Company: MAGH
Filing Date: 2025-07-18
Form Type: F-1/A
Source: 0001641172-25-020173
Chunk: 105

Company: Magnitude International Ltd
Filing Date: 2025-07-18
Form: F-1/A
Chunk 105
---
 project with our CEO and COO on a monthly basis. Apart from internal reporting, the project manager will also report project status to our customer from time to time.

We have adopted ISO 9001:2015 (quality management) and ISO 450001:2018 (occupational health and safety) management systems to ensure that the works undertaken by our subcontractors are delivered on schedule and conform with our customers’ standards as well as the applicable laws and regulations and safety requirements imposed by the relevant government authorities.

Progress payment, retention money and certification

We generally do not receive any deposit or advance payment from our customers. We normally receive progress payment from customers on a monthly basis with reference to the value of works done. Generally, we submit payment applications on a monthly basis to our customers based on our internal assessment of work progress and quantity of works completed and an estimation of subcontracting costs likely to be incurred, which has to be certified by our customer’s authorized persons, such as the consulting quantity surveyors employed by our customers. Upon receiving our payment application, the authorized person of the project will examine the portion of work completed and issue a payment certificate after the examination, which normally takes about four to six weeks from the date of the payment application. We will then proceed with billing the customer with the payment certificate received. Our customer will, upon receiving our invoice, make payment to us based on the certified amount less any retention money (where applicable). In general, such payment is made within 35 days from the date of the presentation of our invoice to our customer.

| 80 |

In most contracts with our customers, our customers have the right to hold up a portion, typically 10.0% of each progress payment, until a specified percentage of the notional contract sum is reached and such sum of money is known as retention money. The retention money for each project is generally 5.0% of the notional contract sum, the first half of which is usually released upon the issue of the certificate of practical completion and the remaining portion is usually released after the expiry of the defect liability period.

Variation orders

Our customers generally have the right to order variations during the course of the project pursuant to the relevant contract terms. Variation orders may include: (i) additions, omissions, substitutions, alterations, changes in quality, form, character, kind, position or dimension; and (ii) changes to any sequence, method or timing of works, which may result in additional works or amendment to the drawings. The rates for the