2009-0363 - Schedule B - 19.03.2010

Kashagan Field Development Experimental Programme
Contract No: 2009-0363

Hook-Up, Pre-Commissioning & Commissioning Assistance
Schedule B – Compensation
Kashagan Field Development
Experimental Programme
CONTRACT No. 2009-0363
FOR
HOOK-UP, PRE-COMMISSIONING & COMMISSIONING ASSISTANCE
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TABLE OF CONTENT
1. INTRODUCTION
1.1 ABBREVIATIONS
2. INDIRECT COSTS
2.1. INDIRECT COSTS - INTRODUCTION
2.2 INDIRECT COSTS - GENERAL PRICING PREAMBLES
2.3 INDIRECT COSTS - DEFINITIONS
2.4 CONTENT OF LUMP SUMS FOR INDIRECT COSTS
2.5 INDIRECT COSTS - ADJUSTMENT MECHANISM
3. DIRECT PRICES
3.1 INTRODUCTION
3.2 CONTENT OF RATES FOR DIRECT WORK
3.3 RATES TO INCLUDE
4. CIVIL WORKS (NOT USED)

5. SCAFFOLDING
5.1 GENERAL
5.2 SPECIFIC CHARGES FOR SCAFFOLDING
5.3 METHOD OF MEASUREMENT FOR SCAFFOLDING
6. STRUCTURAL STEELWORKS
6.1 REFERENCE SPECIFICATIONS & DRAWINGS
6.2 STRUCTURAL STEELWORK
6.3 ERECTION OF PIPE SUPPORTS
7. PIPING WORKS & VALVES

7.1 REFERENCE SPECIFICATIONS
7.2 PIPING WORKS & VALVES- SPECIFIC CHARGES
7.3 PIPING WORKS & VALVES - METHOD OF MEASUREMENT
7.4 PIPING WORKS & VALVES - CLASSES
7.5 HANDLE & ERECT FABRICATED SPOOLS BETWEEN/OUTSIDE PIPE-RACKS
7.6 WELDING OF CARBON STEEL PIPING
7.7 WELDING OF ALLOY STEEL PIPING
7.8 BOLTED JOINTS
7.9 HYDROTESTING
7.10 UNDERGROUND PIPING
7.11 VALVES
8. MECHANICAL EQUIPMENT
8.2 SPECIFIC CHARGES FOR THE INSTALLATION OF EQUIPMENT
8.3 VERTICAL EQUIPMENT
8.4 HORIZONTAL EQUIPMENT
8.5 EQUIPMENT REQUIRING ASSEMBLY
8.6 INTERNAL FITTINGS
8.7 PUMPS AND COMPRESSORS
8.8 PACKAGES
9. ELECTRICAL - INSTRUMENTATION - TELECOM

9.1 ELECTRICAL
9.2. INSTRUMENTATION & TELECOM
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10. PAINTING
10.1 PAINTING – SPECIFIC CHARGES
10.2 PAINTING – PAINTING WORK CLASSES
10.3 INCLUSIONS & EXCLUSIONS
10.4 METHOD OF MEASUREMENT
11. INSULATION
11.1 INSULATION - CHARGES EXCLUDED/INCLUDED
11.2 INSULATION - METHOD OF MEASURMENT
11.3 INSULATION - CLASSES
11.4 INSULATION WORK - SPECIFIC CHARGES
12. FIREPROOFING
12.1 FIREPROOFING - SPECIFIC CHARGES
12.2 FIREPROOFING - METHOD OF MEASUREMENT
13. DAY-WORK PRICES

13.1 INTRODUCTION
13.2 CONTENT OF DAY-WORK RATES
13.4 DAY-WORK RATES – PREAMBLES
13.5 DAY-WORKS
13.6 DAY-WORKS AFTER ISSUE OF MECHANICAL ACCEPTANCE CERTIFICATE
14. MANHOURS FOR EACH ITEM IN THE PRICE LIST

15. PAYMENT RULES
15.1 GENERAL
15.2 PREPARATION OF PAYMENT CERTIFICATE
Att. 1 2C-PRE-GC-CC-8012 Preambles to Charges included in the Prices and Method of

Measurement of Electrical Works
Att. 2 2D-PRE-GC-CC-8010 Preambles to Charges included in the Prices and Method of

Measurement of Instrumentation Works
PRICE TABLES
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1. INTRODUCTION
This schedule B contains the Price List Guides and Price Lists applicable to the CONTRACT.
The lump sums, unit rates, day-works and percentages contained in the Schedule B are to be
fully inclusive and represent the total reimbursement the CONTRACTOR will receive for
complying with and fulfilling the obligations contained in the Contract and for the satisfactory
execution of the WORK.
The CONTRACT currency will be US Dollars.
The lump sums, unit rates, day-works and percentage shall be fixed and not subject to
adjustment for duration of the CONTRACT.
Scope of WORK of CONTRACTOR includes the following Areas of the OFFSHORE FACILITY:
• Train 2 Pipe-racks and Modules
• Riser Island Pipe-racks and Flare

• Island A
Notwithstanding the above, in case of commitment of additional Scope of WORK on Island D,
then rates will be subject to the application of escalation and factors in accordance with the
terms included in Table 6 attached to this Schedule B.
1.1 ABBREVIATIONS
Abbreviations used throughout Schedule B shall have the following meaning:
General
AFC = Approved for Construction
LS = Lump Sum
SIMOPS = Simultaneous Operations (1)
Quantity
NR = number
Time
HR = Hour
DY = Days
WK = Week
YR = Year
Length
MM = Millimeter
CM = Centimeter
DM = Decimeter
M = Meter
KM = Kilometer
IN = Inch
Area
M2 = Square meter
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Volume
D3 = Cubic decimeter
M3 = Cubic meter
Weight
KG = kilogram
TN = tons
Abbreviations are valid irrespective of whether upper case or lower case letters are used.
NOTE
1. By extension, SIMOPS means also all situations when two or more contractors are
working in the same location and at the same time.
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2. INDIRECT COSTS
For the pricing of CONTRACTOR’s Indirect Costs the CONTRACTOR is referred to the
following documents enclosed herewith:
• Table 1 Price List for Indirect Costs

2.1. INDIRECT COSTS - INTRODUCTION
The purpose of this document is to define the costs which are deemed to be included in the
prices for Indirect Costs, and also to define the method of measurement and payment for such
Indirect Costs.
2.2 INDIRECT COSTS - GENERAL PRICING PREAMBLES
2.2.1 Indirect Costs shall be priced strictly in accordance with this document.
2.2.2 CONTRACTOR shall note that the Indirect Costs will be reimbursed in two manners:
• Mobilization and Demobilization will be reimbursed to CONTRACTOR on a lump sum

basis. CONTRACTOR shall provide a schedule and value weighted breakdown of
mobilization activities.
• Running Costs will be paid in equal installments starting from completion of

mobilization up to the Contract Completion Date (1st December 2010).
2.2.3 All personnel of CONTRACTOR organization (as described in the Organization Charts of
CONTRACTOR and as approved by COMPANY) above the foreman level shall be considered
Indirect.
2.2.4 The descriptions attached to the respective item if Indirect Costs within the Price List Guide are
intended to be sufficient only for identification of an item. The descriptions do not provide
exhaustive detailing of each and every operation required to provide the service covered by the
item or the full obligations of each item the CONTRACTOR is referred to the documents
forming the CONTRACT.
2.2.5 Notwithstanding the omission from an item description in the Price List Guides of an individual
operation considered necessary for the execution and completion of the service by the item,
the cost of such operations shall be deemed to be included in the applicable item in the Price
List and the CONTRACTOR shall be deemed to have made allowance for the cost of such
operations in each applicable item. No claim will be accepted on the grounds of defective
description or omissions that further operations other that those described are required.
2.2.6 CONTRACTOR’s Indirect Costs lump sums and percentages shall include for liaison and
coordination as required under the CONTRACT and for obtaining the stipulated approval(s) at
all stages according to the requirements of the CONTRACT.
2.2.7 CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning of every
item description in the Price List Guides and of the completeness of his lump sum prices and
percentages for the work described therein and herein. No claim for additional payment, as a
consequence of any error or misunderstanding on the part of CONTRACTOR to fully
determine the scope of the WORK and his CONTRACT obligations with regard to a Price List
Guide item description or as set forth herein will be considered by COMPANY.
2.2.8 CONTRACTOR shall provide details required by COMPANY of the CONTRACTOR’s Indirect
Costs lump sum prices and percentages prior to the acceptance of same by the COMPANY.
The submission of an offer in the form of a price against an item in the Price List will be
deemed to mean that the COTRACTOR has fully satisfied himself as to pertinent requirements
of the service to be provided.
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2.3 INDIRECT COSTS - DEFINITIONS

2.3.1 Mobilization
Mobilization is defined as those activities required to establish the CONTRACTOR on SITE
ready to commence construction activities, (including those activities required to establish any
SUBCONTRACTORS). Mobilization shall include but not be limited to the execution and/or
provision of the following:
o Mobilization plan for the work including direct and indirect manpower and
construction equipment
o Inspection and take over of the SITE and any partially completed work by other
contractors, and the COMPANY designated location for camp facilities
o Contact with local authorities and other similar bodies and obtaining all necessary
permits and/or authorizations
o Delivery of temporary construction facilities (including erection/commission),
construction equipment and mobilization to the SITE and sufficient members of the
CONTRACTOR’s management, supervision, staff, manpower for initial operations,
including Key Personnel (unless waived by COMPANY)
o Demobilization on Completion
o Preparation and submittal by the CONTRACTOR to COMPANY of the following
documents:
a) CONTRACTOR’s CONTRACT and SITE specific safety and security plan
b) CONTRACTOR’s CONTRACT and SITE specific quality control plan
c) A detailed construction program and ninety (90)days look ahead schedule,
including the deployment of manpower and construction equipment
d) A method statement detailing how the CONTRACTOR intends to execute the
works
e) A detailed plan of the CONTRACTOR’s temporary construction facilities
Each of the above shall be submitted in draft within the time period stated in the CONTRACT
for COMPANY’s review and comment. The CONTRACTOR shall include the COMPANY’s
comments in a final submission for the approval of the COMPANY.
2.3.2 Payment for Mobilization
CONTRACTOR is deemed to be aware of and fully understand that only when the activities
associated with mobilization of the CONTRACTOR’s establishment have been performed and
completed to COMPANY’s satisfaction (or part thereof with the COMPANY’s written
agreement) will any payment for the lump sum be made to the CONTRACTOR.
Any payment will be conditional on CONTRACTOR submitting the mandatory information
and/or deliverables in accordance with the criteria specified in the CONTRACT documents.
Payment will be either in a single payment, or as agreed between COMPANY and
CONTRACTOR based on clearly defined milestones, supported by a cost and schedule
breakdown.
CONTRACTOR shall provide to COMPANY this breakdown of the Mobilization lump sum,
which shall accurately reflect the facilities provided, addressing such aspects as phasing of
personnel mobilization etc.
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2.3.3 Demobilization
Demobilization is defined as those activities required to demobilize CONTRACTOR’s labor,
materials, equipment, temporary production base and camp facility from SITE, (including those
activities required to similarly fully demobilize the CONTRACTOR’s SUB-CONTRACTORS)
and restore the CONTRACTOR’s area to a condition previously agreed in writing with the
COMPANY.
2.3.4 Prices for demobilization
Prices for Demobilization shall include:
o Costs associated with a complete clean up of the SITE.
o Costs associated with the return of any surplus COMPANY supplied material to
COMPANY’s warehouse.
o Costs associated with the demobilization of CONTRACTOR’s direct and indirect
labor and staff.
o Costs associated with the removal from SITE of CONTRACTOR’s materials,
construction equipment and temporary construction and facilities
o Costs associated with a complete clean up of CONTRACTOR’s area and reinstating
the said area to a condition previously agreed in writing with COMPANY.
2.3.5 Payment for demobilization
The lump sum price for demobilization shall be paid in a single payment to CONTRACTOR
when activities required for demobilization all WORK shall be complete and the
CONTRACTOR shall have received the COMPANY’s approved and signed last MECHANICAL
ACCEPTANCE CERTIFICATE issued by the COMPANY as defined in the CONTRACT.
In the event of the CONTRACTOR implementing guarantee work, no mobilization and
demobilization lump sum shall apply. CONTRACTOR shall not assume that SITE facilities will
be available to the CONTRACTOR for its temporary construction facilities, camp
accommodation facilities and the like in implementing such work.
2.4 CONTENT OF LUMP SUMS FOR INDIRECT COSTS
The following activities and services shall be included inside the lump sums for Indirect Costs.
The following list shall not be considered conclusive:
• Cost of checking by CONTRACTOR for any discrepancies between or within the

CONTRACT specifications and the construction drawings issued by the COMPANY and
liaison with the COMPANY with regard to the resolution of same. The COMPANY will not
be liable in respect of costs incurred by the CONTRACTOR as a result of a failure on the
part of the CONTRACTOR to notify COMPANY on such matters in the timeframe
stipulated in the CONTRACT.
• Cost of undertaking full liability for any COMPANY nominated subcontractor assigned to
or novated to the CONTRACTOR in an identical manner as for the CONTRACTOR’s
SUBCONTRACTORS.
• Cost of government and local taxes, duties, levies, insurances and permits for which the
CONTRACTOR may be liable.
• Cost of complying with government and local regulations pertaining to the SITE and
payments of fines for breaches found by Regulatory Authorities.
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• Cost for providing facilities for use by COMPANY and COMPANY appointed third parties
during its inspection of the execution of work at any CONTRACTOR offsite facilities.
• Cost of providing progress and planning reports and other such reports and other such
reports and certificates required by the CONTRACT, and attendance by appropriate
CONTRACTOR’s personnel at meetings required by the CONTRACT or as directed by
COMPANY.
• Cost of interfacing with and working in close proximity with Other Contractors of
COMPANY and re-sequencing CONTRACTOR’s activities, as required, to avoid
disrupting COMPANY’s Other Contractors who may be working on the SITE concurrent
with the CONTRACTOR.
• Cost of interfacing with the Regulatory Authorities and for complying with the
requirements of the Regulatory Authorities including training and examinations of
CONTRACTOR’s personnel to meet Regulatory Authority requirements for supervision of
work (including RoK “Blue Book”)
• Cost of preparation of Welding Procedure Specifications and obtaining COMPANY
approval
• Cost of promptly making good damages to existing structures, roads, fences and any
other work constructed, fully or partially, by Other Contractors, which are to be retained,
caused by or attributable to the actions or the omissions of the CONTRACTOR
• Cost for the impact on the program and cost of time lost and/or inefficiency due to
inclement weather and for all other periods of non productive time of labor and
construction plant for which the COMPANY is not responsible including mechanical
breakdown of plant and equipment; industrial disputes; and attendance of
CONTRACTOR’s personnel at tool box meetings and induction and training courses,
COMPANY instituted safety meetings, idle time and travel time.
• Cost of preparing any necessary field sketches, fabrication drawings, engineering
calculations, crane lift studies and details of work and “red line” mark ups for as built
documentation.
• Cost of compilation of mechanical completion dossiers for staged completion of the
WORK as defined by COMPANY.
• Cost of any insurances required to be provided by the CONTRACTOR, whether under
this CONTRACT and/or by government or local laws, regulations or decree.
• Costs for preparing and working to CONTRACTOR’s safety plan.
• Costs for constructability, accessibility and other studies required to optimize the WORK
and improve the PROJECT SCHEDULE.
Operational activities connected with the above listed activities and services shall be included in the
Unit Rates for the Direct WORK.
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2.5 INDIRECT COSTS - ADJUSTMENT MECHANISM

The Indirect Cost Final amount to be paid = Indirect Cost Initial Amount * Y
‘Y Factor’ to be applied calculated as follows :
X = FACTOR DERIVED FROM: Y = FACTOR TO BE APPLIED FOR
X = DIRECT COSTS FINAL
AMOUNT ADJUSTMENT OF
INITIAL INDIRECT
DIRECT COST INITIAL AMOUNT COST AMOUNT
DIRECT COSTS EVOLUTION FACTOR
X < 1.00 Y = 1.00
1.00 < X ≤ 1.10 Y = 1.00
1.10 < X ≤ 1.20 Y = (X-1.05)*0.70 +1.00
1.20 < X ≤ 1.25 Y = (X-1.05)*0.75 +1.00
1.25 < X ≤ 1.30 Y = (X-1.05)*0.80 +1.00
1.30 < X TO BE AGREED
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3. DIRECT PRICES
3.1 INTRODUCTION
For the pricing of Direct Prices (whether on unit rates, day-works or lump sum) CONTRACTOR
is referred to the following documents enclosed herewith:
• Part 2A Price List for Civil Works
• Part 2B Price List for Scaffolding Works
• Part 2C Price List for Structural Steel Works
• Part 2D Price List for Piping Works
• Part 2E Valves Installation Works
• Part 2F Price List for Mechanical Works
• Part 2G Price List for Electrical Works

• Part 2H not used
• Part 2I Price List for Instrumentation & Telecom Works
• Part 2J Price List for Painting Works
• Part 2K Price List for Insulation Works
• Part 2L Price List for Passive Fire Proofing Works

CONTRACTOR should note that documents listed above are COMPANY standard developed
to cover a comprehensive Schedule of Rates the WORK “elements”, comprising Civil,
Mechanical, Electrical and Instrument works (the last two being an option for the COMPANY).
Where there is any apparent conflict between the information included in this or any other
sections of Schedule “B”, CONTRACTOR shall bring any such difference to the immediate
attention of the COMPANY.
Unit rates, day-works and lump sums shall be inclusive of safety requirements for the
protection of personnel, small tools and equipment and the FACILITIES throughout the
construction and pre-commissioning of the WORK and during the CONTRACTOR’s support to
commissioning.
prices for the Direct Costs and to define the method of measurement.
3.2 CONTENT OF RATES FOR DIRECT WORK
• The work in the Price List is divided into work elements, and each work element is further
subdivided into work classes (where applicable)
• The grouping of items or designating an item “Included’ is not acceptable. If an item within
the Price List is not priced as required the cost of the item shall be deemed to be covered
by other items which have been priced by the CONTRACTOR in the Price List.
• The descriptions attached to the respective items within the Price List Guides (Sect. 4
through 12 here below) are intended to be sufficient only for identification of an item of
work. The descriptions do not provide exhaustive detailing of each and every operation
required to carry out the WORK. For the full obligations of each item the CONTRACTOR is
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referred to the documents forming the CONTRACT. The unit rate entered by the
CONTRACTOR against each respective item in the Price List shall be deemed to be a fully
inclusive rate for the finished work described in the respective item including matters set
out in these pricing preambles and including everything which is contingent to and
indispensable in the construction and completion of the WORK to be carried out under the
CONTRACT, and shall be deemed to include for CONTRACTOR’s acceptance of that part
of WORK previously performed by COMPANY’s other contractors. Unless COPMANY is
notified in writing to the contrary within ten (10) days, CONTRACTOR is deemed to have
warranted aforesaid WORK as if performed directly by CONTRACTOR.
• Notwithstanding the omission from an item description in the Price List Guides (Sect. 4
through 12 here below) of an individual operation or operation considered necessary for
the execution and completion of item, the cost of such operation shall be deemed to be
included in the applicable item in the Price List, and the CONTRACTOR shall be deemed
to have made allowance for the cost of such operations in each applicable item. No claim
will be accepted on the grounds of defective description or omissions that further
operations other than those described are required.
• Where the specific charges/method of measurement state that the unit rate for an item
shall include for work which will not be separately measured or paid for, then the extent of
the included work within the unit rate shall be assessed by the CONTRACTOR and no
claim for additional cost will be entertained by the COMPANY should be extent of the
included work actually executed, vary from that assessed by the CONTRACTOR.
• CONTRACTOR shall be deemed to have allowed for checking of drawing dimensions and
any and all applicable dimensions prior to commencing work. CONTRACTOR shall further
be responsible for checking documentation issued to him by COMPANY and shall draw
the attention of the COMPANY to any discrepancies or omissions therein within ten (10)
working days of COMPANY’s issue to the CONTRACTOR of documentation or revisions to
and/or supplements to documentation. COMPANY will not be liable in respect of costs or
schedule impact incurred by the CONTRACTOR due to errors, conflicts omissions in
drawings, other documents or dimensions the effects of which were avoidable had the
CONTRACTOR checked such documents and dimensions beforehand and notified the
COMPANY within the timeframe stipulated above.
• Where proprietary names or products are quoted in an item in the Price List Guides (Sect.
4 through 12 here below) such proprietary names or products shall be taken as indicating
a required class of quality of finished work. The proprietary name or product may only be
changed by the CONTRACTOR with prior approval in writing of the COMPANY.
• Except as provided in Section 15 “Payment Rules”, the rates shall apply equally to
executing work in large or small quantities, in difficult or easy situations, in any sequence
and at grade or any elevation above the ground unless stated to the contrary in the
CONTRACT and no claim will be allowed which arises form the proportion of the finished
work actually falling into these categories. In the course of the development of the
construction drawings, the proportion and complexity of the various operations included
within the items described in the Price List Guides (Sect. 4 through 12 here below) may
vary from the proportions or complexity which may have been inferred from the
CONTRACT drawings or from the CONTRACTOR’s assessment of the proportions and
complexity. The unit rates are deemed to include provisions for all risk and all advantages
that may arise from any such changes in proportions and complexity and thus unit rates
shall apply equally to the tender quantities and the finished quantities of work.
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• The rates apply equally to executing the WORK at any time prior to completion irrespective
of whether the various work items have programmed continuity or not, or performed in a
different season, or in a different proportions in different seasons and/or weather
conditions, or performed in different sequences, from that initially envisaged in the
CONTRACT. No claims will be accepted by the COMPANY for remobilization of labor or
equipment, additional access and the like, as full entitlement under the CONTRACT shall
be deemed to have been made by application of the relevant unit rates. No claims will be
accepted by the COMPANY for schedule extension, as CONTRACTOR shall be deemed
to have included in CONTRACTOR’S schedule full allowance for any and all such
eventualities.
• The rates and prices shall include for liaison with COMPANY and the COMPANY’s Other
Contractors and the Regulatory Authorities, and obtaining COMPANY and Regulatory
Authorities approval at all stages according to the requirements of the CONTRACT.
When the CONTRACTOR is required by the CONTRACT to seek approval, the
CONTRACTOR shall do so in writing at least seven (7) working days before such approval
is required.
• The CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning
of every item description in the Price List Guides and of the completeness of his unit rate
or price for the work described therein. No claim for additional payment, as a consequence
of any error or misunderstanding on the part the CONTRACTOR to fully determine the
scope of work and his CONTRACT obligations with regard to a Price List Guide item
description, will be considered by the COMPANY
• Rates for the items of work to be undertaken by CONTRACTOR as a consequence of a

variation and not listed in the Price List shall be analogous to existing rates for similar
items of work. Should there be no such similar item in the Price List then a new rate shall
be determined mutually between CONTRACTOR and COMPANY based on the
reasonable interpolation or extrapolation of the rates included in the Price List or, falling
which, recourse will be made to COMPANY establishing a reasonable fully inclusive rate
based upon the reasonable expenditure of labour, plant and material resources.
• CONTRACTOR shall provide any details required by the COMPANY of the
CONTRACTOR’s rates prior to the acceptance of same by COMPANY. This shall apply
solely to tendered rates and prices and to variation rates and prices as appropriate to
facilitate the development of supplementary rates and prices during the duration of the
CONTRACT.
• The quantities indicated in the Price List are approximate only and are not to be taken as
final quantities of work to be executed for any Price List item. The range of work may vary
to the extent that new items and/or sections may be added to the Price List and existing
items or sections may not be used. Any variations, omissions or additions shall be dealt
with in accordance with CONTRACT. Save as provided in Section 5, remuneration for the
Unit Rates for Direct WORK shall remain valid regardless of any variation between the
estimated and actual quantities of work executed against the unit rates, and no variation of
the items or quantities give in the Price List shall in any way affect the validity of the
relevant price in the Price List.
• The quantities contained within the Price List shall not be used for the purpose of ordering
any materials that CONTRACTOR is required to provide under the CONTRACT except as
provided herein. CONTRACTOR shall order CONTRACTOR supplied material on the
basis of the identification of materials for Hook Up as provided inside the “Approved For
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Construction” (AFC) documents issued by COMPANY: CONTRACTOR shall always seek

confirmation by COMPANY before proceeding with any such procurement.
• The quantities of work actually executed in accordance with the CONTRACT shall be
measured or calculated in accordance with the method of measurement defined in the
Pricing List Guides (Sect. 4 through 12 here below). COMPANY computer programs for
the re-measurement of work shall be used where possible. Quantities not detailed on
drawings or derived from computer programs shall be determined by joint measurement by
the CONTRACTOR and the COMPANY. No allowance shall be made for waste in the re-
measurement of the quantities. The CONTRACTOR shall be deemed to have included in
the Price List for Indirect Costs for the provision of personnel and other recourses
necessary for the re-measurement of the WORK and CONTRACTOR’s commercial
administration of the CONTRACT.
• Except as provided in Section 15 “Payment Rules”, the amounts of money to be paid to the
CONTRACTOR for unit rate measured work in accordance with the CONTRACT, shall be
the product of the total quantities of work correctly executed by the CONTRACTOR, in
accordance with the CONTRACT drawings and specifications and measured in
accordance with the applicable method of measurement, and the pertinent total unit rates
defined in the Price Lists.
Works rejected by COMPANY for reasons ascribable to CONTRACTOR shall not be
computed and taken into account (not even provisionally), regardless of the progress
reached at the time of COMPANY’s rejection.
In the event that works already progressed and taken into account, at any stage of
progress, are subsequently rejected by COMPANY for reasons ascribable to
CONTRACTOR, all the related quantities and compensation already taken into account
shall be nullified and the Payment Certificate shall be amended to reflect such
adjustments.
Compliance with CONTRACT drawings and technical specifications and quantity
assurance requirements.
The prices in the Price List are deemed to Include for the execution of the WORK and the
supply of materials (where specified as CONTRACTOR supplied in the CONTRACT), strictly in
accordance with the CONTRACT drawings and specifications.
The unit rates included in the Price List for Direct Costs and referred to in this document shall
include, along with the other CONTRACT provisions, for costs in connection with the complete
performance of the WORK described in the respective Price List Guides descriptions including,
but not limited to, the following:
• Cost of skilled, semi-skilled and unskilled labor for trades up to and including the level of
working foreman.
• Salaries, wages, bonuses, allowances, fringe benefits, incentive payments, overtime and
shift payments, offshore rotations for travelling personnel, local travelling time and fares
(in particular: to and from the Crew Change Facility), public holiday entitlement, paid
holiday, sick pay, insurances, pensions, recruitment, passports, visas, residence and
work permits, training and other emoluments, contributions, taxes, levies or expenses
that CONTRACTOR may make in respect of labor in accordance with national or local
agreements or with statutory provisions.
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• Cost of providing construction equipment and plant (delivery point: the ONSHORE
SUPPORT BASE in Kuryk) of adequate type, quality and quantity for the execution of the
WORK (including ensuring certification remains valid) including maintaining and repairing
the plant and equipment, road tax, insurance and providing sufficient spare parts, fuel,
fuel oil, lubricants, other consumables and any tackle normally associated with the
equipment and sufficient contingency for the equipment to ensure work continuity.
• Cost of providing and replacing “small tools” and Personal Protection Equipment (PPE)
required for trades.
• Cost of providing cranes, crane mats lifting equipment, lifting/spreader beams, slings and
shackles and other ancillaries and sufficient contingency for the equipment to ensure
work continuity. Delivery point: the ONSHORE SUPPORT BASE in Kuryk.
• Cost of materials defined as CONTRACTOR supplies by an instruction from COMPANY,

including any necessary insurance, packing for transport, transportation, customs duties
and clearances, off loading, handling and waste (COMPANY supplied materials are
separately addressed in the CONTRACT).
• Cost of consumables including but not limited to nails, wood spreader, ties, stake-brace,
studs, wire clamps, wing nut, plate washer, spacers, polyethylene sheets, waterproof
paper, wet burlap. Hessian cloth, welding electrodes, fluxes, compressed air, oxygen,
and other gases, temporary supporting materials and fastenings, wood, water cleaning
materials, clothes, sponges, degreasants, blasting materials, solvents, brushes, etc.
• Cost of collecting COMPANY supplied materials and equipment after transportation to
either Island D or A including cranage, loading, transporting within the OFFSHORE SITE
of fabrication facility, unloading, storing if required, unpacking, removal of protection used
during transportation, distributing, making good any losses, faults or damages which
occur after CONTRACTOR has taken delivery, handling and fixing in final position.
• CONTRACTOR costs shall include for ensuring that COMPANY SUPPLIED MATERIALS
are utilized in a manner consistent with INTERNATIONAL GOOD OIL FIELD PRACTICE,
to avoid unreasonable wastage and/or depletion of COMPANY’s materials contingency,
CONTRACTOR shall ensure that it notifies COMPANY without delay of any projected or
actual shortfall in COMPANY SUPPLIED MATERIALS, arising from such
CONTRACTOR’s use of material contingency, in order not to jeopardize
CONTRACTOR’s progress of the WORK.
• Cost of storing, protecting, handling and managing COMPANY and CONTRACTOR
supplied materials, equipment, machinery, prefabricated and fabricated components to
be incorporated into the WORK by the CONTRACTOR, in accordance with the
CONTRACT procedures and specifications.
• Cost of transporting labor, plant and materials to and from the ONSHORE SUPPORT
BASE in Kuryk, and then around the OFFSHORE SITE including travel allowances and
expenses and the traveling time of personnel to and from their temporary
accommodation and the SITE including complying with the COMPANY’s SITE security
regulations and SITE transportation regulations. Only cost of transporting labor, plant and
materials from the ONSHORE SUPPORT BASE to the OFFSHORE SITE and vice-versa
shall not be included in the unit rates quoted by CONTRACTOR.
• Costs of utilities (power distribution, water) for SITE construction and fabrication activities
including connections thereto.
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• Costs of temporary works including hard-standings, hoardings, screens, dustsheets,

fences, lightning and measures to prevent the pollution of the soil and any water courses.
Temporary vents to the atmosphere shall be checked by the CONTRACTOR to prevent
air pollution.
• Cost for setting out, leveling and marking of the WORK including the use of instruments
and equipment required for the taking of measurements and the like.
• Costs for checking drawing dimensions and any applicable site dimensions and site
levels, including partial works performed by other contractors, prior to commencing work
• Cost of working in accordance with any applicable COMPANY Work Permit Procedure
and any and all limitations imposed by SIMOPS.
• Cost of quality assurance and quality control and the provision of as-built drawings,
certificates, reports, chemical analysis, test certificates and the like, and other
documentation as required by the CONTRACT or the statutory authorities.
• Cost of implementing “material identification and traceability” for materials supplied
and/or incorporated by the CONTRACTOR during all phases of the WORK, as may be
required by the CONTRACT.
• Cost of implementing technology / knowledge transfer and Local Content commitments in
accordance with the CONTRACT requirements.
• Cost of testing of materials, welding procedure qualifications, welder qualifications and
work in accordance with the CONTRACT including the provision of necessary testing
equipment and facilities, and the submission to the COMPANY and the Regulatory
Authorities (as applicable) of the appropriate test or calibration certificates. Provision of
samples where required by the CONTRACT.
• Cost of performing Non Destructive Examination (NDE)
• Cost of collecting up scrap, recoverable and surplus material and delivering same to the
CONTRACTOR’s and/or the COMPANY’s designated storage points
• Cost of making good or reworking any item not executed in accordance with the
CONTRACT.
• Cost for protecting, preserving and maintaining the WORK at all stages as required or as
inferred by the CONTRACTOR including the provision of sufficient watching, flood
lighting, general lighting, fire fighting capabilities, general security and weather protection
to avoid damage to the WORK and delay in the execution of the WORK. This cost
includes preservation of COMPANY supplied equipment and material in accordance with
manufacturers’ recommendations and/or as specified in the CONTRACT. Preservation of
COMPANY Provided Items after their installation shall be performed by COMPANY.
• Cost of increasing the number and/or capacity of CONTRACTOR’s labor and
construction plant as applicable, and/or execution of weekday, weekend or holiday
overtime and shift working where necessary to complete the construction work in
accordance with the current program in the PROJECT SCHEDULE (or as revised from
time to time with COMPANY’s agreement) except where liability for the delay in the
PROJECT SCHEDULE does not lie with CONTRACTOR under the provisions of this
CONTRACT.
• Cost of keeping the SITE clear of rubbish, cleaning up upon completion of the WORK
and at all times removing rubbish and waste material to RoK approved disposal areas
Page 16 of 63
• Cost associated with the incidental demobilization of CONTRACTOR’s personnel and/or

equipment during execution of the WORK for whatever reason including any request by
COMPANY for the replacement of CONTRACTOR’s personnel. Also any other incidental
costs associated with the mobilization of replacement personnel and/or equipment.
• Costs for providing free access to the WORK for COMPANY personnel.
Page 17 of 63
4. CIVIL WORKS
Specification reference:
KE01.A0.000.KD.C.SP.0001.000 Specification for Site Preparation, Construction of
Roads and Earthworks.
4.1 BACKFILLING
4.1.1 Backfilling - Specific Charges
The unit rates for backfilling are inclusive of the work necessary to go from an excavated or
existing site condition to backfilled condition.
Charges excluded:
• None
Charges included:
• Charges for preparation of the sub-grade by stepped formation levels, where

required
• Charges for preparation and dismantling of any temporary facilities such as ramps,
access tracks, etc. (with relevant excavation, fill, compaction, etc.)
• Charges for preparation, erecting and removal of any false work, strutting board,
shoring
• Charges for supplying of the water necessary to obtain the optimum moisture
content
• The topographic survey of the backfilling areas. CONTRACTOR shall check the
congruence of the received survey with the actual elevations, measurements and profiles,
and then confirms to COMPANY in writing that the received survey is used for the
calculation of backfilling volumes.
• Charges for backfilling includes the use of material directly from excavation,
materials from stockpiles (temporary or not), and/or materials from borrow pits
4.1.2 Backfilling - Method of Measurement
• Backfilling whether by hand or using mechanical equipment will be paid in accordance
with the unit rates
• The volume of fills, by type of material , shall be measured according to the cross-
section method, or another method previously approved by the COMPANY. The volumes
shall be calculated on the basis of the elevations specified on the topographic survey or
site survey of areas prepared by other contractors and of the design elevations found on
the AFC drawings.
4.2 AREA FINISH
Specification reference:
KE01.A0.000.KD.C.SP.0001.000 Specification for Site Preparation, Construction of
Roads and Earthworks
KE01.B0.000.KD.C.SP.0002.000 Specification for Concrete Materials and Construction of
Concrete Structures, Foundations and Paving
4.2.1 Area Finish - Specific Charges
Page 18 of 63
CE 301 – 304 The unit rates for area finish are inclusive of the work necessary to go from a
construction site to an area in final finish.
Charges excluded:
• None
Charges included:
• Charges for excavation or backfill to bring the area to final grade
• Charges for finish grading of the site including the shaping of the ditch along side
the roads
• Charges for shaping of the surfaces, sides and/or slopes.
• Charges for grassing includes maintenance up to sprouting
4.2.2 Area Finish - Method of Measurement
a. Finish Grading (C E 301)
• Area shall be calculated from the dimensions shown on the AFC drawings
b. Pedestrian Stone Walkways (C E 302)
• Area shall be calculated from the dimensions shown on the AFC drawings
4.3 TRENCHING
Specification Reference:
KE01.B0.000.KD.C.SP.0003.000 Specification for Drainage Materials and Construction
KE01.00.000.KD.E.SF.0020.000 Project Specification for Electrical Installation and
Testing
KE01.B0.000.KD.I.SF. 0001.000 Instrument Installation and Testing Procedural
Specification – Offshore Facilities
Drawing Reference:
KE01.B0.675.KD.C.DD. 0011.001/5 Miscellaneous Details
KE01.00.000.KD.E.DS. 0014.001 Configuration of Directly Buried Cables
KE01.00.000.KD.E.DS. 0015.001 Cable Route Marker Post & Sign Plate Details
KE01.00.000.KD.E.DS. 0016.001 Typical Cable Duct Bank Under Roads
KE01.A0.000.KD.I.DS. 0004.000 Cable Trench in Non-paved Areas (042/175)
KE01.A0.000.KD.I.DS. 0004.000 Cable Trench in Paved Areas (043/175)
KE01.A0.000.KD.I.DS. 0004.000 Cable Route Marker Posts (044/175)
4.3.1 Trenching - Specific Charges
C E 501 – 505 The unit rates for trenching are inclusive of the work necessary to go
from existing site conditions to an installed underground cables and
under roadway duct-ways.
Charges excluded:
• Trenching for underground piping
• Installation f the cables in the trenches or piping in the ducts
• Sybase, wedge chipping and wear course for roads and paving
Page 19 of 63
Charges included:
• Charges for preparation of site, e.g. excavation
• Charges for finishing the site, e.g. backfilling (including sand and other fills)
• Charges for of protective tiles, warning tape and cable route marker posts and
signs
• Charges for of mass concrete, coloring and ducting material

4.3.2 Trenching - Method Of Measurement
a) The calculation of the area for the trench will be based on the width times the length of
the trench. The width of the trench will be established in AFC drawings. The length of the
trench will be measured along the centerline of the design route shown on the AFC
drawings.
b) Unit rates have been provided for the various depths (900 and 1200mm) and end
condition of ground surface ( e.g. paved, unpaved or roads)
4.4 FENCING
KE01-B0-000-KD-C-SP-0004-000 Specification for Fencing Material and Construction
Drawing Reference:
KE01.B0.699.KD.C.DS. 0009.001/2 Type A Fencing & Gate Details
4.4.1 Fencing - Specific Charges
C G 001 – C G – 005 The unit rates for fencing are inclusive of work necessary to go from
existing site conditions to a completed fence
Charges excluded:
• Earthling of fences around substations
Charges included:
• Charges for preparation of site, e.g. excavation
• Charges finishing, e.g. backfilling
• Charges for preparation of the sub-grade at the fencing base

• The unit rates for fencing are separate from the rates for gates and relevant gate
accessory works
• Charge for fence include the fencing, blinding concrete, foundation blocks,
formwork, reinforcing bars, galvanized wire fabric, galvanized wire for stretching and tying
of the fabric, turnbuckles, barbed wire, posts and bracings
• Charges for the gates includes items as above as well as concrete foundations,
bolts and locks for closing the gates
4.4.2 Fencing - Method Of Measurement
a) Fencing
• Fencing shall be evaluated on the basis of calculated lengths using coordinates
included on fence layouts, excluding gate openings
Page 20 of 63
• The gate opening will be measured from the centerline of the posts on either side
of the gate
b) Gates
• Gates shall be evaluated at a lump sum price for each type
Page 21 of 63
5. SCAFFOLDING
5.1 GENERAL
Scaffolding shall be erected in accordance to the reference procedure:
GE00-DHS-H20-SP-0001-000 Scaffolding Specification
The Unit Rates for scaffolding works shall allow for the provision of access to the WORKS
including erecting, maintaining, and dismantling of scaffolding.
Charges excluded:
• Supply of materials
5.2 SPECIFIC CHARGES FOR SCAFFOLDING
The Unit rates for provision of Scaffolding shall include, but shall not be limited to the following:
o Cost of complying with pricing preambles included in the CONTRACT
o All costs associated with the design of Scaffolding in accordance with HSE procedures
and the CONTRACT requirements and/or applicable law
o Any required site measurement
o Transport, erection, maintenance, and removal
o Toe boards, guard rails and decking
o All necessary ladders, ledgers, transoms, bracing, ties, anchorages, clips, base plates
or boards
o The preparation of a safety procedure for the installation, use, dismantling of
scaffolding
o Provision and maintenance of a scaffolding tag system
o Rubber lined wheels with locking facilities for mobile scaffold
o Any required protection against contact with electrical supply
o Any other protection required by HSE plan and procedures and the CONTRACT
requirements and / or applicable law.
Scaffolding will paid in accordance with the rates and prices entered in the Contract on the
following basis:
70% on completion of erection (scaffold ready for use)
30% on completion of dismantling
5.3 METHOD OF MEASUREMENT FOR SCAFFOLDING
o Scaffold
Scaffolds are classified and grouped into heights of every 6 m above commencement
level. The working area of platforms are measured in square meters at each level within
the particular group of a given height range.
Platforms at levels of 6m, 12 m, 18 m, are considering as pertaining to the nearest group
downwards.
Page 22 of 63
The area of the working platform (plan of scaffold) is determined by the design norms in
relation to the safety and stability of the scaffold.
o Mobile Scaffold
Mobile scaffolds shall be numbered as per the Price List description.
The area of the working platform (plan of scaffold) is determined by the design norms in
relation to the safety and stability of the scaffold.
o Platform Scaffold
Platform scaffold shall be measured in square meters on plan at any elevations.
o Barrier
Barriers shall be measured in linear meters stating the height of the barrier and number of
rails.
o Protective Panels / Sheeting
Protective panels / sheeting shall be measured in cubic meters stating the type of
materials to be used, the lighting system, ventilation and heating system, PA/GA system
included inside the enclosed environment defined by the scaffold.
Lap and joints shall be deemed to be included
o Scaffold to convex / concave surfaces
CONTRACTOR shall prepare a proposal for a lump sum price for such type of scaffold on
the basis of available rates for other types of scaffolds. Price shall be agreed before
commencement of erection.
o Scaffolding for load bearing purposes
CONTRACTOR shall prepare a proposal for a lump sum price for such type of scaffold on
the basis of available rates for other types of scaffolds. Price shall be agreed before
commencement of erection.
Page 23 of 63
6. STRUCTURAL STEELWORKS
6.1 Reference Specifications & Drawings
KE01.A0.000.KD.C.SP.0008.000 Specification for Erecting of Structural Steelwork
KE01-A0-650-KD-C-DD-0007-003 Typical Ladder Details
KE01-A0-650-KD-C-DD-0007-004 Typical Stair Details
KE01-A0-650-KD-C-DD-0007-005 Typical Handrail and Gate Details
KE01-A0-650-KD-C-DD-0007-006 Typical Circular Platform Details
6.2 STRUCTURAL STEELWORK
6.2.1 Structural Steelworks - Specific Charges
Charges excluded:
• Prefabrication of structural steel
• Electrical, telecommunications, instrument and piping supports

Charges included:
• unit rates for structural steel are inclusive of the work necessary to go from loose structural
members to a fully erected steel structure.
• unit rates for miscellaneous steel are inclusive of the work necessary to go from loose
components to fully erected steel components.
• Pipe-rack and building structural steel includes those items identified on structural drawings
and identified as light, medium and heavy steel
• Miscellaneous structural as access related items that are prefabricated by other contractors
• Charges for the assembly and erection of prefabricated steelworks
• Charges for leveling material and temporary restraints
• Charges for the supply and installation of installation accessories (e.g. slings)
• Charges for installation of fastening devices/erection aids (e.g. pad-eyes for ladders)
• Charges for fastening of the works to masonry, concrete or steel structure by welding,
bolting, etc.
• Charges for cutting, drilling, welding and bolting to achieve fitment
• Charges for any cutting, trimming or adding penetrations in the grating
• Charges for assembly and installation of prefabricated miscellaneous steelwork e.g.
handrails, stairs and ladders.
6.2.2 Structural Steelworks - Method of Measurement
• The weight of a piece is calculated based on the nit weight of the primary member
times its end-to-end length
Page 24 of 63
• The weight shall not include the weight of stiffeners and other appurtenance (e.g.
padeyes, brackets)
• The weight shall not include a reduction for any penetrations
• The area of grating shall be calculated based on the outside dimensions
• The area of granting shall not include a reduction for any penetrations
• The length of stairways, landings, walkways, handrails shall be based on the end-
to-end center line dimension
• The length of ladders shall be based on the end-to-end center line dimension
6.3 ERECTION OF PIPE SUPPORTS
6.3.1 Erection of Pipe Supports – Specific Charges
Charges excluded:
• Prefabrication of support
Charges included:
• unit rates shall be inclusive of work required to erect pipe supports
• a pipe support is defined as any single configuration of steel members welded,

bolted or otherwise fixed together to form a single support
• installation for pipe supports
• Fabrication work including cutting, trimming, welding, trial assembly, painting and
other associated work.
• Any configuration and assembly of standard sections, hollow sections, flat bar and/or
steel plate in brackets, slides, saddles, anchors, guides, shoes, trunnions, wear plates,
hangers, U bolts, clamps, insulation blocks, anti vibration pads and sliding plates.
• Handling or multiple handling
• Erection work of both COMPANY and CONTRACTOR supplied supports, including
measuring, detailing, cutting, drilling, subassembly, welding and bolting where required
to structural steel work, concrete or brickwork, including the supply of anchor bolts,
nuts, washers, U bolts and other associated work including break out and build up of
concrete foundation
• Installation of wedging with shims etc. and setting up to line and level, aligning and
checking
• Adjustment of spring hangers in cold and hot positions, removal of locking pins after
the hydraulic test, calibration and fixing the pins to the unit with wire
• Identification of supports
6.3.2 Erection of Pipe Supports – Method of Measurement
The total weight of members forming an individual pipe support as per ISO shall be measured
in kg.
Page 25 of 63
7. PIPING WORKS & VALVES

The following list includes pertinent specifications relevant to pipe fabrication and installation:
KE01-00-000-KD-P-ST-0002-000 Specification Piping Fabrication
KE01-00-000-KD-P-ST-0004-000 Specification Piping Installation and Testing
KE01-00-000-KD-P-ST-0019-000 Specification Pipe Support Element
KE01-00-000-KD-V-SS-0018-000 Specification Welding of Piping and Fittings
KE01-00-000-KD-V-SS-0002-000 Specification Piping Fabrication
KE01-A1-620-MC-P-ST-001-000 ASME Piping Design Specifications
KE01-A1-730-KD-H-SP-0002-000 Specification Firewater Hose Reels
KE01-00-000-KD-P-DS-0003-000 Jacketed Pipe – Standard Details
KE01-00-000-KD-P-ST-0001-000 Piping Project Material Specification
KE01-00-000-KD-P-ST-0007-000 Specification for Chemical Cleaning Of Piping
Systems
KE01-00-000-KD-P-ST-0009-000 Bulk Materials – Traceability, Marking and Colour
Coding for Material Identification Purposes During
Storage and Fabrication
KE01-00-000-KD-P-ST-0012-000 Controlled Stud Bolt Tensioning
KE01-00-000-KD-P-ST-0013-000 Technical Supply Requirements for Pipe, Fitting and
Flanges
KE01-00-000-KD-P-ST-0016-000 Technical Supply Requirements for Gaskets
KE01-00-000-KD-Q-LS-0001-000 Project Codes and Standards Register
KE01-00-000-KD-V-SS-0001-000 Specification for Surface Preparation and External Coating
KE01-00-000-KD-V-SS-0005-000 Welding of Structural Steel for Packages and Equipment
KE01-00-000-KD-V-SS-0015-000 Specification for Positive Material Identification
7.2 PIPING WORKS & VALVES- SPECIFIC CHARGES
Charges excluded:
• Each Unit Price Table gives specific charges excluded

• Nitrogen purging
• Chemical cleaning
Charges Included
• Each Unit Price Table gives specific changes included
• Temporary storage of fabricated pipe-work in an approved lay down area and the
provision of end caps and pallets, in accordance with the specification
• Spool tagging, identification and protection
Page 26 of 63
• Erection of fabricated pipe-work including but not limited to handling, cutting,

tapering, beveling, threading, joint preparation, hoisting, setting up, alignment,
assembling temporary supports and fixtures, tack welding and temporary jointing as
necessary and final welding or jointing
• Protecting of paintwork
• Trial assembly of pipe-work if deemed necessary and multiple handling arising

there from
• Internal and external cleaning of pipe-work

• The execution of non-destructive testing (liquid dye penetrate testing, magnetic
particle testing, radiography and hardness testing) of welds
• Pre and post weld heat treatment (stress relieving)
• Pre-commissioning of installed equipment and systems
7.3 PIPING WORKS & VALVES - METHOD OF MEASUREMENT
The method of measurement for each class of work and work element is described in the
Tables hereafter.
7.4 HANDLE AND ERECT SMALL BORE PIPE-WORK
7.4.1 Handle and Erect Small bore Pipe-work - Specific Charges
Charges excluded (items included elsewhere):
• Threaded pipe-work
Charges included:
• the work required to complete the installation of small bore pipe-work
• fittings and flanges, including handling in any location is to be included in the linear rate for
pipe-work (fittings and flanges are not measured separately)
• valves, strainers, filters, in-line equipment etc. including handling, placing and aligning etc.
• any screwed or bolted joints up to and including 1½" diameter made to a boss or similar
connecting item to process pipe-work, either during or post mechanical construction, for instrument
insert items.
7.4.2 Handle and Erect Small-bore Pipe-work - Method of Measurement
• Linear meters of small bore piping will be measured from end to end including flanges
and fittings as per ISO
7.5 HANDLE & ERECT FABRICATED SPOOLS BETWEEN / OUTSIDES PIPE-RACKS
7.5.1 Handle & Erect Fabricated Spools Between/Outsides Pipe-racks - Specific Charges
Charges exclude (items included elsewhere):
• installation of control/motorized valves
• installation of safety valves
• installation of in line instruments such as PD meters and Turbine meters
Page 27 of 63
• threaded piping
Charges include:
• work required to complete the installation of pipe, fabricated spools and in-
line items
• installation of pipe-work and spools, valves, strainers, filters, in line

equipment etc. including handling, placing, aligning all types, grades, ratings and
weights per diameter
• fittings and flanges including handling in any location is to be included in

the linear rate for pipe-work. (fittings and flanges are not measured separately)
7.5.2 Handle & Erect Fabricated Spools Between/Outsides Pipe-racks - Method of
Measurement
• Piping unit rate will be measured for each diameter group through the
center line of the pipe including fittings, flanges and in-line items as per ISO.
7.6 WELDING OF CARBON STEEL PIPING
7.6.1 Welding of Carbon Steel Piping – Specific Charges
• None
Charges included:
• Unit Rates are inclusive of work required to make welded joints
• Cleaning and preparation of pipe, cutting to length, tapering, beveling,

setting up, aligning, orientating, jigging, making joint, tack welding, temporary jointing,
final welding of any wall thickness or rating
• Weld ‘O-lets including cutting and preparation of the main pipe, alignment
and making of the joint between the O-let and main
• non destructive testing
• stress relieving
7.6.2 Welding of Carbon Steel Piping – Method of Measurement
• Small bore socket and butt weld joints are numbered with reference to the
pipe diameter
• Large bore butt weld joints are enumerated with reference to the pipe
material, diameter and wall thickness
• where a butt weld joint is executed to small bore pipe-work, charges shall
be equivalent socket weld rate plus 20%
• The welding of a slip on flange for each diameter of pipe shall be paid at
the unit rate of a butt weld for pipe of STD wall thickness
• The welding of O-lets/half couplings are enumerated stating the material
and branch diameter
Page 28 of 63
• In circumstances where a reinforcing/ compensating plate is required the

Charges shall be paid at an addition o 20% to the rate for a welded branch joint of the
same pipe diameter and wall thickness
• In circumstances where an angled welded branch joint is executed the
Charges shall be paid at an addition of 40% to the rate for a welded branch joint of the
same pipe diameter and wall thickness
• Straight length of pipes in excess of 6 meters will be based on a weld

every 6 meters without re-measure
• Enumeration will include only welds properly recorded on the engineering
isometric drawings
7.7 WELDING OF ALLOY SEEL PIPING
7.7.1 Welding of Alloy Steel Piping – Specific Charges
Charges Excluded (item included elsewhere):
• None
Charges included:
• Unit rates shall include work required to make welded joints
• cleaning and preparation of pipe, cutting to length, tapering, beveling, setting up,
aligning, orientating, jigging, making joint, tack welding, temporary jointing, final
welding of any wall thickness or rating
• weld O-lets including cutting and preparation of the main pipe, alignment and making
of the joint between the O-let and main
• non destructive testing
• stress relieving
7.7.2 Welding of Alloy Steel Piping – Method of Measurement
• Small bore socket and butt weld joints are enumerated with reference to the pipe
diameter
• Large bore butt weld joints are enumerated with reference to the pipe material, diameter
and wall thickness
• In circumstances where a butt weld joint is executed to small bore pipe-work the charges
shall be the equivalent socket weld rate plus 20%
• The welding of a slip on flange for each diameter of pipe shall be paid at the unit rate of
a butt weld for pipe of STD wall thickness
• The welding of O-lets/half couplings are enumerated stating the material and branch
diameter
• In circumstances where a reinforcing/ compensating plate is required the Charges shall
be paid at an addition of 20% to the rate for a welded branch joint of the same pipe
diameter and wall thickness
• In circumstances where an angled welded branch joint is executed the Charges shall be
paid at an addition of 40% to the rate for a welded branch joint of the same pipe
diameter and wall thickness
Page 29 of 63
• Straight length of pipes in excess of 6 meters will be based on a weld every 6meters
without re-measure
• Enumeration will include only welds properly recorded on the engineering isometric
drawings
7.8 BOLTED JOINTS

7.8.1 Bolted Joints – Specific Charges
• None
Charges included:
• Bolted joints shall include for cleaning, preparation and dressing of flange
faces; installation of gaskets or ring type joints, nuts, bolts and washers, spacers,
blinds, orifice plates etc.; final adjustment and tightening of the joint
• Where a bolted joint involves the installation of spacers, a spectacle blind, an

orifice plate or similar an addition of 20% to the rate for a bolted joint for the same pipe
diameter and joint rating will apply
7.8.2 Bolted Joints – Method of Measurement
• Bolted joints are enumerated with reference to the pipe diameter and flange
rating as per ISO
7.9 HYDROTESTING, ALL GRADES OF PIPING
7.9.1 Hydrotesting, All Grades Of Piping - Specific Charges
Charges excluded (item included elsewhere):
• None
Charges included:
• the work required to complete test, test documentation and sign-off of pipe-work
• Preparation of test packs from P&I diagrams
• The planning and progressive execution of testing operations to meet the testing
priorities of COMPANY and/or to support pre-commissioning activities
• Providing adequate test valves complete with supporting documentation and test
certificates
• Pre-flushing of pipe-work prior to testing for removal of debris
• The provision, installation and subsequent removal of test equipment (pumps, gauges,
recorders etc.) manifolds and hoses.
• The removal and reinstallation of in-line equipment and instruments
• Supply and installation of spool pieces for testing across in-line instruments and control
valves removed testing purposes
Page 30 of 63
• Provision, installation and subsequent removal of stud bolts, bolts, special bolts, nuts,
blanks, blinds, spades, caps, plugs, strainers, additional temporary valves and/or safety
valves and necessary temporary gaskets
• Supply and installation of bolts for testing including bolts to be installed at flanges which
have to be split for testing (e.g. control valves test limits etc.)
• Necessary disconnection of flanges and subsequent re-jointing
• Provision of testing water
• Provision of air where required
• Provision of N2 where required
• Filling up and subsequent draining and disposal of test water
• Venting of lines during filing and drainage
• Pressurization and execution of pipe-work testing

• Inspection and making good all leaks
• Leak testing of joints in the system not subject to the hydrotest has been performed in
sections
• Reinstatement of the system including making good any joint inclusive of materials, that
is leaking, passing or in any way defective and which has been executed by Contractor
• Provision of test records
7.9.2 Hydrotesting, All Grades Of Piping - Method of Measurement
• Hydrostatic, service or pneumatic testing of pipe-work is measured in linear meters by

diameter. The length to be measured through the centerline of the pipe including fittings,
flanges and in line items as per ISO
7.10 UNDERGROUND PIPING
7.10.1 Underground Piping - Specific Charges
• Cathodic protection
• Coating and wrapping
Charges included:
• work required to install underground piping including the excavation and
backfill
• laying of fabricated piping and spools underground with required excavation,
bedding positioning and backfilling
• thrust blocks, anchors, supports
• connection to underground structures and components
7.10.2 Underground Piping - Method of Measurement
• Underground piping installation is measured on the basis of linear meterage of fabricated
piping measured through flanges and fittings including in-line items as per ISO
Page 31 of 63
• Straight length of pipes in excess of 6 meters will be based on a weld every 6 meters
without re-measure
Page 32 of 63
7.11 VALVES
7.11.1 Valves - Specific Charges
• Jointing activities (welding or bolted joints) are measured separately
Charges included:
• work required for the installation of safety and self regulating valves,
instrument valves and instrumentation in-line
• handling of valves and instrumentation items including lifting to required
locations
• cleaning and preparation of flanges prior to fitment of valves and instruments
• fittings and flanges including handling in any location is to be included in the

linear rate for pipe-work. (fittings and flanges are not measured separately)
• control/ motorized valves including handling, placing, and aligning all types,
grades, ratings and weights per diameter
• safety valves including handling, placing and aligning, dismantling for testing,
testing, transportation to and from a testing shop and re-installation after testing
• in-line instruments including handling, placing and aligning all types, grades,
ratings and weights per diameter
7.11.2 Valves - Method of Measurement
• Safety and self-regulating valves, instrument valves and instrument in-line item
installation will be measured on an item installed basis with respect to nominal
diameter as per ISO
Page 33 of 63
8. MECHANICAL EQUIPMENT
KE01-00-000-KD-V-SS-0001-000 Specification for Surface Preparation and External Coating
KE01-00-000-KD-V-SS-0005-000 Welding of Structural Steel for Packages and Equipment
8.2 SPECIFIC CHARGES FOR THE INSTALLATION OF EQUIPMENT
The unit rates for the installation of equipment shall include, but not be limited to, the following:
• Charges for necessary cranes, lifting frames, spreaders, eyes, hooks, wires, shackles,
slings, ropes and other rigging equipment.
• Charges for rigging studies and calculations for lifts
• Charges for checking of levels and elevations prior to erection and in particular the
positions and levels of foundations and main structures
• Charges for checking location and elevation of anchor bolts, removing protective covers
to anchor bolts, greasing anchor bolts and trial fitting nuts prior to equipment erection
• Charges for checking the dimensional correctness of the bolt hole positions of items of
equipment that require to be mated and bolted together prior to final positioning of the
equipment
• Charges for multiple handling of equipment to be welded or bolted on site
• Charges for removal and disposal of any temporary protection, framing, transportation
saddles, bracing and packing
• Charges for erection, alignment, plumbing and leveling of equipment in final position
including any limitations placed upon erection as a consequence of restricted access
and workspace
• Charges for shims and leveling plates and setting to correct elevation, centre line and
orientation
• Charges for installation of sliding plates
• Charges for erection and fixing of accessories and ancillary items normally provided with
the equipment but packed separately for transportation and checking of internals where
existing
• Charges for installation and tightening of nuts, washers and other holding down devices
• Charges for internal cleaning of equipment to ensure removal of debris
• Charges for opening nozzles, manholes etc., service gaskets and to ensure that access
ways have been correctly mounted and closed
• Welding and testing of equipment supplied in two or more Sections at site. Welding
procedures (WPS, WPQ & PQP) shall be provided by the vendor/supplier.
• Charges for hydraulic and pneumatic testing of equipment shall include for the provision
of necessary consumables, labour, material, equipment, temporary gaskets and other
apparatus for setting up and carrying out the complete test and cleaning away on
completion under the supervision of a vendor/supplier.
• Charges for collection from the transport barge or vessel.
Page 34 of 63
8.3 VERTICAL EQUIPMENT

8.3.1 Vertical Equipment - Specific Charges
• Grouting of base-plates
• Installation of platforms, stairs, handrails and ladders (not supplied by equipment vendor)
Charges included:
• work necessary to collect for COMPANY delivery point to a completed
assembled and erected component.
• erection of vertical equipment including accessories supplied in one section of
any weight and/or shape e.g. columns, reactors, accumulators, vessels, separators,
heat exchangers, ejectors and other similar equipment.
• installation of platforms, stairs, handrails and ladders supplied by equipment

vendor
8.4 HORIZONTAL EQUIPMENT
8.4.1 Horizontal Equipment - Specific Charges
• Installation of platforms, stairs handrails and ladders (not supplied by equipment vendor)
Charges included:
• work necessary to collect from COMPANY delivery point to a completed
assembled and erected component
• erection of horizontal equipment including accessories supplied in one section
of any weight and/or shape e.g. columns, reactors, accumulators, vessels, separators,
heat exchangers, ejectors and other similar equipment
• Installation of platforms, stairs, handrails and ladders supplied by equipment
vendor.
8.5 EQUIPMENT REQUIRING ASSEMBLY
8.5.1 Equipment Requiring Assembly - Specific Charges
• Installation of platforms, stairs, handrails and ladders(not supplied by
equipment vendor)
Charges included:
assembled and erected component .
• Charges for installation of vertical and horizontal equipment including
accessories supplied in two or more sections of any weight and/or shape to be welded
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or bolted at site e.g. vessels, columns, reactors, accumulators, heat exchangers,

separators and other similar equipment.
• Charges for welding, bolting and testing of equipment
• Welding and performance of NDE under the supervision of a vendor/supplier

vendor.
8.6 INTERNAL FITTINGS
8.6.1 Internal Fittings - Specific Charges
• Installation of platforms, stairs, handrails and ladders (not supplied by
equipment vendor)
Charges included:
• work necessary to collect for COMPANY delivery point to a completed
• lifting and installation of tray beams and tray segments
• assembly of the prefabricated items by bolting, clamping or welding
• installation of weir plates, down-comers, demisters; internal piping distributors
supplied in prefabricated sections to be bolted or welded together
• installation of bubble caps/trays, sieve or similar trays including leak testing
and leveling or trays
• installation of loose materials such as catalysts, powders, granules and
spheres or rings of ceramic, plastic or metal laid on supporting beds or grills
• lifting and installing the internal fittings in equipment located at any height and
any plant location
• provision of blowers and extractor fans if required
• necessary tests

vendor.
8.7 PUMPS AND COMPRESSORS
8.7.1 Pumps and Compressors - Specific Charges
• Installation of platforms, stairs, handrails and ladders (not supplied by equipment

vendor)
Charges included:
Page 36 of 63
• installation of pumps consisting of driving and driven components supplied to site

already assembled or requiring assembly and/or coupling
• installation of machinery supplied in several large pre-assembled sections to be
placed on separate foundations
• installation of reciprocating compressors consisting of main compressor skid, motor
skid, lube oil air cooler, control panel
• installation of Centrifugal Large Compressors consisting of main compressor/motor
skid, lube oil skid, lube oil air cooler, control panel
• provision and installation of brass and/or stainless steel shims and leveling plates
where required
• bodies, casings, motors etc. to base plates, vessel nozzle flanges (include drilling
base plate if required) and setting driven items if supplied separately
• disassembly where applicable and examination of machinery supplied per-
assembled, inspection of parts for corrosion or defects, re-alignment check with the
driving machine after grouting and both before and after the connection to the piping
(cold alignment) has been completed.
• examination of machinery supplied in a non assembled condition, inspection of the
parts for corrosion or defects, assembling the machines and checking the alignment of
driving and driven machines when coupled together after grouting and both before and
after the connection to the piping (cold alignment) has been completed
• Checking for cleanliness, lubrication, correct order of assembly and any other
measures required to ensure a satisfactory working condition prior to bringing into
operation
• First fill of oil to gearboxes and oil tank (if applicable) in accordance with the
lubrication specification
• Installation of guards and covers
• Providing attendance for the testing of the machinery
• Carrying out the work under the direction of equipment manufacturer’s
representative when specified
• Clocking of pumps and machinery rotating parts prior to and post installation and the
rotation of turbines and compressors etc. periodically up to handover
• Installation of platforms, stairs, handrails and ladders supplied by equipment vendor
8.8 PACKAGES
8.8.1 Packages - Specific Charges
• Installation of platforms, stairs, handrails and ladders (not supplied by
equipment vendor)
• Erection of the prefabricated interconnecting pipe-work

• The fabrication and erection of the bulk piping material
Page 37 of 63
• Connection of elements external to the packages

• Electrical works on packages /skids are contained within the Electrical BOQ
and therefore exclusive of the Mechanical BOQ
• Instrument works on packages /skids are contained within the Instrument BOQ
and therefore exclusive of the Mechanical BOQ
Charges included:
assembled and erected package
• installation of packages supplied prefabricated as single modules
• installation of packages supplied prefabricated in two or more modules
requiring direct interconnection by bolting and/or welding
• installation of packages supplied prefabricated in two or more modules
• installation of packages supplied in two or more modules
• installation of packages supplied as loose materials (Note: Package- type units
are defined as those items which arrive at site as one or more pre-assembled skids
ready for erection )
• alignment and plumbing of the skid or equipment in final position
• welding including NDE under the supervision of Vendor/ Supplier
• Nuts, bolts, washers, gaskets or ring type joints for flanged pipe-work shall be
provided by vendor/ supplier

vendor
Page 38 of 63
9. ELECTRICAL, INSTRUMENT & TELECOM WORKS

9.1 ELECTRICAL
Reference is made to Schedule B – Attachment 2 (2C-PRE-GC-CC-8012) attached here
below.
9.2 INSTRUMENTATION & TELECOM
Reference is made to Schedule B – Attachment 1 (2D-PRE-GC-CC-8010) attached here
below.
Page 39 of 63
10. PAINTING
Reference specification:
KE01-B0-000-KD-V-SP-5003-000 Offshore Coating Systems Specification
unit rates for the Direct Costs and to define the method of measurement.
10.1 Painting – Specific Charges
The rates shall exclude the following:
o none
• Items not in the Scope of WORK
o Internal coatings of steel tanks
o application of equipment identification panels, labeling and lettering to pipe-
work, flow direction arrows to pipe-work and product color banding
10.2 Painting – Painting Work Classes
The painting work is divided by the various types of surface preparation and according to each
painting system. Winter grade quality paint products shall be included, to optimize painting
activities at site.
10.3 PAINTING – INCLUSIONS & EXCLUSIONS
The unit rates shall include, but not be limited to, the following:
o supply of all materials
o application of all coats required for the coating system
o prequalification tests
o repair work to previously blasted, primed or painted surfaces to ensure the integrity of
the finished painting system
o preparation of surfaces including blasting, washing, solvent wipe or tool cleaning and
the application including but not limited to brushing, roller, or spraying
o working around obstructions, projections, beams etc.
o protection of items not to be coated, such as flange faces, etc.
o work to wide or narrow widths and curved or flat surfaces
o coating weld location on underground piping
o transportation and handling of material to/from galvanizing facility
o application to the irregular surface of solid chequer plate flooring and for painting all
surfaces and all edges
o application to the full girth of all members of rigid open grate flooring
o Repairs to CONTRACTOR applied coatings shall be deemed to be included in the
rates. The rates shall include any costs associated with repairs to painting damage not
specifically attributable to COMPANY
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o Repairs of COMPANY supplied material will be limited to the touch up of vendors

applied coating or galvanization. Painting damage attributable to COMPANY (e.g.
damage to COMPANY supplied material resulting from COMPANY managed handling or
transportation) shall be reimbursed using the rates after agreeing to the extent (m 2) of
damage.
o weather and dust protection to protect the painting works
10.4 METHOD OF MEASUREMENT
10.4.1 Pipe-work (Painted or galvanized)
o Work shall be measured based on the external diameter of pipe times the effective length. There will
be no increase in the line diameter to account for the small components in the line.
o Effective length will be calculated using the center line length shown on the piping isometrics
o The effective length will exclude equipment but will include valves, flanges, fittings and other small
components
10.4.2 Structural steelwork and metalwork items
o Work shall be measured based on the perimeter length of the primary member times the effective
length
o Effective length will be calculated using the center line length shown on the AFC drawings
o The area calculation shall not include any area for stiffeners, brackets, etc.
o The area calculation shall not include any deduction for holes or penetrations.
10.4.3 Equipment
COMPANY supplied equipment shall be supplied fully painted and areas of repair will be
agreed between CONTRACTOR and COMPANY.
10.4.4 Motors, pumps and machinery in general
COMPANY supplied equipment shall be supplied fully painted and areas of repair will be
agreed between CONTRACTOR and COMPANY.
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11. INSULATION
unit rates for the Direct Costs and to define the method of measurement.
11.1 INSULATION - CHARGES EXCLUDED:
The unit rates shall exclude the following:
• none
11.2 INSULATION - METHOD OF MEASURMENT
The method of measurement for each class of work and work element is described hereafter.
11.3 INSULATION - CLASSES
Enclosure is the terminology used in KE01-00-000-KD-V-SS-002-000, also generally called
flange or valve boxes. The thickness would be same thickness of the insulation on the line for
which it is provided .
The price list for insulation work is divided by the various types of insulation and different
thicknesses into the following classes:
• Acoustic insulation
• Cold insulation
• Cold insulation incorporating Acoustic Insulation
• Hot or Winterization insulation

• Hot or Winterization Insulation incorporating Acoustic Insulation
• Personnel Protection Guard
• Personnel protection insulation
• Personnel protection guard incorporating acoustic insulation
• Underground insulation
In each of the categories above a separate line in the Pricing List is included to indicate the
cost of insulated enclosures.
11.4 INSULATION WORK - SPECIFIC CHARGES
11.4.1 Insulation Works - Specification Reference
KE01-B0-000-KD-V-SS-5001-000 Offshore Piping & Equipment Thermal Insulation
Specification
KE01-00-000-KD-V-SS-002-000 Piping and Equipment Insulation Specification
KE01-00-000-KD-C-SP-002-000 Specification for Drainage Materials and Construction
11.4.2 Insulation Works – Inclusions in the rates
Rates and prices are fully inclusive for the supply and installation of required insulation works
including, but not limited to, the following:-
• work to prepare and install a complete insulation or fireproofing system
Page 42 of 63
• insulation of entire line including pipe, jacketed pipe, fittings, valves, tracers, etc. and
equipment
• aluminum or stainless steel jacketing as required
• checking and cleaning surfaces prior to installation of insulation
• support rings if required including the supply and installation of material for fixing
cladding to the support ring
• fixings and fastenings including but not be limited to: tape, ware, adhesives, sealant,
jointing material and ancillary material
• taping, wiring, banding, fixing, sealing and jointing including necessary overlapping of
material
• forming of laps, welts, cut-outs, recesses, ends, etc.
• working insulation, cladding around obstructions, projections, brackets, beams, supports,

support rings, branch pipes, small drains, vents, etc.
• working around trace heating
• execution of “flattening” due to interference with other material or other lines
• insulation of supports
• insulation of nozzles, manholes, manhole covers, pipe collars, pockets, blanked off
branches, projections and the provision of removable covers , etc. of equipment
• provision of the required thickness of insulation in more than one layer where required.
• provision of any masking or similar special pieces
• execution of special shapes e.g. curve, conical or spherical
• provision of materials for removable sections of insulation where required, such as
boxes and covers to valves, flanges, etc. including trial erection, subsequent dismantling,
identification, storage and final erection. Works will include for correctly terminating (e.g.
end stops) the insulation and cladding adjacent to removable sections
• sealing, pointing, trowelling smooth chamfered and sealed edges and the like and
generally ensuring a sound and watertight seal to joints
• ring spacers, expansion, contraction and proprietary joints
• protection of the work including covering unfinished insulation, taking necessary
precautions against damage to painted surfaces, and providing adequate temporary
weatherproofing when work is not being performed.
• insulating of vessels inside the skirt
• ensuring that nameplates, code inspection plates, stamping, etc. are visible or suitably
marked and identified after insulation is applied.
• Jacketing for hot, cold and acoustic applications may be either aluminum or stainless
steel (refer Spec KE01-00-000-KD-V-SS-0002-000 sect. 6.4.1.2)
• Jacketing for personnel protection (PG and PP) applications is stainless steel
perforated sheeting, (refer Spec KE01-00-000-KD-V-SS-0002-000 sect. 5.1.4.) except
when it incorporates hot or acoustic cladding in which case it shall revert to item above
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• Cold insulation will be cellular glass (foam glass) (ref Spec KE01-00-000-KD-V-SS-
0002-000 sect. 6.2.1). PIR/PUR may be used for class CC & CA applications with
COMPANY approval only
• Hot insulation and Acoustic Porous Layer will be stone wool (ref Spec KE01-00-000-
KD-V-SS-0002-000 Annex 5,54.2)
11.4.3 Insulation Works - Method of Measurement
Insulation of Pipe-work, Valves and Small Components
• Work shall be measured based on the external diameter of the pipe times the effective
length
• There will be no increase in the diameter to account for the small components in the
line
• Effective length will be calculated using the center line length shown on the piping
isometrics
• The effective length will exclude equipment but will include valves, flanges, fittings and
other small components
• Reducers will be sized based on the larger diameter

Insulation of Equipment
• There shall be no decrease of area for nozzles
Insulation of Vessels, Tanks and Spheres
• Work shall be measured based on a nominal surface area of the vessel, tank or
sphere. The nominal area for a vessel is the outside diameter of the vessel times the
length plus the area of the heads at each end
• No additional area is added for protrusions. These neglected areas should be
accounted for in the rates
Valve and Flange Boxes
• Work shall be measured on the center line length of the boxes multiplied by the end
perimeter length. This will neglect the end areas of the boxes. The work for the end areas
should be accounted for in the rates.
Tubing
• Work shall be measured on length of tubing requiring insulation.
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12. FIREPROOFING
12.1 FIREPROOFING - SPECIFIC CHARGES
Reference Specification:
KE-A0-000.KD.C.SP.0005.000
KE.B0.000.KD.H.SF.5001.000 Fireproofing Functional Specification
Charges excluded (included elsewhere):
• none
Rates and prices are fully inclusive for the supply and installation of required fireproofing works
including, but not limited to, the following:-:
• Supply of all materials
• Protection of machinery, equipment, instruments and/or piping already installed
• Fixing of the welded wire fabric by means of tying wires
• Plates, rod pieces and/or chairs for fixing the reinforcement to the metal
• Formwork
• Casting and vibration of concrete
• Sealant over fireproofing
12.2 FIREPROOFING - METHOD OF MEASUREMENT
• Area shall be calculated based on the perimeter of the structural steel primary
member times the length
• Area shall be calculated based on the vessel skirt area (inside and outside of
skirts, as required
• Area calculated shall not include any deductions for openings
• Area calculated shall not include any increase for bolts, nuts, washers, stiffeners,
brackets
Volume of fireproofing will be calculated on the design thickness times the area.
Page 45 of 63
13. DAY-WORK PRICES

13.1 INTRODUCTION
For the pricing of Direct Prices (whether on unit rates, day-works or lump sum) CONTRACTOR
is referred to the following documents enclosed herewith:
• Part 3 Price List for Day-works

CONTRACTOR should note that documents listed above are COMPANY standard developed
to cover a comprehensive Schedule of Rates the WORK “elements”, comprising Civil,
Mechanical, Electrical and Instrument works. Where there is any apparent conflict between the
information included in this or any other sections of Schedule “B”, CONTRACTOR shall bring
any such difference to the immediate attention of the COMPANY.
CONTRACTOR shall price the labor and material content of each unit rate item. Where the
cost of CONTRACTOR’s construction plant is relevant, it shall be included in the labor section
of the unit rate. The total unit rate for each Price List item shall remain unaltered
notwithstanding any anomalies between the sum of the labor and material unit rates and the
total unit rate.
Unit rates, day-works and lump sums shall be inclusive of safety requirements for the
protection of personnel, small tools and equipment and the FACILITIES throughout the
construction and pre-commissioning of the WORK and during the CONTRACTOR’s support to
commissioning.
The purpose is to define the costs which are deemed to be included in the prices for the Direct
Costs and to define the method of measurement.
13.2 CONTENT OF DAY-WORK RATES
• The work in the Price List is divided into work elements, and each work element is further
subdivided into work classes (where applicable)
• A unit rate and percentage (in respect of the Indirect Costs) shall be entered by
CONTRACTOR against each item in the Price List against which the COMPANY has
indicated a quantity of work, either specifically, or at summary level for the class, or where
the COMPANY has indicated that a price is required. The grouping of items or designating
an item “Included’ is not acceptable. If an item within the Price List is not priced as required
the cost of the item shall be deemed to be covered by other items which have been priced
by the CONTRACTOR in the Price List.
• The descriptions attached to the respective items within the Price List Guides are intended
to be sufficient only for identification of an item of work. The descriptions do not provide
exhaustive detailing of each and every operation required to carry out the WORK. For the
full obligations of each item the CONTRACTOR is referred to the documents forming the
CONTRACT. The unit rate entered by the CONTRACTOR against each respective item in
the Price List shall be deemed to be a fully inclusive rate for the finished work described in
the respective item including matters set out in these pricing preambles and including
everything which is contingent to and indispensable in the construction and completion of
the WORK to be carried out under the CONTRACT, and shall be deemed to include for
CONTRACTOR’s acceptance of that part of WORK previously performed by COMPANY’s
other contractors. Unless COPMANY is notified in writing to the contrary within ten (10)
days, CONTRACTOR is deemed to have warranted aforesaid WORK as if performed
directly by CONTRACTOR.
Page 46 of 63
• Notwithstanding the omission from an item description in the Price List Guides of an
individual operation or operation considered necessary for the execution and completion of
item, the cost of such operation shall be deemed to be included in the applicable item in
the Price List, and the CONTRACOTR shall be deemed to have made allowance for the
cost of such operations in each applicable item. No claim will be accepted on the grounds
of defective description or omissions that further operations other than those described are
required.
• Where the specific charges/method of measurement state that the unit rate for an item
shall include for work which will not be separately measured or paid for, then the extent of
the included work within the unit rate shall be assessed by the CONTRACTOR and no
claim for additional cost will be entertained by the COMPANY should be extent of the
included work actually executed, vary from that assessed by the CONTRACTOR.
• CONTRACTOR shall be deemed to have allowed for checking of drawing dimensions and
any and all applicable dimensions prior to commencing work. CONTRACTOR shall further
be responsible for checking documentation issued to him by COMPANY and shall draw
the attention of the COMPANY to any discrepancies or omissions therein within ten (10)
working days of COMPANY’s issue to the CONTRACTOR of documentation or revisions to
and/or supplements to documentation. COMPANY will not be liable in respect of costs or
schedule impact incurred by the CONTRACTOR due to errors, conflicts omissions in
drawings, other documents or dimensions the effects of which were avoidable had the
CONTRACTOR checked such documents and dimensions beforehand and notified the
COMPANY within the timeframe stipulated above.
• Where proprietary names or products are quoted in an item in the Price List Guides such
proprietary names or products shall be taken as indicating a required class of quality of
finished work. The proprietary name or product may only be changed by the
CONTRACTOR with prior approval in writing of the COMPANY.
• Except as provided in Section 15 “Payment Rules”, the rates shall apply equally to
executing work in large or small quantities, in difficult or easy situations, in any sequence
and at grade or any elevation above the ground unless stated to the contrary in the
CONTRACT and no claim will be allowed which arises form the proportion of the finished
work actually falling into these categories. In the course of the development of the
construction drawings, the proportion and complexity of the various operations included
within the items described in the Price List Guides may vary from the proportions or
complexity which may have been inferred from the CONTRACT drawings or from the
CONTRACTOR’s assessment of the proportions and complexity. The unit rates are
deemed to include provisions for all risk and all advantages that may arise from any such
changes in proportions and complexity and thus unit rates shall apply equally to the tender
quantities and the finished quantities of work.
• The rates apply equally to executing the WORK at any time prior to completion irrespective
of whether the various work items have programmed continuity or not, or performed in a
different season, or in a different proportions in different seasons and/or weather
conditions, or performed in different sequences, from that initially envisaged in the
CONTRACT. No claims will be accepted by the COMPANY for remobilization of labour or
equipment, additional access and the like, as full entitlement under the CONTRACT shall
be deemed to have been made by application of the relevant unit rates. No claims will be
accepted by the COMPANY for schedule extension, as CONTRACTOR shall be deemed
to have included in CONTRACTOR’S schedule full allowance for any and all such
eventualities.
Page 47 of 63
• The rates and prices shall include for liaison with COMPANY and the COMPANY’s Other
Contractors and the Regulatory Authorities, and obtaining COMPANY and Regulatory
Authorities approval at all stages according to the requirements of the CONTRACT.
• When the CONTRACTOR is require by the CONTRACT to seek approval, the
CONTRACTOR shall do so in writing at least seven (7) working days before such approval
is required.
• The CONTRACTOR shall be deemed to have satisfied himself as to the correct meaning
of every item description in the Price List Guides and of the completeness of his unit rate
or price for the work described therein. No claim for additional payment, as a consequence
of any error or misunderstanding on the part the CONTRACTOR to fully determine the
scope of work and his CONTRACT obligations with regard to a Price List Guide item
description, will be considered by the COMPANY
• Rates for the items of work to be undertaken by CONTRACTOR as a consequence of a

variation and not listed in the Price List shall be analogous to existing rates for similar
items of work. Should there be no such similar item in the Price List then a new rate shall
be determined mutually between CONTRACTOR and COMPANY based on the
reasonable interpolation or extrapolation of the rates included in the Price List or, falling
which, recourse will be made to COMPANY establishing a reasonable fully inclusive rate
based upon the reasonable expenditure of labour, plant and material resources.
• CONTRACTOR shall provide any details required by the COMPANY of the
CONTRACTOR’s rates prior to the acceptance of same by COMPANY. This shall apply
solely to tendered rates and prices and to variation rates and prices as appropriate to
facilitate the development of supplementary rates and prices during the duration of the
CONTRACT.
• The quantities indicated in the Price List are approximate only and are not to be taken as
final quantities of work to be executed for any Price List item. The range of work may vary
to the extent that new items and/or sections may be added to the Price List and existing
items or sections may not be used. Any variations, omissions or additions shall be dealt
with in accordance with CONTRACT. Save as provided in Section 5, remuneration for the
unit rates work shall remain valid regardless of any variation between the estimated and
actual quantities of work executed against the unit rates, and no variation of the items or
quantities give in the Price List shall in any way affect the validity of the relevant price in
the Price List.
• The quantities contained within the Price List shall not be used for the purpose of ordering
any materials that CONTRACTOR is required to provide under the CONTRACT except as
provided herein. The CONTRACTOR shall order CONTRACTOR supplied material based
on “Approved For Construction” (AFC) documents issued by Company.
• The quantities of work actually executed in accordance with the CONTRACT shall be
measured or calculated in accordance with the method of measurement defined in the
Pricing List Guides. COMPANY computer programs for the re-measurement of work shall
be used where possible. Quantities not detailed on drawings or derived from computer
programs shall be determined by joint measurement by the CONTRACTOR and the
COMPANY. No allowance shall be made for waste in the re-measurement of the
quantities. The CONTRACTOR shall be deemed to have included in the Price List for
Indirect Costs for the provision of personnel and other recourses necessary for the re-
measurement of the WORK and CONTRACTOR’s commercial administration of the
CONTRACT.
Page 48 of 63
• Except as provided in Section 15 “Payment Rules”, the amounts of money to be paid to the
CONTRACTOR for unit rate measured work in accordance with the CONTRACT, shall be
the product of the total quantities of work correctly executed by the CONTRACTOR, in
accordance with the CONTRACT drawings and specifications and measured in
accordance with the applicable method of measurement, and the pertinent total unit rates
defined in the Price Lists.
• Works rejected by COMPANY for reasons ascribable to CONTRACTOR shall not be
computed and taken into account (not even provisionally), regardless of the progress
reached at the time of COMPANY’s rejection.
• In the event that works already progressed and taken into account, at any stage of
progress, are subsequently rejected by COMPANY for reasons ascribable to
CONTRACTOR, all the related quantities and compensation already taken into account
shall be nullified and the Payment Certificate as detailed in Section 7 shall be amended to
reflect such adjustments.
Compliance with CONTRACT drawings and technical specifications and quantity assurance
requirements.
The prices in the Price List are deemed to Include for the execution of the WORK and the
supply of materials (where specified as CONTRACTOR supplied in the CONTRACT), strictly in
accordance with the CONTRACT drawings and specifications.
The unit rates included in the Price List for Direct Costs and referred to in this document shall
include, along with the other CONTRACT provisions, for costs in connection with the complete
performance of the WORK described in the respective Price List Guides descriptions including,
but not limited to, the following:
• Cost of skilled, semi-skilled and unskilled labor for trades up to and including the level of
working foreman
• Salaries, wages, bonuses, allowances, fringe benefits, incentive payments, overtime and
shift payments, offshore rotations for 49raveling personnel, local 49raveling time and
fares (in particular: to and from the Crew Change Facility), public holiday entitlement,
paid holiday, sick pay, insurances, pensions, recruitment, passports, visas, residence
and work permits, training and other emoluments, contributions, taxes, levies or
expenses that CONTRACTOR may make in respect of labour in accordance with
national or local agreements or with statutory provisions.
• Cost of providing construction equipment and plant (delivery point: the ONSHORE
SUPPORT BASE in Kuryk) of adequate type, quality and quantity for the execution of the
WORK (including ensuring remains valid) including maintaining and repairing the plant
and equipment, road tax, insurance and providing sufficient spare parts, fuel, fuel oil,
lubricants, other consumables and any tackle normally associated with the equipment
and sufficient contingency for the equipment to ensure work continuity.
• Cost of providing and replacing “small tools” required for trades.
• Cost of providing cranes, crane mats lifting equipment, lifting/spreader beams, slings and
shackles and other ancillaries and sufficient contingency for the equipment to ensure
work continuity. Delivery point: the ONSHORE SUPPORT BASE in Kuryk.
• Cost of materials required for the WORK, unless started to the contrary in the
CONTRACT, including any necessary insurance, packing for transport, transportation up
to the ONSHORE SUPPORT BASE in Kuryk, customs duties and clearances, off loading,
Page 49 of 63
handling and waste (COMPANY supplied materials are separately addressed in the
CONTRACT).
• Cost of consumables including but not limited to nails, wood spreader, ties, stake-brace,
studs, wire clamps, wing nut, plate washer, spacers, polyethylene sheets, waterproof
paper, wet burlap. Hessian cloth, welding electrodes, fluxes, compressed air, oxygen,
and other gases, temporary supporting materials and fastenings, wood, water cleaning
materials, clothes, sponges, degreasants, blasting materials, solvents, brushes, etc.
• Cost of collecting COMPANY supplied materials and equipment after transportation to

either Island D or A including traveling, loading, transporting within the OFFSHORE SITE
of fabrication facility, unloading, storing if required, unpacking, removal of protection used
during transportation, distributing, making good any losses, faults or damages which
occur after CONTRACTOR has taken delivery, handling and fixing in final position.
• CONTRACTOR costs shall include for ensuring that COMPANY SUPPLIED MATERIALS
are utilized in a manner consistent with INTERNATIONAL GOOD OIL FIELD PRACTICE,
to avoid unreasonable wastage and/or depletion of COMPANY’s materials contingency,
CONTRACTOR shall ensure that it notifies COMPANY without delay of any projected or
actual shortfall in COMPANY SUPPLIED MATERIALS, arising from such
CONTRACTOR’s use of material contingency, in order not to jeopardize
CONTRACTOR’s progress of the WORK.
• Cost of storing, protecting, handling, preservation and managing COMPANY and
CONTRACTOR supplied materials, equipment, machinery, prefabricated and fabricated
components to be incorporated into the WORK by the CONTRACTOR, in accordance
with the CONTRACT procedures and specifications.
• Cost of transporting labour, plant and materials to and from the ONSHORE SUPPORT
BASE in Kuryk, and then around the OFFSHORE SITE including travel allowances and
expenses and the traveling time of personnel to and from their temporary
accommodation and the SITE including complying with the COMPANY’s SITE security
regulations and SITE transportation regulations
• Costs of electrical power, lighting – including workface lifting – compressed air and water
for SITE construction and fabrication activities including connections thereto.
• Costs of temporary works including, access roads, hard-standings, hoardings, screens,

dustsheets, fences, bridges, traffic and other diversions, lighting, storm drainage,
maintenance of public and private roads and measures to prevent the pollution of the soil
and any water courses. Maintenance to roads and storage areas shall include where
necessary water sprinklers, dust sweeping, dust suppression, snow and ice removal, and
prompt repairs to potholes or washouts. Temporary vents to the atmosphere shall be
checked by the CONTRACTOR to prevent air NTRACTOR during all phases of the
WORK, as may be required by the CONTRACT.
• Cost for providing pollution.

• Cost for setting out, leveling and marking of the WORK including the use of instruments
and equipment required for the taking of measurements and the like.
• Costs for checking drawing dimensions and any applicable site dimensions and site
levels, including partial works performed by other contractors, prior to commencing work
• Cost of checking by CONTRACTOR for any discrepancies between or within the

CONTRACT specifications and the construction drawings issued by the COMPANY and
liaison with the COMPANY with regard to the resolution of same. The COMPANY will not
Page 50 of 63
be liable in respect of costs incurred by the CONTRACTOR as a result of a failure on the

part of the CONTRACTOR to notify COMPANY on such matters in the timeframe
stipulated in the CONTRACT.
• Cost of undertaking full liability for any COMPANY nominated subcontractor assigned to
or novated to the CONTRACTOR in an identical manner as for the CONTRACTOR’s
SUBCONTRACTORS.
• Cost of government and local taxes, duties, levies, insurances and permits for which the
CONTRACTOR may be liable.
• Cost of working in accordance with any applicable COMPANY Work Permit Procedure
and any and all limitations imposed by SIMOPS.
• Cost of complying with government and local regulations pertaining to the SITE and
payments of fines for breaches found by Regulatory Authorities.
• Cost of quality assurance and quality control and the provision of as-built drawings,
certificates, reports, chemical analysis, test certificates and the like, and other
documentation as required by the CONTRACT or the statutory authorities.
• Cost of implementing “material identification and traceability” for materials supplied

and/or incorporated by the facilities for use by COMPANY and COMPANY appointed
third parties during its inspection of the execution of work at any CONTRACTOR offsite
facilities
• Cost of providing progress and planning reports and other such reports and other such
reports and certificates required by the CONTRACT, and attendance by appropriate
CONTRACTOR’s personnel at meetings required by the CONTRACT or as directed by
COMPANY.
• Cost of interfacing with and working in close proximity with Other Contractors of
COMPANY and re-sequencing CONTRACTOR’s activities, as required, to avoid
disrupting COMPANY’s Other Contractors who may be working on the SITE concurrent
with the CONTRACTOR.
• Cost of interfacing with the Regulatory Authorities and for complying with the
requirements of the Regulatory Authorities including training and examinations of
CONTRACTOR’s personnel to meet Regulatory Authority requirements for supervision of
work (including RoK “Blue Book”)
• Cost of implementing technology / knowledge transfer and Local Content commitments in
accordance with the CONTRACT requirements.
• Cost of testing of materials, welding procedure qualifications, welder qualifications and
work in accordance with the CONTRACT including the provision of necessary testing
equipment and facilities, and the submission to the COMPANY and the Regulatory
Authorities (as applicable) of the appropriate test or calibration certificates. Provision of
samples where required by the CONTRACT.
• Cost of preparation of Welding Procedure Specifications and obtaining COMPANY
approval
• Cost of performing Non Destructive Examination (NDE)
• Cost of collecting up scrap, recoverable and surplus material and delivering same to the
CONTRACTOR’s and/or the COMPANY’s designated storage points
Page 51 of 63
• Cost of promptly making good damages to existing structures, roads, fences and any
other work constructed, fully or partially, by Other Contractors, which are to be retained,
caused by or attributable to the actions or the omissions of the CONTRACTOR
• Cost of making good or reworking any item not executed in accordance with the
CONTRACT
• Cost for protecting, preserving and maintaining the WORK at all stages as required or as
inferred by the CONTRACTOR including the provision of sufficient watching, flood
lighting, general lighting, fire fighting capabilities, general security and weather protection
to avoid damage to the WORK and delay in the execution of the WORK. This cost
includes preservation of COMPANY supplied equipment and material in accordance with
manufacturers’ recommendations and/or as specified in the CONTRACT.
• Cost for the impact on the program and cost of time lost and/or inefficiency due to
inclement weather and for all other periods of non productive time of labour and
construction plant for which the COMPANY is not responsible including mechanical
breakdown of plant and equipment; industrial disputes; and attendance of
CONTRACTOR’s personnel at tool box meetings and induction and training courses,
COMPANY instituted safety meetings, idle time and travel time.
• Cost of increasing the number and/or capacity of CONTRACTOR’s labor and
construction plant as applicable, and/or execution of weekday, weekend or holiday
overtime and shift working where necessary to complete the construction work in
accordance with the current program in the PROJECT SCHEDULE (or as revised from
time to time with COMPANY’s agreement) except where liability for the delay in the
PROJECT SCHEDULE does not lie with CONTRACTOR under the provisions of this
CONTRACT.
• Cost of keeping the SITE clear of rubbish, cleaning up upon completion of the WORK
and at all times removing rubbish and waste material to RoK approved disposal areas
• Cost associated with the incidental demobilization of CONTRACTOR’s personnel and/or

equipment during execution of the WORK for whatever reason including any request by
COMPANY for the replacement of CONTRACTOR’s personnel. Also any other incidental
costs associated with the mobilization of replacement personnel and/or equipment.
• Cost of preparing any necessary field sketches, fabrication drawings, engineering
calculations, crane lift studies and details of work and “red line” mark ups for as built
documentation
• Cost of compilation of mechanical completion dossiers for staged completion of the
WORK as defined by COMPANY.
• Cost of any insurances required to be provided by the CONTRACTOR, whether under
this CONTRACT and/or by government or local laws, regulations or decree
• Costs for preparing and working to CONTRACTOR’s safety plan
• Costs for providing free access to the WORK for COMPANY personnel
• Costs for constructability, accessibility and other studies required to optimize the WORK
and improve the PROJECT SCHEDULE.
Unit rates and percentages included in the Price List are defined in Part 2A “Indirect Costs”.
13.4 DAY-WORK RATES – PREAMBLES
Page 52 of 63
Day-work rates shall be used in case any part of the WORK cannot be performed on the basis
of Unit Rates and there is no possibility to establish new Unit Rates on the basis of existing
ones. In such case, COMPANY will issue an Instruction in order that certain parts of the
WORK are executed on a Day-work basis.
COMPANY will then instruct CONTRACTOR to prepare an estimate of the number of days,
number and type of equipment, category of personnel that are necessary to execute the work.
Prior to CONTRACTOR commencing such work, COMPANY and CONTRACTOR shall agree
on this base estimate.
In addition, COMPANY may request CONTRACTOR for a period after Pre-Commissioning
primarily of any system to provide labor and construction plant and equipment on a “as
required” basis to assist COMPANY generally in connection with the PROJECT and in
particular to provide resources to assist COMPANY during the Commissioning of the
completed system.
Work performed on Day-works (irrespective of the timing thereof) shall be excluded from the
adjustment mechanism for overall remuneration by element for items performed using Unit
Rates.
CONTRACTOR shall prepare his labor/discipline estimate at least two days in advance and
notify the relevant discipline supervisor of the COMPANY on a daily basis of CONTRACTOR
personnel who will be working on a Day-work basis. CONTRACTOR shall further notify the
relevant supervisor of the COMPANY about changes in CONTRACTOR’s personnel, who will
be working on a Day-work basis. The latest updated information shall correctly cross check
with the Daily Labor and the Daily Plant and Equipment Record Sheets.
CONTRACTOR shall submit on a daily basis Daily Record Sheets in duplicate for each activity,
which COMPANY has instructed to be carried out on a Day-work basis.
The Daily Record Sheet shall identify:
• Reference to COMPANY Instruction
• activities being carried out with a full and accurate description including its location
• Name and craft level of each of CONTRACTOR personnel engaged
• Their badges and trade discipline
• Actual hours spent and locations
• Number and accurate description of each type of CONTRACTOR construction plant

and equipment engaged on the WORK in each location
• Actual hours of each equipment
• Quantities of materials used
Daily Record Sheets shall be submitted to the relevant COMPANY Supervisor by 12 (noon) on
the following day in which the WORK has been carried out, even if the WORK is not
completed. COMPANY Supervisor will review, correct if necessary, sign and return the Daily
Record Sheets to CONTRACTOR.
Daily Record Sheets shall be summarized on a Day-works Sheet
The Day-works Sheet shall be priced and extended in accordance with the rates set out in the
CONTRACT and checked, signed and approved by the authorized CONTRACTOR
REPRESENTATIVE prior to submission to the COMPANY. CONTRACTOR shall submit the
overall Day-work Sheet on a weekly basis within two (2) working days of the completion of the
Page 53 of 63
weekly report period (or such as COMPANY may instruct). CONTRACTOR shall submit the
complete and fully priced Day-works Sheet to the COMPANY REPRESENTATIVE for
COMPANY’s counter-signature and approval. CONTRACTOR shall attach to each priced Day-
work Sheet the applicable Daily Record Sheets, previously approved by the relevant
COMPANY Supervisor, together with the applicable originals of the invoices for materials.
Payment of Day-works will only be approved following the submission by CONTRACTOR to
COMPANY of correctly completed, fully priced Day-work Sheets signed by the COMPANY
REPRESENTATIVE.
Although the COMPANY may at times instruct CONTRACTOR labor working on Day-work,
with such instruction conveyed through the CONTRACTOR supervision, CONTRACTOR shall
understand that his responsibilities for his labor, plant and equipment and activities performed
thereby are entirely unchanged. Statutory requirements including the safety of
CONTRACTOR’s labor, plant and equipment, civil and penal liabilities remain at the sole
responsibility of CONTRACTOR.
13.5 DAY-WORKS
A list of personnel and construction plant and equipment is included in Table 5 of the Unit Price
List. CONTRACTOR may add items in the Unit Price List in order to include items of personnel
and construction plant and equipment more appropriate to his intended execution of the scope
of WORK of the CONTRACT.
13.5.1 Classification of Day-works
Day-works carried out either during construction or after the Handover to Commissioning of
each system will fall under the following categories:
• Labor
• Plant / Equipment
• Supply of Materials / Services
13.5.2 Specific Charges for Day-works
• Labor
Rates included in Table 5 are deemed to be inclusive of any overtime or out of work time
working hours, inclusive of Indirect Costs inferred as required in the Sect. 2 hereof. Day-
works shall, on a general basis, be carried out within daytime hours from 6:00 to 18:00 and
up to 7 (seven) days a week. However the Day-works can be carried out at any time
outside daytime hours if COMPANY deems it necessary at the same Day-work rates.
Skilled personnel shall be fluent in English with a minimum of 5 (five) years working
experience in his appropriate trade.
The rates for labor shall include for, but not be limited to, the following:
o Management, supervision (above foreman level) and administration, save where
CONTRACTOR is solely providing Assistance to Commissioning, where COMPANY
and CONTRACTOR shall agree appropriate non direct labor and foremen personnel
payment (i.e. the management, supervision above foreman level and administration
who may be compensated on Day-work)
o Basic salaries (basic wage, contingency allowance, seniority, condition money, piece
work, production bonus and further specially agreed rates, overtime working hours,
national insurance, etc
Page 54 of 63
o Payroll burdens (annual leave, national holidays and weekend holidays, bonuses,
seniority, training board levies, redundancy payments, pensions, insurances in
accordance with the requirements of the CONTRACT and/or the applicable law,
absence due to sickness or accident, absence for study purposes, for workers
meetings, time lost due to inclement weather
o Social and assistance charges (all contributions to pension funds, unemployment
funds, etc)
o Travelling time and expenses between the home base / temporary accommodation
and the ONSHORE SUPPORT BASE and for complying with SITE security, including
entry and exit from the SITE, together with and periodic leave and rotational leave
allowance
o Safety and welfare facilities
o Mobilization and demobilization costs for substitute or replacement personnel
o Any additional subsistence and accommodation expenses
o Protective clothing and environmental protective clothing and safety requirements
o Charges for small tools
o Charges for consumables and minor construction supplies / erection accessories
o CONTRACTOR’s Indirect Costs (in accordance with the CONTRACT parameters)
including CONTRACTOR’s overhead and profit
o All other liabilities and obligations whatsoever as per the CONTRACT and applicable
law.
• Plant and Equipment
Plant and Equipment Rates shall apply to CONTRACTOR’s plant and equipment already
at the OFFSHORE SITE. The rates shall exclude the cost of the drivers, operators and
attendants, which will be priced separately at the appropriate rates inside the Day-work
Rates for Labor.
Payment for plant and equipment on Day-work rates shall be only made for the actual
productive hours worked by the item of plant and equipment. Mobilization / demobilization
of plant and equipment to the ONSHORE SUPPORT BASE is deemed to be included in
the Day-work Rates (i.e. chargeable time commences at the specific Day-works work
location). Transport from the ONSHORE SUPPORT BASE to the OFFSHORE SITE will be
performed by COMPANY.
The rates stated in the Day-works Rates shall be deemed to be applicable to any hours of
the 24 hour day, or any day of the week/month.
Equipment mobilized under an Instruction to carry out Day-works, shall be compensated
at:
o hourly rates for up to 12 hours per day
o daily rates for up to 4 days per week
o weekly rates for up to 18 days per month
The list of plant and equipment is a selection only of construction plants and equipment and is
not meant to be either comprehensive or particular to the CONTRACTOR’s plant and
equipment. Consequently, CONTRACTOR may add to the items in the Price List. Any item not
Page 55 of 63
listed but related to an item in the agreed list shall subsequently deemed to be small tool,
construction supplies and consumables and as such shall be deemed to be included for in the
applicable Day-work Rate.
The Day-work Rates for Plant and Equipment shall include for, but not be limited to, the
following:
o Charges for road tax, insurance (in accordance with the requirements of the
CONTRACT and/or applicable law) fuel, lubricants and consumables
o Maintenance and repair (including those carried out by the operator or driver or
CONTRACTOR’s own fitters or CONTRACTOR’s plant repair and maintenance
organization)
o Any tackle normally associated with the equipment (ropes, pulley blocks, slings, hooks,
etc)
o CONTRACTOR’s Indirect Costs (in accordance with the CONTRACT parameters)
including CONTRACTOR’s overheads and profit
o Spare parts
o All other liabilities and obligations whatsoever as per the CONTRACT and applicable
law.
• Supply of Materials and / or subcontracted services/works
In case of supply of materials and/or services that are not within the CONTRACTOR’s
scope of supply and which are requested by COMPANY, CONTRACTOR shall evaluate
the number of days required and the personnel involved in the supply of these materials
and/or services. Their payment shall be in accordance with the Day-work Rates for
Management, Engineering, Construction and Administration Personnel. CONTRACTOR
shall submit such evaluation to COMPANY REPRESENTATIVE for approval. COMPANY
REPRESENTATIVE will review, correct if necessary, sign and return the evaluation
assessment to CONTRACTOR.
The price of the materials to be supplied by CONTRACTOR, in this case, shall be agreed
by COMPANY prior to issue of the purchase order. Payment for such materials will be
based on the net documented cost (including delivery costs) incurred plus the applicable
mark-up stated below, consistent with the material price agreed with the COMPANY, once
the materials are incorporated into the WORK, in accordance with the CONTRACT
provisions for payment.
The net price of materials shall not include import duties or taxes, and if these are
unavoidably incurred, they will be reimbursed to CONTRACTOR at cost (i.e. without
application of any mark-up).
The following mark-up shall be fully inclusive of all other costs associated with supply of
materials including but not limited to Overhead and Profit:
Mark-up: 15 % (fifteen percent)
In case of services provided by a THIRD PARTY or of works performed by a
Subcontractor, these shall occur only in the event that a variation to the WORK is
instructed by COMPANY which necessitates the use of a specialist lower tier
subcontractor not envisaged at CONTRACT award stage and for which no applicable Unit
Page 56 of 63
rate exist or can be agreed. The price of such services shall be agreed by COMPANY prior
to CONTRACTOR contracting with such THIRD PARTY and the net documented cost plus
the applicable mark-up stated below, consistent with the services price agreed with the
COMPANY, once the services have been performed, shall be paid to CONTRACTOR in
accordance with the CONTRACT provisions for payment. Such services shall be paid as if
such THIRD PARTY was CONTRACTOR’s subcontractor. The above provisions shall not
be applicable to subcontractors whose employment is envisaged at CONTRACT award
stage. Any Day-work carried out by such subcontractors of CONTRACTOR shall be
subject to this procedure and will be paid for the Day-work rates included in the
CONTRACT.
The following mark-up shall be fully inclusive of all other costs associated with supply of
services including but not limited to Overhead and Profit:
Mark-up: 15 % (fifteen percent)
13.5.3 Method of Measurement for Day-works
• Labor
Payment shall only be made for productive hours actually worked by CONTRACTOR’s
labor, in accordance with the authorization mechanism in this document and as recorded
on the relevant Daily Record Sheet and approved by the relevant authorized COMPANY
supervisor.
Foremen shall be paid for in similar manner to the other personnel being paid for at Day-
work rates. The cost of supervision above foreman level, for personnel being paid at Day-
work rates, is deemed to be included in the Unit Rate for Day-works and consequently no
separate payment shall be made for Supervision.
• Plant and Equipment
Payment shall only be made for productive hours actually worked by CONTRACTOR’s
plant and equipment, in accordance with the authorization mechanism in this document
and as recorded on the relevant Daily Record Sheet and approved by the relevant
authorized COMPANY supervisor.
• Miscellaneous Support Services
If instructed by COMPANY, CONTRACTOR shall provide Miscellaneous Support Services
on an ad hoc basis and CONTRACTOR shall be reimbursed for on a net documented cost
basis plus percentage mark-up as defined in Attachment 1 hereto.
The net price of services shall not include import duties or taxes, and if these are
unavoidably incurred, they will be reimbursed to CONTRACTOR at cost.
All CONTRACTOR’s invoices for reimbursement for agreed Miscellaneous Support
Services shall be presented with a certified copy of the original invoice.
Page 57 of 63
13.6 ASSISTANCE TO COMMISSIONING

COMPANY may request CONTRACTOR to provide dedicated services for Assistance to
Commissioning.
In such case, the Day-work Rates quoted by CONTRACTOR shall be reduced by XX% (double
ics percent), i.e. the portion of the Indirect Costs therein contained.
Page 58 of 63
14. MANHOURS FOR EACH ITEM IN THE PRICE LIST

14.1 CONTRACTOR shall state alongside each priced item in the Price List the number of man-
hours that he has allowed for the execution of the work described in the applicable priced item.
The man-hours will be included in the CONTRACT for reference purposes only, to assess
productive factors, but also to ensure that the CONTRACTOR’s supervision levels are in
accordance with the CONTRACT requirements. The sum of the man-hours so listed alongside
each item in the Price List for Direct Work shall be the same as the total number of direct man-
hours shown by the CONTRACTOR in the direct labor histogram to be submitted in Section
9.3 of the Letter of Request for Quotation and the Instructions to Tenderers.
Page 59 of 63
15. PAYMENT RULES

15.1 GENERAL
• All Unit Rate payments made to the CONTRACTOR will be based on the following
rules:
• 0%-95% Up to Mechanical Completion notification by CONTRACTOR (as defined in
Schedule A – terms & Conditions) by monthly progress invoices
• 2.5% At Pre-Commissioning Completion
• 2.5% At COMPANY’s acceptance of completed QA/QC and Project
Documentation for the system (signified by COMPANY issue of the pertinent
MECHANICAL ACCEPTANCE CERTIFICATE to the CONTRACTOR)
COMPANY and CONTRACTOR agree that the sole purpose of the above milestone
payments of 5% is to reimburse CONTRACTOR for completing Pre-Commissioning and
QA/QC and Project Documentation deliverables to COMPANY. PARTIES agree also that
the above milestone payments of 5% shall be used only for its intended purpose and no
other.
• The aforementioned payments shall be subject to 10% retention. In lieu of retention

CONTRACTOR may provide a Bank Guarantee that will be released in accordance with
Articles 22.1 of the Schedule A – Terms & Conditions.
• Final payment for work executed under the CONTRACT shall only be made
when all applicable quality assurance requirements have been complied with and
approved quality assurance documentation, including all as built drawings, have been
submitted by CONTRACTOR and the Regulatory Authorities (as applicable).
• The Indirect Running Costs will be paid to CONTRACTOR based on the

following mechanism: the total of Indirect Running Costs will be divided by the no. of
months of duration of the WORKS as per attached PROJECT EXECUTION PLAN and this
will be the monthly amount that COMPANY will pay to CONTRACTOR. CONTRACTOR to
submit invoice at the end of each month. As for the Indirect Mob / Demob costs, they will
be paid in accordance with the attached Table 7 – Mob / Demob Milestone Payments.
• In addition, COMPANY agrees to grant to CONTRACTOR an Advance

Payment equals to 10% (ten percent) of the estimated CONTRACT PRICE against an
ADVANCE PAYMENT BANK GUARANTEE for the same amount in accordance with
Schedule C2 of the CONTRACT. Such advance payment shall be offset on a monthly
basis throughout the duration of the CONTRACT by reducing each payment by 10%
(which is the advance payment percent out of the estimated total cost) up to the recovery
of the total advance payment.
15.2 PREPARATION OF PAYMENT CERTIFICATE
Refer also to the Contracts Administration Procedure included in Section 10 Schedule F
15.2.1 The COMPANY and the CONTRACTOR shall upon commencement of the CONTRACT agree
a schedule of monthly cut-off dates for the purpose of valuing the Works correctly executed in
accordance with the CONTRACT. The schedule shall take into account any instances where
the SITE/Offices will be closed due to a holiday period and such closures are likely to affect the
submission and/or processing of payment documentation. Agreement of such a schedule will
provide the framework for the CONTRACTOR invoices to be submitted within the stipulated
period.
Page 60 of 63
15.2.2 The CONTRACTOR shall prepare within seven (7) working days of each agreed monthly cut-
off date, a complete and comprehensive financial statement of the WORK executed to the cut
off date, complementing the CONTRACTOR’s monthly report.
15.2.3 The CONTRACTOR shall submit the statement to COMPANY at SITE in one original and two
copies together with an electronic copy in a format agreed with the COMPANY. Pages of the
statement shall be sequentially numbered, signed on each page by the CONTRACTOR and
shall be sectionalized as described below.
15.2.4 The financial statement shall be accompanied by each of the following documents, where
applicable:
• Indirect Costs - A schedule of the facilities provided by the CONTRACTOR in
accordance with lump sum portion of the Price List for Indirect Costs and a contractual evaluation of
same. The schedule shall take the form of a cumulative valuation, such that it will ultimately constitute
the final account of the lump sum portion of Indirect Costs.
• Direct Costs - Detailed measurement sheets and priced billing of work which is the
subject of unit rates. COMPANY computer programmes for the measurement of completed work shall
be used where possible. The actual quantities of work completed shall have been subject to the prior
agreement and signature of the COMPANY REPRESENTATIVE. The measurement and billing shall
take the form of a cumulative valuation, such that it will ultimately constitute the final account of
measured work of the unit rate portion. Progress reports shall state the percentage complete of WORK
for the period and cumulative valuation of the unit rate portion of WORK based on CONTRACTOR’s
estimated bill of quantity quantities where the drawings are issued or COMPANY’s preliminary
quantities for the balance, where such quantities are not yet finalised.
• In respect lump sum portion of the direct cost WORK (if any are agreed between
COMPANY and CONTRACTOR during the duration of the CONTRACT), progress reports shall record
the percentage complete of work in accordance with the COMPANY agreed weighting mechanism.
The CONTRACTOR shall similarly record the progress complete of any COMPANY approved Variation
Order, a copy of the executed front sheet of which should be incorporated in the statement. The
percentage complete shall have been subject to the prior agreement and signature of the COMPANY
REPRESENTATIVE. The CONTRACTOR’s billing shall take the form of a cumulative valuation, such
that it will ultimately constitute the final account of lump sum work (including Variation Orders, as
applicable).
• Day-works costs: A list of Field Instructions and the like issued by COMPANY and the
amounts being claimed for by the CONTRACTOR against each Field Instruction. Each Field Instruction
shall be fully substantiated by a measurement of the work executed, Day-work Sheets or invoices as
applicable. Field Instructions shall be priced in accordance with the Unit Rates wherever possible or as
pre-agreed Lump Sum and by exception using Day-works. Field Instructions shall be listed and
approved as a VARIATION ORDER prior to being submitted for payment.
• Fully complete and priced Day-work Sheets with supporting Record Sheets and original
material invoices. The Record Sheets shall have been previously agreed and signed by COMPANY
REPRESENTATIVE and the Day-work Sheets shall have been previously approved and signed by the
COMPANY REPRESENTATIVE. Day-work Sheets shall refer to a Field Instruction No. issued by
COMPANY. The Day-work billing shall take the form of a cumulative valuation, such that it will
ultimately constitute the final account of reimbursable work of the Day-work portion.
• Original material invoices of any material purchased by the CONTRACTOR on the
instructions in writing of COMPANY (not included in an applicable unit rate). The material invoice shall
refer to a Field Instruction No. issued by COMPANY.
Page 61 of 63
• The valuation of any THIRD PARTY Services provided to the CONTRACTOR (offset) or
by the CONTRACTOR in accordance with PRE.GC.CC.8020. The invoice for the THIRD PARTY
Service shall refer to a Field Instruction No issued by COMPANY.
• Any credits that are due from the CONTRACTOR to the COMPANY or back-charges
from the COMPANY to the CONTRACTOR
15.2.5 Each of the items stated in 6.4 shall be separately totaled by the CONTRACTOR and the totals
of each carried to a statement summary. Each statement submission shall bear the
CONTRACTOR’s full title and address, place of registration and be serially numbered and
dated, and refer to both the Contract No. and the time period for which the submission is being
made, in accordance with the provisions of the CONTRACT. COMPANY will review the
CONTRACTOR’s statement and determine the amount which in the opinion of the COMPANY
is due from the COMPANY to the CONTRACTOR, making amendments where required to the
statement. The COMPANY will return such amended statement (as applicable) to the
CONTRACTOR, for the CONTRACTOR to issue, without delay, a credit note to the
COMPANY, reflecting the COMPANY’s notified valuation position, together with an amended
CONTRACTOR period/cumulative invoice, in order to regularize payment
COMPANY will prepare a Payment Certificate recording the amount which in the opinion of the
COMPANY is due from the COMPANY to the CONTRACTOR. The Payment Certificate shall
record the gross value of work completed to the cut off date, the amount of retention withheld,
the value of previous payments and the net amount due to the CONTRACTOR for the current
period, allowing for any back-charge. The Payment Certificate shall be signed by the
CONTRACTOR and COMPANY. The statement and the signed Payment Certificate shall be
presented together with the CONTRACTOR’s signed invoice, in the same amount as the
Payment Certificate, to the COMPANY REPRESENTATIVE for forwarding to COMPANY’S
Accounts Department.
15.2.6 Failure to observe the above requirements may lead to delays in agreement of the amount of
the statement, issue of the signed Payment Certificate, and processing of the
CONTRACTOR's invoice and credit note, and invoice payment by the COMPANY.
Page 62 of 63
PRICE TABLES
Table 0 GRAND TOTAL
Table 1 INDIRECT COSTS
Table 2 DIRECT COSTS – TRAIN 2 PIPE-RACKS & MODULES
Table 3 DIRECT COSTS – RISER ISLAND
Table 4 OPTIONAL WORKS – ISLAND A
Table 5 DAY-WORK RATES
Table 6 SUMMARY OF PROVISIONAL ITEMS
Table 7 MOB / DEMOB MILESTONE PAYMENTS
Page 63 of 63

2009-0363 - Schedule B - 19.03.2010

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2009-0363 - Schedule B - 19.03.2010

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Kashagan Field Development Experimental Programme

Contract No: 2009-0363

Kashagan Field Development

CONTRACT No. 2009-0363

HOOK-UP, PRE-COMMISSIONING & COMMISSIONING ASSISTANCE

4. CIVIL WORKS (NOT USED)

7. PIPING WORKS & VALVES

9. ELECTRICAL - INSTRUMENTATION - TELECOM

13. DAY-WORK PRICES

14. MANHOURS FOR EACH ITEM IN THE PRICE LIST

Att. 1 2C-PRE-GC-CC-8012 Preambles to Charges included in the Prices and Method of

Att. 2 2D-PRE-GC-CC-8010 Preambles to Charges included in the Prices and Method of

• Train 2 Pipe-racks and Modules

• Riser Island Pipe-racks and Flare

• Table 1 Price List for Indirect Costs

• Mobilization and Demobilization will be reimbursed to CONTRACTOR on a lump sum

• Running Costs will be paid in equal installments starting from completion of

2.3 INDIRECT COSTS - DEFINITIONS

• Cost of checking by CONTRACTOR for any discrepancies between or within the

2.5 INDIRECT COSTS - ADJUSTMENT MECHANISM

• Part 2A Price List for Civil Works

• Part 2B Price List for Scaffolding Works

• Part 2C Price List for Structural Steel Works

• Part 2D Price List for Piping Works

• Part 2E Valves Installation Works

• Part 2F Price List for Mechanical Works

• Part 2G Price List for Electrical Works

• Part 2I Price List for Instrumentation & Telecom Works

• Part 2J Price List for Painting Works

• Part 2K Price List for Insulation Works

• Part 2L Price List for Passive Fire Proofing Works

• Rates for the items of work to be undertaken by CONTRACTOR as a consequence of a

Construction” (AFC) documents issued by COMPANY: CONTRACTOR shall always seek

• Cost of materials defined as CONTRACTOR supplies by an instruction from COMPANY,

• Costs of temporary works including hard-standings, hoardings, screens, dustsheets,

• Cost associated with the incidental demobilization of CONTRACTOR’s personnel and/or

• Charges for preparation of the sub-grade by stepped formation levels, where

• Charges for of mass concrete, coloring and ducting material

• Charges for preparation of the sub-grade at the fencing base

• Electrical, telecommunications, instrument and piping supports

• a pipe support is defined as any single configuration of steel members welded,

7. PIPING WORKS & VALVES

• Each Unit Price Table gives specific charges excluded

• Each Unit Price Table gives specific changes included

• Erection of fabricated pipe-work including but not limited to handling, cutting,

• Trial assembly of pipe-work if deemed necessary and multiple handling arising

• Internal and external cleaning of pipe-work

• the work required to complete the installation of small bore pipe-work

• installation of in line instruments such as PD meters and Turbine meters

• installation of pipe-work and spools, valves, strainers, filters, in line

• fittings and flanges including handling in any location is to be included in

• Cleaning and preparation of pipe, cutting to length, tapering, beveling,

• In circumstances where a reinforcing/ compensating plate is required the

• Straight length of pipes in excess of 6 meters will be based on a weld

7.8 BOLTED JOINTS

• Where a bolted joint involves the installation of spacers, a spectacle blind, an

• Pressurization and execution of pipe-work testing

• Hydrostatic, service or pneumatic testing of pipe-work is measured in linear meters by

• fittings and flanges including handling in any location is to be included in the

8.3 VERTICAL EQUIPMENT

• installation of platforms, stairs, handrails and ladders supplied by equipment

or bolted at site e.g. vessels, columns, reactors, accumulators, heat exchangers,