Lift contract draft reviewed by main contractor and comments attached for required clarification by the supplier.

Lift contract draft reviewed by main contractor and comments attached for required clarification by the supplier.

Ref no: CC/269/LW/A1

Kind Attn:        Lift Contractor

Project:            2B + G + 14 + Lower Roof Hotel Building

Plot No.:          373-1297 at Barsha, Dubai

Subject:           Lift contract draft reviewed by main contractor and comments attached for required clarification by the supplier.

  S.no  Comments from Chirag Contracting LLC as per main contract between client and Chirag Contracting LLC  Chirag Contracting LLC review and comments to be clarified and amended/deleted by the lift supplier            Remarks
1Soft copy of draft agreement is requiredNot provided/ receivedRequest to release soft copy
          2      As per Chirag agreement 70% cost of the material delivered at site to be paid to sub-contractor as shown in Appendix to Form of Tender page 6/20      In draft agreement 70% of the contract value it is mentioned after delivery of materialIn your letter ref.NI16-026 attached matrix client accepted your terms of payment so correct in the contract draft where ever is mentioned 75% of actual cost of material delivered to the site with Clause 60.1 to be amended as per your agreed payment and terms that is “70% of contract value on material delivered at site”
3DLP for the lift supplier must be 24 months (730days) as per main contractIn draft document at many pages it is mentioned as one year onlyNeed to be correct in contract draft document wherever it is written as 12 months in draft document
    4    Chirag contracting retention will be held 10% for the first year with bank guarantee and 2nd year with 5% guarantee check  In draft agreement it has been mentioned 10% to be released by the main contractor after handover against bank guarantee  Main contractor will not release 10% based on bank guarantee, to be received according to main contact terms and conditions as well as retention will be held in the final invoice at the time of lift handover
5For the main contractor defect liability is 24 months so the warranty by the supplier supposed to be for 24monthsIn the lift draft contract agreement it is mentioned that warranty is for 12 months after handover of the liftKindly review for warranty period from the date of handover and that will be 730 days or two years from the date of BCC or TOC
  S.no  Comments from Chirag Contracting LLC  Our comments for draft agreement provided by you    Remarks
              6              Main contactor have the objection for the item mentioned in the “ownership of the material” under commercial terms and conditionsIn your draft agreement it is mentioned under item 7 “ownership of material” he can dismantle the lift if any dispute. The supplier reference on this latter NI16-026 dt 24th May 2016, since in item no 7.4 in your attachment the main contract clauses to be referred as well as the settlement of dispute as per main contract between client and Chirag Contracting LLC              Not acceptable, this Clause N0 7 written in terms and conditions needs to be deleted as you have agreed in attachment with ref: NI16-026  
    7    Response time for maintenance after reporting the fault must be recorded.    In the draft document it is not mentioned  We need response time to be mentioned that any fault to be attended within 1- 2 hours
  8  Main contractor wants the lift supplier to attend  weekly meeting  It is not mentioned in the draft agreement  Please make sure that you will attend weekly meeting  
    9      Main contractor will watch and ward for the packed material only, not responsible for inside content.Supplier is responsible for any missing component if it is not available inside packing  Supplier should prepare check list
  10  Defect free handover at the time of TOCSupplier should make necessary protection to avoid any defect or scratchAt the time of hand over no scratches in the lift area.
  S.no  Comments from Chirag Contracting LLC  Our comments for draft agreement provided by you    Remarks
  11  Defect liability period for the sub-contractor should be started from the BCC or from that of TOC  The date of starting of  DLP must be mentioned from BCC or from TOC  Need to be discussed with customer and need to be mentioned in this agreement
      12      30mm Floor Finishing margin to be provided to accommodate the marble flooring if client or ID required to fix stone flooringIn the draft agreement you considered only 10mm recess for the polished Porcelain tile as well as you have also mentioned durable vinyl tile which is unconfirmed by anyone    CC has no objection if ID or client can confirm/accept the 10mm recess but the tile thickness itself is 10mm sometimes
    13    The payments to be released on the back to back basis ,main contractor will release the approved invoice amount after receiving the claimed invoice payment from the clientYour draft agreement term and condition that invoice payment to be released in 45 days and after that the supplier can issue 14 days’ notice to the contractor prior to stop the work      We only agree back to back payment
        14  Amount of penalty which you agreed 500 per day and max 10% of the contract value subject to the main contractor schedule will not be followed from delivery to execution and final handoverThis is mentioned in your attachment in this letter ref: IN16-026, same to be incorporated and included in the contract document wherever it is not mentionedThis letter with the attachment which is partially accepted will be considered as part of the contract document  
      15Penalty for delay payment. Penalty clause to be included if sub-contractor agreement which is agreed in attachment will delay in delivery of the material or delay in execution as well as supplier is asking 18% interest if there is any delay in payment for more than 15 daysAdd the penalty clause as per day 500AED and maximum 10% but delete the interest of 18% per annum due to delay in the payment.    Kindly include penalty per day and main contractor had not agreed 18% interest

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