CONTRACTFOR10. VARIATIONSThere shal

CONTRACT

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10. VARIATIONS
There shall be no departure from these Specifications unless agreed in writing by the Owners or its authorised Representatives and the Contractor. The Owners have the right during the performance of this work to make alterations in these Specifications, including deletions, providing such alterations or deletions are taken in hand before the particular work requiring changing is commenced.

Any change, alteration and/or modification in the original specification or any additional work including additional costs and time extension must be approved and/or ordered in writing by a duly authorised representative of the Owner. No extension of time, nor additional costs will be allowed unless it is mutually agreed in writing by the Owner and the Contractor that the work can not be concurrently carried out with the other work, or is not included in the Owner’s Scope of Works and Specifications.

As early as possible but within 10 (ten) days after Delivery Day, the Contractor shall finish investigation of all repair items required by the Contract and determine and inform the Owner in writing all additional works, modifications to the Owner’s Specifications and Scope of Works.

No extra compensation or added time for any additions or alterations will be allowed unless there shall be a written order from the Owner or its authorized Representatives for such additions or alterations before same were commenced. Upon completion of the work, the cost of any additions, repairs or alterations, properly authorized as indicated above, shall be approved, using contracted unit prices where they exist as stated in or by negotiation based on time and material, where they do not.

No overtime shall be worked for the Owner's account unless the Owner's Representative shall approve, in writing the items to be worked on, the maximum number of hours and the department authorised to perform overtime work.

Wherein the Specifications refer to certain work to be accomplished, and it is decided by the Owner's Representative to carry out additional work of the same nature where similar conditions apply, the cost of the extra work item shall be based on the unit prices as defined in this Contract with appendices. In addition, wherein the Specifications refer to one unit to be repaired, and upon investigation, it is determined that a second (or more) duplicate unit(s) require similar repairs, the price quoted for the first unit shall apply to each additional unit. The cost of the additional unit(s) shall take into consideration the cost of removals and replacements that are common to the first unit. Likewise, where a lesser number of unit are dealt with than is stated in any Specification, the cost shall be reduced proportionately to the unit prices as defined in this Contract.

Wherein the Specifications contain instructions relative to the application of a product(s) not manufactured by the original makers, and where such specifications may differ with the recommendations and instructions of the manufacturer, it shall be the prerogative of the Owner to decide and specify to the Shipyard the procedure to be followed should any discrepancy be noted after the award of the contract.

In case any unit price of any item of the Work is not agreed or mentioned in the Contractor’s current tariff, average price/rate of the same item quoted by at least 03 (three) shipyards in South East Asia shall be applied, subject to the Owner’s approval.
11. TESTS

In order to verify the quality of the Work being done as well as to gain the certificates of Classification Society, the Contractor is to carry out all necessary tests and checking according to a mutually agreed program with the participation of the Owner’s Representatives and Classification Society surveyor.

If while testing, any defects are revealed, the Contractor is to eliminate them without any delay and at his own costs and carry out the test again if necessary without an extension of the agreed Contract duration time.

On successful completion of the final tests (trials) to the satisfaction of the Owner’s Representatives and Classification Society surveyors, the Owner and the Contractor are to sign the Acceptance Protocol for Re-delivery stating the Vessel has been successfully repaired as per the Owner’s requirements.
12. DELAY IN WORK SCHEDULE

It is mutually agreed that if the Work contracted for herein is not completed within the Work Duration specified in Article 7 herein, the Contractor shall, for the non-completion of the Contract, pay as liquidated damage for every whole calendar day
(fraction thereof being calculated proportionally) as below:
- For the two initial consecutive days: N/A
- For each following day: 30,000 USD per day (US Dollar thirty thousand only)
The Owner shall not pay any costs and expenses related to the extra stay of the Vessel at the Contractor’s premises due to such delay (dock hire fee, wharfage fee etc…)
13. TERMINATION
Contract may be terminated without any liability at sole election of Owners if Contractor, due to workload or other reasons, is unable to commence work on the Vessel within 03 (three) days of Vessel's arrival at the Contractor's Shipyard unless mutually agreed otherwise by the Contractor and Owner.
14. GUARANTEES
The Contractor shall be responsible throughout the guarantee period (as defined below) for the quality of the repair and the reliability of the materials used in the repair. The Certificate of Guarantee shall be issued by the Contractor to the Owner before signing the Acceptance Protocol for Re-delivery

In the event that during the guarantee period, defect is discovered through no fault of the Owner, the Contractor shall be obliged to immediately make good the defect at his own account or compensate expenses for repair executed by the Owner if the Contractor fails to eliminate such defect within a reasonable time.

The guarantee period shall be 06 (six) months from the date of Acceptance Protocol for Re-delivery.
15. INDEMNITIY AND LIABILITIES
From the time the Vessel is delivered to the Contractor and until she is re-delivered to the Owner upon satisfactory completion of the work, it shall be the responsibility of the Contractor to comply with all specifications, requirements, regulations and laws of the Federal, State and Local governments and all applicable regulatory and Classification bodies that apply to safety and all repairs, renewals, alternations, use of fire, burning, welding, riveting and other such methods and procedures used in carrying out such work, whether or not specifically stated in the Specifications of the Owner.

During the time the Vessel is in the Contractor's Shipyard and under the Contractor's time as herein specified, the Vessel shall be the responsibility of the Contractor .

Without limiting, by the provisions hereof, any liability of the Contractor as to amount, howsoever arising, it is understood that from the delivery of the Vessel to the Contractor until the Vessel is redelivered to the Owner after satisfactorily completing the work, or while the work hereunder is being performed, the Contractor shall be responsible for, and make good, at the Contractor's expense any and all losses, accidents, injuries and/or damage of any nature to the Vessel and/or the Vessel's equipment and/or its cargo and/or its movable stores occurring through any act or default or neglect of the Contractor and/or his subcontractor’s and Contractor shall indemnify and/or hold Owner harmless, for all liability under any local, State or Federal oil pollution or water quality act.

The Contractor will indemnify the Owner, and hold him harmless against any and all losses and claims howsoever caused, whilst the Vessel is under the Contractor’s control. The Contractor will hold adequate insurance in accordance with the labour law of Viet Nam

The Contractor shall as well indemnify and hold the Owner harmless against all losses due to the delay of work schedule as per stipulated in Article 12 herein.