INSPECTIONS AND TESTS – SUBCONTRACT AGREEMENT

• All Materials, Plant, SUBCONTRACTOR’s Equipment, tools and consumables furnished and the Subcontract Works performed by the SUBCONTRACTOR shall be of the kind and quality described in the Subcontract and the Main Contract and shall at all times be subject to inspection and/or tests by the CONTRACTOR, the COMPANY, and/or their appointed representatives at the place of manufacture or fabrication, the Subcontract Works Site or other designated locations.
• The SUBCONTRACTOR shall, at its own cost and expense, provide safe and necessary facilities and all samples, documents, drawings and lists necessary for inspections or tests. The inspections and tests shall be conducted in accordance with the Subcontract or the Main Contract and the SUBCONTRACTOR shall submit to the CONTRACTOR a report on each test and inspection immediately after it is conducted.
• The SUBCONTRACTOR shall give the CONTRACTOR timely notice of its readiness to proceed with the inspection and/or tests.

• All completed Subcontract Works to be covered up, whether underground or aboveground, shall be subject to the CONTRACTOR’s, the COMPANY’s and/or their appointed representatives’ inspection prior to commencing any backfilling or covering up. Any Subcontract Works covered up without such inspection shall, if so required by the CONTRACTOR, the COMPANY, and/or their appointed representatives, be uncovered for inspection and restored at the SUBCONTRACTOR’s cost and expense.

• The CONTRACTOR shall have the right to reject, at any time, and notwithstanding any prior test, inspection, approval or certification, any portion of the Subcontract Works, including, but not limited to, Materials, Plant, SUBCONTRACTOR’s Equipment, tools and consumables that are of inferior or faulty design, quality, or workmanship or not in accordance with the approved drawings or specifications or not in accordance with the Subcontract or the Main Contract.

• Notwithstanding any prior test, inspection, approval or certification, if, in the opinion of the CONTRACTOR, any workmanship performed or Materials, Plant, SUBCONTRACTOR’s Equipment, tools and consumables or Subcontract Works furnished by the SUBCONTRACTOR or sub-subcontractors does not conform to the Subcontract or the Main Contract or are in any other way defective, the SUBCONTRACTOR shall, upon the request of the CONTRACTOR and/or the COMPANY, rework or repair or replace and retest to their satisfaction all rejected portions of the Subcontract Works at the SUBCONTRACTOR’s cost and expense.

If the SUBCONTRACTOR fails to promptly make the necessary redesign, repair, replacement, and testing, the CONTRACTOR may do so or cause it to be done by third parties in such manner as the CONTRACTOR may consider appropriate, and the costs and expenses incurred therefor shall, at the option of the CONTRACTOR, be reimbursed by the SUBCONTRACTOR, or deducted from any monies due or becoming due to the SUBCONTRACTOR. (See Particular Terms and Conditions Appendix P)

• Failure on the part of the CONTRACTOR to (i) notify the SUBCONTRACTOR of any deficiency in the Subcontract Works; (ii) make such inspection; or (iii) discover defective workmanship, Materials, Plant, SUBCONTRACTOR’s Equipment, tools and consumables, or the approval of or payment to the SUBCONTRACTOR for such Subcontract Works, Materials, Plant, SUBCONTRACTOR’s Equipment, tools and consumables by the CONTRACTOR and/or the COMPANY shall not relieve the SUBCONTRACTOR of its obligations or responsibilities under the Subcontract or affect any right of the CONTRACTOR to proceed against the SUBCONTRACTOR in respect of a breach by the SUBCONTRACTOR of any of its obligations under the Subcontract.

• Any Subcontract Works to be performed by the SUBCONTRACTOR (including re-testing) resulting from examination or rejection as referred to in this provision shall not be regarded as a Variation to the Subcontract Works and the cost of making the tests called for in the Subcontract shall be borne by the SUBCONTRACTOR.