPC-1/6 to 6/6).
Project scope of works, list of drawings, construction drawings,
fabrication/shop drawings and specification of main contract. (not
enclosed in this sub-contract document, but can be accessed at the site
office during office hour on working day)

5. Conditions of SUB-CONTRACT & Main Contract

SUB-CONTRACTOR shall perform all duties and obligations under this SUB-
CONTRACT and you shall execute the works subject to and in accordance with
this SUB-CONTRACT and Main Contract (in respect to term and conditions that
relate and apply to the Works). In relation to any terms which exist in both
Main contract and the SUB-CONTRACT, and if the said terms conflicts with
each of the terms for the SUB-CONTRACT shall prevail. However, if the terms
for a subject matter is absent in the SUB-CONTRACT, but exist in the Main
Contract, then the Main Contract term for that subject matter will govern.
Notwithstanding any other provisions in the SUB-CONTRACT, the provisions in
the MAIN CONTRACT shall apply mutatis mutandis to the Sub-Contract herein
mentioned.

6. Commencement and Completion Duration

The Commencement Date is xxxxxxxxxxxxxxx and the SUB-CONTRACTOR shall
complete the SUB-CONTRACT Works on or before xxxxxxxxxxxxxxxx and within
the sectional completion date (if any).

7. Partial Handing Over

As and when instructed by us, you shall forthwith hand over the whole or
partly completed Works to us.

8. Late Delivery Charges

The Late Delivery Charges for non-completion Of the SUB-CONTRACT Works as
per schedule below:-
QAP-16 Rev-0
Appendix 9
Page 3 of 6





No. Key Date / Milestone Completion LDC per day Total Max % of
Contract Value

1 xxxxxx xx/xx/xx x,xxx.xx

xx%

9. Performance Bond

Notwithstanding any provision herein contained, It is a strict and condition
precedent under this Sub-Contract that a performance bond in the form of bank
guarantee approved by the Contractor for the sum equal to 10% of the Sub-
Contract value is required to be submitted within 14 days as per attached
format in Appendix A. failing the CONTRACTOR shall have no obligation to pay
the SUB CONTRACTOR for any works done.

10. Contract Drawings

The drawings upon which the SUB-CONTRACT is based upon are listed in the
List of Drawings. The drawings will be supplemented from time to time by
additional drawings and/or details for successful completion of the works.

11. Payment Terms

You have to submit your Interim Progress Claim to the CONTRACTOR for
Monthly Interim Payment on every 25
th
of the month or any other date to be
mutually agreed by both parties. Unless disputed by the CONTRACTOR on the
invoices submitted, We shall issue the Progress Payment Certificate within
seven (7) working days from end of month and make payment to you within
thirty (30) days from date of payment certificate. Notwithstanding any
payments might have been made to the SUB CONTRACTOR, CONTRACTORs
rights to review, dispute and claim back any payment erroneous billed shall
be unaffected and without prejudice to other rights or remedies available to
the CONTRACTOR.

QAP-16 Rev-0
Appendix 9
Page 4 of 6

12. Insurance

The Contractors All Risks insurance has been purchased by the CONTRACTOR
and the policy is available for your inspection in our office during office hours.
The excess/deductibles specified in the policy and any additional insurance
that may be required shall be borne by you.

The SUB-CONTRACTOR shall also at its own cost and expenses maintain any
other insurance(s) which may be relevant and/or necessary from time to time
as required under the Sub Contract and Main Contract respectively.

You shall report to us any incident and/or accident, which may involve
insurance claim within twenty-four (24) hours from the occurrence of the
incident/accident.

You shall arrange at your own cost any necessary insurance coverage for your
construction plants and machineries on site and any other insurance which
deemed necessary.

13. Defects Liability Period

The defects liability period is twelve (12) months from the date of receipt of
the Certificate of Initial Acceptance for the Main Contract or any other
extension of such period thereof.

14. Undertakings and Warranty

You shall provide and execute the undertaking on the Employment of Workers
and the undertaking on compliance with the Green Card Programme
stipulated by Construction Industry Development Board (CIDB), Malaysia.

15. Site Personnel

You shall provide and employ on the site for the purpose of the execution and
maintenance of the works a competent and full time site and project
management team throughout this SUB-CONTRACT. You shall also submit the
curriculum vitae of your key project/site personnel who are qualified,
experienced and competent for our acceptance and the Contractor is entitled
to object and require the Sub-Contractor to resubmit the replacement of such
personnel for the Contractors consideration.

16. Co-ordination of Works

You shall co-ordinate, interface and provide full co-operation to other
subcontractors employed by us.
QAP-16 Rev-0
Appendix 9
Page 5 of 6
You are to arrange, programme and liaise with other sub-contractors or
personnel so as not to cause any interference or interruption to the progress
of works and no claim shall be entertained based on the ground of
hindrance/obstruction experienced.

17. Care of Works
You are responsible to independently check the construction drawings for any
discrepancy or errors and the CONTRACTOR shall not owe any duty to the Sub
CONTRACTOR or be responsible for any errors thereto. Any discrepancy or
error found in the drawings shall be immediately notified to the CONTRACTOR
for clarification and correction.

18. Security

The SUB-CONTRACTOR and its agent or employee or representative shall
comply with all the security procedures, regulation, HSE requirements and
adhere to all safety regulations by COMPANY at his own cost.

This letter is sent to you in three (3) sets. Please signify your receipt of this Letter of
Award by returning the original and one (1) duplicate duly signed by your authorized
representative and witnessed to us within seven (7) days from the date of this letter,
failing which we shall deem that our offer as contained in this Letter is not accepted
by you and this Letter shall be deemed null and void. In such event, we shall have
the absolute right and discretion to award this SUB-CONTRACT to other party and you
shall have no claims, interests nor rights against us in respect to this SUB-CONTRACT.


Yours sincerely,

For and on behalf of
KENCANA INFRASTRUCTURE SDN BHD




..
Ir. Haron Ali
Managing Director

QAP-16 Rev-0
Appendix 9
Page 6 of 6


ACKNOWLEDGEMENT



We, xxxxxxxxxxxxxxxxxxx (xxxxxx-x) acknowledge receipt of this Letter of Award
(ref: KI07/002-KI-SSWJ/LOA/0003) and hereby agree and accept the terms and
conditions in this Letter of Award.


Signature and Stamp of
SUB-CONTRACTOR





:




Name/Designation :
Date :


Signature of Witness



:



Name :
I/C No :




QAP-16 Rev-0
Appendix 9
Page 1 of 11

SUB-CONTRACT CONDITIONS


SUB-CONTRACT CONDI TI ONS

1. Site Possession, Commencement and Completion.

The duration of the SUB-CONTRACT shall be as stipulated in Appendix I.

Commencement shall mean commencement of physical works at site. SUB-
CONTRACTOR shall ensure strict compliance to the above dates, subject to Clause 28
and other terms herein, and subject to any revisions thereto by the CONTRACTOR.
Possession of site shall not be exclusive to the SUB-CONTRACTOR.

2. Execution of the SUB-CONTRACT Works.

The SUB-CONTRACTOR hereby acknowledges that the CONTRACTOR is relying
on its skill and expertise and upon this reliance undertakes that its workmanship shall
in all respects comply with and perform the Works in accordance to the requirements
of this SUB-CONTRACT and fit for the purpose of this SUB-CONTRACT.

3. Main Contract.

The SUB-CONTRACTOR is deemed to have read, understood and be bound by the
terms and conditions of the Main Contract documents, insofar as it relates to the SUB-
CONTRACT works (except details of the prices therein) and all subsequent revisions
and amendments thereto.

The SUB-CONTRACTOR shall observe, perform and comply with all the provisions
of the Main Contract on the part applicable to the CONTRACTOR insofar as they
relate and apply to the SUB-CONTRACT.

4. Site Conditions.

The SUB-CONTRACTOR shall be deemed to have visited the site and its
surroundings and to have ascertained and satisfied himself as to the nature, character
and extent of the works, local conditions, accessibility of site, geological and
hydrological conditions, the supply of and conditions affecting labour and materials,
existing services and any other limitations and restrictions imposed by the site and its
surroundings and other matters affecting the SUB-CONTRACT. The SUB-
CONTRACTOR shall accept the site as found on the date of site possession and no
claims of any nature will be entertained on grounds of ignorance of site conditions. The
SUB-CONTRACTOR agrees and accepts that the CONTRACTOR shall not be held
liable in whatever manner for any information provided to the SUB-CONTRACTOR,
whether it be inaccurate or erroneous and the SUBCONTRACTOR shall undertake its
independent checking and valuation on all information provided by the
CONTRACTOR.

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SUB-CONTRACT CONDITIONS


5. Sub-Contract Program.

Subject to the dates mentioned in Clause 1 above, the SUB-CONTRACTOR shall
submit a works program (Sub-Contract Program) which shall in all respects tie in and
be consistent with the CONTRACTOR's program (Main Contract Program) which
shall not in conflict with the CONTRACTORs program in the Main Contract. Details
of the Main Contract Program are available at the CONTRACTOR's site office of
which the SUB-CONTRACTOR is deemed to read and have knowledge. The
CONTRACTOR shall be entitled to revise the Sub-Contract Program, at no costs to
suit the Main Contract Program at their sole and absolute discretion and at terms to be
ascertained and determined at such revised period. The SUB-CONTRACTOR shall
comply and complete the SUB-CONTRACT works strictly in accordance to the time
allocated and approved by the CONTRACTOR in the Sub-Contract Program or any
revisions thereto subject to Clause 28 and all terms herein. The CONTRACTOR
reserves the right to instruct the SUB-CONTRACTOR accordingly at no costs should
there be any deviations or non-compliance to the programs and the
SUB_CONTRACTOR shall be obliged to perform accordingly.

6. I nsurance.

The Contractor's All Risks Insurance Policy and the Workmen's Compensation
Insurance Policy have been effected by the CONTRACTOR.

Notwithstanding that both these policies have been extended to cover the SUB-
CONTRACT works, the SUB-CONTRACTOR shall :

a) comply with the policy conditions and shall be bound by the deductibles stated
therein;
b) Not commit or by omission do any act which shall render the said insurance
policies void or voidable, particularly but not limited to the administration and
notification of claims;

The SUB-CONTRACTOR shall indemnify the CONTRACTOR for any loss or claims
in respect of personal injury to or the death of any other person regardless whether the
same is due to any act of negligence, omission or default of the SUB-CONTRACTOR,
his servant, agents and/or representative(s).

Notwithstanding this, the SUB-CONTRACTOR shall from time to time provide
necessary insurance coverage for his own plant, machinery, equipment and foreign
workers. The SUB-CONTRACTOR shall submit to the CONTRACTOR a list of plant,
machinery and equipment he intends to be employed on site and furnish documentary
proof that the same has been adequately insured.





QAP-16 Rev-0
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Page 3 of 11

SUB-CONTRACT CONDITIONS


7. Firm Price Contract.

The SUB-CONTRACT is a firm price contract and the rates mentioned therein are
fixed for the entire duration of the SUB-CONTRACT and there shall be no claims for
additional costs in any situation including arising out of increase in the cost of
materials, currency fluctuations, labour, plant, equipment, fuel, etc (unless otherwise
stated or provision is made under the Special Provision to Sub-contract Conditions).
All costs in relation to authorities contribution, levy, payment, customs restriction,
quotas, duties, taxes etc. are deemed to be included in the SUB-CONTRACT Sum.

8. Bills of Quantities.

The quantities mentioned herein are provisional only and will be subjected to re-
measurement and adjustments at the approval of the CONTRACTOR upon completion
of the SUB-CONTRACT works unless otherwise specified in the Letter of Award. The
SUB-CONTRACTOR shall not be entitled to claim for additional cost incurred in the
Preliminaries nor for any consequential loss, loss of profit, economic loss or any other
loss and/or expense due to variance of the quantities.

9. Payment.

Progress payment to the SUB-CONTRACT works shall be made based on the value of
works properly and satisfactory completed and materials delivered to site (if
applicable) provided that the value of materials delivered shall not exceed the
maximum limit as specified in Appendix I. The SUB-CONTRACTOR shall submit his
application for payment every calendar month, which shall be accompanied by all
forms of calculation and supporting documents to substantiate his claim and the
CONTRACTOR will pay upon verification of the claim . The period of honoring
payment shall be as per Appendix I from the date of certification by the
CONTRACTOR. Payment made to the SUB-CONTRACTOR shall not be deemed as
acceptance of the Sub- Contract works should the same proved to be defective and/or
not in accordance to the SUB-CONTRACT requirements as stated in the SUB-
CONTRACT documents.

Not withstanding to the payment certified and paid to the CONTRACTOR, the SUB-
CONTRACTOR shall be responsible to rectify the said defects within 7 days from the
day of notification at the SUB-CONTARCTOR own cost. The CONTRACTOR shall
have the right to withhold payment to the SUB-CONTRACTOR for the next invoice
pending satisfactory completion of the defective works.

For the avoidance of doubt, the CONTRACTOR shall have the legal rights to withhold
payment to the SUB-CONTRACTOR if works are found to be unsatisfactory to the
CONTRACTOR and this shall not without prejudice to other rights and remedies
available to CONTRACTOR. Notwithstanding this, the SUB-CONTRACTOR is
obliged to continue perform the work herein pending payment from the Contractor.


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SUB-CONTRACT CONDITIONS


10. Statutory Declaration.

Provided always that no payment due to the SUB-CONTRACTOR under the Final
Acceptance shall be made unless and until the SUB-CONTRACTOR shall have
satisfied the CONTRACTOR by means of either:

a) a Statutory Declaration made by or on behalf of the SUB-CONTRACTOR (to
be provided in the format as set out in Appendix III attached); or

b) a certificate signed by or on behalf of the Director Genera1 of Labour,

to the effect that the workmen who have been employed by the SUB-CONTRACTOR
on the Works, including workmen employed by his sub-contractors (including his
labour only" sub-contractors) have received all wages due to them in connection with
such employment and that all dues or contributions under the Employment Act, the
Employee's Social Security Act, the Employee's Provident Fund Act and any other
laws relevant to the employment of workmen, have been paid.

11. Retention.

All payments made to the SUB-CONTRACTOR under Clause 9 above shall be
subjected to retention as per Appendix I. Unless otherwise stated, the first moiety of
retention sum shall be released upon issuance of the Certificate of Provisional
Acceptance of the Main Contract and the execution of both the Deeds of Warranty and
Statutory Declaration by the SUB-CONTRACTOR and the second moiety shall be
released upon the receiving of the Certificate of Final Acceptance by the
CONTRACTOR. Where contractually the 2
nd
moiety of retention sum shall be released
under the Main Contract, interest free and always subject to the period of honouring
payment provided under Clause 9.

12. Right to deduct set-off.

Notwithstanding any provisions contrary herein, , the CONTRACTOR reserves the
right to withhold, deduct, set-off or set-aside any sums due or to be due to the SUB-
CONTRACTOR under the SUB-CONTRACT.

13. Compliance with I nstructions/Variations.

The SUB-CONTRACTOR shall comply with all instructions issued by the
CONTRACTOR within seven (7) days of the issuance thereof. The SUB-
CONTRACTOR shall also comply with the instructions of the Owner and/or their duly
appointed representatives provided the same has been duly endorsed by the
CONTRACTOR and the same shall have equal effect of the instructions of the
CONTRACTOR.

If the SUB-CONTRACTOR fails to comply with the said instructions, within seven (7)
days of receipt of written notice requiring compliance of the same, the
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SUB-CONTRACT CONDITIONS


CONTRACTOR shall be entitled to execute the said part of the SUB-CONTRACT
works pertaining to the instructions or employ others to execute the same and all costs
incurred in connection therewith shall be deducted from monies due or to be due to the
SUB-CONTRACTOR or recovered from the SUB-CONTRACTOR as a debt due
without prejudice to any other rights available to the CONTRACTOR in contract and/
or at law.

Variations issued by the CONTRACTOR shall be deemed to form part of this SUB-
CONTRACT and shall not be regarded as vitiation thereof. The SUB-CONTRACT
Sum shall be adjusted accordingly to take into account of such variations.

The valuation of variation shall be made in accordance with the following rules:

(i) The prices in the Bills of Quantities shall determine the Valuation of Work of
similar character executed under similar conditions as work priced herein.

(ii) Where work is not of a similar character or executed under similar conditions,
the prices in the Bills of Quantities shall be the basis for valuation. The lowest
price shall prevail.

(iii) Where work cannot properly be measured and valued, the SUB-
CONTRACTOR shall be allowed day-work-rates.

14. Owner's Requirements.

The SUB-CONTRACTOR shall have knowledge and be bound by all policies in
relation to noise, environmental protection, quality assurance, occupational safety,
logistics and site organization imposed by the Owner. In addition to other
environmental protection guidelines, there shall be no open burning at site or anywhere
within the vicinity of site.

15. Statutory Compliance.

The SUB-CONTRACTOR shall comply with all statutes, rules, regulations, directives,
ordinances etc. currently in force and any amendments thereto issued by the
government or any other competent authority at his own cost. Particular reference is
brought to the following legislations, the list of which shall not be deemed exhaustive:

(i) Occupational Safety & Health Act (Act 514) 1994 and related regulations.
(ii) Factory and Machinery Act (Act 139) and related regulations.
(iii) Environmental Quality Act (Act 127) 1974.
(iv) Guideline for the Public Safety and Health at Construction Sites issued by the
Department of Occupational Health and Safety.
(v) Regulations issued by the Department of Health.
(vi) Regulations 18 (Public Vehicular Traffic) of Building Operations and Work of
Engineering 1986.
(vii) Transport Ordinance 1958 (Ordinance 48).
QAP-16 Rev-0
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SUB-CONTRACT CONDITIONS


(viii) Clean Air Regulation 1978.
(ix) Construction Industry Development Board (CIDB) Green Card Programme
For Personnel At Construction Sites.

16. Compliance to Specifications.

The SUB-CONTRACT works shall be strictly carried out in accordance to the
specifications and drawings provided.

17. Protection of Existing Works and Surrounding Areas.

The SUB-CONTRACTOR shall be responsible for the risks and liable for the
necessary protection of all existing works and services within the site and the
surrounding area. The CONTRACTOR shall determine any disputes with respect to
matters relating to these protections.

The SUB-CONTRACTOR shall immediately notify the CONTRACTOR of any
existing services sum as water pipes, electric cables, drainage, telecommunication
cables, gas pipes, sewerage etc. which will be affected by the SUB-CONTRACT works
and shall provide necessary protection and supports to the same at their own expense,
to the satisfaction of the CONTRACTOR.

18. Coordination.

The SUB-CONTRACTOR shall coordinate, interface and provide full cooperation to
the Project Consultants, other contractors employed by the Owner, CONTRACTOR or
others who may be concurrently working on site or at its surrounding area and the costs
implications of which shall be deemed included in the SUB-CONTRACT Sum.

19. Particulars of Labour.

(i) The SUB-CONTRACTOR shall submit particulars of workers employed at site.
The SUB-CONTRACTOR shall ensure prompt payment of all salaries, wages,
allowances, EPF and SOCSO contribution, levy, permit and all other charges
associated with their workforce.

(ii) All foreign workers employed by the SUB-CONTRACTOR and his
subcontractors/ sub-suppliers shall be lawfully employed, in accordance to the
local laws pertaining to the employment of foreign workers.

(iii) The CONTRACTOR shall not be held responsible or liable in anyway
whatsoever for the management and employment (lawful or otherwise) of
foreign workers nor for the apprehension of any illegal workers under the
employment of the SUB-CONTRACTOR by any authority.



QAP-16 Rev-0
Appendix 9
Page 7 of 11

SUB-CONTRACT CONDITIONS


20. Sub-Contracting.

The SUB-CONTRACTOR shall seek the written approval of the CONTRACTOR
prior to the subletting of any part of the Sub-contract works. Any other sub-contract
and assignment done without the approval of the Contractor shall be breach of this
SUB CONTRACT and the CONTRACTOR reserves the right to terminate this SUB
CONTRACT forthwith.

21. Defects Liability Period.

The Sub-contract is subject to a Defects Liability Period which shall commence
immediately upon the Certificate of Provisional Acceptance of the Sub-contract works
and shall expire at end of the Defects Liability Period for the Main Contract which is as
indicated in Appendix I from the issuance of the Certificate of Provisional Acceptance
for the Main Contract. The SUB-CONTRACTOR shall at his own cost and expense
rectify and make good all defects, damage, shrinkage and faults in the SUB-
CONTRACT works which appears during this period. A Certificate of Final
Acceptance shall be issued by the CONTRACTOR upon the SUB-CONTRACTOR's
full compliance of his obligations and upon satisfaction by the CONTRACTOR during
the Defects Liability Period.

22. Termination.

The CONTRACTOR may without prejudice to any other rights or remedies shall (at
their sole discretion) terminate the employment of the SUB-CONTRACTOR under this
SUB-CONTRACT by way of a written notice in the following event:-

(a) If the SUB-CONTRACTOR shall make default in any of the following respects
viz.

(i) If without reasonable cause he wholly or substantially suspends the
carrying out of the SUB-CONTRACT Works for more than seven (7)
days including rest day;

(ii) If he fails to commence or proceed regularly and diligently with the SUB-
CONTRACT Works;

(iii) If he refuses or persistently fails after notice in writing to comply with
any instructions given by the CONTRACTOR;

(b) If the SUB-CONTRACTOR commits an act of bankruptcy or makes or enters
into any deed or arrangement or composition with his creditors or being a
company enters into liquidation, whether compulsory or voluntary, except
liquidation for purposes of reconstruction, or suffers, or allows any execution,
whether legal or equitable, to be levied on his fixed and/or floating property or
obtained against him.

QAP-16 Rev-0
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SUB-CONTRACT CONDITIONS


23. Termination for Convenience.

In the event the Main Contract is terminated, or any part of it is omitted, by the Owner
and/or the CONTRACTOR, the CONTRACTOR shall therewith terminate or omit the
SUB-CONTRACT accordingly and the SUB-CONTRACTOR shall be paid for the
actual value of work less any previous payments and retention, without prejudice to
any other rights available to the CONTRACTOR. There shall be no claim by the SUB-
CONTRACTOR on grounds of consequential loss, loss of profits, economic loss or
other damages, loss and/or expenses.


24. Rights and Liabilities.
(a) In the event of termination of the SUB-CONTRACT in Clause 22 and/or
Clause 23, the CONTRACTOR shall be entitled to exercise their rights under
Clause 12 herein, without prejudice to any other rights available to the
CONTRACTOR in contract and/or at law.

(b) The SUB-CONTRACTOR shall prevent injury, death or damage in respect of
which before the date of termination he is liable to indemnify the
CONTRACTOR under Clause 6.

25. I ndemnity.

The SUB-CONTRACTOR shall indemnify and save the CONTRACTOR harmless
against all loss, expenses, claims, damages, cost or proceedings suffered or incurred
by the CONTRACTOR as a result of the actions and/or omission of the SUB-
CONTRACTOR or breach of the SUB-CONTRACT or generally any other
provisions contained in the Letter of Acceptance/Letter of Award and Appendices.
The SUB-CONTRACTOR further agrees and undertakes to indemnify the
CONTRACTOR for any breach by it which may result in the CONTRACTOR being
in breach of the Main Contract provisions and thus becoming liable for any lass,
damages or claims thereafter.

26. Divergence in Documents.

Should there be any omission, uncertainty, ambiguity, inconsistency or uncertainty
between the documents forming part of this SUB-CONTRACT, the party finding out
the same shall give written notice to the other and the CONTRACTOR shall issue
instructions accordingly. Such instructions shall be final and deemed to form part of
this SUB-CONTRACT and not as a variation thereof.


27. Extension of Time.

Notwithstanding any provision contained herein, any entitlements or reasons for
extension of time shall be evaluated and determined at the sole and absolute
discretion of the CONTRACTOR.
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SUB-CONTRACT CONDITIONS


28. Late Delivery Charges.

Late Delivery Charges as per Appendix I shall be imposed on the SUB-
CONTRACTOR for each day or part thereof for any delay to the completion of the
SUB-CONTRACT works.

29. Final Account.

Within a reasonable time after the completion of the SUB-CONTRACT, the SUB-
CONTRACTOR shall submit to the CONTRACTOR the final account in respect of
the SUB-CONTRACT together with all particulars, details or information in support
thereof for verification and audit purposes.

30. Arbitration.

Any disputes arising between the CONTRACTOR and the SUB-CONTRACTOR in
connection with this SUB-CONTRACT, in the absence of an amicable settlement
shall be decided by arbitration in accordance with the Rules for Arbitration of the
Kuala Lumpur Regional Centre for Arbitration (KLRCA) at the Kuala Lumpur
Regional Centre for Arbitration.

31. General.

Words importing singular only also include the plural and vice-versa. Any reference
to the Letter of Acceptance shall include the Appendices included therein.

32. Confidentiality.

All information in relation to this SUB-CONTRACT and the Main Contract shall
be treated in the strictest confidence. The SUB-CONTRACTOR shall not divulge,
communicate or allow information in respect thereof to any third party save for
the proper execution and completion of the SUB-CONTRACT.


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Appendix 9
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SUB-CONTRACT CONDITIONS



APPENDI X - I

Clause 1 : Date of Site Possession and Commencement: As stipulated in
the Letter of Award.

Clause 9 (i) : Payment for the value of material on Site: Not Applicable.

Clause 9 (ii) : Period of Honoring Payment : Thirty (30) days from date of the
progress payment certificate.


Clause 11 : Percentage of Certified Value Retained: 10% of the value of
workdone certified under Clause 9 with cumulative total
retained amount up to maximum of 5% of the SUB-
CONTRACT value.

Clause 21 : Defects Liability Period for the SUB-CONTRACT:
Commencing immediately upon the date of Certificate of
Initial Acceptance of the Main Contract and shall expire at the
end of Twelve (12) months from the dates of issuance of
Certificate of Initial Acceptance (or taking over certificate
where appropriate) of the Main Contract or issuance of
Certificate of Final Acceptance whichever later.

Clause 28 : Late Delivery Charges: As stipulated in the Letter of Award.


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Page 11 of 11

SUB-CONTRACT CONDITIONS



APPENDI X I I

STATUTORY DECLARATI ON (SAMPLE FORM)

Iholder of NRIC No. .of.do
solemnly and sincerely declare:

1) I am the .of engaged to
[Name of SUB-CONTRACT / Project]

2) That the workmen who have been engaged by us on the works, including, to the
best of my knowledge and belief, all workmen employed by us and my sub-
contractors (including Labour Sub-Contractor) have received all wages due to
them in connection with such employment, and that all dues or contributions
under the Employment Ordinance, the Employees Social Security Act, the
Employees Provident Fund Ordinance and any other laws relevant to the
employment of workmen, have been paid.

And I make this solemn declaration conscientiously believing the same to be true, and by
virtue of the provisions of the Statutory Declaration Act, 1960.








SUB-CONTRACTORs Signature and Companys Chop

Name :

Date :



Declared at the Commissioner of Oath



Before me,
QAP-16 Rev-0
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Page 1 of 6

SUPPLEMENTARY CONDITIONS


1. Performance Bond

As a condition precedent to this SUB-CONTRACT, the SUB-CONTRACTOR shall
provide a performance bond by way of bank guarantee approved by the CONTRACTOR.
The sum of the performance bond shall be ten (10) percent of the SUB-CONTRACT Sum.
The terms of the performance bond shall be as per attached format in Appendix A. The
bond shall remain in full force and valid until xx/xx/xxxx or to be extended until the date
of issuance of Certificate of Provisional Acceptance. The cost for obtaining the same and
any extension hereof shall fully be borne by the SUB-CONTRACTOR. Subsequently, the
SUB-CONTRACTOR shall provide a new Bank Guarantee of five (5) percent of the Final
Sub-Contract sum within thirty (30) days from the issuance of Certificate of Provisional
Acceptance of the Main Contract, which shall be valid until the completion of Defect
Liability Period plus 30 days thereafter of the Main Contract (or any extension thereto
whichever is later).

2. Safety Precautions

The SUB-CONTRACTOR shall comply with all applicable safety regulations prescribed
by the relevant authority in relation to the SUB-CONTRACT Works and the
CONTRACTORs safety regulations and procedures including the penalty scheme for
safety breaches.

In addition to the applicable safety regulations above, the Sub-Contractor shall strictly
comply with all the safety requirements as imposed by the COMPANY or its policy from
time to time on the Main Contractor.

The SUB-CONTRACTOR shall be responsible for the implementation of appropriate
safety measures through out the execution and completion of the SUB-CONTRACT
Works.

The SUB-CONTRACTOR shall at his own expenses provide all safety gears, equipment
for his workmen in the course of carrying out the SUB-CONTRACT Works.

The SUB-CONTRACTOR shall provide security measures including, but limited to,
lighting, guarding and watching of the Site and SUB-CONTRACT Work until practical
completion of the SUB-CONTRACT.

3. Sample/Mock-Up Unit (where applicable)

Within two weeks of the award of the Contract, the SUB-CONTRACTOR shall at his own
costs provide and deliver the samples to the site office for CONTRACTORs approval.
Where required, the SUB-CONTRACTOR shall provide samples/mock-up units to the
CONTRACTOR as and when required and shall bear all costs thereto.

Any materials and/or workmanship not complying with the approved samples/mock-up
units will be rejected and replace at the SUB-CONTRACTOR's own cost.

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SUPPLEMENTARY CONDITIONS


4. Construction Drawings, Further Supplementary Drawings, As Built Drawings etc.

The CONTRACTOR shall provide, free of charge, one (1) set of construction drawings to
the SUB-CONTRACTOR. Any additional sets requested by the SUB-CONTRACTOR
shall be charged accordingly.

The CONTRACTOR shall have full power and authority to supply the SUB-
CONTRACTOR from time to time during the progress of the SUB-CONTRACT Work
such revised or further drawings, specifications and/or instructions as may in its opinion be
necessary for the purposes of the execution and completion of the SUB-CONTRACT
Works. The SUB-CONTRACTOR shall carry out and be bound by the same.


5. Quality Assurance Procedures

The SUB-CONTRACTOR shall comply with the quality assurance procedures prescribed
by the CONTRACTOR.

The SUB-CONTRACTOR shall, before carrying out any physical works, submit the
method statement, working programme, quality control procedures, testing procedures
etc. which the SUB-CONTRACTOR proposes to adopt for the execution of the SUB-
CONTRACT Works to the CONTRACTOR for approval.


6. Overtime and Night Works

The SUB-CONTRACTOR shall give sufficient written notice to the CONTRACTOR
and all supervising parties for all night works and overtime works.







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SUPPLEMENTARY CONDITIONS


APPENDI X A

BANK GUARANTEE FOR PERFORMANCE BOND

BANK GUARANTEE NO.
We, ------------ (Company No. ) at ----------------- (hereinafter referred to as the
Guarantor) hereby agree to guarantee the due performance of the SUB-CONTRACT in the
manner hereinafter appearing at the request of --------------------------- (Company No. ---------)
having its address at No. ------------------------------------ (hereinafter referred to as the SUB-
CONTRACTOR) who has entered into a contract with Kencana Infrastructure Sdn Bhd
(Company No. 594894-P) having its registered office at Lot 50, J alan BRP 8/2, Persiaran Bukit
Rahman Putra 3, Perusahaan Bukit Rahman Putra, 47000 Sungai Buloh, Selangor Darul Ehsan
(hereinafter called the CONTRACTOR) whereby the SUB-CONTRACTOR agreed and
undertake to ----------------------------------------------------- (hereinafter referred to as the SUB-
CONTRACT) for the sum of Ringgit Malaysia ---------------------------------------- Only (RM --
-----------). This Guarantee is now issued to the CONTRACTOR on the following terms and
conditions:

a) If the SUB-CONTRACTOR shall in respect fail to execute the SUB-CONTRACT or
commit any breach of his obligations thereunder then the Guarantor shall pay
unconditionally on demand without proof or conditions within fourteen (14) days after
receipt of the said demand to the CONTRACTOR up to and not exceeding the sum of
Ringgit Malaysia ------------------------------ Only (RM --------------- ) notwithstanding any
contestation, arbitration, legal proceeding or any protest or request whatsoever by the SUB-
CONTRACTOR or by the Guarantor or by any third party Provided Always that the total
of all partial demands so made shall not exceed the sum of Ringgit Malaysia -----------------
----------------------------- Only (RM ----------------------)

b) The Guarantor shall pay unconditionally on demand without proof or conditions within
fourteen (14) days after receipt of the said demand to the CONTRACTOR up to and not
exceeding the sum of Ringgit Malaysia ---------------------------------- Only (RM -------------
----------) notwithstanding any contestation, arbitration, legal proceeding or any protest or
request whatsoever by the SUB-CONTRACTOR of any breaches of contract or by the
Guarantor or by any third party Provided Always that the total of all partial demands so
made shall not exceed the sum of Ringgit Malaysia ----------------------------------- Only
(RM ---------------------) .

c) The Guarantor shall not be discharged or released from this Guarantee by any arrangement
between the CONTRACTOR and the SUB-CONTRACTOR with or without the consent of
the Guarantor or by any alterations in the obligations undertaken by the SUB-
CONTRACTOR or by forbearance whether as to payment, time, performance or otherwise.

d) Notwithstanding any terms contained herein, this Guarantee is a continuing security and
shall be irrevocable and shall remain valid from the date of award of the SUB-CONTRACT
and effective for the whole duration of the SUB-CONTRACT until ------------------- or the -
------------------------ of the Main Contract. Provided always that this Guarantee shall be

QAP-16 Rev-0
Appendix 9
Page 4 of 6

SUPPLEMENTARY CONDITIONS

extended by the Guarantor upon the CONTRACTORs written notice should there be any
extension to the SUB-CONTRACT.

e) The Guarantor undertakes that the Guarantee is given regardless of whether or not the sum
outstanding is occasioned by the loss, damages, cost, expenses or whether such sum is
otherwise incurred by the CONTRACTOR is recoverable by legal action or arbitration.

f) The Guarantor and the CONTRACTOR bind themselves, their successors-in-title and
assigns for the abovementioned sum.

g) All notices required to be given under the Guarantee shall be in writing and shall be
sufficiently served upon delivery thereof by post to the address furnished by the parties for
the purpose and any notice sent by post shall be deemed to be received when in the
ordinary course of post it would have been delivered to the said address.

This Guarantee is valid from --------------------- and shall expire on --------------------
(hereinafter referred to as the Expiry Date). Subject to Clause (c) above, this Guarantee shall
become null and void and all our obligation and liabilities under this Guarantee shall terminate
on the Expiry Date notwithstanding that the original of this Guarantee is not returned to us for
cancellation. Any claims under this Guarantee shall be made in writing and must be received
by us within one (1) month beyond the Expiry Date (i.e. ---------------------) failing which we
shall be completely absolved from all liabilities whatsoever under this Guarantee.


Given under our hand on day of 20
Signed for and on behalf of the said)
Guarantor in the presence of :-

) Name :
) Designation :
) Banks Chop :



Name :
NRIC No:
Designation :








QAP-16 Rev-0
Appendix 9
Page 5 of 6

SUPPLEMENTARY CONDITIONS




APPENDI X - B

UNDERTAKI NG ON EMPLOYMENT OF WORKMEN

We hereby undertake the following:

1. All foreign workers employed by us and/or our sub-contractors shall be lawfully
employed, in accordance to local laws pertaining to the employment of foreign workers.

2. That we shall be held responsible and liable in any way whatsoever for the unlawful
employment of illegal workers and for the apprehension of illegal workers under our
employment and/or our sub-contractors employment by any authority.

3. That we hereby warrant that there are and will be no illegal workers employed by us
and/or our sub-contractors at any point of time whatsoever and we shall indemnify and
save Kencana Infrastructure Sdn Bhd harmless for any loss and/or expense suffered by
Kencana Infrastructure Sdn Bhd as a result of any breach of this undertaking.




Authorised Signatory

.
Name in full

..
I.C. No.

.
Designation


..
Company stamp









QAP-16 Rev-0
Appendix 9
Page 6 of 6

SUPPLEMENTARY CONDITIONS



APPENDI X C

UNDERTAKI NG ON COMPLI ANCE WI TH THE CONSTRUCTI ON I NDUSTRY
DEVELOPMENT BOARD ( CI DB ) MALAYSI A.

We hereby undertake the following:

(1) We have read and understood fully the intent and regulation in relation to the imposition
of the CIDB Green Card Program in respect to the engagement of our workers and staffs
(whether foreign and locals) at the construction site for the SUB-CONTRACT works.

(2) We shall observe and comply with the requirements stipulated by CIDB in relation to the
program..

(3) We shall be responsible and liable in any way whatsoever arising from our failure to
comply with the requirements of CIDB.

(4) We shall indemnify and continue to keep Kencana Infrastructure Sdn Bhd fully
indemnified against any penalties, costs, fines, etc. that may be imposed in the event of
our non compliance to any rules under the Occupational Safety and Health Act 1994.




Authorised Signatory

.
Name in full

..
I.C. No.

.
Designation


..
Company stamp


QAP-16 Rev-0
Appendix 10
DATE :
VENDOR :
REG. NO :
PACKAGE :
PROJ ECT :
A. * Assessment Criteria:
No. Rating (1-5)* Weightage Score Points
1 20 0
2 20 0
3 10 0
4 10 0
5 10 0
6 10 0
7 10 0
8 10 0
100 0
B. Subcontractor Main Strength:
C. Recommendation:
Appraised by: 1) Subcontracting Department 2) Project Manager
Name: Name:
3) Reviewed by:
Name:
0
Competitive pricing. Willingness for price negotiation & absorb additional
costs.
TOTAL
Submission of required documents on time. (Drawings / Certificates /
VDRL)
Expediting on work progress. Prompt response / updating of delivery
status.
Rectification of discrepancies / punch list. Cooperation in resolving
problems.
Technical Assistance. Response to any technical queries at pre & post
award stages. Participated in tendering exercise.
Payment terms. Offer credit facilities.
OVERALL ASSESSMENT SCORE:
KENCANA INFRASTRUCTURE SDN BHD
SUBCONTRACTOR ASSESSMENT REPORT
Excellent ( 5 ) Good ( 4 ) Fair ( 3 ) Poor ( 2 )
Areas of Assessment
Works / Performance Quality. Offer according to required specifications.
Work completion - delivery on time specified in the contract.
Very Poor ( 1 )
QAP-16 Rev-0
Appendix 11

FI NAL SELECTI ON OF
SUB-CONTRACTOR REPORT

NAME OF COMPANY SELECTED :__________________________________________

TRADE :__________________________________________

A. Assessment Criteria

Rating to be based on the scale below ;

Excellent ( 5 ) Good ( 4 ) Fair ( 3 ) Poor ( 2 ) Very Poor ( 1 )



Rating Result (1 to 5) *
No. Areas of Assessment Weight (1) (2) (3)
1 Companys reputation 15
2 Companys financial strength 30
3 Companys expertise 30
4 Companys registration with authority 5
5 Companys terms of payment 20
Total
WEIGHTED RESULT : Total/5
OVERALL ASSESSMENT SCORE :



B. Recommended Action:


0 - 39

: Poor - Not recommended
40 - 59

: Fair - Acceptable if only other good candidate is not available
60 - 79

: Good - Acceptable
80 - 100 : Excellent

Assessed by Department ACCEPTED REJ ECTED

(1) ____________________ ___________________

(2) ____________________ ___________________

(3) ____________________ ___________________

Approved by:



_______________________ _______________________
GM (Commercial) Senior GM

Further Action:
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