Supplementary Clause

Engineering Acceptance Standards and Procedures

Acceptance Standards

1. Quality Standards: The Second Party must ensure that all constructi

on and installation work complies with the technical specifications and

quality standards listed in the attachments. These standards should be b

ased on industry best practices and consider the specific needs of the p

roject.

2. Completion Standards: The engineering work is considered comple

te when it meets the following conditions:

a. All construction work has been completed in accordance with the d

esign drawings and technical specifications listed in the contract att

achments.

b. All installed systems (such as electrical, plumbing, air conditioning,

etc.) have been tested and are operating normally.

c. The construction site has been cleaned up, with no construction de

bris and miscellaneous items left behind.

Acceptance Procedures

1. Preliminary Acceptance: Upon deeming the engineering work to m

eet the completion standards, the Second Party shall notify the First Par

ty in writing to conduct a preliminary acceptance. The First Party, or its

designated representative, should perform this within 7 working days of

receiving the notification.

2. Acceptance Inspection: During the preliminary acceptance, the First

Party has the right to inspect all work to ensure it meets the agreed qua

lity and completion standards. If there are non-conformities, the First Pa

rty shall list the specific issues and request the Second Party to rectify th

em within a stipulated timeframe.

3. Rectification and Final Acceptance: After rectification by the Secon

d Party, they shall notify the First Party again for final acceptance. The fi

nal acceptance should confirm that all previously identified issues have

been properly resolved.

Supplementary Provisions

 If the Second Party fails to complete the rectification within the agre

ed timeframe, the First Party has the right to take necessary measures, i
ncluding but not limited to hiring a third party to complete the remainin

g work, at the expense of the Second Party.

 Throughout the acceptance process, the Second Party shall provide

the necessary technical documents and manuals to support the First Par

ty's acceptance work.

Liability and Compensation for Breach by the Second Party

Breach of Contract Liability

During the execution of the contract, if the Second Party fails to comple

te the construction tasks according to the schedule and standards set fo

rth in Article 8, or unilaterally terminates the contract (as described in Ar

ticle 10), in addition to the penalties stipulated in Article 10, the Second

Party shall also bear the following liabilities for breach of contract:

1. Additional Compensation: The Second Party shall pay the First Part

y additional compensation equivalent to 10% of the total contract price,

to cover both direct and indirect losses caused by the breach, including

but not limited to the cost of capital due to project delays, and loss of m

arket opportunities.

2. Delay Compensation: If the project is not completed on time due to

the Second Party's fault, the Second Party shall pay a daily delay compe

nsation of 0.1% of the total contract price, until the work is fully complet

ed and accepted by the First Party.

3. Cost of Rebidding: If the Second Party unilaterally terminates the co

ntract, causing the First Party to rebid and select another contractor, the

Second Party shall bear all additional costs incurred, including the cost
of rebidding and the difference in the new contractor's bid over the orig

inal contract budget.

Method of Compensation Payment

The above compensation amounts should be paid directly to the First P

arty within 30 days of the First Party's request, or paid in a manner desig

nated by the First Party.

Clause Effectiveness

This supplementary clause shall take effect upon the signature of both p

arties and becomes an inseparable part of the original contract, having t

he same legal force as the original contract.