KOC Contracting Regulations

COMMERCIAL AFFAIRS GROUP CONTRACTS TEAMS ISSUE : 4 February, 2006

KOC POLICIES AND REGULATIONS FOR CONTRACTS INDEX CHAIRMAN AND MANAGING DIRECTOR’S LETTER PURPOSE OF THIS DOCUMENT STANDING INSTRUCTIONS SECTION 1

-

DEFINITIONS

SECTION 2

-

CONTRACT REQUISITION

SECTION 3

-

PREPARATION OF REQUEST FOR PROPOSAL (RFP) DOCUMENTS

SECTION 4

-

APPROVALS AND REVIEWS PRIOR TO ISSUE

SECTION 5

-

ISSUE OF REQUEST FOR PROPOSAL

SECTION 6

-

COMMUNICATIONS

SECTION 7

-

PRE-TENDER MEETING

SECTION 8

-

EVALUATION OF BIDS AND AWARD OF CONTRACTS

SECTION 9

-

LETTER OF INTENT

SECTION 10

-

FORMALISATION OF CONTRACT DOCUMENT

SECTION 11

-

ADVANCE PAYMENTS

SECTION 11A -

REIMBURSEMENT OF BIDDING COSTS FOR UNSUCCESSFUL BIDDERS

SECTION 12

-

COMMENCEMENT

SECTION 13

-

CONTRACT HISTORY FILE

SECTION 14

-

EXECUTION OF CONTRACT WORKS OR SERVICES

SECTION 15

-

CONTRACT PAYMENTS

SECTION 16

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AMENDMENTS TO THE CONTRACT

SECTION 17

-

CONTRACTORS CLAIMS (REV)

SECTION 18

-

LIQUIDATED DAMAGES

SECTION 19

-

TERMINATION OF CONTRACT

SECTION 20

–

SERVICE/BLANKET CONTRACT EXPIRY NOTICE

SECTION 21

-

MULTI-SUPERINTENDENT CONTRACTS

SECTION 22

-

LOW VALUE CONTRACTS

SECTION 23

-

REMEDIAL WORKS OF AN EMERGENCY NATURE

SECTION 24

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VITALLY URGENT WORKS

SECTION 25

–

INVITATIONS FOR PROPOSALS (IFPS)

SECTION 26

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PREQUALIFICATION OF CONTRACTORS

KOC POLICIES AND REGULATIONS FOR CONTRACTS

Purpose Issue No. 4

Page 1 of 1 Date: February, 2006

PURPOSE OF THIS DOCUMENT

(1)

This document sets forth the KOC Policies and Regulations for the handling and administration of KOC’s contracts.

(2)

This document represents the policy of the Company in the area of Contracts and are intended to ensure a professional approach to their processing and expedition.

(3)

This document represents a summary of the main activities involved in the KOC contracting process. Should further clarification be required, details and advice may be sought from the Contracts Teams who are responsible for the implementation of the KOC Policies and Regulations for Contracts.

(4)

These Regulations have been prepared in conformity with the Public Tenders Law No. 37/1964, Resolution No. 5/79 of the Council of Ministers (Supreme Council for Petroleum), and as amended by Resolution No. 1/2005, the KPC Higher Tender Committee’s Terms of Reference, the K-Companies Tendering Regulations and Terms of Reference and KOC’s Executive Delegation of Authority and shall not be implemented in isolation therefrom.

(5)

This document does not apply to Contract requirements for Wafra Joint Operations.


Standing Instructions Issue No. 4


STANDING INSTRUCTIONS 1.

INTRODUCTION

1.1

This document applies to all contracting activities of KOC.

1.2

Regulations specified in this document are mandatory. Should there be a need to deviate from any specific requirement, prior authority must be obtained from the C & MD.

1.3

These Regulations are designed to ensure that: -

KOC’s contracting policies and procedures are clearly stated and applied. The best interests of KOC served, protected and safeguarded. Administration of contract activity is as simple and cost-effective as possible.

1.4

The responsibility for selecting works or services to be performed by contractors lies with the team normally undertaking or performing similar activities. This is referred to as the “Controlling Team” throughout this Document.

1.5

All contracts should be written in such a way as to reflect the full scope of work required and should in no way be split into smaller packages in order to by-pass the approvals procedures described within this Document or circumvent Financial Delegated Authorities.

1.6

Manager (Commercial Affairs) shall be the custodian of this Document.

2.

CONTRACTING OBJECTIVE

2.1

KOC’s aim is to ensure that works, goods, services and the use of third parties’ facilities are performed or acquired at the most favourable terms compatible with the desired quality and delivery requirements within State and Company regulations.

3.

COMPETITIVE TENDERING

3.1

KOC’s policy is to seek competitive tenders from suitable, competent and independent contractors unless clear and acceptable justification can be made for single tender action or for direct negotiation with a single contractor. In all cases before issue of tenders, the Controlling Team must satisfy itself that all tenderers have the technical capabilities to undertake the works. Contracts Teams should always be contacted where further information is required in order to satisfy this requirement.

3.2

No tender shall be issued unless there is clear intent to carry out the works specified.




3.3

A contractor must not be invited to tender unless there is intent to award the contract to the contractor in the event that the evaluation of tenderers indicates that his tender is most advantageous.

3.4

The number of tenderers invited to tender must be sufficient to maintain competitiveness but where possible numbers should be restricted to a manageable number in order to minimize costs incurred by both KOC and the contractors.

4.

CONTRACTOR PRE-SELECTION

4.1

Where relevant, contractors should only be given the opportunity to tender if they are adequately capable to undertake works/services.

4.2

Where pre-selection exercises are required these should be carried out in conjunction with Contracts Team concerned who is responsible for ensuring that selection of contractors is carried out and that a data-base of information about contractors is kept up to date.

5.

JOINT VENTURES, CONSORTIA, ASSOCIATIONS AND PARTNERSHIPS

5.1

No such bodies will be eligible to participate in the Company’s tenders unless a single Corporate Entity is nominated as representing all parties involved in such an undertaking. This single entity must take responsibility for keeping a full set of consolidated accounts on behalf of such joint venture, consortium, association or partnership.

5.2

Where such an association cannot independently demonstrate sufficient and acceptable financial status to undertake the works tendered for, Parent Company Guarantees may be required as for subsidiary companies described in Paragraph 6.

5.3

Exceptions to the rule stated in 5.1 above may be effected after obtaining C & MD’s approval. However, any agreements between joint ventures, consortia etc. shall be forwarded to Legal Affairs Group for review prior to Contract award.

6.

SUBSIDIARY COMPANIES

6.1

Subsidiary companies shall be eligible to participate in the Company’s tenders only where they maintain a separate and acceptable set of consolidated accounts or with a Parent Company Guarantee where the parent is a properly constituted Corporate Entity.




7.

CONTACT WITH TENDERERS

7.1

All communications with tenderers whether they be single tenderers or in competition must be recorded in writing. Such communications should always be handled by a member of the Contracts Teams who shall be delegated by the Team Leader Contracts concerned and shall act as the Company’s representative throughout the Tendering process.

7.2

Under no circumstances must a tenderer be given information that would favour or handicap him in relation to other tenderers for the contract. Generally all responses to pre-tender queries of whatever nature from and to any tenderer should be sent to all tenderers.

8.

RECORDS OF MEETINGS KOC representatives shall produce minutes of all meetings with tenderers/contractors both before and after the award of any contract. During operation of a contract, records of all informal meetings shall also be kept in the form of a file note and/or diary statement. Only if authorized, it is also essential that minutes of important formal meetings where any specific agreements are reached, instructions or clarifications given or important technical/commercial issues discussed, shall be agreed or amended as required at subsequent meetings. Copies of all such information should be forwarded to the Contracts Team.

9.

CONFIDENTIALITY

9.1

Information about tenderers, tenders received, internal financial estimates and intentions to and reasons for award of a contract are STRICTLY CONFIDENTIAL and shall only be disclosed on a “need to know” basis.

9.2

No information about any tenderer will be disclosed to other tenderers.

10.

CONTRACT AWARD

10.1

Contract works shall not commence until a clear “Instruction to Commence” is issued unless otherwise specified in the Contract. Under very exceptional circumstances a Letter of Intent may be issued prior to the contract being signed. Under these circumstances, the respective Contracts Team is responsible for drawing up the necessary document and obtaining approval in accordance with these KOC Policies and Regulations for Contracts




11.

POST CONTRACT AWARD CONTROL AND ADMINISTRATION

11.1

Following award of the contract, it is the responsibility of the Controlling Team to ensure that adequate control is in place in accordance with sound commercial practice and in line with the policies and procedures outlined in this document. In particular, the Controlling Team should ensure that the Specification and Scope of Work are accurately defined and monitored, Where a contract requires Work Orders, Adjustment or any other amendments, the Controlling Team shall ensure that such changes are clearly defined and that Contracts Team is promptly informed for all necessary processing.

11.2

It is the Controlling Team’s responsibility either directly or through its nominated and authorized representative, to ensure that the contract works are carried out in accordance with the requirements of the contract. Compliance includes compliance with the specification, programme and other aspects such as HSE of the Site. The Controlling Team is responsible for ensuring that adequate records are maintained of contract cost, programme and progress, Quality Assurance, etc.., and, where work is executed on a daywork basis, for receipt and approval of the contractor’s time sheet.

11.3

Regular meetings should take place with the contractor in order to ensure that all activities are planned and that progress is being effectively monitored and recorded.

11.4

In the event of poor performance, misconduct, or breach of Contract terms and conditions, the Controlling Team shall communicate with the Contractor in writing with supporting evidence. Contracts Teams shall be advised of actions taken or to be taken (depending on the Controlling Team’s ability to resolve such difficulties) to remedy the situation.

12.

PROPER ACCOUNTING AND CONTROL

12.1

All personnel responsible for the handling and administration of contractual relationships of whatever value must ensure that there is an adequate system of internal control in place and that measures are instituted to ensure compliance with Company policy. In particular, adequate records must be kept to justify all transactions that take place with a contractor.

12.2

No contract shall be let or scope changed without confirmation of the availability of funds in accordance with Company procedure. Compliance with prescribed accounting systems and rules is required to ensure that all accounts at all times accurately reflect, properly describe and promptly record the contractual transactions undertaken.



13.


CLAIMS In the event of a contractor’s claim, the Superintendent of the Contract is responsible for ensuring that a thorough and fair evaluation is carried out prior to seeking any necessary approvals. All claims shall be forwarded to Contracts Services Team for further handling in accordance with the provisions set out in Section 17 hereof.

14.

CONTRACT CLOSURE Every contract should be closed only with sufficient documentary evidence indicating that all work has been carried out and that financial settlements have been made upon completion of the work and rectification of any defects.

15.

STORAGE AND RETENTION OF DOCUMENTS

15.1

Contract Teams are responsible for the storage of all original contract documents. Such documents including original of contracts, parent company guarantees, amendments etc. shall be kept in safe storage and will be made available for reference purpose.

15.2

All pre-contract documentation including documents concerning appraisal of tenders received as well as contract documentation shall also be retained by Contracts Teams for a period of 15 years from the date of completion of the contract.

15.3

All documentations related to disputes shall be maintained until respective disputes are resolved.

16.

FORMS OF CONTRACT

16.1

In general, all contracts shall be made under the current version of the relevant KOC published General Conditions of Contract.

16.2

Contracts Teams shall be responsible for the updating of these General Conditions and in addition shall maintain a data-base of model clauses and forms of contract for reference. Such updated models shall be made available through the Company’s Intranet pages for guidance.

16.3

Where an amendment to contract terms is necessary, these will be checked by Contracts Teams who shall ensure such clauses are reviewed by other appropriate areas of expertise such as the Legal Affairs Group prior to issue.

16.4

Any new agreement entered between KOC and the Contractor due to change of status, entity, amalgamation etc. shall be referred to Legal Affairs Group for review and advice prior to effecting such Agreement.




17.

RESPONSIBILITIES

17.1

The nominated Superintendent of a Contract is responsible for ensuring that the contract is administered strictly in accordance with KOC’s policies and procedures and nothing in this document shall imply that this responsibility is shared with or partially held by any other person or Group unless the Contract has more than one Superintendent where each one is responsible for the part under his Team’s control. In particular, the Superintendent of the Contract shall ensure that all necessary advice and approvals are obtained as appropriate.

17.2

Delegation of Financial Authorities for all aspects of contracts administration shall be strictly in accordance with the KOC’s Executive Delegation of Authority .

18.

COMMUNICATIONS WITH STATE AUTHORITIES All relevant communications with external authorities such as KPC and CTC relating to tender and contract administration shall be issued by the Commercial Affairs Group.


Section : 1 Issue No. 4


SECTION 1 - DEFINITION 1.1

Contract Classifications The main types of Contracts are:-

1.1.1

Type "A" Contracts Type "A" Contracts are defined as contract agreements which are normally negotiated and signed on a "Direct Contracting"/"single source" basis for specialist services or works such as specialised services related to Drilling and Production Operations, maintenance of medical equipment, specialist computer equipment and software, lease agreements, or agreements for services which, due to their nature, are only available through direct negotiation/contracting.

1.1.2 Type "B" Contracts 1.1.2.1 Type "B" Contracts are defined as those Contracts for which Request for Proposals (RFPs) are issued, received and awarded by the Company. 1.1.2.2 Type B (1) Normal competitive terms and Bid prices NOT negotiable, RFP. Estimated Contract value greater than KD. 30,000 and up to KD. 5 million. 1.1.2.3 Type B (2) Normal competitive Terms and Bid prices negotiable (Mumarasa), RFP estimated Contract value greater than KD. 30,000 upto KD 5 million. 1.1.2.4 Type B (3) B(3) Contracts for Remedial Works or Specialized Services of an Emergency Nature which may be issued as Type "B3" Contracts, with the authorisation as follows: Estimated Contract Value KD.30,000 – KD.250,000

: DMD concerned

Estimated Contract Value greater than KD. 250,000 Unlimited : C & MD Estimated Contract Value greater than KD. 5,000,000

: KPC Board of Directors

1.1.2.5 Type B (4) B(4) Contracts for "Vitally Urgent Works", including HSE related Works of estimated value greater than KD. 30,000 which involve competitive bidding without having to go through the normal tendering procedures, subject to the prior approval of the KOC Tender Committee, KPC HTC, KPC Board of Directors, as applicable.




1.1.2.6 Type B (5) B(5) Contracts for Consultancy Services and Specialised Services which involve competitive bidding. 1.1.3

Type "C" Contract

1.1.3.1 Type "C" Contracts are defined as those contracts for which the authority to issue and receive RFPs and award of contract remains with the Central Tenders Committee. 1.1.3.2 Normally Type "C" Contracts are those for which the estimated value at RFP stage exceeds KD. 5,000,000/-. 1.1.4

Low Value Contracts (Type "L" Contracts) Contracts for Works or Services of estimated value greater than KD. 1,000 but not exceeding KD. 30,000 are termed as "Low Value Contracts" (Type "L" Contracts).

1.1.5

Minor Works Works and/or Services not exceeding KD. 1,000/- in value are classified as Minor Works and are not handled on a Contracts basis i.e. not processed thru’ Contracts Teams or KOC Tender Committee.

1.2

General The following terms shall have the meanings assigned to them:-

1.2.1

State Legal Department State Legal Department is the Department of Legal Advice and Legislation of the Council of Ministers, which reviews all RFPs issued thru’ CTC.

1.2.2

Central Tenders Committee (CTC) The Central Tenders Committee is the official body established under Law to control the issue and award of public tenders of estimated value greater than KD.5,000,000/-.

1.2.3

KPC Higher Tenders Committee (HTC) The Kuwait Petroleum Corporation Higher Tenders Committee (KPC HTC) is the committee appointed by the Chairman of KPC to review and approve all purchasing and contracting activities for tenders of value exceeding KD. 1,000,000/- each.



1.2.4


KOC Tender Committee KOC Tender Committee shall comprise the following: DMD (TS) Manager (Commercial Affairs) Admin.& Fin. Directorate Representative North Kuwait Directorate Representative South & East Directorate Representative West Directorate Representative Oil Services Directorate Representative Team Leader Contracts Services

– -

Chairman Member & Deputy Chairman Member Member Member Member Member Secretary

The Terms of Reference of KOCTC shall be as follows:. 1.2.4.1 Ensure sound implementation of KOC’s Policies and Regulations for Contracts and Purchasing, as applicable to issue and award tenders and Agreements (including those exempted from KPC HTC and/or CTC), Approval of Purchase Order Amendments and Adjustment Orders and other related issues. 1.2.4.2 Monitor and ensure that the technical and commercial evaluation of tenders is adequate and is in the best interest of the Company. 1.2.4.3 Review and, if in agreement, endorse the Controlling Team’s recommendations for issue of tenders including approval of bidders’ list, estimated cost, method of tendering, Kuwaitization requirements of Contractor’s manpower and the like. 1.2.4.4 Review, and if in agreement, approve confiscation of bid bonds. 1.2.4.5 Arbitrate on any complaints received from any tenderer/supplier related to tenders, Requests for Quotation or purchase orders. 1.2.4.6 Handle any other issues related to tendering as requested by C & MD. 1.2.5 Bids Opening Committee Bids Opening Committee is delegated by KOC Tender Committee and shall convene weekly to open bids received in sealed envelopes, for tenders with estimates between KD. 1,000 and KD 5 Million. The Committee shall record the bids in the Schedule of Bids, publish the same on the designated Notice Board and forward the bids to Purchasing/Contracts Teams concerned for necessary action.



1.2.5


Bids Opening Committee (Cont’d) The Bids Opening Committee comprises the following members: Team Leader Warehouse Team Leader Contracts Services Financial Group Representative Purchasing Teams I & II Representative Contracts Teams I & II Representative

1.2.6

-

Chairman Deputy Chairman Member Member Member

Controlling Teams The Controlling Team is the Company Team responsible for initiating the Contract Requisition (CR) and for the technical aspects of a Request for Proposal (RFP)/ contract.

1.2.7

Contract Requisition (CR) The duly approved request from a Controlling Team to Contracts Team, for initiating a contract action is defined as a Contract Requisition (CR).

1.2.8

Request for Amendment The duly approved request from a Controlling Team to Contracts Team for initiating any form of amendment to a contract.

1.2.9

Company’s Executive Delegation of Authority The Executive Delegation of Authority shall be that approved by the Board of Directors and issued by the Chairman & Managing Director, with respect to the level of authority within the Company to commit and incur expenditure on behalf of the Company.

1.2.10

Company’s Appointed Representative The Company’s Appointed Representative shall be any person delegated by the Company to represent it at the KPC HTC/CTC.

1.2.11

Contract Superintendent The person nominated by the Company as being responsible for all contractual matters relating to the contract. Under normal circumstances this will be a member of Contracts Teams during the pre-award phase and a member of the Controlling Team after award.



1.2.12


Ad Hoc Committee For Requests for Proposal (RFP) having more than one Superintendent, a Committee comprising representatives nominated by the Teams of all Controlling Teams shall be formed. This committee shall be the Ad Hoc Committee for the RFP and shall be chaired by the representative of the Controlling Team having the greatest utilization of the Contract on a monetary basis and shall be named in the RFP as the leading Superintendent. It shall be responsible for preparation and review of RFP requirements, evaluation of bids and for the joint recommendation for award. Where such committee is required, the Chairman of such committee shall act as the nominated contract Superintendent.

1.2.13

Re-tendering Re-tendering shall mean the re-issue of a RFP due to its cancellation for any reason.

1.2.14

Notice of Expiry A Notice of Expiry shall be the notice issued by Contracts Teams to Controlling Teams sufficiently in advance of the expiry date of a Service Contract seeking their intention subsequent to the said expiry.

1.2.15

Authorisation for Financial Expenditure (AFE) An AFE is a statement issued by Budget & Cost Team to a Controlling Team confirming the authorisation of the allocation of funds for expenditure on a particular project.

1.2.16

Contract Financial Approval (CFA) A CFA is a statement issued by Budget & Cost Team with respect to a Contract which confirms the availability of funds to cover the specified Works.

1.2.17

Schedule of Bids The Schedule of Bids shall be as follows:-

1.2.17.1

For Type `C' Requests for Proposals (RFPs) The Schedule of Bids shall be as prepared by CTC recording the names of all Tenderers who submitted their bids to the CTC, indicating the closing date and the amount of each accepted bid.



1.2.17.2


For Type `B' RFPs The Schedule of Bids shall be as prepared by Bids Opening Committee recording accepted bids, the names of Tenderers, the amount of each bid and the closing date.

1.2.18

Bid Summary Sheet The schedule prepared by Contracts Teams, after receipt of bids and the Schedule of Bids, stating details of closing date, expiry date of Bid Bond, names and ranking of the Tenderers and the commercial evaluation.

1.2.19

Live Contracts This expression is intended to indicate that a Contract remains in force until the issue of a Final Statement of Account for Construction Contracts or signature of the designated Disclaimer Form by the Contractor for Service type Contracts.

1.2.20

Dead Contracts This expression indicates that a Contract is termed as closed following the issue of a Final Statement of Account for Construction type Contracts or signing the designated Disclaimer Form by the Contractor for Service type Contracts.

1.2.21

Local Contractor’s Evaluation Committee (LCEC)

1.2.21.1

Membership The Local Contractor’s Evaluation Committee comprises the following permanent members: Chairman:-

Team Leader Contracts Services (Deputy Chairman – Snr. Contracts Officer Prequalification Unit)

Members:

one (1) Representative from each of the following: Industrial Services Group Support Services Groups (North, West, South & East Kuwait) Engineering Group Financial Services Group HSE Group



1.2.21.2


Responsibilities and Functions The LCEC shall be responsible for the following:-

1.2.21.3

•

Review of the minimum requirements for each Category of Work, following which any recommendations for changes shall be submitted with the necessary justifications by the LCEC Chairman to Manager (Commercial Affairs) approval.

•

Evaluation of Local Contractor’s applications for inclusion in the various lists of Approved Contractors, in accordance with the procedure set out in Section 26 hereof.

LCEC Meetings The LCEC Chairman will call for meetings as and when required to review any business related to consideration of minimum requirements or evaluation of Contractor’s applications.

1.2.21.4

The LCEC’s Committee overall recommendations shall be based on the majority of votes. In the event the LCEC is divided on a particular issue, then the LCEC Chairman will have the casting vote.




SECTION 2 – CONTRACT REQUISITION

2.1

Controlling Teams shall initiate formal tender and contract action by preparing and submitting to Contracts Team concerned a Contract Requisition (hereinafter "CR").

2.2

The CR shall be comprehensive, and shall include, as a minimum, the following information, in hard copy or electronic:-

2.2.1

brief title of the Works or Services to be executed.

2.2.2

number of the AFE(s) / Oracle No./Top Task in the case of Capital work (if already available)

2.2.3

detailed specifications for the Works or Services, and any specific requirements for inclusion in the Contract Agreement.

2.2.4

detailed HSE requirements for Works or Services to be executed.

2.2.5

a list of the drawings, as applicable, together with one updated copy of each drawing in hard copy or electronic.

2.2.6

proposed target date for release of the signed Contract.

2.2.7

proposed reasonable and realistic completion period for the Contract or required duration of Service Contract. Contracts Team shall be consulted in order to concur with this proposal.

2.2.8

proposed reasonable and realistic level of Liquidated Damages. Contracts Teams shall be consulted in order to concur with this proposal. Note: Liquidated damages are a contractually agreed sum which shall be paid by the contractor in the event of delay in providing work / services specified within the contract. Any such sum should be derived from a genuine pre-estimate of such delay. This preestimate should be passed to Contracts Team for safe keeping in case of dispute.

2.2.9

proposed Defects Liability Period, if different from that stated in the General Conditions of Contract.

2.2.10 any specific requirements for the pre-tender meeting and/or site visit where appropriate.




2.2.11 proposed list of tenderers/vendors or the proposed applicable CTC/ Company Category of Work, in addition to proposed list of Approved Manufacturers and/or subcontractors, as appropriate. 2.2.12 any other special instructions, documents or other requirements related to the Works or Services, or submission of bids. 2.2.13 the proposed classification of the Request for Proposal (RFP) i.e. Type (A, B, C, etc.) 2.3

Although not included in the CR due to its confidentiality, the estimated cost of the Contract (on the basis of the AFE) shall be relayed to Contracts Team Leader concerned.




SECTION 3 – PREPARATION OF REQUEST FOR PROPOSAL (RFP) DOCUMENT 3.1

Review CR

3.1.1

Contracts Team shall review the CR. If it is incomplete or if Contracts Team considers that further information is needed then they shall issue an appropriate written request to the Controlling Team.

3.1.2

In the event the proposed target date for release of the signed Contract, as contained in the CR is not feasible, the Controlling Team and Contracts Team shall work together to develop an optimised schedule on the basis of the programme specified in the CR.

3.1.3

Controlling Team shall remain responsible for collection of all required information and liaison with any other Company Team.

3.2

Preparation and Circulation

3.2.1

Contracts Team shall prepare the draft Request for Proposal (RFP) document based upon the content of the CR, together with an approximate Time Schedule indicating the time cycle of the RFP.

3.2.2

The draft RFP document and the proposed Time Schedule shall then be circulated for review, comments and return directly to Contracts Team prior to a stipulated date, to:-

3.2.2.1

Controlling Team/s

3.2.2.2

Legal Affairs Group (as appropriate).

3.2.2.3

Accounts Payable Team and Cost Management Team (as appropriate).

3.2.3

The proposed list of Tenderers/Vendors shall be confirmed by the Controlling Team during final review and approval.

3.2.4

The RFP and final draft list of Tenderers/Vendors and any comments thereon shall be approved by the Controlling Team’s Group Manager or his delegate prior to return to Contracts Team.

3.3

Updating and Final Preparation

3.3.1

All proposed amendments and comments raised as a result of circulation, shall be reviewed by Contracts Team and, to the extent considered appropriate, incorporated into the final RFP documents.




3.3.2

Where Contracts Team considers that certain comments and proposed amendments are inappropriate for incorporation in the final RFP documents in the form proposed, it shall take the matter up with the Team concerned in writing.

3.3.3

Following incorporation of the agreed amendments and comments as described above, no further changes/amendments shall be permitted except as follows:-

3.3.3.1

Minor changes which do not significantly affect the scope of work or anticipated RFP prices shall be forwarded by user/controlling team in writing to Contracts Team with details of the reasons for such changes.

3.3.3.2

Major changes to scope of work shall be forwarded to Contracts Team in writing complete with full justification through the Group Manager of the Controlling Team.

3.3.4

All changes must reach Contracts Team at least two (2) clear working days prior to the date of the pre-tender meeting.




SECTION 4 – APPROVALS AND REVIEWS PRIOR TO ISSUE Prior to issue of final Request for Proposal (RFP) documents the following approvals shall be obtained by Contracts Team: 4.1

All Request for Proposals (RFPs) Except as stated in clause 4.2 hereof, all RFPs shall be subject to the following:-

4.1.1

KOC Tender Committee Approval This shall be obtained for all RFPs where the estimated value is greater than KD. 30,000/-

4.1.2

KPC Higher Tenders Committee Approval This shall be obtained for all RFPs where the estimated value is greater than KD. 1 million.

4.1.3

Central Tender’s Committee (CTC) Approval This shall be obtained where the estimated value is greater than KD. 5 Million except those exempted from CTC (Consultancy Services, Specialised Service Agreements, Vitally Urgent Works as exempted by KPC Board of Directors).

4.2

Type B(3) RFPs The issue of RFPs for "Remedial Works of an Emergency Nature" (See Section 23 hereof), shall only be subject to prior approval of the Chairman and Managing Director/DMD concerned and KPC Board of Directors, as applicable.

4.3

Type C RFPs In addition to the approvals specified in Item 4.1 hereof, where the estimated value of the RFP is greater than KD. 5,000,000/- except those originally exempted from CTC (Emergency and Vitally Urgent Works, Consultancy, Specialized Service Agreements, etc.), RFP documents shall have to be reviewed by the State Legal Department.

4.4

Type A RFPs In addition to the approvals specified in Item 4.1 hereof for renewal of Agreements with foreign companies for provision of specialized services on continuous basis, and where the estimated Not-to-Exceed Value of such Agreements is greater than KD. 10 million, the Contracts Team shall obtain a written approval for renewal from the Minister of Energy at least one month prior to the expiry date of the running Agreement.



4.5


Service Contracts / Contracts based on Rates/Blanket Contracts For all contracts where a fully built up lump sum cannot be derived, a " not to exceed" value must be clearly specified within the contract document. This value may be based on either estimated requirements or an amount budgeted for expenditure during the Contract Period and shall form the basis for all necessary approvals in accordance with KOC's Executive Financial Delegation of Authorities. Under no circumstances should a contractor be reimbursed in excess of the "not to exceed value" without a formal amendment to the contract being issued in accordance with the procedures specified within this document.




SECTION 5 – ISSUE OF REQUEST FOR PROPOSAL 5.1

Contracts Teams shall prepare the final Request for Proposal (RFP) documents for advertisement and issuance to the tenderers either directly by the KOC Tender Committee (thru’ its Secretariat) or thru CTC as applicable.

5.2

The Controlling Team shall be responsible for the timely supply of sufficient sets of clear copies of the RFP Drawings and other special documents (standards, project’s specifications, etc.) to be incorporated into the RFP documents in hard copy or electronically.

5.3

For Type C RFPs, Contracts Teams shall forward copies of RFP documents to the Ministry of Energy.




SECTION 6 – COMMUNICATIONS 6.1

Communications with State Authorities All communications between the Company and State Legal Department, KPC HTC, Ministry of Energy and the CTC on matters relating to Request for Proposals (RFPs) shall be through the Company's Appointed Representative.

6.2

Communications with Tenderers

6.2.1

Prior to award of a Contract, all communications with the Tenderers/Vendors must be made through Contracts Teams.

6.2.2

Neither the Controlling Team nor any other involved Team, shall in any circumstances contact, verbally or otherwise, any of the Tenderers/Vendors either formally or informally. Such Teams must redirect to Contracts Team concerned any approaches made to them by Tenderers.




SECTION 7 – PRE-TENDER MEETING 7.1

A Pre-Tender Meeting shall be held for every Company Request for Proposal (RFP), except as may be otherwise agreed in writing between Controlling and Contracts Teams.

7.2

Contracts Team shall arrange and chair the Pre-Tender Meeting and, in liaison with Controlling Team, make the required provisions for any related site visit(s), should such visit(s) be appropriate.

7.3

Contracts Services Team shall arrange all necessary transportation for site visit(s).

7.4

Contracts Services Team shall obtain all necessary restricted area passes for Bidders/Vendors personnel for site visit(s).

7.5

Controlling Team, where the Supplementary Letter involves revision to the Scope of Work and/or technical specifications, shall provide the Contracts Team thru’ its Group Manager with relevant details, sufficient sets of drawings and other special documents to be incorporated in the Supplementary Letter. Contracts Team concerned shall accordingly arrange for the finalisation and issuance of the necessary Supplementary Letter to the Bidders/Vendors.

7.6

Supplementary Letters must be issued in sufficient time to enable tenderers to submit proper bids. Contracts Teams shall issue the Supplementary Letter not later than two weeks prior to the tender’s Closing Date, unless otherwise agreed with Contracts Teams, depending on the merit of each case taking into consideration the size and complexity of each Supplementary Letter.

7.7

Where a postponement of closing date is necessary, the Contracts Team shall obtain the Controlling Team’s consent for the same.




SECTION 8 – EVALUATION OF BIDS AND AWARD OF CONTRACTS 8.1

In the case of bids delivered directly at KOC premises, the Bids Opening Committee (as delegated by the KOC Tender Committee) shall open bids received in sealed envelopes, and shall record the bids in the designated Schedule of Bids and forward them to Contracts Team concerned for necessary action.

8.2

Contracts Team shall be responsible for review of the bids and shall check for full compliance with the Instructions to Bidders and shall obtain CFA from Budget & Cost Team based on the first lowest bid received.

8.3

The Controlling Team/Adhoc Committee (for RFPs having more than one superintendent) shall carry out detailed technical and commercial evaluation with the assistance of Contracts Team as appropriate and shall make the formal recommendation for award. Initial evaluation of Request for Proposal (RFP) and submission of queries/clarification required (if any) shall be completed within the shortest possible period by the parties concerned within Company Organisation. Note: This period shall be no longer than two weeks unless otherwise agreed with Contracts Team, depending on the merit of each case taking into consideration the size and complexity of each RFP.

8.4

Clarifications which do not in any way alter the RFP price or its original specifications may be obtained from bidders through Contracts Team. However, for B(2) Type RFPs, should any discussions/negotiations with tenderers be deemed necessary, prior approval from the KOC Tender Committee through Manager (Commercial Affairs) must be obtained and Contracts Team shall be represented at all such discussions/negotiations. Such meetings with tenderers shall also be documented.

8.5

Final Recommendations for award from Controlling Team, which shall be forwarded to Contracts Team as soon as practicable, shall be endorsed by the Group Manager of the Controlling Team and shall be submitted to Contracts Team for review/vetting and endorsement. The Recommendation for award shall specifically state that:-

8.5.1

the recommended bid meets the Company's technical requirements, and;

8.5.2

the cost has been examined and is commercially acceptable and justifiable for the works/services/ materials etc. covered by the Contract.

8.6

Recommendations for award to other than the lowest bidder, shall be accompanied by full justifications for the rejection of lower bids.

8.7

All recommendations for award, following review and endorsement by Contracts Team, shall be submitted to the KOC Tender Committee for its review and approval.




8.8

Should the value of the recommended bid be greater than KD. 3,000,000 and exceed the Controlling Team’s estimate, Management’s approval shall be obtained by Contracts Team as follows.

8.8.1

Bid value exceeds estimate by more than 5%

-

Respective DMD

8.8.2

Bid value exceeds estimate by more than 10%

-

C & MD

8.9

Should the tender be awarded to other than the lowest bidder, Contracts Services Team shall obtain revised CFA from Budget & Cost Team.

8.10

For Specialised Service Agreements negotiated on a single source basis where the Contract value is based on agreed rates with no commitment to expenditure, the approval of: i)

the KOC Tender Committee; and

ii)

the C & MD for Agreements of Not-to-Exceed Value in excess of KD. 5,000,000/-

Further, and notwithstanding the approvals required under clauses (i) and (ii) (as applicable), for all specialized Service Agreements related to KOC’s core business, i.e. Exploration, Drilling and Production, which are negotiated on single source basis for the first time, the C & MD’s approval shall be required, irrespective of value. These approvals shall be obtained as appropriate prior to signature of the Agreement. 8.11

For bids of value exceeding KD. 1 Million the approval by KPC HTC of the Company's recommendation for award shall be obtained by Contracts Services Team.

8.12

For all RFPs for which prior CTC approval was obtained before issue, the Company's recommendation shall then be forwarded by Contracts Services Team to the CTC for approval of award.

8.13

In the event it is necessary to extend the price validity of bids, Contracts Teams shall ensure that appropriate action is taken either directly with bidders or through CTC in the case of Type C RFPs. Requests for Extension shall be approved by Team Leader Contracts concerned and shall be copied to Manager (Commercial Affairs) for 2nd and subsequent extensions.

8.14

The successful Bidder shall be notified by the KOC Tender Committee’s Secretary except for Type C RFPs where the successful Bidder is notified by CTC.

8.15

In accordance with the provisions of Resolution No. 1/2005 of the Supreme Council for Petroleum, Contracts Services Team shall prepare a monthly return of all Contracts let directly by the Company i.e. upto KD. 1 Million (including Low Value Contracts) and shall submit this to the Minister of Energy.




SECTION 9 – LETTER OF INTENT 9.1

Letters of Intent will only be issued upon C&MD approval and only in cases where it is imperative that mobilisation for the Works or Services commences immediately. Letters of Intent shall not be issued until all material matters relating to the subject Contract have been agreed with the Contractor and the Letter of Intent must contain reference to all such matters. In cases where a Letter of Intent is authorised, a formal Contract must be concluded soonest possible.

9.2

Together with the request for the issue of a Letter of Intent, the Manager of the Controlling Team shall forward to Contracts Team a report which must detail:-

9.2.1

steps taken in preparation of the Contract for signature,

9.2.2

reasons why the Contract cannot be immediately finalised and prepared for signature, and

9.2.3

reasons why commencement of the Works or Services cannot be delayed pending final preparation of the Contract for signature.

9.3

Contracts Team shall review and, where appropriate, endorse the request.

9.4

Approval to issue a Letter of Intent shall be obtained from the C&MD by Contracts Team through M (CA) and DMD (TS).

9.5

Proposed Letters of Intent will be circulated by Contracts Team to Legal Affairs Group, Controlling and Accounts Payable Teams for comments before being passed to the C&MD for signature.




SECTION 10 – FORMALIZATION OF CONTRACT DOCUMENT 10.1

Contracts Team shall prepare two originals of the formal Contract Document for signature. Both originals shall be initialed on each page thereof by representatives from Contracts and Controlling Teams

10.2

Subject to submission of the necessary Performance Bond as applicable, the Contractor shall be invited to sign both Contract Documents.

10.3

The Company's signatory representative shall be decided in accordance with the Company's Executive Delegation of Authority.

10.4

Contracts Services Team shall hold the Company's original copy of all signed Contracts and other related documents.

10.5

The Performance Bond shall be held by Accounts Payable Team

10.6

The Contract documents may be released by Contracts Services Team after signature by both parties, however, works under the Contract shall not be commenced until the appropriate insurance policies have been approved by Team Leader Insurance . Insurance policies and certificates shall be held in the Contract File in Contracts Teams premises.




SECTION 11 – ADVANCE PAYMENT 11.1

Advance Payments No forms of advance, consultant's fee, retainer or similar payments shall be made without the prior approval of the C&MD. Once the C&MD's approval is obtained for such Advance Payments, it must be clearly incorporated into the relevant Contract. Advance payment shall be only effected against submission by the Contractor of an irrevocable unconditional payable on sight bank guarantee issued or endorsed by a bank operative in the State of Kuwait.

11.2

Mobilisation Payments Payments for mobilisation shall not be permissible except in the case of certain specialised Contracts where payments may be made for mobilisation of heavy equipment such as drilling rigs, floating plant and the like.

11.2.1 Such mobilisation payments must have been incorporated into the original RFP Documents and the payments must be commensurate with actual mobilisation costs incurred. 11.2.2 Mobilisation Payments must be paid after the relevant mobilisation. 11.2.3 Mobilisation Payments must be invoiced for and certified in accordance with Section 15 hereof (Contract Payments).


Section : 11A Issue No. 1

Page 1 of 1 Date: Sept. 2007

SECTION 11A – REIMBURSEMENT OF BIDDING COSTS FOR UNSUCCESSFUL BIDDERS

11A.1

Reimbursement of bidding costs shall not be permissible except in certain tenders where bidders incur considerable costs in preparing their bid submissions (e.g. major Lump Sum Turnkey projects), with the objective of enhancing participation and achieving competitive bidding.

11A.2

Controlling Teams shall provide contracts team with basis and justification for reimbursement of bidding fees through their respective Group Manager.

11A.3

Controlling Team shall confirm availability of funds within AFE to cover such bidding fees.

11A.4

No forms of reimbursement of bidding costs, whether in full or part, shall be made without the prior approval of C&MD / DMD(TS) as follows, in accordance with Clause 9.11.5 of the Executive Delegation of Authorities:DMD (Technical Services) C&MD

11A.5

: :

Upto KD 100,000/Over KD 100,000/-

Upon obtaining management approvals, the following shall be incorporated in the tender document prior to bid closing a) b) c)

necessary provisions covering criteria for selection, number and ranking of entitled unsuccessful bidders Reimbursement of bidding costs to entitled unsuccessful bidders shall be effected only after contract signature with the successful bidder. In the event of tender cancellation, bidding fees will be reimbursed to the lowest bidder in addition to other unsuccessful bidders subject to meeting criteria for selection specified in the tender.

11A.6

Controlling Team through its group Manager shall advise Contracts Teams of recommendation for reimbursement of bidding fees to unsuccessful bidders who are compliant with the criteria for selection as per tender specification and requirements.

11A.7

Contracts Team shall advise unsuccessful bidders to submit their invoices to Accounts Payable Team for further processing in accordance with Section 15 hereof (Contract Payments).




SECTION 12 – COMMENCEMENT 12.1

Where it is stated in the Contract that the Commencement Date shall be notified in writing to the Contractor, the Superintendent of the Contract shall not instruct the Contractor to commence the Works until an original Contract Document has been released to the Contractor and a notification is issued by Contracts Team that the Contractor has fulfilled all insurance requirements

12.2

The notice specifying the date for commencement as issued by the Superintendent of the Contract shall be copied to both Contracts and Financial Accounts Payable Teams.

12.3

Prior to commencement of the Works, the Controlling Team shall be responsible for:-

12.3.1 Ensuring the availability in KOC's Stores of materials to be supplied by the Company. 12.3.2 The delineation of the site and any associated working area. 12.3.3 The approval of Contractor's personnel. 12.3.4 The inspection of Contractor's equipment. 12.3.5. Assisting the Contractor in obtaining access passes. The Controlling Team shall also be responsible for ensuring that all existing services within the site area have been re-routed as necessary, ensuring compliance with HSE regulations and requirements, and that there is no impediment which may prevent the Contractor from commencing work on the date specified.




SECTION 13 – CONTRACT HISTORY FILE The Controlling Team shall maintain a full and comprehensive Contract History File for each contract under its control. The Contract History File shall include, whether typed or handwritten, all letters, memos, Site notes, telexes, faxes, e-mails, minutes of meetings, details of periodic progress reviews of the Works, Contractor's daily reports, records of materials delivered to site, and all other documents relevant to the Contract and/or the implementation of the Works. The Controlling Team shall retain the Contract History File for a period of 10 years from the Date for Completion of each contract.




SECTION 14 – EXECUTION OF CONTRACT WORKS OR SERVICES 14.1

The Superintendent of the Contract shall be responsible for ensuring the proper implementation of the Works/Services and for ensuring the Contractor's compliance with all the terms and conditions of the Contract, in particular Contractor’s compliance with HSE regulations and requirements. Such responsibility shall be extended until after the Defects Liability Period. The day-to-day supervision of the Works may be delegated to a Superintendent's Representative whose name and/or designation, together with the extent of the delegation of such authority, shall be notified to the Contractor in writing by the Superintendent if not already specified in the Contract.

14.2

All formal meetings with the Contractor, shall be chaired and minuted by the Superintendent's Representative. Minutes of Meetings shall be signed by the Contractor and the Superintendent's Representative. Copies of all such minutes shall be placed in the Contract file and copied to the Contracts Team.

14.3

Contracts Team shall remain responsible for and shall communicate directly with the Contractor in the event of:-

14.3.1 Signature and issue of Amendments to the Contract. 14.3.2 Expiry and extension of Performance Bonds and Insurance Policies.




SECTION 15 – CONTRACT PAYMENTS 15.1

The following shall apply for all Contracts:-

15.1.1 The Superintendent of the Contract shall be solely responsible for the expeditious verification of Contractor’s invoices and raising of all Certified Payments Authorisation (CPA) made under the Contract, unless otherwise specified, which must represent a genuine assessment of the value of the Works executed up to the date of such certificate. The percentage completion shall also be checked against the Programme to ascertain the Contractor's progress and a record maintained in the Contract History File accordingly. 15.1.2 Accounts Payable Team shall receive Contractor’s invoices, matching them with CPAs and making all certified payments available to the Contractor within the period specified in the Contract, and subject to any pre-conditions (such as Tax Clearance and Labour Release) stated in the Contract. 15.1.3 Prior to completion of the Defects Liability Period, the Superintendent of the Contract shall ensure that the Works are fully inspected and all items requiring rectification by the contractor are made good in accordance with the Contract and to his satisfaction. Such items must be notified to the Contractor in writing as soon as they are identified, with a copy forwarded to Contracts Team. Note: Only when all items have been rectified and the Contractor has fulfilled all his obligations under the Contract shall the Superintendent issue a final Acceptance Certificate and prepare the final CPA releasing all retention monies held. On receipt of the Final CPA accompanied by the Final Acceptance Certificate, Contracts Services Team shall prepare the Final Statement of Account to be signed by both the Contract Team Leader and the Contractor stating that the final amount payable is in full and final settlement of the Contract. 15.1.4 The Final Statement of Account, which shall be based on the Final CPA, shall be prepared by Contracts Team and shall be signed by Contractor prior to release of the final CPA to Accounts Payable Team for further processing. 15.2

In respect of Service/Blanket Contracts the following shall apply:-

15.2.1 The Superintendent of the Contract shall be responsible for the expeditious verification of Contractor’s invoices and the certification of all payments made under the Contract. Payments, unless otherwise specified in the Contract, must represent a genuine assessment of the value of the Services provided up to the date of the Contractor's invoice.




15.2.2 Accounts Payable Team shall be responsible for making all certified payments within the period specified in the Contract, . 15.2.3 Prior to release of the Final Payment, Accounts Payable Team shall obtain the following from the Contractor in accordance with the conditions of the Contract:a) b) c)

Tax clearance certificate. Labour release certificate, where appropriate. Final Disclaimer.



Page 1 of 3 Date: May, 2007

SECTION 16 – AMENDMENTS TO THE CONTRACT 16.1

No variation shall be made to the Amendment.

Contract,

without the issue of a formal

16.2

Under no circumstances shall a Request for Amendment be processed: i)

on expired Contracts.

ii)

on retroactive basis, except only for emergencies or as outlined in clause 23 hereof, or in extraordinary situations when works/services under the Amendment need to be carried out promptly to avoid incurring substantial additional costs by the Company and/or claims by respective contractors, in which case the following shall apply: a)

The Controlling Team shall obtain a written approval from the DMD concerned before commitment whatsoever.

b)

Subject to DMD’s approval as stated in (a) above , the Controlling Team shall immediately proceed with the preparation of the necessary Request for Amendment for submission simultaneously while proceeding with the works/services covered thereunder, for processing through the KOC Tender Committee.

All Amendments on retroactive basis shall be subject to verification by Contracts Team and shall be processed as Amendment with subsequent reporting to C&MD copied to DMDs. 16.3

Controlling Teams shall make every endeavour to restrict the number of Amendments to the bare minimum, and only when the issuance of Contract Amendment is the sole or best option. For Service Contracts, the Controlling Teams shall ensure that all relevant requirements from the old Contract are incorporated in the replacement Contract, so as to avoid raising Amendment Requests for the same requirements under the replacement Contract.

16.4

All Amendment Requests shall be prepared and completed by the Controlling Team and endorsed by the Group Manager, and shall be subject to endorsement of the KOC Tender Committee. CFA from Cost & Management Accounting Team shall also be obtained by the Controlling Team prior to submission to Contracts Team. Except as stated in 16.2 above , Amendment Requests must be timely planned, prepared and submitted to Contracts Teams well in advance of the proposed commencement date giving due allowance for processing same by Contracts Team, as well as any period required by Contractor for mobilisation under the terms of the Contract.



16.5


Whenever applicable, in the event of any addition to a Contract’s Scope of Work involving additional cost, the Controlling Team shall, prior to raising an Amendment Request, arrange for obtaining at least 3 quotations from Contractors by sealed envelope delivered to the KOC’s Tenders Box by the closing date stated in the invitation for quotation. Controlling Team shall, upon issuance of the Request for Quotation notify the Secretary of KOC Tenders Committee of the closing date in order to arrange for receipt of such quotations. Bids Opening Committee shall be responsible for opening quotation envelopes and forwarding them to Contracts Services Team for further handling by the Controlling Team.

16.6

Contracts Team shall be responsible for preparation and handling of all Amendments.

16.7

Contracts Team shall obtain the approval of the Controlling Team on the text of the draft Amendment.

16.8

Upon receiving Controlling Team’s approval on the text of the draft Amendment, the Contracts Services Team shall obtain the approvals as appropriate in accordance with the K-Companies Tendering Regulations as follows:-

16.8.1 KOC Tender Committee’s approval is required for all Contract amendments.

16.8.2 KPC HTC approval is required for i)

Contract Amendment of any value where it raises the total Contract Price to more than KD. 1 million.

ii)

For Contracts of value more than KD. 250,000/- upto KD 1 Million, where Amendments exceed 20% of the total Contract Price, the Contracts Services Team shall only prepare and provide a breakdown of all such Amendments to KPC HTC in the form of a monthly report.

iii)

For Contract Amendments, where the original Contract Price exceeds KD. 1 million, and the cumulative value of Amendments increase the original Contract Price by 10% or KD. 5 million whichever is less.

Where there is an Amendment involving increase and decrease of the Contract value resulting from additions and deletions of items of work at the same time, the cumulative value of the Amendment requiring KPC HTC’s approval shall be calculated by way of adding numerically the two values of the additional and the deleted items of work together, irrespective of the financial impact on the overall Contract value. The revised total Contract value shall however be calculated on the basis of the net product of the Amendment .value. Regulations prohibiting splitting the transaction shall be taken into consideration in such cases.




16.8.3 CTC approval is required for Amendments, where the Contract was originally awarded thru’ CTC and the cumulative value of Amendments increases or decreases the original Contract Price by 10% or KD 5 million (whichever is less). 16.9

Contracts Services Team shall ensure that all necessary comments and approvals have been obtained prior to signature by the Contractor and the Company’s delegated signatory and issue of the Amendment.

16.10 The Company's signatory shall be selected in accordance with the Company's Executive Delegation of Authority. 16.11 Issue of the signed Amendment shall be on the same basis as for the original Contract and Contracts Team shall retain the Company's original of the Amendments for safekeeping, along with the original Contract.



Page 1 of 4 Date: December 2008

SECTION 17 – CONTRACTOR’S CLAIMS 17.1

“Claim” is a written demand submitted to the Company by the Contractor seeking additional payment, time, or other adjustment to the Contract, the entitlement or impact of which is disputed by the Company. All Claims from the Contractor shall be processed promptly in accordance with this document and in compliance with the Standard Procedure for Handling, Processing and Settling of Contractor’s Claims contained herein.

17.2

Upon receipt of a notice of Claim from Contractor, the Contract Superintendent shall inform the Contracts Services Team of the notice and shall gather necessary documentations, collect facts and all other information and records as necessary for evaluation of the Claim.

17.3

Correspondence with Contractor At all stages of the Claim processing, all correspondence with the Contractor must be:

17.3.1

for Live Contracts, through the Contract Superintendent.

17.3.2

for Dead Contracts, through Team Leader Contracts Services.

17.4

Claims Evaluation and Settlements Upon receipt of the Claim, the Controlling Team shall:-

17.4.1

Complete the Claim File including a description of the Claim, a reference to pertinent contract provisions, a statement of factual areas of agreement or disagreement and a statement of his opinion and evaluation with supporting rationale.

17.4.2

Produce Evaluation and Recommendation Report in a tabular format containing as a minimum the requirements stated in the detailed Procedure for Contracts Claims.

17.4.3

Under no circumstances shall the Contract Superintendent make an offer for settlement of a Claim directly to the Contractor unless prior approval is obtained from KOC Management, as appropriate.

17.4.4

Forward Claim File to Team Leader Contracts Services through the Group Manager concerned upon completion of Evaluation & Recommendation Report.

17.4.5

Contracts Services Team shall keep custody of the Claim File and keep record of all correspondence related to the Claim. Contracts Services Team shall forward Claim File to the respective Contracts Teams for review and further handling.



17.4.6

17.4.7


The Contracts Team shall:i)

Review the Contractor’s Claim vis a vis evaluation and recommendation from the Contract Superintendent from contractual/commercial perspectives.

ii)

Assess whether the recommendation from the Contract Superintendent conforms to the Contract provision or otherwise.

iii)

Obtain clarifications from the Contract Superintendent if recommendation is not adequately supported by evidence or documentation or valid reasons.

The Contracts Services Team shall:i)

Cooperate with Contracts Teams in reviewing the Claim and putting their views along with the Controlling Team’s views in the form of tabulation.

ii)

Obtain any clarifications and supporting documents from the Controlling Team or in respect of Dead Contracts directly from the Contractor.

iii)

Obtain review and opinion in respect of legal aspects underlying the Claim

iv)

Convene clarification and review meetings between the Contracts Team, Controlling Team and Projects & Claims Team - to discuss and reach

v)

Chair and head any joint reviews and evaluation meetings involving other teams.

vi)

Fix up a Claim review and conclusion schedule after the Claim Evaluation and Recommendation Report is received from the Controlling Team. Such period shall be agreed on case to case basis with the other teams participating in the process and shall depend on the complexities, value of the Claim and the Contract provisions in this context.

vii) Seek further review/ evaluation from the Controlling Team if considered necessary due to above review meetings. viii) Recording consensus of all - Controlling Team, Contracts Team and Team Leader & Senior Counsel (Projects & Claims) - on the recommendations prior to submission to the Manager (Commercial Affairs) for onward processing. 17.4.8

The Reviewing Team comprising Controlling Team, Contracts Team, Contracts Services Team and Legal Affairs Group shall:i)

Hold periodical meetings among themselves and agree on the regularity of those meetings as to the time and venue. Those meetings shall be chaired by



ii)

17.4.9


the representative of the Commercial Affairs Group, namely, Team Leader Contracts concerned. Agree on the procedure and process for handling Claims.

iii)

Hold meetings with claimant Contractor to discuss, seek cost justifications, debate, conciliate and submit recommendations to the Company’s Management, as appropriate.

iv)

Upon review of Claim, put recommendations in the form of Evaluation & Recommendation Summary Sheet, with their signatures.

Where a unanimous agreement is not reached on the recommendations between Controlling Team, Contracts Team, Contracts Services Team, and Team Leader & Senior Counsel (Projects & Claims) - the Contracts Services Team shall refer the disagreement to the Manager (Commercial Affairs), who in consultation with the Group Manager of the dissenting team, shall attempt to reconcile the difference. Failing which the Contracts Services Team shall refer the matter to the DMD heading the Commercial Affairs (Group) for an appropriate directive. In the event the disagreement on recommendation emanates from an observation or comment by any team on the aspects outside its area of responsibilities as described in the Responsibility Matrix in the Procedure for Handling Claims, such disagreement may be superseded by the views of the team who is responsible to have a final decision on the issue.

17.4.10

The scope of the review of Evaluation & Review Report by the Contracts Team shall be essentially to review the Claim from commercial aspects of the Contract and to make random qualitative checks to identify any discrepancy and further reviews and evaluation by the Controlling Team.

17.4.11

The scope of evaluation and review by the Controlling Team shall pertain to all technical issues, estimation and analysis of cost and schedule, gather all relevant facts with respect to the Claim and evidences to support the recommendation.

17.4.12

The scope of evaluation and review by Projects & Claims Team is for review legality and compliance with laws and resolutions.

17.5

The Manager (Commercial Affairs) shall then obtain endorsement and approval to the Settlement Sum from the Company’s Management as follows: 17.5.1

for rejected Claims by DMD heading the Commercial Affairs Group.

17.5.2

for admissible Claims as follows: up to KD 100,000/- by DMD heading the Commercial Affairs Group



17.6


up to KD 500,000/- by C & MD over KD 500,000/- by Company’s Board On receipt of such approval from the line Management, the Team Leader Contracts Services shall:17.6.1

For Live Contracts, advise the Contract Superintendent of outcome and request him to notify the Contractor of rejection of the Claim or the proposed settlement as the case may be. If Contractor confirms, in writing, acceptance of the proposed settlement the Contract Superintendent shall raise a request for an Amendment to the Contract for processing in accordance with Section 16 of KOC Policies and Regulations for Contracts.

17.6.2

For Dead Contracts, prepare a Deed of Settlement to be signed by the Contractor for processing for payment through Accounts Payable Team, to effect the payment of the Contractor.

17.7

Team Leader Contracts Services shall furnish to reviewing teams a monthly report illustrating outstanding, concluded and under review claims.

17.8

The claim settlement shall be incorporated into the Contract and paid to Contractor either by an Amendment when the Contract is still valid in accordance with the procedures as outlined in Section 16 hereof, or, after the expiry date, by a Deed of Settlement prepared by Contracts Services Team.

17.9

Requests submitted by Contractor for waiver to part or all of deducted liquidated damages, no matter its value, shall not be entertained as Claim and such requests shall be evaluated by the Controlling Team and the recommendations with adequate justifications may only be submitted to C&MD for approval directly by the Controlling Team in accordance with the Delegation of Authority.

.




SECTION 18 – LIQUIDATED DAMAGES 18.1

The Superintendent of the Contract shall be responsible for application of Liquidated Damages in accordance with the terms of the Contract.

18.2

It is the responsibility of the Controlling Team to inform the Contractor accordingly, and to make proper adjustments to Certified Payments Authorisation (CPA) as appropriate.

18.3

In the event that Liquidated Damages are applied, the Superintendent of the Contract shall ensure that Contracts Team is informed.

18.4

Any objections by the Contractor to such application shall be handled on the basis of a Contractor's claim.




SECTION 19 – TERMINATION OF CONTRACT 19.1

Terminations of Contracts shall be initiated by the Superintendent of the Contract, who shall be responsible for preparation of a proposal which shall comprise the recommended method of termination (Optional or Default), and all necessary supporting documentation including full justifications and financial and background information. The method of achieving completion of outstanding work must also be attached to the proposal. Such complete proposal shall be approved by Group Manager prior to forwarding to Contracts Teams.

19.2

Contracts Team shall be responsible for preparation of all termination notices.

19.3

The opinion of Legal Affairs Group shall be obtained by Contracts Team concerning:-

19.3.1 The merits/necessity of the proposed termination including the method (Optional or Default), 19.3.2 The text of all notices, and 19.3.3 The necessity or otherwise of drawing down the Performance Bond. 19.4

The specific approval to the proposed termination, its terms and, if appropriate, drawing down on the Performance Bond shall be obtained from the appropriate authority in accordance with the Delegation of Authorities prior to issue of any termination notice.

19.5

All communications with the Contractor relating to termination shall be through the Superintendent of the Contract.

19.6

Termination Letters shall be signed by the original signatory of the Contract.

19.7

Contracts Team shall be responsible for:-

19.7.1 Ensuring that all terminations are fully in accordance with the terms and conditions of the Contract, 19.7.2 Ascertaining the extent of damages to be recovered, 19.7.3 Issue of the appropriate notice to Accounts Payable Team for action under Item 19.8 hereof, and 19.7.4 Advise Controlling Team regarding dispatch and/or delivery of the Termination Notice. 19.7.5 Preparation in due course of the Final Statement of Account and Contract closure.




19.8

Accounts Payable Team shall, when necessary, be responsible for drawing down the Performance Bond.

19.9

The Superintendent of the Contract shall be responsible for:-

19.9.1 Delivery of Termination Notice, 19.9.2 Preparation of Final Accounts in accordance with the terms of termination.




SECTION 20 – SERVICE/BLANKET CONTRACT EXPIRY NOTICE 20.1

In the case of current Service Contracts, Contracts Team shall notify the Controlling Team that in the event of a continuous service being required a Contract Requisition (CR) must be prepared and submitted to Contracts Team. Such notification shall be made at least twelve (12) months prior to the expiry date of Single Source Agreements and eighteen (18) months prior to the expiry date of all other Service Contracts.

20.2

The Controlling Team shall forward to Contracts Team the fully detailed CR including the scope and any proposed amendments to the conditions of the current Contract within one month of the date of receipt of the Notice of Expiry from Contracts Team.




SECTION 21 – MULTI-SUPERINTENDENT CONTRACTS 21.1

For Request for Proposals (RFPs) having more than one Superintendent, the responsibility for preparation of the CR, evaluation of bids and recommendation for award shall rest with an Ad Hoc Committee set up for this purpose.

21.2

Each Controlling Team shall nominate a representative and the Chairman shall be the representative of the Controlling Team which has the greatest utilisation (on a monetary basis).

21.3

Recommendations for award must be endorsed by the head of each Controlling Team prior to processing in accordance with Item 8.5 of Section 8 hereof.

21.4

Where there is more than one Superintendent specified in the contract, clear coordination procedures must be developed to ensure overall control and consistency.




SECTION 22 – LOW VALUE CONTRACTS 22.1

Low Value Contracts may only be used for the implementation of works, or the provision of services, which are of a non-recurring nature. Under no circumstances shall major works be carried out using a series of Low Value Contracts.

22.2

The provision of Article 1 of the Supreme Council for Petroleum No. 1/2005 dated 7.9.2005 prohibits the making of contractual arrangements for the execution of low value works of a similar nature more than once in a period of one month. Controlling Team therefore has a responsibility to ensure that such regulation is complied with at all times. In accordance with the provisions of Resolution No. 1/2005 of the Supreme Council for Petroleum, Contracts Services Team shall prepare a monthly return of all Contracts let directly by the Company i.e. upto KD. 1 Million (including Low Value Contracts) and shall submit this to the Minister of Energy. S

S

22.3

Low Value Contracts (L Type) shall not exceed KD. 30,000/- in value. Any works or services performed whose value does not exceed KD. 1000/- may be handled on an “approved invoice” basis with no formal contract for such works/services being required, in line with the Company’s Executive Delegation of Authority.

22.4

The Controlling Team shall be responsible for the preparation of Request for Proposal (RFP) documents, bidders’ list and invitation to bid.

22.5

The Team Leader of the Controlling Team shall have the authority to invite quotations for and to award Low Value Contracts, subject to Team Leader Contracts’ endorsement.

22.6

The Controlling Team shall ensure that all Low Value Contracts are handled in accordance with the following procedures:

22.6.1

All Invitations to RFP for Low Value Contracts must contain a statement that it is a “minor work/material contract.

22.6.2

The Controlling Team shall ensure that a reasonable number of registered contractors/ vendors are given the opportunity to compete. Unless there is specific justification for limiting the number, this should not normally be less than five (5). It should be noted that past performance or Company experience with a particular contractor/vendor should not be considered as the sole criteria for selection. In all cases, the originator of a Low Value Contract shall act in such a way as to give potential contractors/vendors fair and equal opportunity to compete for works/services required by the Company.




22.6.3

The Controlling Team shall forward the LVC draft, the proposed bidder’s list and the Invitation to Tender to the Contracts Team for vetting and shall incorporate the Contracts Team’s comments. The Controlling Team shall forward the LVC documents to the Contracts Team as soon as practicable. If the Contracts Team has any comments, these shall be brought to the Controlling Team’s attention without delay.

22.6.4

Tenderers/vendors shall submit their bids by the closing date and time specified in the RFP through sealed envelopes to be deposited in the tender box located in Commercial Affairs Group’s premises.

22.6.5

Other than in emergency circumstances, all bids should be received in sealed envelopes and not opened until the designated time of opening. In this regard, faxed bids shall not be acceptable other than where specifically approved by the Team Leader concerned. In any event, the tenderer shall furnish a hard copy of the bid as soon as possible thereafter.

22.6.6

Bids Opening Committee shall open the Tender box for the sealed bids for the RFP. Received bids shall be recorded in the “Schedule of Bids” and forwarded to the Controlling Team for necessary action.

22.6.7

The Controlling Team shall carry out a complete and comprehensive technical and commercial evaluation of all bids received as appropriate.

22.6.8

Following the evaluation and its approval by the Team Leader of the Controlling Team, he shall present the recommendation for award of the Contract to his Group Manager for approval prior to forwarding the same to Team Leader Contracts for review and endorsement.

22.6.9

Following the Team Leader Contracts endorsement, the Controlling Team shall prepare the Contract together with any other documents that may be appropriate.

22.6.10

The Company’s signatory shall be the Controlling Team Leader.




22.6.11

Where appropriate, the Controlling Team shall ensure that all necessary insurance coverage is in place for the duration of the contract and any extension thereto. .

22.6.12

The Controlling Team shall maintain detailed records of all Low Value Contracts including the tendering details. In particular, records shall contain clear justification for award, especially where a Contract has been let to a contractor other than the lowest bidder. Progress reports must also be maintained in order to monitor completion of the Works and, in particular to justify any extension or variations that may be necessary during the term of the Contract.

22.6.13

All Amendments to Low Value Contract shall be handled by the Controlling Team subject to approval by its Group Manager and agreement by Team Leader Contracts.

22.6.14

In the event Team Leader Contracts is unable to agree with the Controlling Team’s recommendation for awards and Amendments to Low Value Contracts, the case, together with the Team Leader Contracts’ remarks shall be referred by Team Leader Contracts to the KOC Tender Committee for ruling, copied to the Group Manager concerned.

22.6.15

KOC Tender Committee approval is required if the cumulative value of Amendments raises the total Contract Price to more than KD. 30,000/-.




SECTION 23 – REMEDIAL WORKS OF AN EMERGENCY NATURE 23.1

This special classification of Contracts, shall only be used for Works or Services necessary for expeditiously dealing with declared emergencies such as a blow-out, major oil spillage, structural failure, major damage to an installation , or similar incident where immediate contract action is necessary to contain the situation and/or prevent the occurrence of possible imminent loss or damage.

23.2

Projects which are considered of emergency nature as identified by KPC are as follows: -

Emergency Shutdown

-

Repair of damages discovered during annual overhauls which have not been planned before-hand and would reflect on the timely completion/operation of installation as per schedule.

-

Rehabilitation of damaged installations due to major incident, explosion, or blowout.

-

Repair works to oil/gas spillage

23.3

The Group Manager, under whose sphere of responsibility the emergency has arisen shall be responsible for:-

23.3.1

Initiation of necessary Contract Requisition either verbally or by e-mail and confirmed later in writing.

23.3.2

Obtaining Management approval as appropriate for the necessary expenditure in accordance with the following: Value KD. 30,000/- – KD. 250,000 :

DMD concerned

Value more than above

C & MD

:

Although initially such requests and approval may be verbal, they shall be confirmed in writing and copied to Manager (Financial Services) and Contracts Team as soon as possible, and Should the estimated value of the works/services involved be in excess of KD. 5 Million, approval shall be obtained from KPC Board of Directors for exemption from normal tendering procedures.




23.3.3

Preparation of Scope of Work and other appropriate documents for any proposed RFP/Contract.

23.3.4

Consultation with Contracts Team as to the most appropriate method of contracting out the work/service.

23.4

In many instances a "Low Value Contract" format may be used, which in such circumstances may be issued without the formal procedures.

23.5

The Contracts Team shall co-operate with the Controlling Team to produce a Contract for execution at the earliest practicable time.

23.6

While this special classification of Contracts is exempted from the use of normal tendering procedure in view of their nature, however, should the value of works/services involved be in excess of KD 1 Million, the Contracts Teams shall at a later stage notify KPC HTC of all related contracting actions taken in this respect.

23.7

Pending the availability of such Contract, the Work or Services may commence on the basis of a Letter of Intent (issued on the basis of the C&MD's approval as in 23.2.2 above without the formal procedures).

23.8

The Group Manager shall maintain fully documented records of all expenditure. Upon completion of the Works or Services, he shall forward to the C&MD, through his DMD, a consolidated return detailing all expenditure. This return, which shall be copied to Manager (Financial Services) and Contracts Team, shall include a brief description of the Works or Services provided by the Contractor and the type of contractual arrangements made in each case.

23.9

Contracts Team shall obtain all necessary formal approvals based on and subject to the consolidated return, as approved by the C&MD.




SECTION 24 – VITALLY URGENT WORKS 24.1

This special classification of Contracts, shall only be used in circumstances where the urgent repair or reinstatement of an installation or facility is vital to the Company's interests and the Works have to be executed within a time scale which prevents the use of normal tendering procedures.

24.2

Controlling Team shall forward to Contracts Team the following:-

24.2.1

A detailed technical/operational/commercial justification for the course of action requested.

24.2.2

The Scope of the Works or Services contemplated.

24.2.3

An estimate of the costs involved.

24.2.4

The proposed bidder’s list endorsed by the concerned Group Manager.

24.2.5

The anticipated Date for Commencement and Date for Completion.

24.3

Contracts Team shall obtain:-

24.3.1

KOC Tender Committee/KPC HTC/CTC approvals as appropriate

24.4

Following are the categories of projects which are considered vitally Urgent Works, and may be processed without CTC involvement irrespective whether their value is in excess of KD. 5 Million, subject to obtaining prior approval from the KPC Board of Directors for exemption from CTC:-

Projects which accelerated completion thereof would result in achieving significant financial advantages/high revenues. Urgent projects related to production. Projects involving direct potential HSE hazards to installations/individuals. Projects associated with other urgent ones having specified tight time schedule.




24.5

Contracts Team shall be responsible for preparation of RFP Documents and for processing the RFP with the appropriate level of urgency.

24.6

Generally, subject to the appropriate approvals, Urgent Works RFPs shall be treated as Type “B (4)”

24.7

All contractual arrangements authorised on the above described basis shall remain subject to KOC Tender Committee review and endorsement at all appropriate stages. They shall also be subject to the required endorsement / approval in accordance with the Company's Delegation of Authority prior to any commitment with a Contractor.




SECTION 25 – INVITATION FOR PROPOSAL (IFPs) 25.1

An Invitation for Proposal (IFP) is issued to either single source or selected companies to assess the technical feasibility and the estimated cost based on the information contained in the document. It is issued to enable the Company to determine whether or not it is reasonable to proceed with a project when the nature of the work is different from the Company's usual work such that it is not possible to prepare an estimate with any accuracy.

25.2

Such a request shall state that it is not an Invitation to Tender, that it is not a request for offers to perform work or services and it does not bind the companies concerned to do work or enter into a contract based on their budgetary proposals.

25.3

IFPs shall be issued through Contracts Team without Management or other approvals.

25.4

Controlling Team through their Group Manager, shall initiate action by preparing and submitting to Contracts Team, an Invitation for Proposal (IFP). This document shall be comprehensive and similar to the (CR) (Section 2 of this document) excluding only the AFE information.

25.5

Contracts Team shall prepare a simplified document for issue similar in format to a RFP document, and shall return it to the Controlling Team for review and comments prior to issue to the selected companies/vendors

25.6

The Controlling Team shall prepare the AFE based on the received IFP responses

25.7

Submittals by companies invited to submit an Invitation for Proposal (IFPs) shall be forwarded to Controlling Teams as they are received for handling.




SECTION 26 – PREQUALIFICATION OF CONTRACTORS 26A.

Prequalification of Local Contractors for Inclusion in the KOC Lists of Approved Contractors

26A.1

All new applicants shall be evaluated.

26A.2

Contractors already included in the various lists of approved Contractors may also be subject to re-evaluation as and when needed.

26A.3

When reviewing a Contractor’s application for inclusion in the List of Approved Contractors for a particular Category of Work, the LCEC will study the details submitted, compare them with the minimum requirements and arrange to visit the Contractor’s offices and Facilities and interview his personnel.

26A.4

During the evaluation it may become clear that a Contractor cannot meet the minimum requirements. In such event there would be no point in carrying out an inspection of his premises, equipment and documentation. If, however the application indicates that the Contractor may have the resources to meet the minimum requirements, the LCEC Chairman will arrange an inspection visit to the Contractor’s workshop and offices. Inspection shall include Contractor’s records, adequacy of facilities and equipment and qualifications and experience of personnel.

26A.5

The Contractor’s most recent annual audited financial statements duly certified by a recognized auditing firm shall also be checked.

26A.6

When assessing Contractor’s experience it is important to confirm that he actually did carry out the work on a contract awarded to him while disregarding any works that had been sub-contracted by him to others.

26A.7

Procedure

26A.7.1

Contractors will obtain a copy of the Pre-qualification application & minimum requirements either in hard copy from the KOC Contracts Services Team or electronically through the Company’s web site.

26A.7.2

Contractors will submit applications addressed to Team Leader Contracts Services.



26A.7.3


LCEC will scrutinize the application(s). Depending on the adequacy/completeness of the application submission of the Contractor, the Applicant will be notified by fax of either: a. b.

The scheduled date of the Site visit to his premises; or Rejection of his application.

26A.7.4

LCEC will inspect Contractor’s premises as per Items 26A.4 & 26A.5 above.

26A.7.5

LCEC will prepare a report that includes the technical capabilities, financial status and organization structure of the applicant.

26A.7.6

The report shall also contain a recommendation for acceptance or rejection of the applicant(s), endorsed by each member of the LCEC members.

26A.7.7

The LCEC Chairman will forward the final report to Manager (Commercial Affairs) for approval.

26A.7.8

Upon receiving Manager Commercial Affairs’ approval, the Applicant will be notified by fax regarding the status of his application. An applicant, who is rejected, may however re-apply for pre-qualification after a lapse of minimum six months period. In such event the same procedure for evaluation shall apply.

26A.7.9

Approved applicant(s) will be included in the KOC List of Approved Contractors.

26B

Prequalification of International/ Specialised Contractors

26B.1

The Controlling Team and/or the Contract(s) Team will prepare a request to initiate pre-qualification for international/specialised contractors.

26B.2

Team Leader Contracts Services will obtain DMD (TS)’s approval thru’ Manager Commercial Affairs to initiate pre-qualification exercise and formation of an Adhoc Evaluation Committee. CTC approval shall also be obtained as applicable.

26B.3

Following receipt of approval/s, the Team Leader Contracts Services will communicate with the appropriate Teams requesting them to designate a representative for the Adhoc Evaluation Committee. The Adhoc Evaluation Committee will consist of representatives from the Contracts Team (Chairman), Internal Audit, Financial Services Group, Controlling Team and others as appropriate. Members of the Adhoc Evaluation Committee shall be no less than of a Team Leader level or equivalent.




26B.4

The Adhoc Evaluation Committee will finalize the Pre-Qualification document upon receipt of approval to proceed.

26B.5

Contracts Services Team will prepare the content of the advertisement to be placed in the local newspapers and the official gazette and will arrange for publishing the same through Team Leader Information.

26B.6

Applicants will purchase the questionnaire from Contracts Services Team or CTC as the case may be, and will forward their submissions on or before the closing date.

26B.7

Submissions received from the applicants will be forwarded to the Adhoc Evaluation Committee for evaluation and recommendation.

26B.8

If a Site visit outside Kuwait is deemed required as approved by DMD (TS), Contracts and Controlling Teams will send representatives to conduct the site visits. After each visit, the Team will prepare a Site visit report.

26B.9

The Adhoc Evaluation Committee will prepare a final recommendation report regarding the Contractors submission to Deputy Managing Director (Technical Services) for approval, through Manager Commercial Affairs.

26B.10

Following receipt of Deputy Managing Director Technical Services’ approval, the Applicants will be notified by fax regarding the status of their submissions. However, should the prequalification exercise be conducted through CTC, Applicants may only be notified of the results after obtaining CTC’s approval based on KOC’s recommendations.

26B.11

Approved applicant(s) will be included in the KOC List of Approved Contractors for the Works/Services concerned.

KOC Contracting Regulations

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