CONTRACT/ SUB-CONTRACT AGREEMENT

<NAME OF THE PROJECT AND PACKAGE DETAILS>

This Contract Agreement (the "Agreement") is executed on this day of < DATE >
BETWEEN

M/s. <CLIENT NAME>, CR No. <NO>, <CLIENT ADDRESS> (The First

Party hereinafter called as <ABBREVIATION>)

AND

M/s. <CONTRACTOR/SC>, CR No. <NO>, <CONTRACTOR ADDRESS>

(The Second Party hereinafter called as <ABBREVIATION>)

Ref:

<CONTRACTOR> quote ref, < QUOTATION REFERENCE > dated <DATE>

Whereas <CLIENT> has awarded this contract to <CONTRACTOR> for supply and
installation of <CONTRACT SCOPE OF WORK> as scheduled in the Annexure-I including
the drawing & specifications based on which <CONTRACTOR> has submitted the final
revised offer ref. <QUOTE REFERENCE> dated <DATE>, for the project <PROJECT
NAME>, Muscat, Sultanate of Oman for the Contract/ Contract price as defined in this
agreement.
Note that the Contract Agreement being issued for the <SCOPE OF WORK> are detailed
in Annexure-I as applicable under the CONDITION OF CONTRACT for <SCOPE DETAILS>
wherein your scope is deemed to include for the provision of labour, plant, material &
supervision for the said works.
Notwithstanding the terms & conditions mentioned in your afore-said offer and provided that
you accept the terms of this letter, we instruct you to proceed and <SCOPE OF WORK> based
on the agreed delivery dates.
Your Offer is accepted subject to the following conditions which also shall take an integral part
of the purchase order and will supersede the conditions stipulated in your offer:
1. Scope of Contract Work
Supply, supervision, co-ordination & installation of all <SCOPE OF WORK DETAIL> to
<AREAS OF WORK/PACKAGE DETAILS> are based on the drawings and specification
listed in Annexure-I.
All details, sections, patterns and finishes for the decorative metal and steel frames to the units
shall be approved on <CLIENT> shop drawings based on the details provided by
<CONTRACTOR>. The supply should be complete with all accessories required for complete
installation to suit the site conditions. All necessary test and third party test, if required, as
detailed in the specification shall be a part of <CONTRACTOR> scope.
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All <SCOPE DETAIL IN PARTICULAR, i.e- pattern, finishes works> shall be as per approved
<CLIENT> shop drawings for details, sections, finishes and thickness, and in technical
compliance to suit final works, substantiated if required. Finishes shall be as per approved
control samples proposed by <CONTRACTOR>.
The scope of works for this Contract/ Contract is to <SCOPE DETAILS> to <PROJECT
TITLE> as per the Drawings & Specifications (Annexure-I), Bill of Quantities (Annexure-II),
Program and Method of Statement (Annexure-III).
<CONTRACTOR/CONTRACTOR> shall perform all associated works for supply and
installation as briefed below in the special conditions but not limited to the following.
1.1 The contract is a <Lump sum Contract/ Type of Procurement> and hence all components
and sizes as required for the functional and aesthetic utilization is deemed to be included.
The price be allowed based on the measurement and descriptions taken from approved shop
Drawings and Specification, in which the specifications then the drawings take precedence
over the BOQ.{ Reference Clause xx: Sultanate of Oman. (1981) Standard documents for
building and civil engineering work. 3rd Edition}
1.2 Any sundry items required with the main items which have not been described separately
should be included in the main items. In addition the <supply and installation> works
<CONTRACTOR> shall also perform other activities that are required as part of interfacing
such as the supports etc.
1.3 <CONTRACTOR> shall be responsible for carting the materials from the designated
location of <CLIENT> store at site to the respective work front areas.
1.4 <CONTRACTOR> may use the facility of vertical shifting by crane (from unloading area
to work floor at specified point of access), if the same is provided by <CLIENT> facilitated
along with the Contractor, but with no liability whatsoever and commitments from
<CLIENT> till the crane facility is made available at site. In case, if the <Client/Main
Contractor> demobilizes the crane facilities, <CONTRACTOR/CONTRACTOR> at his
own cost needs to organize and arrange required shifting.
1.5 It becomes incumbent on <CONTRACTOR/SC> to get the preparation of Installation IR
and approval from Engineer with <CLIENT> facilitating the process & procedures.
1.6 All necessary supervision & co-ordination required during detailing, production, coordination with other trades and <CLIENT> and during installation works shall be an
integral part of your scope.

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1.7 <CONTRACTOR/SC> shall deploy adequate technical qualified supervisors full time on
site to monitor the progress of works, performance and quality of the Contract/Contract
works.
1.8 <CONTRACTOR/SC> shall also mobilize all necessary equipment, skilled and unskilled
manpower, tools, safety equipments (PPE) that is required for the installation works.
1.9 <CONTRACTOR> shall allow for their own food, accommodation, to and fro site
transportation for their workers and staffs & any other associated costs until completion of
their Contracted works.
2. Contract Price
Enclosed detail Bill of Quantity indicating Lump Sum price for various types of elements that
are to be used <SCOPE details> works totalling to RO XXXXXX/- (to be agreed between
<CLIENT> and <CONTRACTOR>).
The sub-contract sum shall be fixed for the entire contract period and claim on fluctuations will
be allowed in the sub-contract.
Any variation to the scope of work either omission or addition shall have to notify prior to take
up any such works by <CONTRACTOR> and the same shall be issued by <CLIENT> by
writing prior to commencement.
The above prices are subject to the following:
2.1 The Quantities indicated in the BOQ are tentative and the actual quantity shall be measured
based on the IFC/ approved shop drawings.
2.2 If <CLIENT> find that the progress achieved by <CONTRACTOR> is not as per the agreed
schedule, then <CLIENT> may at its own discretion award some or the part or the complete
Contracted works of <CONTRACTOR> to another Contractor(s) to mitigate the delays of
the works without any liability to <CLIENT>.
2.3 The time and cost impact arising out of such action by <CLIENT> will be back charged to
<CONTRACTOR>.
3. Facilities at site
3.1. <CLIENT> will obtain required passes and permits for the <CONTRACTOR>s workmen
for entering to the site premises, subject to <CONTRACTOR> providing us the necessary
particulars/ documents needed as detailed in clause no 12 in a timely manner.
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3.2. Power required for the works shall be provided by <CLIENT> at one designated location.
Any further distribution shall be in <CONTRACTOR>s scope of works.
3.3. Water required for the works shall be provided by <CLIENT> at one designated location.
Any further distribution shall be in <CONTRACTOR>s scope of works.
3.4. Supply only of Scaffolding materials will be provided by <CLIENT> at designated location
at site. <CONTRACTOR> shall deploy their own workers for shifting & erection of
scaffold at the respective work areas.
3.5. <CLIENT> does not have adequate office space on site, as there being no such facility
from our client, this cannot be provided.
3.6. <CONTRACTOR> shall take all measures to protect their works till project handover.
3.7. Transport, Unloading of materials, shifting of materials from the specified point of access
to the respective locations, handling, scaffolding etc. will be by <CONTRACTOR>.
3.8. Storage space at client designated areas shall be provided for on-site storage of materials.
4. Programme and Completion of Work
<CONTRACTOR> to provide works program, considering on clients completion requirement,
and in line with progressive/ area wise site completion.
<CONTRACTOR> shall commence the site works with immediate effect and shall complete
the whole works including finishing works based on <CLIENT>s baseline program dates
<CONTACT DATES TO COMMENCE AND COMPLETION>
5. Payment Terms
<CLIENT> hereby agrees to pay <CONTRACTOR> for the aforesaid works as per the
followings terms:
5.1. Advance payment <AS PER THE STANDARD CAN BE MODIFIED>
10% of the Contract value against the advance payment bond.
5.2. Progress Payment
<SCONTRACTOR> shall submit the invoice based on the progress of works on or before 27th
of each month and up to 80% of the works done will be certified and paid within 60 days from
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<NAME OF THE PROJECT AND PACKAGE DETAILS>

the date of certified invoice. The Invoice submitted by <CONTRACTOR> shall have all
supporting documents required for certification by <CLIENT>.
5.3. Retention
10% Retention will be withheld for each running bill up to the final bill. 5% of the retention
will be released upon successful taking over certificate and balance 5% will be paid after the
Defects Liability period of one year from the date of taking over certificate
6. Performance and Advance Payment Bonds
The contractor/ sub-contractor shall provide a performance bond, in the form of an
unconditional & irrevocable guarantee from an approved bank in Oman, for 5% of the contract
price for the due performance of the Contract works which shall be valid till the end of defect
liability period.
7. Defects Liability Period
Defects liability period shall be 12 months from the date of Taking over Certificate by client.
Any defects on the items supplied during this period will be attended and made-good/ re-placed
based on the defects at free of cost.
8. Warranty
Provide complete system warranty in which Manufacturer, Installer and Contractor are jointly
and severally responsible and agree to repair or replace without limitations, all or part of the
interior architectural metal works which fails in materials or workmanship within the specified
warranty period. This warranty shall be in addition to and not a limitation of other rights the
owner may have against the contractor under the contract document.
8.1. Warranty Period shall be three (10) years after the date of substantial completion
9. Drawings
Structural Works Works may proceed based on <CONTRACTOR> structural design
drawings (as approved) and calculations submitted, if any.
Finishes and Decorative woks Works to commence as per <CLIENT> shop drawings. For
any technical issues related to above in terms of metal work incorporation to be highlighted in
writing to <CLIENT> with possible solutions and agreed upon for incorporation of changes to
drawing.
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<NAME OF THE PROJECT AND PACKAGE DETAILS>

10. Samples
Structural Works Samples as deemed necessary by client, based on approved
<CONTRACTOR> structural/ design drawings to be provided for approval.
Finishes & Decorative Works Sample of each of the applicable finishes to be submitted, in
line the specified finishes in the contract, for approvals. Also to submit samples of any
decorative features such as screens, as deemed necessary and instructed by <CLIENT> or our
client.
11. Resources
<CONTRACTOR> shall arrange adequate resources including manpower at each and every
stage of installation in a timely manner as per <CLIENT>s instructions, adhere to the time
schedule of <CLIENT>. <CLIENT> will monitor the work progress and in case of any delay
in the agreed schedule, <CONTRACTOR> should come up with a recovery schedule within 5
working days, failure on <CONTRACTOR> would result <CLIENT> in penalties as stated
under clause 2 &12 as applicable.
12. Penalties
If there occur any delay in completion of the Contract works, <CONTRACTOR> will be levied
at the rate of 0.1% of the Contract Price per day up to a maximum of 10% of the total Contract
Value.
Any fines or penalty imposed by the Client arising due to any Non-Conformity Report (NCR),
damages by <CONTRACTOR> on to other agency works etc. will be back charged to
<CONTRACTOR> by <CLIENT>.
<CONTRACTOR> shall deploy workers with genuine documents in the specified construction
trade resident cards. In case of penalty imposed by any authority on account of nongenuineness
of resident card, then all associated costs and liability related to be borne by
<CONTRACTOR>. <CONTRACTOR> will use the material provided by <CLIENT>
carefully and damages caused due to bad workmanship or wilful damages will be charged to
<CONTRACTOR>. .{ Reference Clause xx: Sultanate of Oman. (1981) Standard documents
for building and civil engineering work. 3rd Edition}
13. Sub-contracting
<CONTRACTOR> shall not SubContract any part of the works under this Agreement without
prior written consent of <CLIENT>. Such consent shall not relieve <CONTRACTOR> of any
its obligations here under or create any contractual relations between <CLIENT> and the Sub
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<NAME OF THE PROJECT AND PACKAGE DETAILS>
Contractor. .{ Reference Clause xx: Sultanate of Oman. (1981) Standard documents for
building and civil engineering work. 3rd Edition}
14. Quality
<CONTRACTOR> shall execute the works as per the project specifications and the Quality
system requirement of the project stakeholders. <CONTRACTOR> shall follow <CLIENT>s
inspection test plan before commencement of any activity for approval. <CONTRACTOR>
shall allow <CLIENT>s quality personnel to audit <CONTRACTOR>s quality system.
15. Indemnity
<CONTRACTOR> shall hold <CLIENT> harmless and reimburse all cost arising from any
liabilities or obligations imposed upon <CLIENT> resulting directly or indirectly from
<CONTRACTOR> or its employees, agents activities under this agreement. .{ Reference
Clause xx: Sultanate of Oman. (1981) Standard documents for building and civil engineering
work. 3rd Edition}
16. Insurance
<CONTRACTOR> agrees to obtain insurance to protect against claims for loss, death or injury
to third party or damage to third parties equipment, material and protect <CLIENT> from all
other claims. <CONTRACTOR> shall arrange to insure all your personnel, workmen, tools &
tackles, vehicles and equipment at your own cost. .{ Reference Clause xx: Sultanate of Oman.
(1981) Standard documents for building and civil engineering work. 3rd Edition}
17. Taxes and Duties
The agreed price is inclusive of all duties / taxes and levies applicable in Sultanate of Oman.
18. Safety Rules and Regulations
<CONTRACTOR> shall follow safe working practices and all <CONTRACTOR>s personnel
should follow the safety procedures and guidelines stipulated by <CLIENT>s representatives
from time to time.
19. House Keeping
<CONTRACTOR> will maintain the work area clean and tidy with their dedicated workmen
on a daily basis.

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20. Termination
<CLIENT> has the rights to terminate the awarded Contract works with immediate effect, if
<CONTRACTOR> the quality of the contractor does not comply with the requirements of
the <CLIENT>, works are not in line with the project specific requirement, abandons the
Contract works or plainly demonstrates the intention not to continue performance of his
obligations under the Contract agreement. In that event, <CLIENT> may engage other
Contractor to carry out the balance Contract works and recover the cost incurred to complete
the balance works. .{ Reference Clause xx: Sultanate of Oman. (1981) Standard documents for
building and civil engineering work. 3rd Edition}
21. Force Majeure
Any delay or impediment in the fulfilment of its obligation by either party by reason of force
majeure, such as acts of nature like floods, earthquake, epidemics, acts of war, civil war and
transport strike shall constitute excusable delay and no compensation or idle time payment shall
be made for such delays, but extension of time for such period shall be granted by <CLIENT>
after examining the merit of the case for such each individual happenings. .{ Reference Clause
xx: Sultanate of Oman. (1981) Standard documents for building and civil engineering work. 3rd
Edition}
22. Governing Law
The governing law shall be as per the prevailing rules (Royal Decree) in Sultanate of Oman.{
Reference Clause xx: Sultanate of Oman. (1981) Standard documents for building and civil
engineering work. 3rd Edition}
23. Disputes and Arbitration
All disputes, disagreement and difference of opinion of any nature arising under this Subcontract agreement shall be resolved amicably through mutual discussions.
In the event of any dispute or difference, the Parties will in the first instance attempt to promptly
resolve the dispute through bona fide negotiations.
Failing resolution through bona fide negotiations within 30 working days, any dispute arising
out of or in connection with this contract, including any questions regarding its existence,
validity or termination, shall be referred to and finally resolved by arbitration under the
Arbitration Rules of Sultanate of Oman with a sole arbitrator, for which rules are deemed to be
incorporated by reference to this clause and Clause 22. The seat, or legal place, of arbitration
shall be in Sultanate Oman. The language to be used in the arbitration shall be English. .{
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Reference Clause xx: Sultanate of Oman. (1981) Standard documents for building and civil
engineering work. 3rd Edition}
24. Acceptance Statement
Please sign and return the original acceptance statement attached to this letter indicating your
full and unconditional acceptance to the terms and conditions incorporated herein. The
Contractor should provide evidence that the signatory to the acceptance statement has been
authorized by the Contractor to sign on its behalf and such evidence should be attached to the
signed acceptance statement.
Until such time as a formal Contract Agreement is executed, this Letter of Intent and Notice to
Proceed shall constitute a binding contract between the parties.
Yours faithfully,
for <CLIENT COMPANY NAME>

AUTHORIZED SIGNATORY
POSITION HELD
\VERIFED BY
Encl: a/a

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<NAME OF THE PROJECT AND PACKAGE DETAILS>

LETTER OF INTENT AND NOTICE TO PROCEED

We, <CONTRACTOR> hereby acknowledge receipt of the CONTRACT AGREEMNT and
Notice to Proceed ref: <LETTER REFERENCE> dated <DATE OF ISSUE>and confirm our
full and unconditional acceptance to the terms and conditions prescribed therein.
For and on Behalf of:

CONTRACTOR/

Name:

----------------------------------------

Signature:

----------------------------------------

Date:

----------------------------------------

Company Stamp:

----------------------------------------

For and on Behalf of:

CLIENT

Name:

----------------------------------------

Signature:

----------------------------------------

Date:

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Company Stamp:

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