CHINA PETROLEUM ENGINEERING & CONSTRUCTION CORP

INVITATION
TO BID
DISMANTLING WORK

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 CHINA PETROLEUM ENGINEERING & CONSTRUCTION CORP

DISMANTLING SPECIFICATIONS

CAHIER DES CHARGES POUR TRAVAUX DE DEMANTELLEMENT

N°CPA-REHA-ALG-032

Mois/Mount : Mars/Marsh
Année/Year : 2018

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 SUMMARY

Désignation Observation

Preamble

I- GENERAL REQUIREMENTS

Article 1- Object
Article 2- Mode of passing
Article 3- Quality of the Bidder
Article 4- Documents Required
Article 5- Withdrawal of The Specifications
Article 6- Property of Documents
Article 7- Presentation & Treatment of the Offer
Article 7.1 – Deposit Offer
Article 7.2 – Deadline for Deposit of the Offer
Article 7.3 – Bid Opening & Study Offers
Article 7.4 – Validity of Offer
Article 8- Notifications
Article 9- Membership

II- SPECIFIC REQUIREMENTS (ANNEX)

Annex 1- Contract Project

Annex 2- Technical Spécifications
Annex 3- Letter of commitment template
Annex 4- Health, safety and environment on site
Annex 5- Payment Schedule
Annex 65- Drawings of the unit 200 & 800

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 PREAMBLE

PREAMBLE

The purpose of these specifications is to provide tenderers with the administrative, legal,
financial and technical elements necessary for the preparation of their tenders with a view to:

TRAVAUX DE DÉMANTÈLEMENT

DISMANTLING WORKS

This document sets out the activities and work to be carried out by the bidders for the
dismantling of the existing ones in the Brown Field area as defined in the call for tenders
document.

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 I. GENERAL REQUIREMENTS

ARTICLE 1 – OBJECT

The purpose of these specifications is to define the conditions to which any tenderer must
subscribe in order to:

- Carrying out all the studies, works and services required to carry out the dismantling
operations of the existing reforming unit, and the existing water treatment unit, as well
as all the underground equipment and networks, in accordance with the technical
specifications attached in Annex 2, in compliance with the required deadlines and quality
requirements.

ARTICLE 2- MODE OF PASSING:

L This contract is passed under the Restricted Consultation Mode under No. CPA-REHA-
ALG-032, in accordance with the provisions of the legislation and regulations in force in
Algeria and the provisions of the procedure applicable within the Company CPECC about
commercial transactions.

ARTICLE 3 – QUALITY OF THE BIDDER

All national public or private operators engaged in legal activity and specialized in their field
of activity are eligible to tender, in particular:

 Companies with the required technical, financial and legal capabilities;

In any case, the tenderer must obligatorily have his tender accompanied by the official
documents justifying his quality.

ARTICLE 4 – DOCUMENTS REQUIRED

The offer file consists of two parts:

Administrative and Technical Component :

a) The tenderer's file shall include all the documents required in accordance with the
technical specifications defined in Annex 2 to these tender specifications.

b) The bidder will provide a complete administrative file, consisting of the following
documents, dated and signed by the authorized representative.

- The contract project: The tenderer must include with his technical tender the draft
contract accompanying the specifications, filled in, initialed on each of its pages, signed
by the right holder without any reference to any price or amount and accompanied by any
reservations;
- A copy of the commercial register;
- A copy of the State approval for the institutions or organizations that are
subject to it;

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 - A copy of the administrative authorization for regulated activities,
- Balance Sheets: The tenderer must produce the tax reports for the last three (03)
fiscal years, covered by the services of the Tax Administration;
- Professional references: The tenderer must present professional references, in the
field that will allow to assess his skills and qualifications. These professional
references must be clear, precise, verifiable and possibly accompanied by certificates
of good execution.
- Engagement letter: in the form attached as an annex and reproduced on a
letterhead of the tenderer.
- Tax and parafiscal file: The tenderer must produce a tax and parafiscal file in
Algeria. This tax file must include :
A statistical identifier
- Certificate of update with respect to the social security funds.
- Certificates of Qualification (quality assurance and ISO certificate for the
products and processes of this consultation as well as any other parts deemed
useful).

A Commercial Component:

- Price structure (Commercial Offer).

ARTICLE 5 – WITHDRAWAL OF THE SPECIFICATIONS

Bidders consulted and retained in the "short list" will be invited to withdraw these specifications
from:

CPECC
Algiers Refinery Project
Contract & Cost Department
Sise à Sidi Arcine, Baraki, Alger

From the date of invitation (by email) to withdraw the specifications.

The specifications are withdrawn, by a duly authorized person, against payment of a sum of:
Five Thousand Dinars (5.000,00 DA).

Prior to withdrawal, the bidder will pay this amount in cash to the "Administration Department"
Structure.

A receipt will be given to the tenderer who must submit it to the Contract & Cost Department
for the submission of the specifications. This sum will be definitively acquired at CPECC.

ARTICLE 6 - PROPERTY OF DOCUMENTS

All documents in the specifications are and remain the property of CPECC. They are made
available to tenderers for the sole purpose of allowing the preparation of their offers.

None of the above documents will be used or disclosed to third parties without the prior
written consent of CPECC.

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ARTICLE 7 – PRESENTATION & TREATMENT OF THE OFFER

The bid submitted by the tenderer and all correspondence and documents relating to the
tender will be written in French, it being understood that any printed document provided by
the tenderer may be written in another language, if it is accompanied by translation into
French. In this case and for purposes of interpretation, the French translation will prevail.

The technical offer will be presented in two separate parts as follows:

- 1st envelope: administrative and technical components as provided for in article 4

of these specifications.
- 2nd envelope: Commercial component as provided for in Article 4 of these
specifications.

The offer Administrative, Technical & Commercial, will be deposited in Three (03) copies
clearly indicating on the copies "original and copies".

ARTICLE 7.1 – DEPOSIT OFFER

The offer Administrative, Technical & Commercial must be deposited at the address
indicated above, (the stamp of the Bureau Contract & Cost Department being authentic).

The whole of the offer must be put back under double fold sealed, the external envelope
must be anonymous and carry no mention, mark or sign which can allow the identification of
its origin and appearing, in capital letters, only indications following:

On the upper left of the envelope

LIMITED CONSULTATION

N°CPA-REHA-ALG-032

« DO NOT OPEN »

On the lower right of the envelope

CPECC

Contract & Cost Department

Sise à : Raffinerie d’Alger, Sidi Arcine, Baraki, Alger

The bidders' attention is drawn to the mandatory nature of the anonymity of the bids
under pain of rejection.

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ARTICLE 7.2 – DEADLINE FOR DEPOSIT OF THE OFFER

CPECC shall receive tenders at the address specified above by the closing date of sixty (60)
days from the date of the Invitation to Withdraw the Tender Circular, sent to the bidders by
CPECC.

CPECC has full discretion to extend the deadline for submission of bids. In this case, all the
rights and obligations of CPECC and the bidders related to the deadlines previously fixed will
be renewed in full, this extension will be the subject of a notice which will be transmitted to all
the bidders, in the same forms.

If the deadline coincides with a holiday or a weekly rest day, tenders received on the first
working day that follows will be admissible.

Any offer received by CPECC after expiry of the deadlines will be declared inadmissible.

ARTICLE 7.3 – BID OPENING & STUDY OFFERS

Folders received, under the conditions mentioned above, will be opened by an Ad Hoc
Opening and Evaluation Committee (COEP).
The presence of the tenderers concerned is optional.

The opening of the folds will proceed as follows:

- Verification of bidders' referral and compliance of the submission of bids;
- Verification of the conformity of the content of the offers;
- Non-compliant rejection of tenders;
The evaluation of the offers will proceed as follows:
- Study and analysis and declared offers selected;
A / At the administrative level;
B / At the Technically level;
C / At the commercial level.
- Analysis of the bidder's capacity (human, material, intellectual and financial
resources ...)
- Non-compliant rejection of tenders;
- Preparation of a report with a comparative table of offers;
- At the end of the works and the results obtained, the contract will be awarded to
the bidder submitting the lowest bid.
- A copy of the Minutes will be sent to the Client for validation;
The award of the market:
- Referral of the successful bidder (To present and sign the contract between the
two parties);
- Referral to all unsuccessful bidders to inform them of the results of the Limited
Consultation.

ARTICLE 7.4 – VALIDITY OF OFFERS

Bidders will remain committed to their offer for a period of 90 days from the date of bid
opening.

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ARTICLE 08 – NOTIFICATIONS

Any additional information or information must be notified by email or registered letter to:

- CPECC
Siège social : 01, rue Khoudi Mohamed, El-Biar – Alger/ Algérie

- CPECC (Projet Raffinerie d’Alger)

Sidi Arcine, – Baraki – Alger (Algérie)
Tel/fax : 023 93 31 69.
Mail : hamlaoui-lassad@cpecc.com.cn
hatri-hamza@cpecc.com.cn;

ARTICLE 09 – MEMBERSHIP

Each tenderer is deemed to have subscribed and adhered to all the provisions of these
specifications and the accompanying draft contract.

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II. SPECIFIC REQUIREMENTS

Annex 1

Contract Project

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Between,

CHINA PETROLEUM ENGINEERING & CONSTRUCTION CORP, by abbreviation

"CPECC", whose head office is located at 01, rue Khoudi Mohamed, El-Biar - Algiers /
Algeria, hereinafter referred to as "BuilderContractor" Represented by Mr …………………,
General Manager, with full powers to the effect of this Contract

Firstly,

And,

THE COMPANY ………………………………, Chief Executive Officer, having full power to the
effect of this Agreement.

On the other hand,

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 SOMMARY

PREAMBULE

ARTICLE 1 : DEFINITIONS - CONTRACTUAL DOCUMENTS

ARTICLE 2 : PURPOSE OF THE CONTRACT

ARTICLE 3 : PROVISIONS AND SUPPLIES OF THE SUB-TRACTOR

ARTICLE 4 : BUILDERCONTRACTOR'S PROVISIONS AND SUPPLIES

ARTICLE 5 : MODIFICATIONS

ARTICLE 6 : CONTRACT TIME

ARTICLE 7 : WARRANTY

ARTICLE 8 : ACCEPTANCE

ARTICLE 9 : LIABILITIES AND INSURANCE

ARTICLE 10 : CONTRACT PRICE

ARTICLE 11 : PAYMENT TERMS

ARTICLE 12 : TAXES, RIGHTS AND TAXES

ARTICLE 13 : ADVERTISING, PLANS AND DOCUMENTS

ARTICLE 14 : SUB-CONTRACTING

ARTICLE 15 : FORCE MAJEURE

ARTICLE 16 : SUSPENSION AND CANCELLATION OF CONTRACT

ARTICLE 17 : DISPUTE SETTLEMENT

ARTICLE 18 : NOTIFICATIONS

ARTICLE 19 : EFFECTIVE DATE OF THE CONTRACT

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 PREAMBULE

Whereas:

- The Owner has started an “EPCC” project for the rehabilitation and adaptation of the
facilities of the Algiers Refinery;

- The Owner, SONATRACH Activities LRP Division Refining, decided to entrust the
completion of the project of rehabilitation and adaptation of the Refinery of Algiers to
the Chinese BuilderContractor CPECC;

- CPECC has decided to outsource the work on …………………………………….. at

the refinery in Algiers "Project" to the company ……………….. (hereinafter referred to
as "Sub-contractor"),

- The Subcontractor ………………. declares having taken knowledge of the services,

works and supplies to be realized;

- The Subcontractor ………………. declares that it has the equipment, the specialized
personnel, the experience and the qualification and the financial capacities necessary
to carry out the services and works, described in the Contractual Documents;

- The Subcontractor ………………. declares to be able to mobilize and put in place all
the means (qualified personnel, Equipment, Materials) necessary to carry out the
works and services necessary for DISMANTLING;

- The Subcontractor ………………. hereby declares to have inspected the place of

implementation of the Services and the Supplies at his cost, knowing the nature of
land, the implementation of the existing facilities, the nature and status of the roads,
the track, and all the other transport means and the access roads;

- The Subcontractor ………………. ensures that it knows all the regulatory and
legislative provisions, the formalities and administrative procedures in Algeria, to
which it must satisfy;

- The Subcontractor ………………. declares having considered the above when he has
agreed with the BuilderContractor, the clauses of the present Contract, particularly
the clauses relating to the contractual Price and Duration;

- The Subcontractor ……………….. accepts without reserve to take charge of the

realization of the Services and works necessary for
…………………………………… for in the Contract and declares in an explicit way
that Accepts all the clauses and requirements contained in the Contract Documents;

All of the above-mentioned representations constitute an integral part of this Agreement.

As explained, the Parties agreed and agreed as follows:

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ARTICLE 1: DEFINITIONS - CONTRACTUAL DOCUMENTS

1.1 Definitions

As part of the present Contract, the following words and expressions shall be interpreted as
follows:

1.1.1 The term ''Contract'' means the present Contract including all of the Contractual
Documents accepted, initialed and signed by the BuilderContractor and the
Subcontractor;

1.1.2 The term “Party” means the BuilderContractor or the Subcontractor. In the plural, it
means the BuilderContractor and the Subcontractor;

1.1.3 The term ‘’Site’’ means the locations on which the work will be carried out and the
services;

1.1.4 The term ''Final Acceptance'' means the act by which the BuilderContractor and the
Subcontractor will constate contradictorily in accordance with Article 08 at the end of
the warranty period specified in Article 13;

1.1.5 The term ''Site tools” means all the materials, equipment and the accessories of the
site used by the subcontractor for …………………………………. of the Work; These
tools of the Site are not intended to be an integral part of the Work;

1.1.6 The term “Service (s)” means all the work activities implemented and all the services
provided by the Subcontractor for the project.

1.1.7 The term ‘’ Contractual Documents’’ means the present contract and its Annexes;

1.2 Contractual documents

Are integral parts of the present Contract, the documents listed below:

- These contractual clauses;

- The Following Annex:
 Annexe A : Breakdown of Contract Price (………….Offer)
 Annexe B : Technical Annex
 Annexe C : Acces Procedure
 Annexe D : HSE Procedure

In case of conflict, incompatibility and / or conflict between the clauses of the present
Contract and its Annex, the clauses of the present Contract shall prevail.

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ARTICLE 2: PURPOSE OF THE CONTRACT

2.1 The purpose of the present Contract is for the execution by the Subcontractor,
……………… of all the Works, the Services and the Supplies necessary for the completion of
DISMANTLING.

2.2 Brief description of the work

The detailed technical description of the works and services to be performed by the
Subcontractor is described in Appendix B to this Contract;

ARTICLE 3: PROVISIONS AND SUPPLIES OF THE SUBCONTRACTOR

3.1 With a view to achieving the object of this Contract, as defined in Article 1.2, the
Subcontractor undertakes to carry out all Provisions and Supplies necessary for the
continuation and completion of DISMANTLING.

Upon receipt of the work order, the Subcontractor is obliged to mobilize all its human and
material resources and begin work as following:

I. SUBCONTRACTOR'S SERVICES

The carrying out of all studies, works and services necessary to carry out the DISMANTLING
operations of the existing reforming unit, and the existing water treatment unit, as well
as all underground equipment and networks, in accordance with the technical
specifications attached in Annex B, in compliance with the required deadlines and quality
requirements.

II. EXTENT OF DISMANTLING WORK

The subcontractor shall perform the dismantling work in the areas of Brown Field as
defined in the Restricted Consultation document.

1) The subcontractor will be responsible for dismantling all existing factories as defined in
the specifications.

2) The subcontractor must disconnect and isolate the entire limit of the electrical battery,
the instrumentation and the interphase piping.

3) All rotary, static, electrical, instrumentation equipment such as piping, pumps,

compressors, heat exchangers, vessels, columns, tanks, electrical panels, instrument
panels, local junction boxes, electrical cables and instrumentation and any other material
containing iron and steel, copper or any other metal shall be disassembled and shipped
to an area identified and defined by Sonatrach to the subcontractor within the limits of the
plant.

4) All foundations must be dismantled and transported outside the factory boundary by
the subcontractor to a disposal site to be identified by the Owner (Sonatrach) at a
distance of approximately 20 KM from the refinery.

5) Asbestos is a hazardous material, must be handled, dismantled and stored safely in

steel containers in the refinery area at a safe place to identify and deliver to Sonatrach.
The supply of container for storage must be within the scope of the subcontractor.

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 6) All underground piping, electrical cables, etc. must also be dismantled by the
subcontractor.

7) After the completion of the dismantling work, the bidder must fill the excavated areas
with a mixture of soil and sand at the normal level.

8) After backfilling, the site will be delivered to the Owner satisfactorily.

9) The subcontractor must develop and present specific plans to prevent:

- the fire;
- The explosion,
- poisoning,
- The fall of high altitude,
- The collapse of the pit,
- Anti-electric shock and other specific plans (to propose).

3.2 Observations and instructions relating to control shall be addressed to the Subcontractor.

The exercise or absence of such control by the BuilderContractor or by any other Algerian
inspection service shall not relieve the Subcontractor of its contractual obligations and
responsibilities.

3.3 The Subcontractor shall direct, coordinate and control all the work contributing to the
implementation of the DISMANTLING project.

These works will be directed, executed and controlled in accordance with the Contractual
Documents, the specifications and the plans, the rules of the art and the recognized
professional practices in the field.

The employment risk analysis must be attached to all method declarations (for any PTW
application) issued by the subcontractor for review and approval.

The Subcontractor shall appoint a duly authorized representative.

3.4 The BuilderContractor or his delegates shall at all times have free access to the site and
may, in particular, inspect the plans and documents and monitor the execution of the work.

They may acquaint themselves with the qualifications of the personnel and with the nature of
the Tools, Equipment, Materials and Works of the Subcontractor;

The Subcontractor's personnel will respond to all requests for information made by the
BuilderContractor;
At any time, the BuilderContractor or his duly authorized representative may notify in writing
his observations and reservations to the Subcontractor who shall take them into account and
remove them as soon as possible;

3.5 Discipline on site and general coordination

3.5.1 The Subcontractor shall maintain discipline on the site and shall be obliged to observe
and to observe by his personnel all the provisions of the Algerian law as well as the
provisions established by the BuilderContractor and the Owner.

3.5.2 Access to the site shall be forbidden to any person who is not a BuilderContractor and
has no written authorization from the BuilderContractor or the Owner;

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3.5.3 The Subcontractor shall not remove the persons affected by it to the performance of
this Contract for any compelling reasons to be submitted to the BuilderContractor.

In the event of withdrawal of the affected persons, the Subcontractor shall provide for the
replacement of such personnel by another one having the required qualification and in the
shortest possible time, so as to avoid any disruption in the work, at no cost to the
BuilderContractor.

3.6 Tooling for construction site equipment

The Subcontractor will provide the Site Tools which will be necessary for the realization of
the Work. The tooling and equipment of the Site must be maintained in good working order
and meet the best safety conditions.

The Subcontractor is obliged to provide its personnel with personal protective equipment.
The Subcontractor is obliged to provide its personnel with the PPE of the Site, necessary for
realization of the Work.

The Subcontractor is responsible for providing transportation, handling, loading and

unloading of materials, and the handling and handling of materials on site.

However, only during on-site mobilization, unloading could be supported by the builder's
lifting means.

The Subcontractor is obliged to provide its personnel with a temporary water and sanitation
service for the needs of its staff mobilized with responsibility for the hygiene operations of the
septic tank.

3.7 Pollution

The Subcontractor shall comply with all provisions of the Algerian legislation and regulations
in force throughout the period of performance of this Contract and with the rules issued by
the Manufacturer and communicated to the Subcontractor relating to the control and to the
prevention of pollution.

The Subcontractor warrants that it will use the most stringent standards and shall take into
account any waste, liquid, solid and other releasing material that may accumulate and result
from the Subcontractor's operations to prevent any type and nature of pollution resulting from
work carried out under this Contract.

3.8 Waste Management

The Subcontractor shall at all times comply, under this Contract, with all applicable rules for
the management of waste including but not limited to domestic, industrial, hazardous and
toxic waste for which it will bear the costs of the proper management of their disposal
according to the procedure observed by the BuilderContractor.

In addition, the Subcontractor will indemnify the BuilderContractor against any recourse,
costs, fines or other monetary measures that may result from the Subcontractor's failure to
comply with such rules.
Asbestos is a hazardous material, must be handled, dismantled and stored safely in steel
containers in the refinery area at a safe place to identify and deliver to the Owner. The
supply of container for storage must be within the scope of the subcontractor.

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3.9 On-Site Protection and Security Services

The Subcontractor shall be responsible, in accordance with good engineering practice, and
will do its best to set up and maintain, until the Provisional Reception of the Work, the
necessary devices for safety, works or the requirements of the competent authorities for the
protection of the Site and the works, as well as safeguarding the public interest, third parties
and the environment.

3.10 Works and Services in the vicinity of existing installations

In the interest of safety, the Subcontractor must obtain, prior to any action or work, that it
intends to undertake the necessary and written authorizations of the BuilderContractor in the
vicinity, through or within the existing installations, before entering the security zone that will
be delimited.

To this end, the Subcontractor must submit to the BuilderContractor, for approval, the
schedule, the programs and the procedures, in accordance with the operating regulations of
the existing installations.

The BuilderContractor shall be entitled, through its security service, to check and stop any
work deemed to be inconsistent with the safety measures of the installations in operation, if
necessary, without disengaging the Subcontractor from its obligations and contractual
responsibilities.

The Subcontractor must respect and ensure the observance by its personnel of the safety
instructions of the BuilderContractor and the Owner of the work.

3.11 Temporary Worksite Facilities

For the purposes of temporary construction sites and storage areas of Materials and
Equipment, the Subcontractor will use the existing temporary facilities.

The Subcontractor will be responsible for covering its requirements for gas, electricity, water
and telecommunications, for the construction of the Works until the Reception.

The BuilderContractor agrees to the subcontractor to draw water for the work of the existing
well.

The Subcontractor will be responsible for the accommodation, food, bleaching and
transportation of all personnel assigned to carry out the Work.

In addition, the subcontractor will be responsible for managing the badges of its staff. The
subcontractor is required to return all badges received in this framework at the end of the
project. In the event that a badge is lost or not returned, the subcontractor is required to
declare it and will bear the costs corresponding to this badge (s).

The amount of the badge (s) not returned will be automatically deducted from the amount to
be paid to the subcontractor (invoice of the subcontractor's monthly progress or final invoice).
The cost of the badge is estimated at three thousand dinars without taxes (3000,00 DA /
HT).

The corresponding costs are included in the Contract Price.

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3.12 Program

3.12.1 General Planning of the Project

From the general contractual schedule provided for in Technical Annexes B, the
Subcontractor shall draw up detailed programs, in particular:
- Provision of services and works to be borne by the Subcontractor.
This program will be communicated to the BuilderContractor no later than 07 days after the
date of entry into force of this Contract.
This program will be regularly updated and monitored by the Subcontractor.

3.12.2 Progress

At the end of each month, the Subcontractor will communicate the progress of the realization
of the Services and works.

This statement will indicate the measured percentage of the progress of each element of the
Work carried out.

3.12.3 BuilderContractor's Control

At all stages of the performance of the Services and works necessary for the completion of
the project, the BuilderContractor shall have a right of control in accordance with the
Technical Annex, on the Services and Works carried out by the Subcontractor, which shall
not be able to oppose no request for control by the BuilderContractor.

Such checks shall be carried out by the BuilderContractor itself or by any person or body of
its choice and shall be aimed at verifying that, in particular:
- The project is running normally;
- The contractual schedule is respected.
The controls thus defined shall in no way relieve the Subcontractor of its contractual
obligations.

ARTICLE 4: BUILDERCONTRACTOR'S SERVICES AND SUPPLIES

The buildercontractor agrees to make and take care, in good time, the services and supplies
below:

4.1 The subcontractor shall be provided, free of charge, with a land within the site for the
construction site and for all installations necessary for carrying out the project.

4.2 The precise delineation of the Subcontractor's stakeholder's terrain, the access
modalities and the HSE procedures respectively in accordance with Annexes C & D.

4.3 Designation of a duly authorized representative.

4.4 It is the responsibility of the Owner (Sonatrach) to clean the operating facilities of all
chemicals and to purge and drain various equipment / piping etc. before handing over the
plant / unit to the successful Subcontractor for dismantling

ARTICLE 5: AMENDMENTS

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All proposed amendments can only be confirmed as amendments if they are approved
by the Owner and paid to the contractor the change cost.

5.1 Changes due to Subcontractor

The Subcontractor is obliged to provide within the framework of this Contract a Work
satisfactory and in conformity with the specifications, technical characteristics provided for in
the contractual documents and in conformity with the Technical Annex, the rules of the art
and the professional principles and practices in Use in the field.

If in the course of the remaining work for the completion of the project and in order to fulfill its
contractual obligations, the Subcontractor shall note the need to modify some devices or to
add others not provided for in the Technical Annex, With the prior written consent of the
BuilderContractor and without this agreement releasing the Subcontractor from any of its
contractual obligations and liabilities.

For this purpose, the Subcontractor must send to the BuilderContractor a "Request for
modification", by item justifying clearly and in detail on the theoretical and practical plan, the
reasons for the proposed modification.

The BuilderContractor shall have seven (7) days after receipt of the document, above, to
notify his approval or observations in writing.

The BuilderContractor will refuse any modification which is not justified by the above reasons
and which would appear to reflect the will of the Subcontractor to evade all or part of its
contractual obligations.

Modifications to the Subcontractor for the remaining work may in no case be invoked as
grounds for delay in the Contract Period or an increase in the Contract Price.

5.2 Modifications Made by the BuilderContractor

5.2.1 The BuilderContractor shall have the right to request the Subcontractor to make any
modification he intends to make to the importance or the nature of the Services and Supplies
of the Subcontractor.

To this end, the BuilderContractor shall notify the Subcontractor in writing of any modification
which it deems appropriate.

Any request for modification by the BuilderContractor shall be the subject of a "Request for
modification" per item addressed to the Subcontractor, indicating the nature of the
modification and the intended purpose.

The Subcontractor shall submit to the BuilderContractor, within seven (07) days, in the form
of a "modification sheet" per item, a study accompanied by the corresponding supporting
documents.

Upon receipt of these documents, the BuilderContractor may hold a meeting to discuss with
the Subcontractor the following:

- The amount to be paid, either up or down due to the modification, as well as the terms of
payment in accordance with the provisions of this contract;
- The possible modification of the Contractual Period resulting from the modification;
- The possible modification of the guarantees resulting from the modification;

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The modification shall be executed by the Subcontractor upon written agreement between
the Parties.

5.2.2 Shall not be considered as amendments due to the BuilderContractor, the

amendments motivated by the constatation of:
- non-compliance with the provisions of this Agreement;
- omissions;
- incorrect designs;
- incorrect calculations;
- non-compliance with rules and regulations;
- a sub-contractor's misapprehension of the human and material resources to be used for the
realization of the object of this Contract.

These modifications are in fact due at all times by the BuilderContractor with an obligation for
the Subcontractor to carry them out, at his own expense and risk, fully respecting all the
guarantees.

ARTICLE 6: CONTRACT PERIOD

6.1 Contractual Deadline

The contractual period 4 months (four months) starting from entre into force of the contract.

6.2 Effects

In the event of exceeding the Contractual Time Limit defined in paragraph 6.1. Above, for
reasons not attributable to the BuilderContractor, the Subcontractor shall pay, at the request
of the BuilderContractor a penalty of 0,5% per week of delay, of the Contract Price
excluding taxes , which corresponds to a period maximum penalty of Ten (10) weeks;

The total amount of late payment penalties is limited to five percent (5%) of the Contract
Price of the Work, less the contract amount;

In the absence of payment by the Subcontractor, within a period of fifteen (15) days from the
notification made by the BuilderContractor, the latter may deduct the sums due to him from
the sums he holds or that he would have to pay to the Subcontractor

Payment by the Subcontractor or this deduction by the BuilderContractor shall not release
the Subcontractor from the obligation to complete the work or from any other contractual
obligation.

If, at the end of the penalty period corresponding to the maximum amount of late penalties,
the Work and / or the Services were still not received, the BuilderContractor shall be entitled
to treat this Agreement as terminated by operation of law, to the exclusive fault of the
Subcontractor.

ARTICLE 7: WARRANTY

7.1.1 The Subcontractor will assume full responsibility and guarantees the proper
performance of the Services and works at his expense and the delivery of the Work in
satisfactory condition in the Contractual Deadlines and in accordance with the Contractual
Documents.

7.1.2 The warranty period is eighteentwelve (182) months from the date of provisional
acceptance of the work.

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7.1.3- Effects:

7.1.3.1 The Subcontractor undertakes to remedy any defects that may arise during the
warranty period and to carry out any repairs, replacements, modifications or adjustments
necessary to eliminate the defects and their causes.

7.1.3.2 It is understood that any faulty work that is repaired, replaced, modified or developed
will be guaranteed under the same terms and conditions as the original Service for a new
period of twelve (12) months from the date of repair, modification or adjustment.

7.1.3.3 The BuilderContractor shall notify the Subcontractor as soon as possible of any
defect that has been identified and authorize the Subcontractor to immediately examine the
defect found.

The necessary stops for the execution of interventions of the Subcontractor must take into
account production requirements.

However, if the Subcontractor does not diligently perform his contractual obligations, the
BuilderContractor, after a formal notice has remained ineffective, will have the right to have
the third party perform his repairs at the expense and risk of the Subcontractor.
modificationsModifications and adjustments, defective work and services provided by the
Subcontractor.

7.1.3.4 At the end of the scheduled warranty period, the Final Acceptance of the Work shall
be pronounced on the express condition that the Subcontractor has lifted all observations
and reservations still pending, issued by the BuilderContractor or his representative, and that
he has fulfilled all of his obligations as guarantor of the work performed by the Subcontractor
in connection with this Contract.

ARTICLE 8: ACCEPTANCE

8.1 Provisional Acceptance

8.1.1 The Provisional Acceptance of the Work will occur when all conditions
Following will have been fulfilled:
- All Works and Services to be performed under this Contract shall have been completed by
the Subcontractor and accepted by the BuilderContractor;
- the payment by the Subcontractor of any sums due in respect of any penalties;
- Rehabilitation of the site;
- All reservations will have been withdrawn by the Subcontractor.

When all the above conditions have been fulfilled, the two Parties shall proceed to the
drawing up and the signing of an interim report of the "Provisional Acceptance of the Work".

ARTICLE 9: LIABILITIES AND INSURANCE

9.1. Liabilities:

9.1.1 The Subcontractor shall assume full responsibility for the performance of its obligations
in accordance with the Contract Documents.

In accordance with commune law, Subcontractor shall be liable for the pecuniary
consequences of any bodily injury and / or damage caused to third parties during the
performance of this Contract and involving his liability, that of his servants or his agents.

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The Subcontractor agrees accordingly with the BuilderContractor and the Owner to assume
responsibility for any claims arising out of damage involving such liability.

The Subcontractor waives the right of recourse against the BuilderContractor and the Owner
for damages of any kind caused to its personnel and its property resulting from the execution
of this Contract. The Subcontractor shall indemnify the BuilderContractor and the Owner
against any and all claims by third parties for such damages.

The Subcontractor will obtain from its insurers that they also waive recourse against the
BuilderContractor and the Owner for such damages.

9.1.2 The BuilderContractor and the Owner waives any and all claims against the
Subcontractor for damages caused to its personnel and to the assets existing and / or
operated by the Contractor in connection with the performance of this Contract. The
BuilderContractor and the Owner shall indemnify the Subcontractor against any recourse of
third parties for such damages.

The buildercontractor and the Owner shall obtain from their insurers that they also waive the
right of recourse against the Subcontractor for such damages.

It is understood that the Subcontractor remains responsible in the event of gross and / or
intentional fault caused by its staff.

9.1.3 Indirect damage

Except in the case of gross fault or willful misconduct, neither Party shall be liable to the
other for consequential damages. The Parties expressly agree to treat as indirect damages
the loss of profit, loss of production and loss of contract.

9.2 INSURANCE

9.2.1 Social Insurance

The Subcontractor undertakes to contract social insurance for the benefit of its staff working
on the Site in accordance with the Algerian legislation in force.

9.2.2 All Risk Insurance

For the All Risks insurance required for the realization of the Work, the Subcontractor must
subscribe to a Risk Insurance policy covering all damages that may occur during the
execution and / or completion of the Work.

This insurance policy include the maximum number of guarantees (including the cross-
liability guarantee) and include a waiver of recourse against all the interveners on Site,
having a contractual link with the BuilderContractor and the Owner.

It cover all works against any damage, loss and deterioration, whatever the cause, with the
exception of the exclusions contained in the said policy.

It also cover the subcontractor's civil liability in connection with the performance of this
Contract in respect of damages of any kind which may be caused to third parties.

However, it is understood that the Subcontractor remains liable for gross fault and / or willful
misconduct caused by its personnel.

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ARTICLE 10: CONTRACTUAL PRICE

10.1 Contractual Price:

The Contract Price covers all the Studies, Services and work of the Subcontractor necessary
for the continuation and the completion of the realization of the DISMANTLING, object of the
Contract .
The CONTRACT PRICE is the all-inclusive, non-escalating Fixed Lump Sum Price for DISMANTLING Formatted: English (United States)
Works of Algeria Dinar XXXXX (DZD XXX)

The Contract Price In accordance with the offer in Appendix A, all taxes included, amounts:
……………………. Algerian Dinars, excluding taxes (………………. DA/HT)

10.2 Breakdown of Contract Price:

• Price excluding Tax : …………………….. DA

• VAT (19%) : …………………….. DA
• Price Tax Included : ……………………….. DA

ARTICLE 11: TERMS OF PAYMENT

The Contract Price defined in Article 10 hereof shall be paid by the BuilderContractor to the
Subcontractor in accordance with the applicable regulations applicable in Algeria as follows:

- The contractual amount in Algerian Dinars, as mentioned in Article 10, will be paid by
milestone monthly as and when the Progress Benefits and the progress of the works
progress.

- The buildercontractor will deduct from the total amount excluding taxes, an amount equal to
(5%) five per cent of each invoice, under the performance guarantee of this contract.
- The cumulative total of 5% deducted from the subcontractor's invoices, will be retained by
the BuilderContractor under the performance guarantee referred to above and will be
released upon signature of the final acceptance report.

The contractual amount in Algerian Dinars, to cover the payment of the Work of realization of
the DISMANTLING as mentioned in Article 10, 10% of the contract price (TTC)that is DZD
………………… DA/HT will be paid as the advancement of the Performance Benefits and the
progress of the work, upon presentation by the Subcontractor of the following documents:
- A commercial invoice in five (05) copies, including one (01) original
- Monthly status of progress, approved by the BuilderContractor;

The VAT relating to each invoice drawn up by the Subcontractor to the Manufacturer shall be
mentioned. Indication of VAT on the same invoice.

11.1 Period of payment;

The payment in Dinars, of the Services of the subcontractor by bank transfer, will be done
within thirty (30) days, after receipt of the invoices duly approved by the BuilderContractor
and the contractor received the dismantling progress payment paid by the Owner.

11.2 Bank Domiciliation:

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11.2.1 Subcontractor's Bank
Bank : …………………………………
Agency : …………………………………
Account n° : ………………………………..

ARTICLE 12: DUTIES AND TAXES

12.1. All duties and taxes due under this Contract shall be borne by the Subcontractor and
included in the Contract Price.

The Subcontractor must undertake all the procedures with the Algerian Tax Administration to
pay these duties and taxes.

The Subcontractor is solely responsible for the declaration and payment of all taxes and
duties due under this Contract.

ARTICLE 13: ADVERTISEMENT PLANS AND DOCUMENTS

13.1 Technical documents of all kinds, plans, details of arrangement, general and particular
rules and specifications supplied to the Subcontractor by the BuilderContractor, shall remain
the property of the BuilderContractor.
None of the above information will be used or disclosed to third parties without the written
consent of the BuilderContractor.

13.2 All photographs and visits to the site are subject to the agreement of the
BuilderContractor or his duly authorized representative.

For a period of five (5) years from the Provisional Receipt of any publicity (Articles,
photographs, films, etc.), the realizations made shall not be subject to the written consent of
the BuilderContractor and Presentation of all documents proposed for publication.

The BuilderContractor will, in advance, agree with the Subcontractor on the methods of
taking pictures, if any, on the site.

Beyond the aforementioned period of five (5) years, the BuilderContractor and the
Subcontractor shall be kept informed of such publications or advertisements.

13.3 The Subcontractor may freely use the information in his possession and transmitted by
the BuilderContractor but only for the dismantling or restoration of the Work.

ARTICLE 14: SUBCONTRACTING

14.1- For the purposes of this Contract, the Subcontractor shall be deemed to act as an
independent Subcontractor solely responsible for its contractual obligations.

The Subcontractor may not subcontract all or part of the Supply or the Services and Works,
unless he has expressed it during the submission.

In all cases, the Subcontractor remains solely responsible and guarantor to the
BuilderContractor for the proper performance of the Services or works

ARTICLE 15: FORCE MAJEURE

15.1 Force majeure for the performance of this Contract mean any unforeseen, irresistible

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act or event beyond the control of the Parties.

15.2 In the case of an event which would constitute a case of force majeure, obligations
affected by force majeure shall automatically be extended for a period equal to the delay
resulting from the occurrence of force majeure, provided that such extension shall not entail
No penalty shall be charged to the Party prevented.

15.3 The Party invoking the force majeure shall notify the other Party immediately by the
occurrence of such force majeure, by fax, telegram or telex, confirmed by registered express
letter with acknowledgment of receipt.
Such notification shall be accompanied by all relevant circumstantial information and shall
take place no later than seven (07) days from the date on which the event arose.

Any delay for a case of force majeure not notified, under the conditions and forms, above,
will in no way be retained for the counting of the Contractual Period, nor opposable.

In all cases, the Party prevented shall take all necessary measures to ensure, as soon as
possible, the resumption of the performance of the obligations affected by force majeure.

15.4 If, as a result of force majeure, the BuilderContractor or the Subcontractor is unable to
perform its Services as provided for under this Contract for a period of one (01) month, the
two Parties shall meet in As soon as possible, to examine the possible impact of the said
events on the Contract Price and Deadline and to agree on a solution, if necessary.

ARTICLE 16: SUSPENSION AND TERMINATION OF THE CONTRACT

16.1 Suspension

In the event that the BuilderContractor decides to suspend the execution of all or part of the
Work, he shall communicate this decision forthwith to the Subcontractor who shall suspend
the execution of all or part of the Work and take the necessary precautionary measures of
the Services Made on the Site until further instructions.

For a suspension of less than fifteen (15) days, no financial impact will be borne by the
BuilderContractor, but the contractual period will be extended accordingly.

For a suspension of more than fifteen (15) days, the two Parties shall meet to define by
mutual agreement a solution which preserves their mutual interests.

16.2 Termination

16.2.1 The BuilderContractor reserves the right to terminate this Agreement if it finds that the
Subcontractor does not comply with the contractual provisions and fails to take adequate
measures to remedy it within two (2) weeks after Notice in writing written to him by the
BuilderContractor.

Contractual obligations not performed by the Defaulting Subcontractor may be entrusted to a

new Subcontractor at the expense, risk and perils of the Defaulting Subcontractor.

The right of cancellation above does not exclude the exercise by the BuilderContractor of any
right of recourse against the Subcontractor as a result of this termination caused by a default
in the exercise of its contractual obligations.

The BuilderContractor has the right, but not the obligation, to acquire all or part of the
Materials and Equipment, materials and products manufactured or in the course of

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manufacture, delivered or not delivered on the Site for the execution of this Contract.

Notwithstanding the procedure of the buyer's recognition and / or acquisition of products,

materials, equipment, construction sites and works, the Subcontractor remains the guarantor
of the Supplies and Works carried out by him for twelve (12) months from the date of
termination.

The Subcontractor is obliged to evacuate the site within the time limit set by the
BuilderContractor. After this period, the Subcontractor's property that has not been taken
back will be removed and stored at the Subcontractor's cost and risk.

In the event of bankruptcy or judicial settlement of the Subcontractor, even if authorized by

the authorities of his country to continue the practice of his profession, the BuilderContractor
may at any time without notice or demand and by written notice , Terminate this Agreement
to the sub-contractor's wrongs and grievances.

In the event of termination, a single account shall be established in which the Subcontractor
shall be credited with the contractual value of the Services performed (Works, Materials or
Materials taken over and other) and Debits the advances paid and the sums for which it is
liable for any reason whatsoever. This account shall be liquidated after receipt of the
Services and works actually carried out by the Subcontractor.

16.2.2 The BuilderContractor may terminate this Agreement at any time for reasons for which
it will remain solely responsible, subject to three (3) weeks written notice.

In the event of termination under this paragraph, the Subcontractor shall be entitled to be
paid by the BuilderContractor for the Services and Supplies performed up to the date of
termination in accordance with the provisions of this Agreement.

The part of the Supply in process at that date, claimed by the BuilderContractor, shall be
delivered by the Subcontractor in accordance with the terms of this Agreement.

The amount and terms of payment for the Services and Supplies mentioned above shall be
agreed between the Parties.

16.2.3 Upon receipt of the notice of termination, the Subcontractor shall:

- Terminate all work and services in progress;
- Abstain from placing any new orders or commitments relating to this Agreement;
- Transfer to the BuilderContractor all rights and obligations arising out of the Contracts
signed under this Contract and necessary for the continuation of the activities for carrying out
the Work. (Foresee in these contracts, the clause assignment as of right).

ARTICLE 17: SETTLEMENT OF DISPUTES

Any dispute which may arise in connection with the validity, interpretation and / or
performance of this Agreement and which has not been settled amicably, shall be submitted
and finally settled by the Algerian court territorially competent.

ARTICLE 18: NOTIFICATIONS

Until the Final Acceptance of the Work and unless otherwise agreed by the Parties, any
notice given by either Party to the other, for the purposes of this Agreement, shall be in
writing.

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By the BuilderContractor to the Subcontractor at the subcontractor's offices:

- Company : ……………………
The head office : …………………………….
Tel / fax : ……………………………

By the Subcontractor to the BuilderContractor at the BuilderContractor's offices:

- CPECC
Headquarters: 01, rue Khoudi Mohamed, El-Biar - Algiers / Algeria

- CPECC (Refinery Project in Algiers)

Sidi Arcine, - Baraki - Algiers (Algeria)
Tel / fax: 023 93 31 69

Any change of address of one of the Parties shall be communicated to the other Party

ARTICLE 19: ENTRY INTO FORCE OF THE CONTRACT

This Agreement shall enter into force and effect in its entirety when all the following
formalities have been completed:
- Signature of this Agreement by both (02) Parties;
- Notification of the Work Order.

The Parties shall use their best endeavors to bring this Agreement into force as soon as
possible.

If the Contract does not enter into force within a reasonable period of time, the two Parties
shall consult together to consider the implications for the contractual conditions.

This Agreement shall be drawn up and signed in six (05) original French copies, four of
which shall be retained by the BuilderContractor and one (01) retained by the Subcontractor.

Done in Algiers, on

For the BuilderContractor, For the

Subcontractor,
Name Name

………………………………………………. ……………………………………………….

_________________________________ __________________________________
Signature Signature

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 Formatted: Indent: Left: 0"

II. SPECIFIC REQUIREMENTS

Annex 2

Technical Specifications

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 EXTENT OF DISMANTLING WORK
SCOPE OF BREAKING WORK

As defined in the scope of work, this document elaborates the activities to be undertaken by
bidders for the dismantling of parts in the Brown Field areas as defined in the Restricted
Consultation document.

1) The tenderer will be responsible for dismantling all existing factories as defined.

2) The dismantling must be completed within a maximum period of four (04) months
from the date of acceptance by the Client (Sonatrach) of the Provisional receipt of the
project in progress; late penalties are provided for and mentioned in the draft contract.

3) It is the responsibility of the Owner (Sonatrach) to clean the operating facilities of

all chemicals and to purge and drain various equipment / piping etc. before handing
over the plant / unit to the successful bidder for dismantling.

4) The bidder must disconnect and isolate the entire limit of the electrical battery, the
instrumentation and the interphase piping

5) All rotary, static, electrical, instrumentation equipment such as piping, pumps,

compressors, heat exchangers, vessels, columns, tanks, electrical panels, instrument
panels, local junction boxes, electrical and power cables instrumentation and any
other material containing iron and steel, copper or other metal must be dismantled
and shipped to an area identified and defined by Sonatrach to the bidder within the
limits of the plant (factory).

6) All foundations must be dismantled and transported outside the plant boundary by
the bidder at a disposal site that must be identified by Sonatrach at approximately 20
KM from the refinery.

7) Asbestos is a hazardous material, must be handled, dismantled and stored safely

in steel containers in the refinery area at a safe place to identify and deliver to

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Sonatrach. The supply of container for storage must be within the scope of the
tenderer.

8) All underground piping, electrical cables, etc. must also be dismantled by the
tenderer.

9) After completion of the dismantling work, the bidder must fill the excavated areas
with a mixture of soil and sand at the normal level.

10) After backfilling, the site will be delivered to Sonatrach in a satisfactory manner.

11) The tenderer must draw up and present in his tender specific plans to prevent:
- The fire;
- The explosion,
- The poisoning,
- The fall of high altitude,
- The collapse of the pit,
- The anti-electric shock and other specific plans (to propose).

12) Providing Services and Work of Dismantling of the Existing Reforming Unit
(Unit 200)

Equipment dismantle of unit 200 please refer to 9952T-105-DW-0051-0002 attached

in Annex 5.
Piping dismantle please refer to PID drawings of unit 105:
Foundation dismantle please refer to 9952T-105-DW-1452-0007 & 9952T-105-DW-
1452-0011 attached in Annex 5.
Electrical dismantling: Cable dismantling from electric equipment to substation;
Instrument dismantling: All demolition pipelines and equipment of the instrument need
remove simultaneously, and associated with the dismantled instruments, impulse line,
field instrument bracket, instrument box, instrument wiring box, instrument air
pipelines, instrument and instrument pressure pipe with the corresponding thermal
insulation, heat tracing cable and cable on the path (including but not limited to the
bridge structure and support bracket etc.), corresponding to the instrument control
room or cabinet indoor all indoor instrument, common auxiliary systems such as UPS\
grounding system, the air conditioning, the control room or cabinet room and so on, If
it only perform the above instrument dismantle, it is within the scope of demolition.

13) Providing Services and Work of Dismantling of the Sewage Water Treatment
Unit (Unit 800)

Dismantling battery limit of unit 800: please refer to 9952T-800-DW-0051-0001

attached in Annex 5.
Due to the 800 unit is completely dismantled, don’t have PID, and the relevant
drawings can only show pipes and equipment which cannot be dismantled, the
demolition part has no indication. The details please refer to 9952T-800-DW-1332-
1001 and 9952T-800-DW-1442-0001 attached in Annex 5.
Electrical dismantling: Cable dismantling from electric equipment to substation;
Instrument dismantling: All demolition pipelines and equipment of the instrument need
remove simultaneously, and associated with the dismantled instruments, impulse line,
field instrument bracket, instrument box, instrument wiring box, instrument air
pipelines, instrument pressure pipe with the corresponding thermal insulation, heat
tracing cable and cable on the path (including but not limited to the bridge structure
and support bracket etc.), corresponding to the instrument control room or cabinet
indoor all indoor instrument, common auxiliary systems such as UPS\ grounding

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system, the air conditioning, the control room or cabinet room and so on, If it only
perform the above instrument dismantle, it is within the scope of demolition.

…………………………………………………….

II. SPECIFIC REQUIREMENTS

Annex 3

Letter of commitment template

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 LETTER OF COMMITMENT

I, the undersigned: …………………………………………………………,

Quality : ……………………………………………………,
Living in : ……………………………………………………………………………...,
Acting in the name of and on behalf of the company: ………………………………….,
Whose registered office is at …..………...……………………………………………….,
Commercial registed : ……………………………………………….……,

 After having studied all the documents constituting the draft contract and the
specifications;
 After visiting the site and having learned about nature, the importance of the
services to be provided;
 After completing the parts constituting our offer by:

- Administrative file, as defined in the specifications,

- Technical file in accordance with the technical specifications defined in the
specifications,
- - The performance program provided for in the specifications and the draft
contract,

Undertakes, with the company CPECC, in the event that our bid is accepted, to
perform all of the obligations incumbent on me under the conditions prescribed in the
documents of the specifications and draft contract and those proposed in my bid, in a
total delay of: .. ... .. .... Month, from the date of the coming into force of the contract
to be concluded between our two companies.

A …………......... Le : ……………………

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Corporate name of the company …………………………….
Sir : …………………………………………………………

Signature and stamp of the company

II. SPECIFIC REQUIREMENTS

Annex 4

Health, safety and environment on site

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Page 35 sur 45
 HEALTH, SAFETY AND ENVIRONMENT ON SITE

1.1 POLICY ON SAFETY, HEALTH AND ENVIRONMENT

1.1.1 Policy Statement and Objectives
CONTRACTOR shall conduct its operations in such a manner as to:
1. Provide a safe working environment.
2. Ensure the safety and health of CONTRACTOR’s crew and personnel working
within the CONTRACTOR designated areas of operation.
3. Protect the public from injury or ill health and prevent loss or damage to
properties resulting from its activities.
4. Ensure and safeguard the conservation of the environment.
1.1.2 Safety Targets
In taking steps to ensure a safe working environment, CONTRACTOR shall aim for:
1. No fatalities.
2. No loss time and any significant accidents;
3. No roll over to vehicles.
1.1.3 Implementation Aspects
The policy is implemented with special attention to the following specific aspects:
1. The requirements of all relevant government legislation are followed;
2. CPECC standards, specifications, procedures and regulations are applied;
3. Safety is given equal importance to productivity and cost;
4. Each employee is given specific procedures related to his work.
5. Each employee receives suitable technical and safety training;
6. Work instructions are clear and pay due regard to safety requirements;
7. Experience gained, lessons learned from accidents/incidents and new technical
developments to be widely distributed amongst staff.
8. Work Sites, work area are designed, built and operated in such a way that work
can be carried out safety and in an environmentally sound manner.
9. Only materials, tools and equipment which meet high standards are used.
10. The safety aspects of Work Sites, work area, materials and tools are reviewed
continually.
11. CONTRACTOR is required to adopt and maintain the same high standards as
per CPECC expectation.
12. All work carried out, whether by the CONTRACTOR or its Subcontractors, is
effectively monitored by CONTRACTOR.
13. Regular safety meetings to be held at all levels in the organization to ensure
safety occupies important aspect of work planning and execution.
14. Contractor shall provide adequate Safety Signboard and Warning Sign at Site
to prevent accidents and competence with Safety Regulation.

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1.2 RESPONSIBILITY
1.2.1 Unit Safety Officer
The Contractor shall have at all times a fulltime responsible person appointed as the
crew's Unit Safety Officer. The Unit Safety Officer shall oversee all matters pertaining
to safety in all crews operation and shall
1. Conduct fortnightly safety meetings with all his crews.
2. Follow-up safety items raised during safety meetings.
3. Ensure accident/incident reports are completed and forwarded to the CPECC
Representative within twenty four (24) hours.
4. Set up a system to enhance the safety attitudes and awareness of all his crews.
5. Participate in safety program or meeting conducted by CPECC.
6. Arrange or participate in the accident/ incident investigation.
1.2.2 All Personnel
It is the responsibility of every personnel to maintain a safe working environment, both
at his assigned work place and in other parts of the survey area.
Inappropriate conduct or mischievous acts shall not be allowed, as this presents a safety
hazard to the entire crew. Subject to regulation enforced, firearms, weapons, prohibited
drugs or alcohol shall not be allowed at base camp or work place.
All CONTRACTOR Personnel are to undergo an annual medical check-up at
CONTRACTOR expense, to certify their fitness for duties in harsh environment. Valid
medical certificates are to be kept together with the personnel records for inspection
purposes.
1.3 TRAINING REQUIREMENTS
First Aid, Resuscitation and Fire-Fighting
1. There must be an adequately trained first aider at work location.
2. All personnel must be trained to operate fire-fighting equipment at their own
workstations.
Operation of Geological Equipment / Machinery
1. Formal training must be provided for operators of Geological equipment /
machinery
2. Trainee shall not be left to work unsupervised.
1.4 SAFETY MEETINGS AND AUDITS
1.4.1 Safety Inspections/Audits
Prior to WORKS, CONTRACTOR’s equipment shall be inspected by CPECC
Representative(s), satisfied for operation and must meet all CPECC safety
specifications and regulations.
1.4.2 Safety Awareness / Meetings
CONTRACTOR must be responsible for maintaining and enhancing the safety
awareness of its personnel and subcontractor personnel, including arranging and / or
participating in regular safety meetings/briefing and emergency drills.
The objectives of safety meetings are to:

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 1. Provide opportunities for personnel to voice their concern over unsafe situations
or procedures in their respective work places.
2. Provide information and warning for other personnel in regard to potential or
existing hazards.
3. Allow collective solutions to be put forward through discussion.
It is CPECC's requirement that all CONTRACTOR personnel attend regular safety
meetings and names of attendees shall appear on the minutes of such meetings. Non-
attendance at a safety meeting must be authorized by a responsible person and a
reason for non-attendance must be given in the minutes.
1.4.3 Frequency
The meeting shall be held fortnightly and include a safety talk or presentation on a
chosen subject aimed at enhancing safety awareness on site.
Safety audits shall be conducted by the Party Chief / Safety Officer in conjunction with
the CPECC Representative on a monthly basis or whenever deemed necessary. Tool
Box Meeting shall be conducted on daily basis by authorized Safety Officer.
1.5 REPORTING
1.5.1 All safety meetings are to be minute and forwarded to CPECC Representative.
1.5.2 All emergency drills are also to be forwarded to the CPECC Representative.
1.5.3 All safety audits are to be reported to CPECC Representative monthly, with action points
listed.
1.5.4 All accidents and incidents related to the survey shall be reported in accordance with
CPECC Accident Reporting Procedure, within twenty four (24) hours in the event of:
1. Any loss of or damage to material or equipment supplied by either the CPECC
or CONTRACTOR.
2. Any personal injury to any CPECC or CONTRACTOR Personnel, its agents or
subcontractors.
3. Any injury to any third party.
4. A near miss incident.
1.5.5 A full detailed report via telex or fax or email sent to CPECC within twenty four (24)
hours and an Accident or Incident Report filled out by the CONTRACTOR Contract
Administrator immediately.
1.6 SAFETY TOOLS AND EQUIPMENT
1.6.1 Use of correct, properly designed and serviceable tools and safety equipment is
required. All working personnel should be taught the proper and correct way of using
safety tools and equipment.
1.6.2 Fire-Fighting Equipment
1. All fire extinguishers are to be checked and certified semi-annually.
2. Fire extinguishers are to be prominently marked.
3. Alarm system to be tested during every drill.
4. Fire accesses are to be strategically located.
1.6.3 First Aid and Survival Equipment
1. Adequate number of first-aid boxes and resuscitation units are to be placed at
strategic points.

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 1. First aid boxes are to be inspected regularly and stocks replenished.
2. Prescription drugs are to be certified by Pharmacist and kept under lock. Drugs
can only be administered with the consent of the Party Chief or Safety Officer.
1.6.4 Personnel Protective Equipment
1. All Personnel Protective Equipment (PPE) shall be of types manufactured to
standards and approved by CPECC.
2. Protective equipment shall be worn at all times at the Work areas.
3. CONTRACTOR is responsible to supply PPE to CONTRACTOR’s Personnel.
1.7 HOUSEKEEPING
1.7.1 CONTRACTOR shall ensure good housekeeping hygiene at the Work areas and Base
Camp.
1.7.2 Washrooms and toilets shall be serviced regularly.
1.8 EMERGENCY EQUIPMENT AND PROCEDURES
1.8.1 Emergency Procedures
CONTRACTOR shall have in place an Emergency Response Procedure (ERP)
describing in detail the communication system, site emergency response operation,
duties and responsibilities of personnel and action to be taken in the event of an
emergency.
The CONTRACTOR ERP, which is to be consistent with the CPECC ERP, shall be
reviewed and approved by the CPECC prior to the commencement of the WORKS.
1.8.2 Emergency Response
CONTRACTOR shall where applicable at its own expense provide adequate first aid,
fire fighting, life saving and other safety equipment and shall maintain this equipment in
a professional manner and where appropriate re-certify as dictated by legal and industry
standards. CONTRACTOR shall keep up-to-date records of all said equipment,
including equipment location plans.

1.9 ACCIDENT REPORTING AND INVESTIGATION

1.9.1 Accident is defined as any unintentional or unplanned event or condition, which has or
could have resulted in injury to a person and loss or damage to equipment, plant or
property.
1.9.2 It is CPECC requirement that all accident, no matter how trivial, must be reported to
CPECC Representative. CONTRACTOR shall ensure that its employees are aware of
this mandatory requirement.
1.9.3 CONTRACTOR shall be responsible to investigate, in a professional manner, all
accidents that occur during the performance of the WORK and the investigation report
shall be made available to CPECC when requested. CONTRACTOR shall also be
responsible to assist CPECC in accident investigation if so required. CPECC may call
for a joint investigation with CONTRACTOR if necessary.
1.9.4 CONTRACTOR shall where applicable have, prior to commencement of CONTRACT, accident
reporting and investigation procedures and shall maintain accident statistics, which shall be compatible
with CPECC Accident Reporting Procedures. Otherwise, CONTRACTOR shall adopt the current
CPECC Accident Reporting Procedures.

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CONTRACTOR shall submit the basic safety information to the appropriate CPECC Representative not
later than the first day of the month following the month under review, by telex or fax or
email.
1.10 ALCOHOL/ DRUG POLICY
1.10.1 CONTRACTOR warrants that its personnel, agents and subcontractors shall not
perform any WORK for CPECC while under the influence of alcohol or any controlled
substance CONTRACTOR. CONTRACTOR personnel, agents and Subcontractors
shall not misuse legitimate drugs or possess, use, distribute, or sell illicit or unprescribed
controlled substances or drug on CPECC business or premises. CONTRACTOR shall
adopt and enforce work rules and policies in order to assure compliance with these
obligations.
1.10.2 CONTRACTOR is to conduct alcohol and/or drug tests on CONTRACTOR personnel,
agents or Subcontractors while on premises owned or controlled by CPECC where
reasonable cause exists.
1.10.3 CPECC also reserves the right to conduct searches on possession of drug and/or
alcohol to the person, vehicles, and other property of CONTRACTOR, its personnel,
agents or Subcontractors while on premises owned or controlled by CPECC. Any
person who refuses to cooperate with any such search shall be removed from the
premises and not permitted to return.
1.10.4 CONTRACTOR shall require its personnel, agents and Subcontractor to submit to
medical evaluation on alcohol or drug testing where cause exists to suspect alcohol or
drug use.
1.10.5 CONTRACTOR warrants that any of its personnel, agent or Subcontractor who either
(a) refuses to participate in medical evaluation or alcohol or drug tests, or (b) tests
positive for alcohol or controlled substance, shall be removed from the premises and
not be permitted to perform any work with CPECC.
1.10.6 CONTRACTOR shall maintain strict discipline and good order among its personnel,
agents and Subcontractors, and shall not permit any of them to engage in activities
which CPECC deems contrary or detrimental to CPECC interests. If CPECC should
request that any personnel of CONTRACTOR or of Subcontractors be removed from
CPECC property or Work site pursuant to this CONTRACT for any reason
CONTRACTOR shall accede to such request and shall provide a replacement
acceptable to CPECC at no additional cost to CPECC.
1.10.7 In the event CONTRACTOR is unable to comply with these obligations, CPECC shall
have the right to terminate this CONTRACT.
1.11 MEDICAL WELFARE
1.11.1 CONTRACTOR shall ensure that all its personnel and/or other personnel assigned by
the CONTRACTOR for the performance of the WORK are medically fit and healthy.
Any medical disabilities including such disabilities which CONTRACTOR may consider
will not adversely influence the person's ability to perform his role in the WORK should
be reported to CPECC prior to the start of the WORK. CONTRACTOR, if requested by
CPECC, shall provide medical certificates for CONTRACTOR and Subcontractor
personnel.
1.11.2 CONTRACTOR shall subject its key personnel and its Subcontractor personnel to
regular medical examination at their cost. Records of such examination shall be made
available to CPECC on request.
1.11.3 CONTRACTOR shall at no cost to CPECC be responsible for the medical welfare of its own
and Subcontractor personnel and shall take care of arrangements for medical attendance treatment or
hospitalization if and when necessary and will arrange suitable insurance coverage for such
contingencies. In cases of emergency, CPECC

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may make or provide for, the necessary emergency arrangements, the costs of which shall be
reimbursed to CPECC by CONTRACTOR.
1.11.4 CONTRACTOR shall make first aid arrangements for all of its personnel and ensure
that all personnel are informed of such arrangements.
1.11.5 Where applicable, CONTRACTOR shall provide a suitably equipped and staffed first
aid room with medical supply and assigned Ambulance Vehicle if the Work Site presents
a high risk from hazards.
1.12 REPORT
CONTRACTOR is responsible to document its performance in HSE for the duration of the
contract and submit to CPECC on monthly basis and overall report at the end of contract or when
requested by CPECC.

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II. SPECIFIC REQUIREMENTS

Annex 5

PAYMENT SCHEDULE

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 PAYMENT SCHEDULE

1) The following Schedule is only for the Payment for dismantling work(Unit 200 &800) in
Brown field.
2) Payment Ratio and breakdown for each following item shall be mutually agreed prior to
award of CONTRACT.

No Name Payment Ratio Remark

I Advance payment 5%

Mobilization of major equipment and

1
personnel

Deduct 5% as
II Progress payment advance payment
each time

1 Equipment & Piping dismantlement 20%

2 Electrical & Instrument dismantlement 5%

Steel structure & Other structure

3 10%
dismantlement

4 Concrete foundation dismantlement 10%

Underground piping/structure/cable
5 15%
dismantlement

6 Waste soil transport to outside yard 10%

7 Backfill and restore the landscape 10%

8 Construction document & PA 10%

9 Punch list Clearance 5%

Submission and taking over of Final

10 5%
Documentation

11 Subtotal 100.00%

Notes:

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1. Payment against milestone 1 will require the following:
1) Mobilization of the following key construction personnel(with the Curriculum Vitae):
 Construction Manager
 QA/ QC Engineer
 HSE Officer
 Civil / Structural Engineer
 Process supervisor
 Civil supervisor
 Mechanical supervisor
 E&I supervisor
 Planning engineer
 Site Coordinator
 Project Administrator

2) Mobilization of construction major machinery (namely piling machine, lifting crane (25MT/50MT),
excavator, roller, grader).
3) Setting up of construction site office and facilities like workshop, stores, camp accommodation,
construction power, water, communication.
4) Submission of detailed comprehensive project control system as required, including but not limited
to: construction plan, HSE procedure, Construction schedule, project management plan, Work
Breakdown Structure (WBS), a Progress Measurement / Monitoring System detailing the
proposed weightages of each component and methods to roll-up the progresses from the lowest
level to the project level.
5) Submission of certified insurance policy copies required in Subcontract.

2. Payment against milestones shall be done based on monthly progress with supporting documents.

3. Payment against mechanical completion will be effected upon issuance of mechanical completion
certificate by OWNER which will require the following:
 Resolution of all primary punch list items to OWNER’s satisfaction.
 Submission of construction dossiers / records / test packs (including pre-commissioning
records) to OWNER in line with the CONTRACTOR requirements.
 Completion of all functional checks and testing of mechanical, piping, electrical,
instrumentation and telecommunication systems if required.

4. Payment against final payment shall be effected on submission of the following:

 Submission of Final documentation to OWNER.
 Handing over of the dismantled parts to OWNER if required

Formatted: French (France)

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II. SPECIFIC REQUIREMENTS

Annex 65

Drawings of the unit 200 & 800

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