C311333- Amal HRSG -1 Project

Petroleum Development Oman LLC

Contract Number C311333
Amal Heat Recovery Steam Generator (HRSG)-1 Project

Section C5

Schedule of Rates

Section C5 Schedule of Rates, Schedule A Preambles

Page 1 of 12

C311333- Amal HRSG -1 Project

SECTION C5
SCHEDULE OF RATES
CONTENTS
SCHEDULE A PRICING PREAMBLES
SCHEDULE B LUMP-SUM WORK
SCHEDULE C NOT APPICABLE
SCHEDULE D ALTERATIONS & DAY-WORKS
SCHEDULE E MILESTONES
SCHEDULE F PENALTIES AND INCENTIVES

Section C5 Schedule of Rates, Schedule A Preambles

Page 2 of 12

C311333- Amal HRSG -1 Project

SECTION C5 - SCHEDULE 'A':- PRICING PREAMBLES

Schedule A Pricing Preambles ................................................................................................. 2
Schedule B Lump-sum Work ................................................................................................... 2
Schedule C Not Appicable ....................................................................................................... 2
Schedule D Alterations & Day-works ....................................................................................... 2
Schedule E Milestones ............................................................................................................ 2
Schedule F Penalties and Incentives ........................................................................................ 2
Section C5 - Schedule 'A':- Pricing Preambles ............................................................................... 3
Schedule 'A':- Pricing Preambles ................................................................................................. 4
1
1.1
1.2
1.3
1.4
1.5
1.6

General Terms ...................................................................................................................... 4

All Inclusive Contract Price and Rates ................................................................................. 4
Pricing of Schedules .......................................................................................................... 4
Working Hours for Site ...................................................................................................... 5
Company Permits, Rules and Procedures ............................................................................ 5
Company Supplied Materials .............................................................................................. 5
Consumables .................................................................................................................... 5

2.1
2.2
2.3

Lump Sum Work (Schedule 'B') .............................................................................................. 5

Descriptions for Identification Only ..................................................................................... 5
Addition and Omission of Work .......................................................................................... 6
Commissioning Periods ...................................................................................................... 6

Provisional and Optional Works (Schedule 'C') ......................................................................... 6

Alterations & Day-work Rates (Schedule 'D') ........................................................................... 6

4.1 General............................................................................................................................. 6
4.2 Analogous Rates ............................................................................................................... 6
4.3 Day-work Rates ................................................................................................................. 6
4.4 Additional Services Procured At Day-work Basis................................................................... 8
4.5 Materials Procurement ....................................................................................................... 8
4.6 Authorisation & Payment ................................................................................................... 9

5
5.1
5.2
5.3
5.4

Terms of Payment ................................................................................................................. 9

Milestones Payments (Schedule E) .................................................................................... 9
Payments .......................................................................................................................... 9
Completion of the Work (MS 10) ........................................................................................ 9
Bonuses & Penalties .........................................................................................................10

6.1

Contractor's Accommodation & Facilities ................................................................................10

Accommodation ...............................................................................................................10

7.1
7.2
7.3

Company Provided Services ..................................................................................................11

Company Provided Services ..............................................................................................11
Logistics Service Provider (LSP) .........................................................................................11
Provision of Air Passenger Services ....................................................................................11

6
7

Section C5 Schedule of Rates, Schedule A Preambles

Page 3 of 12

C311333- Amal HRSG -1 Project

SCHEDULE 'A':- PRICING PREAMBLES

1

GENERAL TERMS

1.1

All Inclusive Contract Price and Rates

1.1.1

Contractor shall include in the Contract Price and Rates for executing the whole of the Work
specified or reasonably inferred from the Contract.

1.1.2

The Contract Price and Rates entered shall be deemed to be the fully inclusive cost for the
Work and shall include but not be limited to: a) Direct and indirect labour, wages, overtime, bonus, transportation, importation,
exportation, messing, travelling, housing, training, holidays, pensions, insurance,
welfare, allowances, sick pay, protective clothing, safety equipment, other payments,
contributions, taxes, levies or expenses payable in respect of labour as applicable under
and in accordance with law, safety, health, welfare.
b) Administration, agents fees, management, telephone, fax, communication supervision
costs, setting out, investigation, expenses, site and head office overheads, control,
protection, as built records and information, financing costs, repairs.
c)

Co-operation with other contractors, third parties, local establishments, Walis,

municipality, government agencies, etc.

d) Establishment costs, services, stores, industrial facilities, workshops, fences, watching,

lighting, safety, security, maintenance, latrines, messing facilities, accommodation,
electricity, air, gas, water, fuel oil, grease cleaning and clearing up at all times.
e) Plant, machinery, equipment, fuel, lubricants, tools, temporary supports, hoisting and
lifting equipment, staging and weather protection, scaffolding, shelters, transport,
haulage.
f)

Materials, consumables, water, safe storage, fixing in place, samples, testing, cleaning,
waste, handling and multiple handling, duties.

g) Other insurance, liabilities, obligations, responsibilities and risks arising out of the
General Conditions for Construction Contracts and all other documents forming the
Contract.
h) Profit and overheads.
1.2

Pricing of Schedules

1.2.1

Contractor shall be paid in accordance with the Schedule of Rates for Work performed and
services provided.

1.2.2

All Rates shall be in OMR (Omani Rial) and shall remain fixed for the duration of the Contract.

1.2.3

Rates shall be inserted against all items in the Schedules that have a monetary value. The
value of items left un-priced shall be deemed to be included in the Contract Price. Should the
Work or obligations given in such items not be carried out by Contractor, Company shall
deduct amounts for the Work not completed valued in accordance with the Contract.

Section C5 Schedule of Rates, Schedule A Preambles

Page 4 of 12

C311333- Amal HRSG -1 Project

1.3

Working Hours for Site

1.3.1

Contractor shall include for working normal Company hours:

Interior locations - 07.00 to 18.00, 1-hour Lunch break, seven days a week

Coastal Areas - 07.00 to 16.00, 1-hour Lunch break, Saturday to Wednesday inclusive

1.3.2

Should Contractor require to work outside these hours then prior agreement must be sought
from Company and no additional payment will be made.

1.3.3

Contractor is to allow in the Contract Price for continuous working during all periods where
Company's existing production facilities require to be "shut-down" or temporarily out of
operation whilst the Work is executed.

1.4

Company Permits, Rules and Procedures

1.4.1

All Work executed by Contractor shall include due allowance for complying with Company
permit procedures, rules and regulations.

1.4.2

Contractor shall include for all necessary requirements for obtaining approvals under
Company's Permit to Work Procedure (PTW).

1.4.3

Where Contractor can identify cost savings resulting from a relaxation in a particular PTW
requirement, Contractor shall submit such proposals together with an evaluation of the
proposed savings to Company for approval. Any relaxation in PTW requirements shall subject
to written approval by Company and will only apply to the stipulated areas of the Work.

1.5

Company Supplied Materials

1.5.1

Company shall provide Contractor with only those Materials specifically stated as such in
Section C4, Scope of Work. Contractor shall include in the Contract Price for supply of all
other temporary and permanent Materials required to complete the Work. Prices for installing
Company supplied Materials shall include for making good any loss, faults or damages which
occur after Contractor has taken delivery, received or accepted them as being in good
condition.

1.5.2

Company supplied Materials for certain items shall contain an allowance for normal waste and
Contractor shall be deemed to have allowed for handling these excess quantities and
returning any unused Materials to Company nominated storage area as stated in Section C4,
Scope of Work.

1.5.3

Company supplied Materials shall be handed over to Contractor at the location as stated in
Section C4, Scope of Work or other locations as directed by Company. Contractor shall allow
in his prices for handling, loading, crainage, storage, compliance with Materials procedures,
issuing of damage/deficiency reports, issue and transporting Materials to their final location.

1.6

Consumables

1.6.1

Contractor shall provide all consumables required to complete the Work unless specifically
stated otherwise.

1.6.2

For the purposes of this Contract, consumables are considered to be, items necessary to
complete the Work, but which do not actually form part of the as installed equipment, this
shall include, but not be limited to; welding rods, fluxes, grease, gases, incidental nonspecialist lubricants, oils, refrigerants, cleaning agents, corrosion inhibitors, solvents, rags,
application equipment, disposable protection and clothing.

LUMP SUM WORK (SCHEDULE 'B')

2.1
2.1.1

Descriptions for Identification Only

The descriptions attached to the various items are intended as brief summary of the Work
involved. They are sufficient for identification only and not an exhaustive list detailing every
operation involved in carrying out the Work. The descriptions have been prepared on the

Section C5 Schedule of Rates, Schedule A Preambles

Page 5 of 12

C311333- Amal HRSG -1 Project

basis that Contractor is experienced in the requirements of the Work to be executed and has
full knowledge of the Site.
2.1.2

Notwithstanding any omission from the descriptions given in Schedule B of any operation
included within Section C4 Scope of Work and Section C6 Technical Specification and
Drawings, the cost of all operations that may be ascribed to the Work shall be included in the
Contract Price. All Work that can be reasonably ascribed to an item description shall be
deemed to be included with that item. No liability will be accepted by Company for defective
description or further operations, other than those described, being required to complete the
Work.

2.1.3

Contractor shall include in his Contract Price for excavating in whatever ground conditions
may be found. Contractor shall include a separate line item in the price schedule for
excavating entirely by hand within the confines of the Site or wherever Company may deem
mechanical excavation to be unacceptable.

2.2

Addition and Omission of Work

2.2.1

2.3

Commissioning Periods

2.3.1

Where an addition or omission of Work can be clearly identified within the descriptions
included in Schedule B - Lump Sum Work, the amounts stated against these descriptions shall
be deemed the value of such Work. In the event that such clear identification cannot be
established then the addition or omission of such work shall be valued in accordance with
paragraph 4.0 herein.
Contractor shall include in the Rates for maintaining on Site, during the duration of
Commissioning Work, all facilities required until Completion of the Work. This shall include
but not be limited to contract administration, trade & Site supervision, accommodation,
messing, transport and communication for all required labour to support the Commissioning
activities.

PROVISIONAL AND OPTIONAL WORKS (SCHEDULE 'C')

Not Applicable

ALTERATIONS & DAY-WORK RATES (SCHEDULE 'D')

4.1

General

4.1.1

The Rates contained in Schedule 'D' shall be used to evaluate modifications, omissions and/or
additions to the Work requested by Company prior to the Completion Date. All quantities and
rates, except where otherwise stated, shall be measured in accordance with the Principles of
Measurement (International) for Works of Construction (June 1979) as published by the RICS.

4.1.2

All Rates shall apply equally to executing the Work in large or small quantities and difficult or
easy situations and no claim shall be entertained relating to the proportions of the Work
actually falling into these categories.

4.2

Analogous Rates

4.2.1

Rates shall be entered against each item listed in Schedule 'D'. Rates shall be deemed
analogous to those Rates used in pricing Works and constituent parts as given in Schedule 'B'
and subject to the requirements of item 1.1 herein.

4.2.2

If it can be demonstrated that any Rates in Schedule 'D' is not analogous to the Rates in
Schedule 'B', then Company shall have the option to adjust the given Rates to conform to this
requirement.

4.3
4.3.1

Day-work Rates
When, in the opinion of Company Work cannot be measured at Rates contained in the
Schedules of Rates for additions and deletions or at rates analogous thereto, the value of such
work shall be ascertained on the basis of the actual labour employed and the plant and
Materials used therein. These Rates will be as stated in Schedule 'D'.

Section C5 Schedule of Rates, Schedule A Preambles

Page 6 of 12

C311333- Amal HRSG -1 Project

4.3.2

Labour
The rates for labour shall be comprehensive and include but not limited to:
a) Wages and all costs, payments and charges including annual and public holidays,
travelling time, expenses, fares and transport, guarantee time, incentive and bonus
payments, dirty money and danger money and other disbursements arising from
employment of labour including redundancy payments and any requirements of the
Sultanate of Oman labour Laws.
b) Charges in respect of Site and office supervision including foremen time and extra
emoluments paid to foremen and leading craftsmen and gangers, small tools, HSEM
requirements and personal protective requirement etc.
c)

Site and head office overhead charges such as: rent, rates, insurance's, electricity, gas,
fuel, water, printing, stationery, postage, telephone charges, motor car expenses etc.
and repairs, renewals, maintenance and depreciation of premises, machinery plant etc.

d) Profit
4.3.3

Only where Contractor is specifically instructed, in writing, by Company to work outside

normal working hours will overtime payments be certified. Overtime rates shall only apply for
hours outside the normal 10-hour day, 7-day week.

4.3.4

Working supervision shall be paid for at the hourly rate for an operative of the applicable
trade. Working foremen to be paid for at the Day-work Rate applicable to the trade of the
foreman. Foremen shall only be paid for on Day-work where the presence of the foreman has
been explicitly requested by Company.
Mechanical Plant
The Rates for mechanical plant shall be exclusive of drivers, operators and attendants, who
shall be separately charged, but shall be inclusive of all fuel, lubricants and other
consumables, servicing repairs, replacements and other charges relating to fully operating
plant. Payment for working plant shall be for the actual hours worked only. No allowance
for Stand-by Time will be paid, unless expressly instructed by Company. Stand-by Time
shall mean the time when personnel or plant instructed by Company to be available for
Work but are not actually working.

Section C5 Schedule of Rates, Schedule A Preambles

Page 7 of 12

C311333- Amal HRSG -1 Project

4.3.5

4.4

Contractor shall provide for all costs and charges associated with transportation and haulage
to, from and around the Site, of Contractor Personnel and equipment engaged in the Works.
In this respect the costs of transportation, haulage and travelling time shall be deemed to be
included in the Rates. No separate payment shall be made by Company to Contractor for
transportation costs.
Additional Services Procured At Day-work Basis
Where there are no applicable Rates in the Contract for additional services to be procured at
day-work basis as a result of an Instruction, such additional services shall be evaluated and
agreed at net cost basis plus a percentage adjustment on the net cost.
Net cost in respect of such services shall comprise of actual cost payable by Contractor after
taking into considerations of all types of discounts, commissions, and any recoverable duties
and taxes.
Any travel and accommodations required as a result of providing such additional services shall
be subject to Companys prior approval.
All Contractor handling, administration, financing, overheads and profit elements and all other
costs related to such additional services shall be deemed to be recovered under the
percentage adjustment. (Ref: Schedule D - Alterations and Day-works under the table
entitled Percentage Adjustment for Overheads for Additional Services and Material
Procurement.)
The evaluation of such additional services shall be supported by copy of the priced contract or
copy of the invoice from Subcontractors providing such services.

4.5

Materials Procurement
Where there are no applicable Rates in the Contract for additional Materials to be procured as
a result of an Instruction, such Materials shall be evaluated at net cost basis plus a
percentage adjustment on the net cost.
Net cost in respect of such Materials shall comprise of:
(a) Actual Materials cost payable by Contractor after taking into considerations of all types
of discounts, commissions, and any recoverable duties and taxes; and
(b) All additional costs for delivery of Materials to the first point of direct sphere of
influence of the Contractor (i.e. storage warehouse, or Site location), including freight
charges, insurance, port clearance /handling charges and custom duties; and
(c)

all inspection and testing required.

Section C5 Schedule of Rates, Schedule A Preambles

Page 8 of 12

C311333- Amal HRSG -1 Project

All Contractor handling, administration, financing, overheads and profit elements and all other
costs related to the procurement of such Materials shall be deemed to be recovered under the
percentage adjustment. (Ref: Schedule D - Alterations and Day-works under the table
entitled Percentage Adjustment for Overheads for Additional Services and Material
Procurement.)
The evaluation of such Materials shall be supported by copy of the priced purchase order or
copy of the invoice from the Materials Vendors.
4.6

Authorisation & Payment

4.6.1

All Dayworks must be instructed and authorised in writing and signed and approved by
Company.

4.6.2

Contractor shall prepare, on a daily basis, detailed statements of Day-works executed. These
shall be submitted to Company for approval, no later than 24-hours following the completion
of the days work to which it relates. Any statements received after this duration maybe
subject to assessment and adjustment by Company.

TERMS OF PAYMENT

5.1

Milestones Payments (Schedule E)

5.1.1

The Work to be performed by Contractor as detailed in C4 Scope of Work has been divided
into Milestone (MS) groupings as detailed in Schedule 'E'. Only on Completion, to the
satisfaction of Company, of all Work contained within these Milestone groupings will Company
issue Contractor with a Certificate certifying Milestone Completion. A Milestone shall only be
deemed to be complete when so certified by Company.

5.1.2

No Milestone shall be certified as complete until all outstanding related HSE and quality audit
non-conformance's have been accepted as being complete by Company.

5.2

Payments

5.2.1

On receipt of a Company certified "Certificate of Milestone Completion", Contractor shall

invoice Company the percentage of the Contract Price stated as being due for achievement of
that Milestone in Schedule 'E'. Unless specifically stated otherwise, in the event that no
milestone is certified as being complete during a particular month then no invoice shall be
submitted. All applications for payment shall conform to the requirements of Section C8
Procedures for Contractors and applicable payment shall be released in accordance with
Section C3 General Conditions of Contract.

5.2.2

Unless specifically stated otherwise, Contractor shall be paid for Provisional and Optional Work
only upon their completion. Provisional and Optional Work may be invoiced together with the
next subsequent completed Milestone.

5.2.3

The invoice for payment shall detail the accumulative total percentage, applied to the Contract
Price together with the total amount of instructed and completed Provisional and Optional
Work less all previous payments. All invoices shall detail the amounts due under each of the
headings in the Schedules of Rates and for each Variation to Contract, together with adequate
supporting documentation.

5.2.4

Invoices shall only be considered for payment provided all other contractual obligations have
been fulfilled.

5.3

Completion of the Work (MS 10)

5.3.1

Contractor may only apply for payment of MS 10 'Completion of the Work' once all
Contractor's applications for additional moneys resulting from alterations, Field Trouble
Reports, Instructions and formalised by Variations to Contract, and the consequent resultant
effects have been submitted to Company for approval.

5.3.2

Contractors application for payment of Completion of the Work shall constitute notification by
Contractor that this has been achieved.

Section C5 Schedule of Rates, Schedule A Preambles

Page 9 of 12

C311333- Amal HRSG -1 Project

5.4

Bonuses & Penalties

5.4.1

Bonuses and penalties for the Work shall only be accounted for upon completion of an
applicable Milestone stage. Bonuses and penalties shall be those as detailed in Schedule 'F'.

CONTRACTOR'S ACCOMMODATION & FACILITIES

6.1

Accommodation

6.1.1

The Contract Price shall include for the provision and maintenance of accommodation for all
Contractor Personnel. The Contract Prices shall include for all temporary facilities being
constructed and operated in full compliance with Company regulations and standards for the
duration of the Contract.

6.1.2

Contractor shall include for mobilisation, maintenance and demobilisation of all temporary
facilities on Completion of the Work.

6.1.3

Temporary Camp
The Contractor shall provide at the allocated area, temporary camp for all their staff and
Company staff for the contract duration as indicated in Section C4 General Scope of Work
: 6.0 Construction, Article 6.6. The Camp shall be constructed & maintained according to
Company standards & according to the requirement specified in C-6-35. Contractor shall be
responsible for all site preparation, development, and reinstatement.
The Contractor shall be fully responsible in line with the Company standards for furnishing
all utility services of any type within the camp plot and to support the camp within the Scope
of this Contract.
Ownership of the camp facilities shall at all times remain vested in the Contractor. Any site
furnished to Contractor shall be restored to original condition (cleared and cleaned), and
returned to the Company in accordance with the requirements of the Contract. The
Company shall have the option to require the Contractor to leave all piping, wiring, and
permanent improvements as-installed at the camp site.

6.1.4

'Alternative Proposal' for Use of Contractors Existing Facilities

Should Contractor already have, or acquired, suitable and fully compliant accommodation
and or industrial facilities in the location of the Work, which it is proposed to use for this
Contract, then the use of these facilities shall be considered an 'Alternative Proposal'. This
Alternative if required shall be instructed at time of award of the Contract.
Provision has been made to offer a saving for this 'Alternative Proposal' (Schedule B item 1
ref no. 1.11). The price for this Alternative shall be applicable to this Contract only, it shall
not affect or have any bearing on any terms and conditions related to other contracts.
The use of Contractors existing facilities on this Contract is subject to the approval of
Company. Such approval in no way relieves Contractor from his obligation to provide
suitable fully compliant accommodation and or industrial facilities for the Work.

Section C5 Schedule of Rates, Schedule A Preambles

Page 10 of 12

C311333- Amal HRSG -1 Project

COMPANY PROVIDED SERVICES

7.1
7.1.1

Company Provided Services

Unless specifically stated otherwise it is Contractors responsibility to provide all things
necessary to complete the Work. However at its sole discretion Company may provide
facilities and services which could comprise any or all of the following:

Graded level area for Contractors temporary facilities with fenced perimeter boundary.

Provision of electrical power (connection point outside the fence boundary).

Piped water supply (connection point outside the fence boundary).

Access to sewage main (connection point outside the fence boundary).

Connect to Company telephone system.

Garbage collection from central location.

Air transportation to and from the Interior.

In the event these services are provided, and not charged for separately by Company, then
Company shall have the right to deduct from amounts due under the Contract at the unit
rates stated in Schedule 'B' or those stated below.
If Contractor is not required to mobilise or demobilise (Mob/Demob) for the provision of any
of these facilities then the unit rates for mobilisation/demobilisation stated in Schedule 'B'
shall be deducted from Contractors payments.
7.1.2

Company Telephone System

Unless stated otherwise the provision of access to Companys telephone system will be
charged at the following rates:
Rental charge for each line provided for the use of the Contract - OMR 20 per month
together with installation and telephone usage charges which will be levied at cost.

7.1.3

Electric power
Unless stated otherwise the provision of access to and supply of electrical power from
Company grid system will be charged at 20baizas per kw/hr.

7.1.4

Water Supply
Unless stated otherwise, Contractor, subject to availability, may draw water from water
supply wells if available near Site or from the Company's RO contractor. Water drawn from
these facilities will be subject to a charge of RO1.006 per m3, all accounts shall be settled
directly with Company's operating contractor.

7.2
7.2.1

7.3

Logistics Service Provider (LSP)

The Contract Price shall include for all costs arising from the utilisation of Company LSP as
detailed in C4 Scope of Work. This shall include but not be limited to; administration,
procurement of the LSP service, operating restrictions, co-ordination activities notice periods
etc. In the event Contractor fails to utilise the LSP without due authorisation then Company
have the right, but not the obligation, to deduct the amount that would have been due to the
LSP contractor in the event the transportation service had been correctly requisitioned in
accordance with the Contract.
Provision of Air Passenger Services

7.3.1

When required for the performance of the Work and as required under the terms of SP2000
HSE Specification for Road Transport (Section C9 refers) Contractor Personnel may, subject to
availability and Company approval, be allowed or required to use Company's air passenger
service.

7.3.2

Use of Companys air passenger service shall be subject to the Companys Interior flight
charges as stated below. Contractor shall include within the Rates for this requirement,

Section C5 Schedule of Rates, Schedule A Preambles

Page 11 of 12

C311333- Amal HRSG -1 Project

including but not limited to all charges, availability restrictions, booking and other
administration costs.
7.3.3

Names and details of all Contractor staff considered eligible and requiring the use of
Company's air passenger service must be forwarded to Company for approval. Contractor
shall notify Company of any changes to this list of eligible staff as and when they arise. In
the event of disputed numbers of flights back charged in any one month, the monthly
statement as issued by Companys air transport booking department shall be considered
adequate substantiation for Contractor.

7.3.4

Applicable Charges
For each and every occurrence that Contractor Personnel make use of Company's air
passenger service to and from the Interior or between Interior locations the sums stated
below shall be due to Company. These sums will be deducted from amounts due to
Contractor.
For Aircraft commuting between:-

US$ / one way trip per passenger

Muscat - South Oman Interior Location

243

Muscat - North Oman Interior Location

121

North Oman South Oman Interior Locations

237

Salalah/Marmul Nimr/Salalah

81

7.3.5

Contractor may charter aircraft outside of the flight schedule (i.e. emergencies) at current
applicable charges published on Companys intranet.

7.3.6

Interior flight no-show shall mean a person who has reserved a seat on a flight but does not
report for that flight or cancel the reserved seat in accordance with cancellation procedures.
All Interior flight no-shows will be charged at the standard flight charges given above.

Section C5 Schedule of Rates, Schedule A Preambles

Page 12 of 12