SUBCONTRACTOR OBLIGATIONS – SUBCONTRACT AGREEMENT

SUBCONTRACTOR OBLIGATIONS – SUBCONTRACT AGREEMENT

• The SUBCONTRACTOR shall comply with the CONTRACTOR’s instruction during the execution of the Subcontract Works and shall execute, complete and maintain the Subcontract Works to the satisfaction of the CONTRACTOR and of the COMPANY.
• The SUBCONTRACTOR shall maintain the Subcontract Works Site free from waste materials and rubbish during the execution of the Subcontract Works. The SUBCONTRACTOR shall clear the construction equipment and surplus materials, and gather such surplus things at the place or places designated by the CONTRACTOR upon the completion of the Subcontract Works.
• The SUBCONTRACTOR shall take all necessary precautions to protect any persons, facilities and property existing in and adjacent to the Subcontract Works Site from any damage or loss at all times during the execution of the Subcontract Works.
• The SUBCONTRACTOR shall maintain workable and harmonious relations among its officers, employees, subcontractors, vendors, agents, servants, or workers, and have them work in good industrial relationship and harmony with those of other contractors in relation to the Project, the CONTRACTOR and the COMPANY.

• The SUBCONTRACTOR shall take all necessary precautions at all times during the execution of the Subcontract Works to prevent any unlawful, riotous or disorderly conduct by or among its employees, or any potential loss or damage due to public.
• The SUBCONTRACTOR shall be fully responsible for the proper behavior of all its personnel, employees, agents and (if any) its subcontractors and vendors in the Subcontract Works Site and shall take all necessary precautions to prevent any strike or concerted action of any sort by such personnel. If such conduct arises or is threatened, the SUBCONTRACTOR shall be responsible for such strike or action and promptly advise the CONTRACTOR thereof in writing.
• It shall be the responsibility of the SUBCONTRACTOR to inform and report to the CONTRACTOR forthwith upon occurrence, any event or circumstance which may, immediately or in the future, impede the proper and timely execution of the Subcontract Works so that remedial action, as is appropriate under the circumstances, can be taken and relevant decisions be made by the CONTRACTOR.
• The SUBCONTRACTOR shall notify the CONTRACTOR of any defects, errors, or inconsistencies in any drawings, specifications, or any other Subcontract documents before commencing any portion of the Subcontract Works to be affected thereby. However, such notification shall not relieve the SUBCONTRACTOR of its responsibilities under paragraph f) of Clause 2.1.
• Except otherwise provided for by the COMPANY and/or the CONTRACTOR and expressed in the Subcontract, the SUBCONTRACTOR shall, at its own cost (including payment of Taxes) provide all engineering, personnel, Materials, Plant, SUBCONTRACTOR’s Equipment, and tools and consumables and any related documentation as may be necessary and any other thing, whether of a permanent or temporary nature required for the proper execution, completion, and maintenance of the Subcontract Works.
• The SUBCONTRACTOR shall be responsible to ensure that all its personnel and employees are sufficiently qualified to enter Subcontract Works Site and to carry out such work required for the Subcontract Works. The SUBCONTRACTOR shall furnish, at the CONTRACTOR’s request, information regarding qualifications and experience of all its personnel employed for the Subcontract Works.

•  The CONTRACTOR reserves the right to reject any person, without prejudice to the right under Article 2 of the Particular Conditions, employed by the SUBCONTRACTOR for the execution of the Subcontract Works for a reason whatsoever connected with the professional competence of such person. Such rejection (and replacement, if nuisance for the preservation of peace and protection of persons and property in the vicinity of the Subcontract Works Site.

• The SUBCONTRACTOR shall observe and comply with all fire, safety and other rules and regulations prescribed by the CONTRACTOR or the COMPANY and in strict accordance with the documents of the Main Contract and the Subcontract and shall be responsible for the observance thereof by all personnel, including but not limited to field workers, employees, agents and (if any) its subcontractors and vendors. The CONTRACTOR shall be entitled to remove from the Subcontract Works Site any person who violates any of the CONTRACTOR’s regulations at the SUBCONTRACTOR’s sole cost and expense.
• The SUBCONTRACTOR shall take all precautions necessary to protect its own, (if any) its subcontractors’ and vendors’, the CONTRACTOR’s, the COMPANY’s and other contractors’ personnel and workers from any outbreak of illness of an epidemic nature during the execution of the Subcontract Works.
• The SUBCONTRACTOR shall perform the Subcontract Works in strict accordance with the documents of the Subcontract and Main Contract. The CONTRACTOR shall, during the progress of the Subcontract Works, be entitled to order, in writing, from time to time at the SUBCONTRACTOR’s sole cost:

• 1. removal from the Subcontract Works Site , within such time or times as may be specified in the order, of any materials which, in the opinion of the CONTRACTOR, are not in accordance with the Main Contract or the Subcontract;
  2. substitution of proper and suitable materials; and
  3. removal and proper re-execution, notwithstanding any previous test thereof for interim payment, of any work which in respect of materials or workmanship is not, in the opinion of the COMPANY and/or the CONTRACTOR, in accordance with the Subcontract and/or the Main Contract.(See Particular Terms and Conditions Appendix P)

• If at any time, in the opinion of the CONTRACTOR, the SUBCONTRACTOR fails to fulfill any of the obligations under this Subcontract then the SUBCONTRACTOR shall, immediately upon request of the CONTRACTOR and at the SUBCONTRACTOR’s own cost, take all such steps, including but not limited to, the substitution of defective equipment, the provision of additional equipment and/or labor, changes in methods and manners of works and working overtime or other measures as the CONTRACTOR deems advisable with regard to the circumstances. The request by the CONTRACTOR of such measures shall be without prejudice to any other rights or remedies the CONTRACTOR may have under the Subcontract or at law.
• The Subcontract shall comply with all procedures of and requirements for the quality assurance and quality control in accordance with Appendix E and the Main Contract. Details of all procedures and compliance documents shall be submitted to the CONTRACTOR for information before each design and execution stage is commenced. When any document of a technical nature is issued to the CONTRACTOR, evidence of the prior approval by the SUBCONTRACTOR himself shall be apparent on the document itself.Compliance with the quality assurance and quality control procedures or requirements in accordance with Appendix E and the Main Contract shall not relieve the SUBCONTRACTOR of any of his duties, obligations or responsibilities under the Subcontract.
• The SUBCONTRACTOR shall execute the Subcontract Works so that no act or omission of the SUBCONTRACTOR, in relation thereto, shall constitute, cause or contribute to any breach or default by the CONTRACTOR’s obligations under the Main Contract, and the SUBCONTRACTOR shall, without prejudice to the aforesaid, assume, perform and allow performance of all obligations and liabilities of the CONTRACTOR under the Main Contract in relation to the Subcontract Works.
• Save as otherwise expressly stated in this Subcontract, the CONTRACTOR shall have towards the SUBCONTRACTOR under the Subcontract the same rights, powers and remedies as the COMPANY has towards the CONTRACTOR under the Main Contract.

The SUBCONTRACTOR shall, in performing the Works, comply with all applicable laws, the COMPANY’s regulations specified in Appendix [N], Saudization provisions as set forth in Appendix [O], Local Conditions as set forth in Appendix [Q] and Proximity Warning Systems as set forth in Appendix [R].

• SUBCONTRACTOR shall submit a letter with each invoice to the CONTRACTOR, in a form acceptable to CONTRACTOR, certifying that all of SUBCONTRACTOR’s personnel have been paid their salaries and benefits for the preceding month.

In the event that SUBCONTRACTOR fails to submit the letter or fails to meet his obligations to his personnel, CONTRACTOR shall consider this a substantial breach of Subcontract. CONTRACTOR shall, in addition to other remedies at law or specified in this Subcontract, retain all amounts that are due and owing to SUBCONTRACTOR under this Subcontract between the Parties until the breach of Subcontract has been remedied.