raw material supply contract

8/17/2019 RAW MATERIAL SUPPLY CONTRACT

1/9

GENERAL PROVISIONS FOR CONTRACT OF RAW

MATERIALS

1. SCOPE

General Provisions for Contract shall apply to the procurement of commodities and/or services to be purchased by the Public Procurement Service, the Republic of Koreawith the various kinds of funds.

2. DEFINITIONS

he followin! terms and abbreviations used herein shall have the meanin! as set forth below"

#$ %Government% means the Government of the Republic of Korea

&$ %PPS% means the Public Procurement Service, Government of the Republic ofKorea

'$ %Supplier% means any person or or!ani(ation that furnishes commodity under thecontract.

)$ %Contractor% means bidder and supplier collectively.

*$ %Commodity% means any raw material or services related to the commodity.

3. LANGUAGE OF DOCUMENTS

+ll documents such as bids, transport documents, shippin! advice, markin!s,drawin!s, instruction manuals, bid bonds, performance bonds, letters, tele!rams, etc.,in connection with the contract under the General Provisions for Contract of Rawaterials

shall be made in -n!lish, unless otherwise authori(ed by PPS.

ther printed literature furnished by the idder may be written in another lan!ua!e aslon! as it is accompanied by an -n!lish translation of its pertinent passa!es, in whichcase, for the purposes of interpretation of the bid, the -n!lish translation shall !overn.Provided, however, that a bidder intends to participate in the bid with !oods which are

manufactured in Korea, such bidder may prepare printed literature in Koreanlan!ua!e.

4. COMPUTATION OF TIME

ime, if stated in the number of days, will include Saturdays, Sundays and holidays.0owever, in case the e1piry date falls on a Sunday or a holiday, the e1piry date shall

be e1tended to the first business day followin!.

5. CONTRACT DOCUMENTS AND GOVERNING PRIORITY


2/9

#$ Contract documents shall consist of id 2ocuments, ffer Re3uest for PremiumContract, General Provisions for Contract of Raw aterials, General 4nstructions toidders for Raw aterials.

&$ 4n the event of a conflict between the stipulations in the contract, the !overnin! priority shall be"

5irst " id 2ocumentsSecond " ffer Re3uest for Premium Contracthird " 6#$ General 4nstructions to idders for Raw aterials

6&$ General Provisions for Contract of Raw aterials, in the order as stated.

6. PERFORMANCE BOND

#$ he supplier or the beneficiary of the letter of credit shall establish a performance

bond with the bank advisin! the issuance of the letter of credit within a perioddesi!nated after the dispatchin! date of the credit advice by the above bank, in theform of irrevocable clean credit, certified check or bank !uarantee, in favor of PPSin the amount not less than ten percents6#78$ of the contract value, to be valid forthree6'$ months after the latest shippin! date or any e1tension thereof, payable inany of the currencies published by the 5orei!n -1chan!e anks in Korea andavailable for payment a!ainst simple receipt of PPS at si!ht on the authori(edforei!n e1chan!e bank in Korea, accompanied by the statement of PPS statin! thatsupplier and/or beneficiary have not complied with terms and conditions of thecontract.

&$ Performance bond shall be released upon instructions of PPS after satisfactory

completion of the contract, or on its e1piry date, whichever may first occur.

'$ 4n case a performance bond is established by a contractor who is residin! in Korea"he contractor shall establish a performance bond in favor of PPS, within seven69$

business days after the contract, in the amount not less than ten percents6#78$ of thecontract value, in the form of cash, bank !uarantee, securities by the laws of theRepublic of Korea, or surety bond issued by the Seoul Guaranty 4nsurance Companyin Korea, payable in Korean :on.

)$ 0owever, if necessary, two or more contractors may ;ointly establish the performance bond without the permission of PPS.

7. GENERAL SPECIFICATIONS

+ll commodities furnished under the contract shall be in compliance with thespecifications stipulated in the contract.

8. WARRANTY

he contractor shall !uarantee that, at the time of delivery, the commodity suppliedunder the contract will be free from any defects in material and conform to there3uirements of the contract notwithstandin! the fact that the Government may haveinspected and/or accepted the commodity. 4n case that any defects or non


3/9

=nless otherwise stated in the contract, notice of any such defect or non


4/9

shall be responsible that the commodity delivered to PPS is the same commoditydescribed in the certificate of inspection.

&$ 4nspection Re3uirements

Commodity to be supplied under the contract shall be inspected and tested by theinspector appointed by PPS as to the followin! points, if applicableD

6#$ Physical and chemical properties of materials or elements incorporated 6incommodity to be supplied.$

6&$ :ei!ht and 3uantity of each packa!e and in total

6'$ Packin! conditions and markin!s

6)$ Points to be further specified in the contract

'$ 4nspectorBs ark

+ll commodities inspected under the contract shall be stamped, stenciled orlabeled with the inspectorBs emblem. 4f it is not practicable to mark the commoditywith the inspectorBs emblem, the containers in which the commodities are packedshall be so marked. he si(e of the inspectorBs emblem may vary dependin! uponthe si(e of the commodities, packa!es or shippin! containers to be marked.

11. SUB"CONTRACT

o sub


5/9

numbered in se3uence to desi!nate the packa!e number and total number of the packa!es bein! shipped.

13. PAC#ING LIST

Contents of each shippin! packa!es shall be itemi(ed on a detailed list showin! thee1act wei!ht, e1treme outside dimensions 6len!th, width and hei!ht$ of each packa!e.ne copy of the detailed packin! list shall be enclosed in each packa!e delivered. ne

packa!e shall also enclose a master packin! list summari(in! and identifyin! eachindividual packa!e which is part of the shipment. he bo1 number in which the master

packin! list is contained should be shown on each packin! list.

n barrels, ba!s, drums or ke!s where it is not feasible to place the packin! list insidethe container, all pertinent information is to be stenciled on the outside and will thusconstitute a packin! list.

14. MAR#ING

arkin! shall consist of the followin! information in se3uence and in framecommensurate with the si(e of the container"

#$ Consi!nee" Public Procurement Service, the Republic of Korea&$ Contract number'$ Port of dischar!e)$ 4tem number, if applicable, packa!e number in se3uence, and 3uantity per packa!e.*$ Commodity description.E$ et and !ross wei!ht and cubic measurement.9$ ShipperBs marks and/or trade marks.F$ Caution marks, if applicable.>$ ther markin! re3uired in the contract.

15. PAYMENT

#$ +fter the contact is made, PPS will apply to an authori(ed forei!n e1chan!e bank inKorea, for issuance of an irrevocable and non


6/9

6E$ ther documents re3uired, if any.

&$ Payment for services shall be made upon PPSBs instructions, in accordance with the

contractual terms and conditions.'$ 0owever, payment for commodities supplied from within Korea shall be paid by

PPS directly to the supplier.

)$ 4f necessary, PPS can chan!e the method of the payment or postpone a portion ofthe payment until the contact commodities are delivered completely.

16. S$IPPING READINESS

4n the case of a contract made on 5 berth terms, shippin! readiness shall benotified by the supplier to PPS &7 days prior to loadin! the car!o, containin! suchinformation as contract number, loadin! port, brief description of commodity to be

shipped and invoice amount of shipment. PPS will provide vessels, and !ive notice #7days in advance of the vesselBs readiness to load.

2emurra!e incurred at the loadin! port due to supplierBs failure to make deliverydurin! the contractual delivery period shall be for the account of the supplier.

17. LIUIDATED DAMAGES

4f the contractor fails to make delivery of the commodity when due, PPS shall, at itsdiscretion, impose the followin! penalty"

o deduct, for each day of delay in delivery after the date specified, a li3uidated

dama!e in the amount of one


7/9

2!. S$IPPING ADVICE

Shippin! advice shall be notified to PPS prior to the on


8/9

4n addition, the breach of contract shall automatically result in the unconditionalforfeiture of the contractorBs performance bond without recourse, . 4n any event, PPSreserves the ri!ht to recover from any money due or which may become due to the

contractor, for the above mentioned e1cess costs and/or for any other losses to PPSresultin! from the contractorBs default or the breach of contract.

23. FORCE MA%EURE

he contractor shall not be char!ed with the li3uidated dama!es prescribed in Clause#9. ?4H=42+-2 2++G-S and/or any e1cess costs or any other losses to PPS

prescribed in Clause &&. 2-5+=?S, nor shall his performance bond be forfeited.

#$ :hen failure of the contractor in makin! suitable delivery is due to the causes beyond his control and which could not reasonably have been anticipated and werewithout his fault or ne!lect includin! but not restricted to +cts of God or publicenemy, acts of the !overnment whether as contractor or soverei!n, fires, floods,epidemics, 3uarantine restrictions, strikes, frei!ht embar!oes, and unusually severeweather, and delays and failure of a subcontractor due to any of such causes asabove, only in case the subcontractor is specified in the contract in compliance withClause ##, S=


9/9

+ll the e1penses for the fulfillment of the contractorBs obli!ations incurred outsideKorea, unless otherwise e1pressly stated in the contract, shall be the responsibility ofthe contractor.

4n case that e1tra e1penses incurred inside Korea due to the defects or non<conformance of the contract, the contractor shall bear the whole responsibility to paythe e1penses.

27. GOVERNING LAWS

#$ =nless otherwise specified in these Provisions, a contract shall be e1ecuted underthe authority of laws, decrees and Government re!ulations of the Republic of theKorea.

&$ he formation, validity, construction, and the performance of this contract shall be

!overned by the laws of the Republic of Korea.

28. INTERPRETATION AND TRADE TERMS

#$ 4n the event of any disa!reement between PPS and the contractor in theinterpretation of the provisions of words used in these General Provisions forContract, and the terms and conditions of the contract, the interpretation by PPSshall !overn.

&$ =nless otherwise e1pressly specified in the contract, it shall be assumed that tradeterms are used in accordance with 4nternational Rules for the 4nterpretation of radeerms &777 64C-RS &777$.

raw material supply contract

Documents