SOCIEDAD MINERA CERRO VERDE

Project: Cerro Verde Production Unit Expansion

Request for Proposal (RFP) K115

Structural, Civil, Mechanical, Piping and Electrical
& Instrumentation (S,C,M,P,E&I) Installation at
Tailing Storage Facility (TSF) Area


RFP Explanation Meeting
December 18, 2013
Arequipa, Peru



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1.0 Introduction
FMI/FCX (Client) and SMCV (Company)
Fluor/SMI (Engineer)
MWH
GMI
Bidders

2.0 Value Creation /
Safety Share
Presented by Arturo Puentes from
Fluor/SMI
3.0 Meeting Objectives &
Project Overview
Review and explanations of the RFP documents
and Proposal requirements.

Provide guidance to the bidders to facilitate
understanding of the RFP and prepare the
proposal for RFP K115.

The closing date for Questions, Answers and
Bid Clarification (QABC) is 16-Jan-2014.
Answers will be provided by Fluor in writing.

4.0 Review of Scope of
Work (SOW)
SOW Overview

Presented by Arturo Puentes (SMI)
4.0 Review of Scope of
Work (SOW)
SOW contains three (3) key
documents:
4.1 Part I SOW RevA (including
general drawings, attachments,
exhibits)
4.2 Detailed SOW from GMI
4.3 Detailed SOW from MWH

4.1 Review of Part I SOW
Rev A
Part I SOW RevA
4.1 Review of Part I SOW
Rev A

4.1 Review of Part I SOW
Rev A

4.1 Review of Part I SOW
Rev A

4.2 Detailed SOW from GMI
(K067-C2-SW-50-003 Rev C5)

4.2 Detailed SOW from GMI
(K067-C2-SW-50-003 Rev C5)
Detailed SOW from GMI includes:
- Specific drawings
- Specifications
- BOQ (QPS) in Attachment M
- Item Description in Attachment N

Refer to GMIs presentation.
4.3 Detailed SOW from MWH
(K082-C2-SW-10-K115 Rev C)
4.3 Detailed SOW from MWH
(K082-C2-SW-10-K115 Rev C)
MWH SOW is not complete at this
time and will be updated by RFP
Addendum.

Detailed SOW from MWH shall include:
-Specific drawings
-Specifications
-BOQ (MTO) in Attachment M (TBU)
-Item Description in Attachment N (TBD)

4.3 Detailed SOW from MWH
(K082-C2-SW-10-K115 Rev C)

Refer to MWH Presentation.
4.4 SOW Construction
- Attachment C Site Rules
- Attachment J Temporary
Construction Facilities and Utilities

Presentation from Michael Wockner (SMI)
4.5 SOW - HSE


Contractor needs to submit a Project
Specific HSE Plan and gain approval
from Engineer/Company prior to
mobilization.
Presentation from John Hayes (SMI)

4.6 SOW - QA/QC
Attachment E Quality Management
Requirements

Contractor needs to submit a Project
Specific Quality Program and gain
approval from Engineer/Company
prior to mobilization.

4.7 SOW Scheduling and
Reporting
Attachment G Scheduling and
Reporting

Presentation from Jeff Ward (SMI)
4.8 SOW Community,
Industrial Relationship







Presentation from Roberto Prada (SMI)
5.0 Review of Schedule
5.1 RFP Development
Schedule
5.2 Contract Schedule
Bidder to include a detailed Contract Schedule
in Technical Proposal by following the
milestone schedule in Part I SOW, Exhibit One.


Note: Mechanical Completion date
for Tailing Ancillaries will be UPDATED.


5.2 Contract Schedule Milestone
in Part I SOW, Exhibit One
5.3 Company Furnished
Materials Delivery Schedule
Part I, Attachment I Company Issued
Equipment & Materials Delivery Schedule



Questions?
6.0 Review of General &
Commercial Requirements
6.1 RFP Instruction to
Bidders
a) Hard copy bid submittal is not
mandatory, electronic bid by
SmartSource in two (2) separate
files identified as Technical and
Commercial.

Bid Closing Date is Jan. 24, 2014.
6.1 RFP Instruction to
Bidders
b) Technical, Commercial or
General Questions to be addressed
in writing via QABC and answers
will be provided in writing by Fluor
and shared with all bidders w/o
mentioning the names of bidders
who asked the questions.
Please be specific of which document or
section your question is from.
6.1 RFP Instruction to
Bidders
c) Technical and Commercial
Proposals must be submitted in English.

Any conflict between English and
Spanish, English prevails.
6.2 RFP Proposal Forms
Commercial Proposal Form 01 to
Form 11

Technical Proposal Form 20 to
Form 36 (Form 35 is N/A)
6.3 Contract Document
Conformed Contract will be consisting of the
following documents:
Contract Signature Document
PART I SCOPE OF WORK
Drawings & Specifications
Attachments
Exhibits
PART II COMMERCIAL TERMS
PART III GENERAL TERMS STANDARD
PART IV SPECIAL TERMS (if applicable)
6.4 Contract Part II
Commercial Terms
Pricing Basis Unit Price (UP) in Soles
Refer to Commercial Schedule A - Pricing Details

6.4 Contract Part II
Commercial Terms
Pricing for Changes Section 3.0
Payment Terms Section 5.0
- Bidders were advised that there will be 10%
retention on monthly progress invoices.
- Payment terms are net 30 calendar days from
the receipt of a pre-approved invoice.
- Bidders were advised that all prices must be
firm for the duration of the work as outlined in
the RFP.
Payment Application Instructions Section
7.0 and Appendix 1
6.4 Contract Part II
Commercial Terms
CARTA FIANZA Section 1.8 (Non-Negotiable)

6.4 Contract Part II
Commercial Terms
-If Contractor requests advance payment, a CARTA
FIANZA at 100% of advance payment value will be
required.

Amortization must take place in twelve (12) equal
monthly installments. Non Negotiable

-If Contractor requests 10% retention to be released
in the monthly progress payment, a CARTA FIANZA
will be required.
6.4 Contract Part II
Commercial Terms
Schedule A1 Pricing for Indirects
6.5 Contract Part III
General Terms (Highlights)
Section 3.0 Conditions and Risks of Work
Section 8.0 Termination for Default
Section 12.0 Delays
Section 28.0 Indemnity
Section 29.0 Insurance
Section 41.0 Liens
Section 50.0 Waiver of Trail, Dispute Resolution




An Important Reminder
(RTFC)
- READ
- THE
- FULL
- CONTRACT

Questions?
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