- Warranty bond shall be delivered together with VAT invoice and other required document for the final paymentArticle 11. Storage at site, transportation and delivery:Unless otherwise stated in the contract:(a) the Contractor shall give the Employer not less than 45 days' notice of the date on which any equipments or a major item of other equipments will be delivered to the Site;(b) the Contractor shall be (without requesting any extra cost) responsible for storing, taking care for equipment, indemnify and hold the Employer harmless against and from all damages, losses and expenses resulting from the storage in case of delayed delivery/installation schedule by the Employer. This sub-article 11.(b) shall not remove the Contractor from any obligations under this Contract;(c) the Contractor shall be responsible for storing, packing, loading, unloading for free at site and to the site in the way as required in the Contract, even including the Employer’s imported products from the Owner’s store to the jobsite for erection work. (d) the Contractor shall take care for equipment, indemnify and hold the Employer harmless against and from all damages, losses and expenses (including legal fees and expenses) resulting from the storage and transport of equipment.Article 12. Insurance12.1 The Contractor submits all kinds of insurance in copy file to the Employer within required time as in the contract. The insurance validity is at least from the day of working start in the contract (if starting before contract time, the Contractor shall use the actual date for starting day of insurance validity) until the date of work completion, the Contractor’s machineries and workers leaving. If the Contractor buy a general insurance for all kinds of machinery, equipment, tool, instrument, etc., its validity shall cover all machineries, equipment, tools, instrument from the date of delivery to site.12.2 Construction equipment insurance: The Contractor shall buy the machinery and equipment loss insurance for his all construction equipment and machinery.12.3 Health insurance and employer’s liability insurance: The Contractor shall buy a health and employer’s liability insurance for his all recruited employees in this project, moreover, request his subcontractor/supplier to buy the same insurance.12.4 The third party liability insurance: 12.4.1 The Contractor shall buy the third party liability insurance for his car (crane/truck) in site.12.4.2 Insurance method in the case of non-compliance with the contract: (1) Because of any reason, the party who bear insurance responsibility has not bought the insurance or has not extended the insurance validity for the other party, the other party shall buy/extend it by themselves and the cost of this shall be paid by the party who bear insurance responsibility. (2) Because of any reason, the party who bear insurance responsibility does not buy the insurance, causing the beneficial Owner cannot receive the compensation money, the party shall pay the equal amount to the beneficial Owner.12.5 Erection all risks insurance: The erection all risks insurance for the project is bought by the Contractor.The Contractor shall obtain certificates of insurance evidencing such coverage and provide the Employer with such certificates prior to any work commencement.12.6 If the insurance is covered by the Contractor, unless otherwise specified, All risks, war, S.R.C.C. (strikes, riots and civil commotions), including unloading port to the site warehouse and I.O.P. (Institute of Physics), shall be covered by the Contractor.Article 13. Commissioning13.1 Commissioning13.1.1 The Contractor’s notice in writing of expected plan for commissioning is sent to the Employer representative before 40 days. All equipment is ready for commissioning, the Employer and the Owner shall support to carry out but the Contractor shall play a main role of commissioning. After commissioning, the parties sign in the commissioning minutes. Any risk happens during commissioning belongs to the Contractor’s responsibility.13.1.2 The spare parts for commissioning are in the Contractor’s scope.13.1.3 The Contractor shall supply the consumption material and spare parts for commissioning. During commissioning, if consumption material and spare parts are not enough, the Employer shall support to supply, then the Contractor shall purchase later to return the Employer or the cost of additional supply shall be paid by the Contractor.13.2 Commissioning inspection
13.2.1 Before commissioning 24 hours, the Contractor should notice the plan in writing to the Employer.
13.2.2 After commissioning 24 hours, the equipment meets the requirement of the contract, the Employer shall sign to confirm in commissioning minutes.
Article 13. Project Final Acceptance Certificate
13.1 Final acceptance certificate (FAC): After the equipment start-up, the Final acceptance certificate shall be issued within 30 days.
13.2 Warranty period: 24 (twenty four) months after FAC.
13.3 Shortcoming repairing cost and cleaning cost belong to the Contractor’s scope.
Article 14. Inspection, Test and Consultant
14.1 The Employer’s inspector shall at all reasonable time:
(a) Have full permissions, safety equipment and access to the Factory.
(b) Give the instruction and consultancy to the Contractor during the Work performance and defect remedying at any time.
The Contractor shall comply the consultant instruction.
14.2 The Employer’s inspector shall have the right any time to inspect and/or to test the Equipment to confirm their conformity to the Contract specifications at no extra cost to the Employer. Technical Specifications shall specify what inspections and tests the Employer requires and where they are to be conducted.
14.3 Should any inspected or tested Equipment fail to conform to the Specifications, the Employer may reject such Equipment, and the Contractor shall either promptly replace the rejected one or make alterations necessary to meet specification requirements with free of cost for the Employer.
14.4 Nothing in Article 14.1, 14.2 and 14.3 shall in any way release the Contractor from any warranty or other obligations under this Contract.
14.5 Completion inspection report and document submission: The Contractor submit completion inspection proposal when enough following condition:
(a) Beside some approved items by the Employer and the Owner to repair within maintenance period, all work finished and met requirements, including all kinds of test, unload operation, commissioning.
(b) Submitted fully completion document as required in the contract.
(c) Listed shortcoming repair items and cleaning work in maintenance period with corresponded plan.
14.6 After receipt of the completion inspection certificate from the Employer and Owner, the Contractor proposes to issue the project taking-over certificate and final payment request.
14.7 Inspection tools and adjustment measurements shall be prepared by the Contractor.
14.8 The Contractor shall send the maker's inspection certificate to the Employer on or before the scheduled shipment date, but the Contractor shall be still responsible to indemnify the Employer for all and any variances and/or defects found after delivery.
Article 15: Quality Assurance
The Contractor shall supply a quality assurance system to demonstrate compliance with the requirements of the Contract. The system shall be in accordance with the details stated in the Contract. The Employer shall be entitled to audit any aspect of the system.
Details of all procedures and compliance documents shall be submitted to the Employer for approval before each execution stage is commenced. When any document of a technical nature is issued to the Employer, evidence of the prior approval by the Contractor himself shall be apparent on the document itself.
Compliance with the quality assurance system shall not relieve the Contractor of any of his duties, obligations or responsibilities under the Contract.
The Contractor guarantees that equipment's/materials furnished hereunder shall conform to this order and shall be brand new and of good workmanship and quality, free of any defects. If any defect, non-conformity or shortage is found by the Employer, the Contractor shall, upon receipt of the Employer's notice, immediately and within the period stipulated by the Employer, replace the rejected equipment/materials with new ones, or make up the shortage in accordance with the term and condition of this order. The Contractor shall bear the cost, insurance and ocean or air freight for the replacement of equipment/materials, and all expenses and charges required to ship the rejected equipment materials back to the Employer.
Article 16. Project Schedule delay and postponement
16.1 If the Contractor’s reason causes the actual schedule more slowly than planned schedule, the Contractor shall at his own cost finds all solutions to catch up the planned schedule.
16.2 During construction period, if the Employer and Owner give notice in writing to request speeding up the schedule and the Contractor agrees, the Contractor shall submit the solution to speed up it. All cost shall be born to the Contractor.
16.3 In case, the Employer and Owner give a notice in writing for postponement of any work or the Force majeure situation happens, causing work postponement, the Contractor (at his cost) has obligation to take care the project materials, machineries, equipments, tools, documents and so on.
Article 17. Amendment
17.1 The Employer has right to give an amendment notice in writing in the period from the Contract’s effective date until any time before start-up.
17.2 The Contractor has right to submit the amendment suggestion in writing, including: shorten construction time, reduce cost of the project, construction, protection, installation, etc., raise efficiency or value to give the Employer benefit.
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