Date

Ref.

: 24 May 2016
: SEC-PC-11-1548

M/S AL FALAH STEEL

P.O Box No. 126848, Abu Dhabi, UAE
Tel: 02-5500903 Fax: 02-5500904

Attention

: Mr. Mohammad Asmar General Manager

Project

: Residential Villa
MAFRAQ INDUSTRIAL AREA- ABU DHABI UAE

Subject

: Letter of Award for Steel Structure Works

Dear Sir,
Reference is made to the above subject, your quotation Ref: AFS/Q/547/4/2016 dated 13 APRIL 2016 and our
further negotiations; we are pleased to confirm our intention to award you as the subcontractor for the subject work
of the above mentioned project.
Scope of Work:
The scope of works include (BUT NOT LIMITED) the design, shop drawing, supply, transportation, delivery,
erection and maintenance of steel structure works to the construction site of Residential Villa at Mafraq
Industrial Area, Abu Dhabi UAE in accordance with the Contract Drawing & Specification, Defense Regulation,
Certificate of Origin, Shop Drawings, Material Approval, BOQ, Approved Sample and Engineers instructions all to
the required standards, description, manufacturer brand, type and finishing further to the satisfaction of the
Consultant/Client and their approval.

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Contract Price:
The price for the above mentioned Scope of work shall be Lump Sum AED 475,000/- (Dirhams Four Hundred
Seventy-Five Thousand only)
The contract price shall be fixed amount in unity with the terms and conditions mentioned above along with contract
documents according to the Lump Sum Price tabulated hereunder:
SI

Items Description

Total Price

Supply of Steel Structure (Hot Rolled Steel Section, BS4360 Grade 43A)
Purlin Galvanized Cold Form Section
Sandwich panels 0.5mm AL/PU50mm/Aluminum Foil
Insulation Double Skin
Fabrication
Erection
Machinery
Gates
Sky Lights

AED 475,000.00

Grand Total Amount in words: Dirhams (Four Hundred Seventy Five Thousands)

AED 475,000/-

Note: All Steel Structure shall be supplied and installed according your approved structural design, shop
drawing and calculation. All supplied accessories that needed to fix/erect the above mentioned structure
will be included in this amount, type and specification subject to the Consultant/Client approval.
The Subcontractor agrees to undertake and execute the works specified in this L.O.A as per the projects
requirements where Project Requirements shall means the Standard Specification, Particular Specification, Method
Statement, Material Approval, notes on the Shop Drawings and any other additions/modifications to these
documents with the approval from the Consultant/Client/ Contractor during the execution of the project. The
subcontractor agrees and confirms that he has already read, understood, the contents and requirements stated in
the above mentioned documents and he will supply and execute his work accordingly and any future changes will
not be applicable in this Contract.
The Subcontractor shall prepare all technical submittals, design shop drawing, method statement, schedule of
materials and work program for the review and approval of the Client, Consultant and Contractor.
The Subcontractor is required to provide and fix all Steel Structure accessories or any related materials necessary
for the successful realization of the scope of work to the full satisfaction of the Client, Consultant and Contractor.

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The Subcontractor shall provide Steel Structures in accordance with approved materials, manufacturer brand,
Structure system, grade, calculation, structural details, color, size, dimension, weight, plate thickness, etc. Moreover
submittals and specification all to the required durability performance criteria / codes / standard contract
specifications and mock up sample as requested by the Client, Consultant and Contractor to confirm initial approval
for the same.
The Subcontractor shall perform all laboratory test results and certificates (if needed), details required for initial
approval to ensure that the Steel Structures materials shall be within the limits specified in the contract documents
and to the satisfaction of the of the Client / Consultant / Contractor.
The Subcontractor must known that all Steel structure and its accessories are to be approved by the Client /
Consultant / Contractor and any rejected materials shall be replaced immediately by the supplier who shall bear all
associated costs thereof.
The Subcontractor is required to provide supporting team of professional Steel Structure fixer and their assistants
in the installation of the Steel Structure moreover the supervision for the same. The procedure, installation and
required materials shall be as per our approved Method Statement and Shop Drawing to the full satisfaction of our
Engineers and approved by Consultant / Client.
The Subcontractor shall do all necessary cleaning during and after completing his work, otherwise, the cost of
such work will be back charged to M/S Al Falah Steel.
The Main Contractor reserves the right to use alternative sources of supply, and in any event, may use other
supplier without any prior notice, for the project works.
Quality Control
The Subcontractor shall comply with all Quality Assurance and Quality control requirements of the Main Contract
and under the direction of the Client/Consultant/Contractor.
Site Safety & Security
The Subcontractor shall fully adhere and comply with the Contractors approves Safety Procedures and the
Client/Consultants safety requirements in addition to the procedures specified in all Contract Documents and
approved safety plan and government rules and regulations.
The Subcontractor will provide their safety material and supplies.
Program of Supply & Installation
The Subcontractor at all times ensures proper communications between the personnel at the Suppliers plant and
both his own and the Contractors Representative on Site to enable effective and uninterrupted progress of the
works on Site.

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The Subcontractor shall be required to program and daily review his own works so as to allow the Contractor
maximum flexibility which will allow for working out of sequence. This will be deemed to be allowed within the
Suppliers rates and within the overall program for the Steel Structure works with necessary modifications, if any,
during execution of works.
All materials shall be supplied by M/S AL Falah Steel to our yard/store of the project site further transportation of the
supplied material shall be your obligation.
The delivery of your materials shall be immediately to our Site assuming all your Material Approval, Shop Drawing,
Program of Work, Structural Details & calculation have been approved.
The Main Contractor shall provide safety storage, as well as the offloading and distribution of materials in the Site.
Provision of equipments and electricity shall be done by AL DIYAR GENERAL CONTRACTING COMPANY when
required for installation.
The completion date for finishing of all the works as mentioned in point 1 Scope of work shall be mutually agreed
based on the overall program and site requirement. However, the Subcontractor shall prepare, submit and update
as required a program of his works separately as needed from time to time.
Specification Obligations:
Contractors Obligation:
Provide water, power, storage space, etc.
Sub-contractors Obligation:

Provide Tools/ Equipment, Cranage, Machinery etc. required for the said work.
Provide all materials, manpower, etc.
Provide fulltime competent supervision.
Safety PPE for all their workmen.
Provide food and accommodation for their workmen.
Prepare samples for Consultants approval, as required before proceeding for work.

Bill of Quantities
The contract is a Lump Sum price and will remain unchanged / fixed throughout the project. All supplied
accessories that needed to fix /erect the above mentioned structure will be included in this amount, type and
specification subject to the Consultant /Client approval.

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Maintenance Period and Warranty

The system shall be guaranteed for a period of 10 years and to be provided from the date of PAC or as per our
Contract Condition. Maintenance period will be until one year including genuine spare or until the issuance of the
FAC of the Project, whichever is latest.
Measurement & Payments Terms
10% payable Signing the contract.
80% payable on as per site progress.
Other 5% shall be released upon expiry of defects liability period & issuance of Final Acceptance
Certificate (FAC) by the Client whichever later which shall be released on the completion of work against
Company Security Cheque.
In the event of any dispute on the assessment of the executed works, an amicable solution shall be found between
both parties. In case of failure in reaching an amicable solution, the Abu Dhabi Civil Court will have the right to
adjudicate the dispute.
If The Subcontractor fails to supply and install Steel Structure timely or to meet the quality required, the
subcontractor hereby agrees without prejudices that the Contractor shall be entitled to deduct the amount of loss be
experienced due to such non compliance to the requirements from any monies due to the supplier or which may
become from his obligations and liabilities under this L.O.A.
Penalty Clause
A penalty of AED 1,000/- per day to 10% maximum of subcontract price/value will be imposed for any delay caused
due to non execution and completion of the subcontract works as per agreed Main Program of works and any other
supplementary recovery programs that may be issued from time to time by Main Contractor to ensure the
completion date in above is met.
Rectification due to poor workmanship should be carried out by subcontractor with no extra cost to SQUARE even if
the payment is already made for that portion of the work.
Insurance
The Subcontractor will confirm in writing to the Main Contractor that the employees and labourers engaged for the
Sub-contract works are covered under workmens compensation Insurance in accordance with UAE Labour law.
The Subcontractor shall without limiting his or the Main Contractors obligation and responsibilities insure all
equipments brought to site.

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The Main Contractor shall not be liable for or in respect of any damages or compensation payable to any workmen
or other person in the employment of the Subcontractor including death or injury. The Subcontractor shall
indemnify the Main Contractor against all such damages, costs, charges and expenses whatsoever in respect
thereof or in relation thereto.
The Subcontractor shall insure against such liability during the whole of the time that any persons are employed
by him on the works. The Subcontractor shall submit to the Main Contractor such policy of insurance.
The Subcontractor shall make his own arrangement for the engagement of all staff and labour and for their
payment, feeding and transport. In case the subcontractor needs accommodation for his labour, SQUARE will give
the same and it will be cut from their account.
Termination
In the event of delay/bad performance in the supply and install of approved materials for the project to the extent
that hurts the project in the opinion of the Contractor/Client or inadequate quality of the Steel Structure installed, the
Contractor reserves the right to terminate this agreement immediately with a written notice to the Subcontractor and
the Subcontractor shall not be entitled to any claims or monetary compensations as a result of such action.
However the Contractor shall be entitled to claim and to be paid immediately by the Subcontractor the amount of
loss due to such delay and/or noncompliance with the specified quality of material caused by the Supplier. The
Contractor shall be free to terminate this Agreement upon such delays or noncompliance(s), such a termination
shall not prevent the Contractor to request above mentioned compensation of its loss.
Correspondence
All telefax communications in addition to the ones delivered by mail between the Contractor to /from the Supplier
shall be deemed as received written document by the party concerned.
Suppliers Tel. No.: 971 2 6780700, Fax; 971 2 6780750

Contact person on site

Please contact our Project Manager Mohammed Saddiq at mobile no. 050-6123098 for further information &
clarifications, if any
Confirmation required

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Please confirm your acceptance of this Letter of intent within 2 days to Eng. Ishraq Lateif (Procurement Manager)
at Mob. 050-7228067
You are hereby requested to proceed manufacturing / ordering your materials as per the conditions and procedures
mention in this Contract.

Yours faithfully,
For SQUARE ENGINEERING CONSTRUCTION LLC

Ishraq Latief

Nassar Odeh

Procurement Manager

Managing Partner

==================================================================================
On behalf of M/S. SkyArt Structural Systems
I Mr.. Falah Al Gergawi
General Manager
accept the above offer/order/SEC-PC-11-1548

Signature of sub-contractor/supplier

____________________________________________________

Company Stamp/Seal

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