section 5 administration procedures

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO:

Malaysia Marine And Heavy Engineering Sdn. Bhd.

SECTION 5

ADMINISTRATION PROCEDURES

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: PAGE | i

TABLE OF CONTENTS


1. INTRODUCTION ..................................................................................................... 1

2. PARTIES CONCERNED AND ADDRESSES ......................................................... 1

2.1 MMHE ...................................................................................................................... 1 2.2 SUBCONTRACTOR ................................................................................................ 2 2.3 Reporting Relationships ........................................................................................... 2

3. PAYMENT CERTIFICATES AND INVOICES ......................................................... 2

3.1 General .................................................................................................................... 2 3.2 Payment Process Flow ............................................................................................ 3 3.3 Payment Certificates ................................................................................................ 3 3.4 Contents of Certificate of Progress Claim ............................................................... 3 3.5 Invoices .................................................................................................................... 4 3.6 SUBCONTRACT Closure ........................................................................................ 4 3.7 Final Account ........................................................................................................... 4

4. VARIATION ORDER .............................................................................................. 6

4.1 General .................................................................................................................... 6 4.2 Administrative Forms ............................................................................................... 6 4.3 SUBCONTRACTOR’s Claims ................................................................................. 6 4.4 Change Proposed by MMHE: .................................................................................. 7 4.5 Authorization of Variation Work ............................................................................... 8 4.6 Monitoring of Variation Work ................................................................................... 8 4.7 Invoice ...................................................................................................................... 8

5. LOAN OR RENTAL OF TOOLS ............................................................................. 8

5.1 Requisition for Loan or Rental of Tools ................................................................... 8 5.2 Scope of Rental ....................................................................................................... 9 5.3 Availability of Stock .................................................................................................. 9 5.4 Rental Charges ........................................................................................................ 9 5.5 Rental Period ........................................................................................................... 9 5.6 Expiry Period of rental Overdue ............................................................................... 9 5.7 Notification on Change of Address .......................................................................... 9 5.8 Damage Tools/Equipment ....................................................................................... 9 5.9 Sublet of tools/Equipment ........................................................................................ 9 5.10 Lost of tools/Equipment ........................................................................................... 9 5.11 Security of Tools/Equipments ................................................................................ 10 5.12 Requisition Form .................................................................................................... 10

6. WELDING ELECTRODE ...................................................................................... 10

6.1 Price ....................................................................................................................... 10 6.2 Deduction ............................................................................................................... 10 6.3 Variation ................................................................................................................. 10

7. FEE AND CHARGES............................................................................................ 10

7.1 Welding Matters ..................................................................................................... 10 7.2 Summary of fees and charges to Subcontractors workers. ................................... 10

8. WALKIE – TALKIE ............................................................................................... 14

8.1 Terms and Regulation ........................................................................................... 14 8.2 Ethics: .................................................................................................................... 14 8.3 Communications and Multimedia Act .................................................................... 14

APPENDIX 1 –MONTHLY PROGRESS MEASUREMENT FORMAT .................................. 1

APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM ...................................................... 1

APPENDIX 3 – MILESTONE PAYMENT SCHEDULE ......................................................... 1

SCHEDULE 3.01 – HSE MILESTONE ................................................................................. 1

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: PAGE | ii

TABLE OF CONTENTS


SCHEDULE 3.02 – QA/QC MILESTONE ............................................................................. 3

APPENDIX4 – VARIATION ORDER REQUEST FORMS (VORF) ........................................ 1

APPENDIX5 – VARIATION ORDER PROPOSAL FORMS (VOPF) ..................................... 1

APPENDIX6 – TOOLS LOAN / RENTAL REQUISITION FORM .......................................... 1

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: PAGE 1 OF 14


1. INTRODUCTION

It is the intention of this section to advise the SUBCONTRACTOR of the required method of SUBCONTRACT implementation with respect to administration functions. All costs for the fulfillment of the requirements of this section shall be included in Schedule of Compensation.

The SUBCONTRACTOR shall adhere to all procedures herein throughout the SUBCONTRACT period unless MMHE has given prior written approval for alternative procedures.

2. PARTIES CONCERNED AND ADDRESSES

2.1 MMHE

MMHE’s Representative :

Name :

Position :

Address

Telephone :

Telefax :

E-mail address :

MMHE’s Site Representative :

Name :

Position :

Address

Telephone :

Telefax :

E-mail address :



2.2 SUBCONTRACTOR

SUBCONTRACTOR Site Representative

Name :

Position

Address :

Telephone :

Telefax :

E-mail address :

2.3 Reporting Relationships

The day-to-day administration of the SUBCONTRACT shall be the responsibility of the MMHE’s Site Representative and the SUBCONTRACTOR’s Site Representative. On all routine matters, MMHE’s Site Representative and the SUBCONTRACTOR’s Site Representative shall represent MMHE and the SUBCONTRACTOR respectively.

3. PAYMENT CERTIFICATES AND INVOICES

3.1 General

(a) MMHE shall pay the SUBCONTRACTOR at monthly intervals:

(i) against progress percentage by weight/quantity completed during each period. Unless otherwise agreed, the "Monthly Progress Measurement Format" provided in Appendix 1 hereto shall be used for the measurement of actual progress; and

(ii) against milestone payment and the payment shall be made and calculated in accordance with Appendix 3 hereto

(b) Within seven days (7) after the end of each month, the SUBCONTRACTOR shall submit a progress claim for the work done in the previous month as provided in the SUBCONTRACT.



3.2 Payment Process Flow

28

E-CPC BackgroundProcess flow of e-CPC through the e-Application system. Applicable only for services performed by

subcontractors through a valid Service Order (“SO”) from MMHE

Subcon capture Certificate

Progress Claim (CPC ) and

upload CPC

into eSubcon

Division/ Project focal review the

CPC & assign the verifier & approver

Auto interface SE

to SAP

Payment process

Subcon submit hardcopy of

invoice amount more than

MYR 300K to finance

Approval process by

division / project

Services delivered

Subcon capture invoice details and

upload invoice into System

Notification to

Subcon to submit online

invoice

2 31

5

4

6

7

8

* Bulk reminder sent for pending

item to focal person everyday at

1.00PM

* Bulk reminder sent for

pending item to Approver

everyday at 1.00PM

* Denotes current control

3.3 Payment Certificates

(a) The SUBCONTRACTOR shall liaise with MMHE Project Cost Control to obtain Progress Certificate for WORK carried out under this SUBCONTRACT for certified completion of the relevant stage of the WORK. The SUBCONTRACTOR shall then attach the Progress Certificate to their monthly progress claims which includes the Certificate of Progress Claim and submit to online claim (e-Claim System).

(b) The SUBCONTRACTOR shall submit the Certificate of Progress Claim to online for certification and approval as per format provided in Appendix 2 hereto.

(c) Upon receipt of the approved Certificate of Progress Claim from MMHE, the SUBCONTRACTOR shall submit its invoice together with the approved Certificate of Progress Claim to MMHE Finance Services Department for processing of payment:

(d) Should there be any dispute on any item on the Certificate of Progress Claim or invoice, payment in respect of the disputed items may be withheld by MMHE until the settlement of such dispute by mutual agreement.

3.4 Contents of Certificate of Progress Claim

(a) The values of the following ‘additions’ which are relevant during the preparation of a Certificate of Progress Claim must be included:

(i) Cumulative value of the work done by the SUBCONTRACTOR at the cut off date as certified by MMHE based on approved Progress Certificates.

(b) The values of the following ‘deductions’ which are relevant during the preparation of a Certificate of Progress Claim must be deducted:



(i) The cumulative value of the work done as certified under the previous Certificate of Progress Claim.

(ii) A percentage of the value of the Certificate of Progress Claim in accordance with the retention amount as stated in General Conditions of Subcontract.

(c) MMHE may exercise the following deductions to the SUBCONTRACTOR’s progress claim in addition to those stated under Sub-Clause 3.4(b):

(i) Compensation for delayed completion by the SUBCONTRACTOR as provided in this SUBCONTRACT.

(ii) The adjustment in the value of the finished work due to a breach of the provisions of this SUBCONTRACT by the SUBCONTRACTOR.

(iii) The cost of rectifying a breach of the provisions of this SUBCONTRACT by the SUBCONTRACTOR for which MMHE employed other parties to rectify as provided in this SUBCONTRACT.

(iv) Compensation for expenses incurred by MMHE, as valued by MMHE, following termination of the SUBCONTRACTOR as provided in the General Conditions of Subcontract.

(d) The net amount due is the total ‘additions’ minus total ‘deductions’. The net amount due must be stated in the Certificate of Progress Claim and shall be the same amount stated in the undisputed invoice.

3.5 Invoices

(a) The SUBCONTRACTOR shall submit undisputed invoice attach with approved Certificate of Progress Claim to MMHE’s Finance Department according to clause above. MMHE shall pay the SUBCONTRACTOR the net amount due in the undisputed invoice according to the payment terms in General Conditions of Subcontract.

(b) The first invoice from SUBCONTRACTOR shall be accompanied with copy of the following documents:-

(i) Performance Bond (ii) Security Bond (where applicable) (iii) Insurance Policies

Failure to provide all the information required above may result in the SUBCONTRACTOR's invoice being returned.

(c) The invoice from the SUBCONTRACTOR for 100% completion of the WORK shall be accompanied with a copy of the Certificate of Completion as per format provided in General Conditions of Subcontract.

(d) All payments by MMHE to the SUBCONTRACTOR under this SUBCONTRACT shall be made in Malaysian currency unless otherwise provided in the SUBCONTRACT.

3.6 SUBCONTRACT Closure

MMHE shall certify the release Guarantee Bond after the expiring of Guarantee Period and signing of the Subcontract Closure Letter.

3.7 Final Account

(a) Not later than 30 days after achieving Sail away of the WORK, SUBCONTRACTOR shall submit the draft final accounts. SUBCONTRACTOR’s proposal shall include an itemised breakdown of the total



compensation sought by SUBCONTRACTOR for the WORK, less any amounts due to MMHE.

(b) The draft final accounts shall be prepared and summarised in the same format as the Bill of Quantities/Package Pricing and shall include all necessary supporting documents, where applicable:

(i) Lump sum items: with summary of deliverables and evidence of completion.

(ii) Measured items: quantity take-off with cross-referenced to drawings and summarised as per the Bill of Quantities.

(c) MMHE and SUBCONTRACTOR will review and agree the final accounts and following MMHE approval, SUBCONTRACTOR shall submit its final invoice and Certificate of Completion and settlement of all claims from the SUBCONTRACTOR.

(d) The Final Invoice shall contain the following statement on the front page of the invoice signed by SUBCONTRACTOR’s Site Representative:

“This invoice covers the entire remaining compensation due to the SUBCONTRACTOR for the WORK under SUBCONTRACT No………………”

(e) The format for the Final Invoice shall be agreed between MMHE and SUBCONTRACTOR and the invoice shall as a minimum have the following supporting documentation:

(i) The invoice shall contain a brief description of the subject matter of the invoice, actual submittal date, purpose of invoice, complete current amount payable calculation, current amount payable in numbers and words, and applicable invoice payment instructions.

(ii) A reconciliation identifying the following data:

� Original SUBCONTRACT PRICE

� Listing of all Change Orders and agreed amounts

� Adjustments to all Provisional Sums (if any)

� Deductions for any liquidated damages

� Agreed Final SUBCONTRACT PRICE

� Listing of all invoices previously submitted, with invoice dates, invoice amounts and paid amounts

� Current invoice amount



4. VARIATION ORDER

4.1 General

This Clause describes the procedures for processing Variation Orders by the MMHE and the SUBCONTRACTOR that impact the cost or schedule required to complete the WORK.

4.2 Administrative Forms

(a) SUBCONTRACTOR shall verify with MMHE that the most current Variation Order Request Forms (VORF) and Variation Order Proposal Forms (VOPF), as provided in Appendix 4 and Appendix 5 hereto, are used on the project. SUBCONTRACTOR shall utilize only the forms currently approved by MMHE designated specifically for such purpose.

(b) MMHE recognizes two methods of authorizing a change in the SUBCONTRACT:

(i) Variation Order via Variation Order Request (VOR): A change in the WORK initiated by SUBCONTRACTOR, approved by MMHE and incorporated into a Service Order (SO).

(ii) Variation Order via Variation Order Proposal (VOP): A change in the WORK initiated by MMHE, approved by MMHE and incorporated into a Service Order (SO).

4.3 SUBCONTRACTOR’s Claims

(a) If the SUBCONTRACTOR considers himself to be entitled to any extension of the Completion Date and/or any additional payment in connection with the SUBCONTRACT, the SUBCONTRACTOR shall give notice to the MMHE’s Site Representative using the VORF, describing the event or circumstance giving rise to the claim. The notice shall be given as soon as practicable, and not later than period stated in General Conditions of Subcontract.

(b) If the SUBCONTRACTOR fails to give notice of a claim within such period stated in General Conditions of Subcontract, the Completion Date shall not be extended, the SUBCONTRACTOR shall not be entitled to additional payment, and MMHE shall be discharged from all liability in connection with the claim. The SUBCONTRACTOR shall also submit any other notices which are required by the SUBCONTRACT, and supporting particulars for the claim, all as relevant to such event or circumstance

(c) The SUBCONTRACTOR shall send to the MMHE’s Site Representative a fully detailed claim which includes full supporting particulars of the basis of the claim and of the extension of time and/or additional payment claimed. MMHE Contract Administrator shall consult with each party in an endeavour to reach agreement. If agreement is not achieved, the MMHE’s Site Representative shall make a fair determination in accordance with the SUBCONTRACT, taking due regard of all relevant circumstances. . MMHE Contract Administrator will prepare the internal approval and a Service Order (SO) will then be issued after approval of the SVOA by the various signatory levels in MMHE.

(d) SUBCONTRACTOR shall only have the right to propose a claim for the changes in the WORK only after SUBCONTRACTOR has demonstrated that it has investigated all possible solution to mitigate the consequences of such changes. The following conditions shall not constitute a Variation Order:

(i) Any additional design details to be included in Approve For Construction (AFC) drawings or shop drawings resulted in the change in joints details,



such as welding joints details, additional and reduction in number of joints, that are made prior to the commencement of the subject change portion of the WORK by the SUBCONTRACTOR, unless such changes have caused the SUBCONTRACTOR to modify or replace or repair the portion of WORK that has been completed.

(ii) Where the substitution of materials in term of equivalent or near in size/scantling or equivalent grade is due to the non-availability of materials but not due to engineering/design change, unless such substitution has resulted in change of weight (for structural work), size (for piping and electrical/instrumentation works) or surface area (for blasting and painting work).

(iii) Subsequent inclusion of size (for piping, electrical and instrumentation) or surface area (for blasting and painting work) or fabrication details to those items “ON HOLD” in the AFC drawings.

(iv) Any other changes in the fabrication details or shop drawings to the areas where the WORK has not commenced.

(e) Entitlement is based upon contractual rights. The SUBCONTRACTOR must first establish from applicable SUBCONTRACT provisions that a legitimate claim exists. The SUBCONTRACTOR should verify that the matter in question is outside of its scope of responsibility under the SUBCONTRACT, that it is covered by clauses dealing with changes and time extensions, and that no SUBCONTRACT language denies recovery of time and/or money. Having established this, the SUBCONTRACTOR should clearly communicate this entitlement to the MMHE via the VORF. All claims shall be comprehensive and fully documented, failing which, it is deemed to be nonresponsive and will be dropped from further consideration.

(f) The MMHE’s Site Representative shall give notice to SUBCONTRACTOR of each agreement or determination, with supporting particulars.

4.4 Change Proposed by MMHE:

(a) MMHE may issue a variation proposal to the SUBCONTRACTOR which includes a detailed description of a proposed change with supplementary or revised drawings and specifications for executing the change using the VOPF.

(b) Upon receipt of the VOPF, The SUBCONTRACTOR will prepare and submit an estimate within 5 days. If MMHE finds the response to the VOPF unsatisfactory, MMHE Contract Administrator shall consult with each party in an endeavour to reach agreement and the proposal will be returned to the SUBCONTRACTOR for resubmission.

(c) If agreement is not achieved, the MMHE’s Site Representative shall make a fair determination in accordance with the SUBCONTRACT, taking due regard of all relevant circumstances. Contract Administrator will prepare the internal approval and a Service Order (SO) will then be issued after approval of the SVOA by the various signatory levels in MMHE.

(d) The SUBCONTRACTOR shall not commence on any Variation Order works unless he has received a SO from MMHE and any claims made by the SUBCONTRACTOR for works commenced or completed without a SO shall not be entertained by MMHE.



4.5 Authorization of Variation Work

(a) The SUBCONTRACTOR must first attain written authorization from MMHE’s Site Representative or his designated representative prior to execution of the work. The SUBCONTRACTOR that is unable to produce written authorization will not have the right to claim for the work done.

(b) All Variation Order claims must have proper documents to substantiate the claims. MMHE will reject claims submitted without complete documents.

4.6 Monitoring of Variation Work

(a) In order to keep track and monitor SUBCONTRACTOR's claims, the SUBCONTRACTOR shall send to the MMHE’s Site Representative within the 1st week of every month a summary giving details of claims to which the SUBCONTRACTOR may consider himself entitled for MMHE's consideration.

(b) For close monitoring, MMHE may send reminders to the SUBCONTRACTOR at the end of each month. Upon receipt of the reminders, SUBCONTRACTOR has to reply or submit the claim if any within seven (7) days of receipt.

4.7 Invoice

The SUBCONTRACTOR shall submit invoice to MMHE for any approved Variation Order after the work specified in the Variation Order has been completed and accepted by MMHE unless progressive payments are specified in the Variation Order. MMHE shall have the right to deduct a certain percentage from the said invoices as retention money in accordance with Conditions of Subcontract.

5. LOAN OR RENTAL OF TOOLS

5.1 Requisition for Loan or Rental of Tools

(a) The loan/ rental of tools is governed by the terms and conditions as stipulated in MMHE TOOLS POLICY AND PROCEDURES.

(b) All loan of tools / equipment to SUBCONTRACTOR shall subject to MMHE approval and shall strictly in adherence with MMHE procedures for loan of tools / equipment. The MMHE reserved the right to charge the SUBCONTRACTOR for the cost of all tools taken on loan reported lost, damaged, or not returned on date. The SUBCONTRACTOR shall also comply with MMHE procedure with regard to any material and tools / equipment, which the SUBCONTRACTOR is contractually, obliged to bring into MMHE yard or to bring out of the MMHE yard.

(c) All tools must be returned in good condition together with the loan chit. MMHE reserves the right to charge for cleaning and repairing cost.

(d) For overdue tools:

(i) Due date is to be strictly observed. If overdue, MMHE may treat the tools as lost and the SUBCONTRACTOR shall compensate accordingly. Subsequently if the tools concerned are found, they remain the property of MMHE and should be returned immediately. No refund shall be made for such return.

(ii) On expiry of the due date, debit note will be raised and charge at the Weighted average cost plus 20% or replacement cost whichever is higher will be imposed.

(e) For damaged/lost tools:



(i) Tools lost should be reported to MMHE safety and Security Department within 24 hours.

(ii) Should tools be damaged or lost, the SUBCONTRACTOR shall be charged accordingly for repair or replacement.

(iii) Tools damaged or found facility should be returned immediately to the Tool Centre for maintenance or replacement.

(f) Sub-letting of tools on loan is strictly prohibited. SUBCONTRACTOR shall inspect/test the tools before leaving Tools Centre.

5.2 Scope of Rental

This shall apply to rental of tools and equipment to SUBCONTRACTOR and other parties who are involved in works in connection with MMHE business activities in which tools and equipment are contractually to be supplied by the SUBCONTRACTORs.

5.3 Availability of Stock

MMHE shall not be responsible to guarantee that all required tools and equipment for works are available in the stock.

5.4 Rental Charges

Rental charge is calculated on a daily based on calendar day inclusive of Sundays and Public Holidays. The rental charge per day unit basis shall be made known to the SUBCONTRACTORs prior to rental. Only upon agreement of the rental charge, the tools and equipment shall be issued to the SUBCONTRACTOR.

5.5 Rental Period

Maximum period of rental shall be 3 (three) months or duration of the contract works whichever is earlier. The rental charge shall be effective from the date of issuance until the date return of the tools and equipment to MMHE (Tools Centre)

5.6 Expiry Period of rental Overdue

It is the responsibility if the SUBCONTRACTORs to keep on track of the tools/equipment rental expiry date or date or return. However, upon due date, reminder will be sent to the SUBCONTRACTORs who will be decide either to return the tools/equipment or renew the rental period. A grace period of 14 (Fourteen) days will be given and if exceeding the grace period a Debit Note will be issued to the SUBCONTRACTORs for the costs of tools/equipment plus 20% penalty/admin charges for non-return of the tools/equipment by the SUBCONTRACTOR.

5.7 Notification on Change of Address

It is the responsibility of the SUBCONTRACTORs to notify MMHE in writing of any change of correspondence address so that notification/reminders could be served.

5.8 Damage Tools/Equipment

If the tools/equipment returned are found damage, charges shall be imposed on the damage part replacement plus 30% of labour/admin. charges.

5.9 Sublet of tools/Equipment

SUBCONTRACTORs are strictly prohibited to sublet the rental tools & equipment to other parties. If such practice is discovered, the tools shall be confiscated and rental plus any damage shall be charged accordingly.

5.10 Lost of tools/Equipment



Any loss of tools/equipment must be reported to MMHE Tools Centre & Security Department within 24 hours. Rental charges shall apply until the report is lodged with the Tool Centre.

5.11 Security of Tools/Equipments

It shall be the responsibility of the SUBCONTRACTORs to take due care of the tools and equipment and to abide strictly to the safety rules and regulations of MMHE.

All tools & equipment on rental irrespective whether the SUBCONTRACTORs had been charged for loss/non-returne or lost and found tools/equipment are still remain the property of MMHE.

5.12 Requisition Form

The SUBCONTRACTOR shall verify with MMHE that the most current forms, as provided in Appendix 6 hereto, are used. SUBCONTRACTOR shall utilize only the forms currently approved by MMHE designated specifically for such purpose.

6. WELDING ELECTRODE

6.1 Price

The selling price of the welding consumables shall be based on the unit price(s) established in SECTION 2: Schedule of Compensation.

6.2 Deduction

(a) At the beginning of the following month, MMHE will issue a debit note to the SUBCONTRACTOR for all the welding consumables withdrawn from the store during the month.

(b) MMHE will deduct the debit note from the SUBCONTRACTOR’s monthly progress claim before making the net payment.

6.3 Variation

Any deviation of electrodes from the SUBCONTRACT must only be amended by Variation Order.

7. FEE AND CHARGES

7.1 Welding Matters

(a) Welder’s Qualification Test - RM 200.00 per test

(b) Fail to turn up within 2 weeks after the date of WPQ approval (without reason acceptable) MMHE will impose penalty charges – RM 50.00 per welder.

(c) MMHE will imposed summon for any faked documents submission on pre-qualify welder from the SUBCONTRACTOR – RM 50.00 per welder.

7.2 Summary of fees and charges to Subcontractors workers.

- e PASS Form - RM 50/50 pcs - Medical Form - FOC

Fees Safety Induction Course - RM 16.00 e PASS Card - RM 20.00 Induction Book - RM 5.00 (Total RM 41.00)



Repeat Course - RM16.00 For NIOSH/CIDB holder- RM 20.00 for e PASS card process. (Verified by QHSE)

Local Application.

1. Photostat IC 2. Photo 2 pcs 3. Medical with x-ray 4. NIOSH/Safety Course 5. Slip of coverall

(Original IC/mykad must verified using the mykad reader) The e PASS form must stamp/verified by PMT for the Project. (Bottom of the Application form) Foreigner Application

1. Photo 2 pcs, 2. Medical with x-ray 3. NIOSH/Safety Course 4. Slip of coverall 5. Valid W/Permit Verified by Manager/Officer of Security

Department 6. Passport 7. Agreement between Company

The form must stamp/verified by PMT for the Project. (Bottom of the Application form)

Safety Induction (MMHE’s Safety Course, NIOSH, CIDB) All subcontractors - Compulsory (either 1 of the above) Client - Less than 7 days (no payment) More than 7 days less than 1 month (RM 21) Temporary Pass If the company is registered with MMHE - Approved by Manager of Security Non Register Company - Requested by PMT through e mail to Security.

Validation for Temporary Pass depend on Approval by Manager of Security and Manager of QHSE (after the expiry or any other reason)

Coverall

It is COMPULSORY that all SUBCONTRACTORs purchase the uniform from Koperasi Pekerja MMHE Berhad. The price of SUBCONTRACTORs uniform is RM 59.00 per piece inclusive of reflective tape, name embroidery with Velcro badges and printed company name.



SUMMARY OF SAFETY INDUCTION IN MMHE

No Entrants Type of Courses Induction/Briefing

By Payment for

Induction

1. Subcontractor and WGO Employees

1.1 Core activities such as Engineering & Construction, Marine Repairs or Conversion

NOSP + 1 hr Safety Briefing (Project Requirements) for Engineering & Construction OR MMHE Induction for Marine Repair & Conversion

QHSE Department + HSE Executive in charge

√ (RM150)(PPE

+ e pass card)

√(RM 21)

1.2 Non Core activities such as workshop construction, earth works, road works etc.

CIDB 1 hr Safety Briefing (Project Requirements)

HSE Executive in charge

χ

1.3 Short term (<7 days)- working on specific job

1 hr Safety Briefing Divisional Coordinators

χ

1.4 Registered participants (Awaiting for 1 day Safety Induction)

1 hr Safety Briefing Divisional Coordinators

χ

2.

2.1 Client MMHE Special Induction but within a short period. (Valid for 2 years)

HSE Executive in charge

χ

2.2 Specialist - Engineers - Maker or

Appointed Agents

Divisional Coordinators

√ (RM 21)

2.3 Ship Agent/chandler/supplier

1 hr Safety Briefing Divisional coordinators

χ

2.4 Government Agencies - Customs &

Exercise Dept - Chemist - Pilots

1 hr Safety Briefing (Project Requirements)

QHSE Department

χ

2.5 Janitorial/Canteen workers

1 hr Safety Briefing χ

2.6 Visitors (Official) χ



SUMMARY OF SAFETY TRAINING/INDUCTION FOR PROJECT EXECUTION

(The safety training matrix can be referred at Section 3 - Scope of Works, Appendix 3 HSE Job Specifications, Section 8.0 Safety Management, item 8-2 EMEPMI’s CONTRACTOR

Safety Trai ning Requirements)

No Type of Courses Induction/Briefing

By Payment for

Induction

1 Project Safety Induction (PSI), Working At Height (WAH) & Loss Prevention System (LPS)

MMHE Free of Charge

2 Awareness Training/Briefing i.e. PPE, Housekeeping, Forklift, Environment, Waste etc.

MMHE Free of Charge

3 Authorized Entrant & Standby Person Training

NIOSH RM 850 per pax

4 First Aid Training PBSM RM 150 per pax

5 Fire Watcher Training MMHE RM 50 per pax

6 Rigging & Slinging, Overhead Crane Training

MMHE RM 250 per pax

7 Forklift Operator Training MMHE RM 250 per pax



8. WALKIE – TALKIE

8.1 Terms and Regulation

(a) The walkie-talkie must be operated within MMHE’s premises unless obtained the approval from Malaysian Communications and Multimedia Commission (“MCMC”).

(b) MMHE is not responsible of any illegal usage by the user’s whether inside or outside the yard premises.

(c) No modification is allowed on the walkie-talkie unless approved by MMHE.

(d) The SUBCONTRACTOR, supplier, client is not allowed to carry their walkie-talkie into the Site without approval by MMHE’s Admin Services Division (“ASD”) and proper declaration at Security Department. The declaration shall indicate the detail of set, type, brand, and frequency will be use, serial number, carrier/user’s, and valid license from MCMC and company. The declaration shall attach with supporting documents from department/division concerned.

(e) The SUBCONTRACTOR, supplier, client is not allowed to use MMHE frequency allocated by MCMC unless obtained the valid recommendation by user department/division and approved by GM ASD. Such exception is valid for period one (1) month only and subject to extension depending to level of requirements.

(f) MMHE is not responsible of any damaged, defective, losses or an illegal usage of walkie-talkie belonging to SUBCONTRACTOR, supplier, client in the Site.

(g) MMHE authorized dept (ASD/Security) has a right to confiscated any illegal usage of walkie-talkie in the yard by subcontractor/supplier/client and imposed also to MMHE staff.

8.2 Ethics:

(a) Do not simply interrupting another channel.

(b) Do not monitor another channel unless authorized to do so by management.

(c) Do not misuse by whistling, jamming another conversation.

(d) In order to maximize the usage, keep the conversation short and precise.

(e) Use Bahasa Malaysia And English.

(f) All conversation shall relate to official matter not personal.

(g) User must identify himself upon requesting to do so.

8.3 Communications and Multimedia Act

It is noted that in accordance with regulation 41, the Communications and Multimedia Act 1998 under the Communications and Multimedia (Spectrum) 2000, without the use of apparatus can be fine not exceeding RM100, 000.00 or imprisonment for a term not less than six months in the event that violates or fails to comply with the rules.

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………………… APPENDIX 1 – MONTHLY PROGRESS MEASUREMENT FORMAT PAGE 1 OF 1


APPENDIX 1 –MONTHLY PROGRESS MEASUREMENT FORMAT

Contract No :

Contract Title :

Project :

CUMULATIVE PROGRESS COMPLETION % AS OF

COMP'N

%

(a1)

WEIGHTED

%

(A x W x a1 x a2)

COMP'N

%

(b1)

WEIGHTED

%

(B x W x b1 x b2)

COMP'N

%

(c1)

WEIGHTED

%

(C x W x c1 x c2)

COMP'N

%

(d1)

WEIGHTED

%

(D x W x d1 x d2)

COMP'N

%

(e1)

WEIGHTED

%

(E x W x e1 x e2)

COMP'N

%

(f1)

WEIGHTED

%

(F x W x f1 x f2)

%

(Sum = A + B + C + D + E + F)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

TOTAL COMPLETION % 100%

(% weightage for this activity) (c2)

(WORK ACTIVITY D)

(% weightage for this activity) (d2)

(WORK ACTIVITY A)

(% weightage for this activity) (a2)

(WORK ACTIVITY B)

(% weightage for this activity) (b2)

MONTHLY PROGRESS MEASUREMENT FORMAT

ITEM PROGRESS

COMPLETION

WEIGHTEDWORK DESCRIPTIONITEM NO.

(WORK ACTIVITY E)

(% weightage for this activity) (e2)

(WORK ACTIVITY F)

(% weightage for this activity) (f2)

(WORK ACTIVITY C)

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………………. APPENDIX 2– CERTIFICATE OF PROGRESS CLAIM (CPC) PAGE 1 OF 2


APPENDIX 2 – CERTIFICATE OF PROGRESS CLAIM

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………………. APPENDIX 2– CERTIFICATE OF PROGRESS CLAIM (CPC) PAGE 2 OF 2


To : Malaysia Marine & Heavy Engineering Sdn. Bhd.

Plo 3, Jalan Pekeliling

P. 0. Box 77

81707 Pasir Gudang

JOHOR DARUL TAKZIM

ATTENTION : PROJECT MANAGER

Contract No. :

Contract Title :

Expiry date of Performance Bond

Expiry date of Security Bond

Expiry date of Insurance Policies - WC

- PL

Original Contract Sum

Add / Less Variation Order(s) Nos.

New Contract Sum

Value of work done to date - Materials ( %)

Value of work done to date - Labour and Installation ( %)

Total value of work done to-date ( %)

Less : Retention Sum ( %)

Amount Payable

Less Amount Previously Billed

AMOUNT NOW DUE

Ringgit Malaysia :

Claimed by : Date :

(CONTRACTOR Rubber Stamp & Signature)

Date

RM

CERTIFICATE OF PROGRESS CLAIM

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: .................................................. APPENDIX 3 – MILESTONE PAYMENT SCHEDULE PAGE 1 OF 3


APPENDIX 3 – MILESTONE PAYMENT SCHEDULE

SCHEDULE 3.01 – HSE MILESTONE

Milestone Activities Percentage of Subcon-tract Price

Timeline

No. 1

� MMHE approval of HSE Plan & Programs

� MMHE approval of Safety Coordinator

� MMHE approval of PPE to be used for the Project (list)

� MMHE approval of tools & Equipment to be used for the Project (list)

� Submitted HSE Evaluation Questionnaires to MMHE

� All mobilized workers have valid NOSP Card issued by NIOSH

� All mobilized workers have passed the Medical check-up by the doctors and the drug and alcohol test by MMHE

� Developed housekeeping Plan

� Maintained daily safety meeting/briefing diary

� Provided workmen compensation

� Provided MMHE with list of qualified grinders, riggers and scaffolders

2%

30 Days

After Mobilization

No. 2

� Completed site HSE preparedness (i.e. fire extinguisher at site office, first aid kit/log book, smoking area, etc.)

� Consistently submitted weekly HSE report up to this point

� All workers mobilized up to this point must have valid NOSP issued by NIOSH

� All workers mobilized up to this point must have passed the medical check-up by the doctors and drug and alcohol test by MMHE

� Attended HSE training by relevant personnel

� Consistent attendance of SUBCONTRACTOR management to HSE meetings and walkabout

� Implemented SPSA

� Implemented Permit To Work System

� Implemented U See U Act Program

� Consistently updated and displayed HSE statistics and updates on a weekly basis up to this point

� Administered corrective actions on the findings during the audit

� Implemented housekeeping program

�� Maintained daily safety meeting/briefing diary up to this point

2%

50%

Progress



Milestone Activities Percentage of Subcon-tract Price

Timeline

No. 3

• Improved/maintained site HSE requirements

� Consistently submitted weekly HSE reports up to this point

� Consistent attendance of SUBCONTRACTOR management to HSE meetings and walkabouts

� All workers mobilized up to this point must have valid NOSP issued by NIOSH

� All workers mobilized up to this point must have passed the medical check-up by the doctors and drug and alcohol test by MMHE

� Maintained compliance of HSE training

� Improved/maintained SPSA

� Improved/maintained Permit To Work System

� Improved/maintained U See U Act Program

� Consistently updated and displayed HSE statistics and updates on a weekly basis up to this point

� Administered corrective actions on the findings during the audit

� Maintained housekeeping program and requirements

� Maintained daily safety meeting/briefing diary up to this point

1%

Project

Completion



SCHEDULE 3.02 – QA/QC MILESTONE

Milestone

Activities

Percentage of

SUBCONTRACT PRICE

Timeline

No. 1

� Mobilisation of QC Coordinator

� Mobilisation of QC Inspectors as per SUBCONTRACT.

� Mobilisation of Documentation Clerks as per SUBCONTRACT.

� Welding consumable control established.

� Electrode Controller mobilized.

� Inspection Tools available.

� Attendance of Project Manager in QA/QC Meeting.

2%

30 Days After Mobilization

No. 2

� Submission of QC Inspection reports within 3 days of inspection

� All Quality summons closed.

� All NCR responded within stipulated times

� All CAR responded within stipulated times

� Leading Indicator above 80 %

� Weld Rejection rate within range ( as agreed in project TBC )

� Attendance of Project Manager in QA/QC Meeting.

2%

50% Progress

No. 3

• All NCR closed

• All CAR closed

• All Quality Summon closed

• All Inspection reports submitted.

• All punchlist closed.

1%

Project

Completion

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………. APPENDIX 4 – VARIATION ORDER REQUEST FORM (VORF) PAGE 1 OF 2


APPENDIX4 – VARIATION ORDER REQUEST FORMS (VORF)

Supply Chain Management Division

Contract No. : CONTRACTOR Name :

Contract Title :

VOR No. : Original Contract Value : RM

Approved Variation Orders : RM

Pending Variation Order : RM

This Variation Order : RM

TOTAL : RM

1. DESCRIPTION :- (Detail Of Change To The Work)

Commencement Date : Completion Date :

2. V.O. AMOUNT :- Basis for calculating VO amount as provided in Administration Procedures(CONTRACTOR shall submit Cost Estimate Sheet)

Labour RM : - (Please tick a relevant box)

Material (if applicable) RM : - Unit Rate for Work Activities Lump Sum

Total RM : Unit Rates for Labour

(Effect of propose change on CONTRACT PRICE) Cost Plus

Effect of variation on Completion Date : Yes. Please specify: …………… No(CONTRACTOR shall submit fully documentary evidence the foregoing effects)

3. SOURCE OF CAUSE TO VARIATION :-

Drawing Material Client

Specification Others

(Please specify)

Cause :

For CONTRACTOR

__________________________

CONTRACTOR Site Representative

Date :

- Star Rate (proposed new rate)

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P)

VARIATION ORDER REQUEST FORM (VORF)

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………. APPENDIX 4 – VARIATION ORDER REQUEST FORM (VORF) PAGE 2 OF 2


CONTRACT NO. : VOR NO. :

CONTRACT TITLE : REV. NO. :

CLIENT : DATE :

1. DESCRIPTION OF CHANGE :

2. BREAKDOWN OF COST :

REMARKS

ITEM DESCRIPTION QTY. UOM ADD/ PRICING REF. REF.

DEL METHOD

TOTAL

GRAND TOTAL

CURR. UNIT PRICE TOTAL PRICE CURR. UNIT PRICE TOTAL PRICE

CHANGES COST ESTIMATE SHEET

COST CATEGORY MATERIAL COST FABRICATION COST

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ........................................................... APPENDIX 5 – VARIATION ORDER PROPOSAL FORM (VOPF) PAGE 1 OF 2


APPENDIX5 – VARIATION ORDER PROPOSAL FORMS (VOPF)

Supply Chain Management Division

Contract No. : CONTRACTOR Name :

Contract Title :

VOP No. :

PART A : TO BE COMPLETED BY MMHE

1. DESCRIPTION :- (Detail Of Change To The Work)

2. REFERENCE (DRAWING, SPECIFICATION, ETC), IF ANY

3. BASIS OF EVALUATION Basis for calculating VO amount as provided in Administration Procedures

(Please tick a relevant box)

Unit Rate for Work Activities Lump Sum

Unit Rates for Labour

Cost Plus

Proposal shall be submitted by : ……………………………………….

For MMHE

__________________________

Project Manager

Date :

PART A : TO BE COMPLETED BY CONTRACTOR

1. EFFECT OF PROPOSE CHANGE ON CONTRACT PRICE(CONTRACTOR shall submit Cost Estimate Sheet)

Labour RM : Effect of variation on Completion Date : …………………………………………..(CONTRACTOR shall submit fully documentary evidence the foregoing effects)

Material (if applicable) RM :

Total RM :

For CONTRACTOR

__________________________

CONTRACTOR Site Representative

Date :

Star Rate (proposed new rate)

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P)

VARIATION ORDER PROPOSAL FORM (VOPF)

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO:........................................... APPENDIX 5 – VARIATION ORDER PROPOSAL FORM (VOPF) PAGE 2 OF 2


CONTRACT NO. : VOP NO. :

CONTRACT TITLE : REV. NO. :

CLIENT : DATE :

1. DESCRIPTION OF CHANGE :

2. BREAKDOWN OF COST :

REMARKS

ITEM DESCRIPTION QTY. UOM ADD/ PRICING REF. REF.

DEL METHOD

TOTAL

GRAND TOTAL

CURR. UNIT PRICE TOTAL PRICE CURR. UNIT PRICE TOTAL PRICE

CHANGES COST ESTIMATE SHEET

COST CATEGORY MATERIAL COST FABRICATION COST

SECTION 5 – ADMINISTRATION PROCEDURES SUBCONTRACT NO: ………………………………… APPENDIX 6 – TOOLS LOAN/RENTAL REQUISITION FORM PAGE 1 OF 5


APPENDIX6 – TOOLS LOAN / RENTAL REQUISITION FORM

MALAYSIA MARINE AND HEAVY ENGINEERING SDN BHD (14558-P) L/C NO :

TOOLS LOAN / RENTAL REQUISITION - SUB CONTRACTOR CTLR No. :

NO. TOOL CODE DESCRIPTION UNIT QTY REMARK

1.

2.

3.

4.

PROJECT / VESSEL : JOB NO: DEPT. WORKED FOR: COST CENTRE

SUB JOB NO :

BORROWER'S PARTICULAR MMHE APPROVAL

COMPANY NAME : AUTHORISED SIGNATURE :

NAME / EMP. NO :

BORROWER'S CODE : DESIGNATION :

BORROWER'S NAME : ISSUED DATE : EXPIRY DATE :

BORROWER'S I/C NO : ISSUED BY : NAME / EMP NO.

BORROWER'S SIGNATURE : SIGNATURE :

REMARK / MARKING NO. :

MMHE TOOLS CENTRE

DISTRUBUTION - WHITE (STORE COPY)

- GREEN (ORIGINATOR COPY)



NAME OF COMPANY (SUB-CONTRACTOR) :

BORROWER'S CODE :

SPECIMEN SIGNATURES OF MMHE PERSONNEL TO AUTHORISE

NO. NAME EMP. NO. DESIGNATION SIGNATURE

1.

2.

3.

4.

6.

FOR PROJECT ONLY APPROVED BY

MAIN JOB NO. SUB JOB NO.

HEAD OF DEPT / PROJECT MGR

section 5 administration procedures

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