A smooth fabrication project requires a

good Understanding.

1. What items are included in the fabricator’s scope of work?

2. What is excluded from that scope?

3. What are the time frames allocated to perform each component and the
totality of the scope of work, and what are the modalities for offering
stage completion to owners, inspections if any for confirmation etc.

4. How will the other party pay for that work, i.e method of billing,

5. What will the timing for those payments be, maximum time by which
payments will be received? Are there any limitations on payment, i.e., if
the work is completed faster than scheduled, will payments be still
available?

6. Are there other unique performance responsibilities, including delegated

design work, such as for connections?

THE WORK:
The Contractor (We) shall complete all the Steel Fabricationwork on the Owner’s Yard
as specified in the Scope of Work or as mentioned in the Drawing.
The Work is generally described as FABRICATION OF PONTOON.

Scope Of Work :
1.Contractor: Supply of labour, supervision for scheduled works, as per statutory
shipbuilding standards and within the scope of subject Work Order and
drawings, In case of discrepancy between written scope of work and
drawing, the latter shall prevail .
Labour Hutment will be made by Contractor. All materials thereof will be
supplied by Owner at site.

2.Owner: I. Ship Yard ( Land ) with a working environment .

II. Electricity with sufficient distribution points.
III. Material as per Project’s quality.
IV. Consumables as per Project’s requirement.
V. Approved Drawing, Design. Any modification of scope of work or
drawing will be owner’s scope and if changes result in idle time to
Contractor then payments as per schedules will be extended for such
additional time, if any.
VI. Supply of Skids, stools, necessary spot machines if any, other enabling
tools and tackles and maintenance thereof will be in owner’s scope.
However we shall mobilise, with our labour and supervisory teams, all
portable tools and gadgets necessary for shipbuilding quality work at site.
VII. Crane, Hydra or similar handling / lifting gears will be provided by the
owner. Contractor will give 48 hours ‘prior intimation.
VIII. Survey will be organised and conducted by owner’s representative.
Contractors supervisor will accompany them.

Payment Terms.
The Owner shall pay the Contractor amounts as per Agreement on satisfactory
performance of the Work, subject to additions and/or deductions caused by revision of
original Work Order, Drawings or the General Conditions of Contract.
Schedule of Payments:

Payments will be in the form of mobilisation advance + stage payments as follows.

We propose 6 stages:
1. Mobilisation..... 10%
2. 25% fabrication ( by steel weight)... 20%
3. 50% fabrication ( -do-)....................20%
4. 75% fabrication ( -do- )....................20%
5. 100% fabrication ( -do- )..................20%
6. Final inspection and certification by designated authority.... 10%

On completion of stage to satisfaction of Owners' representative, the stage payments

will be released within 30 days of clear bill submission.

Payment for a stage will be based on actual measured quantities in the Work. The
Owner's representative may satisfy himself on the claim and certify the same.
If however the contract payment is lumpsum ( i.e. not stage payments) , then, after a
10% mobilisation advance, a weekly advance of Rs 75000 will be made by way of
running costs , till scheduled completion work ( in time).
Any additional work beyond the agreed original scope shall be by mutual written consent
with proviso to include additional payments to the Contractor , if any required.
CONDITIONS:
1. Rates are firm and not subject to any escalation throughout the construction till
delivery if payments are received in time as per conditions above.
2. Tax & duties –18% GST will be extra.
3. Tax deducted at source - will be applicable as per income tax act.
4. The order should be in the Name of 2 different company.
5. Costs of the STOOL & SKID should not be in the project cost.
6. Material & Consumable for 10 days of production should be available.