Document No.

MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 1 of 8

Material Handling
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 2 of 8

Table of Contents
1. Introduction ................................................................................................ 3

2. Abbreviations ............................................................................................. 3

3. Subcontractor Supplied Materials ............................................................ 3

4. Chiyoda Supplied Materials ...................................................................... 4

4.1. Figure 1. Outline of Handling Chiyoda Supplied Materials ..................... 4
4.2. Descriptions of Handling of Chiyoda Supplied Materials........................ 5
4.3. Responsibility Table of Handling of Chiyoda Supplied Materials ............ 8
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 3 of 8

1. Introduction
This document describes the responsibility for handling of materials
and/or equipment.

Section 3 describes handling of Subcontractor-supplied materials.

Section 4 describes handling of Chiyoda-supplied materials.

Waste disposal is not mentioned in this document. Refer to Attachment

1-1 of Exhibit A for the demarcation of waste disposals.

2. Abbreviations
OSD: Overage Shortage and Damage

3. Subcontractor-Supplied Materials
The Subcontractor shall be responsible for handling of all Subcontractor-
supplied materials. The Subcontractor shall be responsible for, but not
limited to, the following:
 Transportation from point of origin to the nearest port including
customs clearance
 Necessary arrangement to import or export materials such as bond
charge, quarantine etc.
 Unloading materials from ocean vessel
 Inland transportation to the Jobsite
 Unloading materials at the Jobsite
 Receiving inspection
 Preservation, storage
 Material identification
 Any unloading, loading and transportation
 Reinforcement of access road

The Subcontractor shall provide necessary labors, Construction

Equipment and any resources required for the Subcontractor’s
warehouse operation.
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 4 of 8

4. Chiyoda-Supplied Materials
This section details the responsibility for handling of Chiyoda-supplied
materials or equipment. Please note that Figure 1 in Section 4.1, the
descriptions in Section 4.2 and the responsibility table in Section 4.3 shall
be read in conjunction with each other.

4.1. Figure 1. Outline of Chiyoda-Supplied Materials Handling

Jobsite

2 4 5
1 3
Vendor Chiyoda’s
Port
shop Warehouse/Laydown

6 7 8

Location to be erected

9
Surplus
storage
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 5 of 8

4.2. Description of Chiyoda-Supplied Materials Handling

The following details are applicable to Chiyoda-supplied materials only.

1) Transportation from point of origin to the nearest port

Chiyoda shall be responsible for transportation of materials or equipment
from point of origin (vendor’s / manufacturer’s shop) to the nearest port
to the Jobsite.

2) Unloading materials from ocean vessel

Chiyoda, at the nearest port to the Jobsite, shall be responsible for
unloading the materials from ocean vessel and loading to a vehicle for
inland transportation to the Jobsite.

Chiyoda shall be responsible for customs clearance and necessary

arrangement to import the materials.

3) Inland transportation to the Jobsite

Chiyoda shall be responsible for the transportation of materials from the
nearest port to the Jobsite or from point of origin (vendor’s /
manufacturer’s shop) to the Jobsite if the materials are delivered by
inland transportation.

Chiyoda will deliver such materials or equipment to warehouse, laydown

or near the foundation to be erected.

4) Unloading materials and receiving inspection

Care, custody and control shall transfer to the Subcontractor from
Chiyoda when the Subcontractor or the Subcontractor’s Construction
Equipment starts to pick up or lift the equipment or materials.

When materials arrive at Chiyoda’s warehouse or Chiyoda’s laydown

area, Chiyoda will unload the materials and conduct receiving inspection
as required. Chiyoda will provide labor and Construction Equipment
required for Chiyoda’s unloading work and receiving inspections.
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 6 of 8

The Subcontractor shall receive the materials at Chiyoda’s warehouse or

Chiyoda’s laydown area. When overage, shortage of or damage to the
materials is found after receipt from Chiyoda, the Subcontractor shall
notify Chiyoda within 3 days after receipt.

Any shortage of or damage to the materials found more than 3 days after
receipt are deemed to be incurred by the Subcontractor. The cost for
purchasing new materials for the shortage shall be back charged to the
Subcontractor. The damaged materials shall either be repaired by the
Subcontractor at its cost or the cost for repair/replacement shall be back
charged to the Subcontractor.

Unpacking shall be upon Chiyoda’s instruction. Some materials will be

delivered sealed in nitrogen or with special preservation applied (such as
electrical and instrument item, vendor package etc.) The Subcontractor
shall not unpack such materials without Chiyoda’s approval. Unpacking
of such materials shall be instructed by Chiyoda to avoid improper
unpacking.

5) Non-Conformance
Where damage to the materials or equipment is found, Chiyoda may, at
its sole discretion, decide to use the damaged materials or equipment
with or without repairs.

While the materials are under the care of the Subcontractor, the cost of
repairs shall be back-charged to the Subcontractor.

6) Preservation after receipt from Chiyoda

While the materials are under the care of the Subcontractor, the
Subcontractor shall be responsible for the preservation of Chiyoda-
supplied materials. The Subcontractor shall carefully handle Chiyoda-
supplied materials and equipment and store them appropriately in
accordance with Chiyoda’s and the vendors’ recommendations. The
Subcontractor shall provide a separate area for the storage of such
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 7 of 8

equipment.

The Subcontractor shall be responsible for providing adequate protective

measures for all materials installed and/or under construction against
weather and other construction activities until Completion of Work.

The Subcontractor shall preserve Chiyoda-supplied materials as per MIL-

STD (Military Standard). The Subcontractor shall prepare preservation
log and submit it to Chiyoda for approval.

The Subcontractor shall provide all necessary protection for carbon steel
materials to prevent corrosion while exposed to weather. The
Subcontractor shall also supply temporary wooden or plastic blinds or
blind flanges while piping materials are in storage.

7) Material identification after receipt from Chiyoda

While the materials are under the care of the Subcontractor, the
Subcontractor shall be responsible for identification of materials. The
Subcontractor shall ensure and maintain the identification of materials in
accordance with material identification codes provided by Chiyoda.

8) Subsequent unloading, loading and transportation after receipt from

Chiyoda
The Subcontractor shall provide all subsequent hauling, loading,
unloading, transport, delivery, storage and warehousing after receipt of
materials from Chiyoda.

9) Transportation of surplus materials to the designated location within the

Jobsite
The Subcontractor shall use Chiyoda-supplied materials to the maximum
extent to reduce wastage and scrap, especially bulk material such as
pipes and electrical / instrument cables. The Subcontractor shall be
responsible for providing suitable storage for surplus materials. Chiyoda
will only accept surplus materials in the same condition as issued to the
Subcontractor. The Subcontractor shall not dispose Chiyoda-supplied
 Document No. MSP-ICS-1001-2
Revision 1
Exhibit A, Attachment 1-2
Material Handling
Page 8 of 8

materials without written approval of Chiyoda.

The Subcontractor shall transport surplus materials to the designated

location within the battery limit of the Jobsite.

4.3. Responsibility Table for Handling of Chiyoda-Supplied Materials

The table below shall be read in conjunction with Figure 1 in Section

4.1, Descriptions in Section 4.2.

No. Activity Responsible party

Transportation from point of origin to the nearest
1 Chiyoda
port
Unloading materials from ocean vessel (at the
2 Chiyoda
port)
3 Inland transportation to the Jobsite Chiyoda
4 Unloading materials and receiving inspection Chiyoda
4 OSD (Overage Shortage and Damage) report Chiyoda
5 Non-conformance Refer to Section 4.2
6 Preservation after receipt from Chiyoda Subcontractor
7 Material identification after receipt from Chiyoda Subcontractor
Subsequent unloading, loading and
8 Subcontractor
transportation after receipt from Chiyoda
Transportation of surplus materials to the
9 Subcontractor
designated location within Jobsite