Exhibit (at)
 
 CONTRACT NO.:
    
    MOPU-0035CONTRACT TITLE:
    
    INSTALLATION OF AUTOCLAVEBRICK LINING AND TITANIUMCOMPONENTSCONTRACTOR:
    
    KOCH AUSTRALIA PTY LTD.
 STANDARD TENDER & CONTRACT DOCUMENT
 VOLUME 3
 Lump Sum / Schedule of Rates Contract
(Major Expansion  Work Packages)




---



##### 



CONTRACT DOCUMENT
 CONTENTS
 1. INSTRUMENT OF AGREEMENT2. CONTRACT DOCUMENT3. OTHER DOCUMENTS FORMING PART OF THE AGREEMENT




---



##### 



FORMAL INSTRUMENT OF AGREEMENT
 
  aves Brick
  
  1
    
    In this agreement words and expressions shall, unless the context otherwise require, have the
same meaning2
    
    The following documents shall be deemed to form and be read and construed as part of this
agreement:
 a)
    
    Contract Documents Volumes 3A, 3B, and 3C as issued by LGL, during the tender, and amended in
accordance with post tender / Pre-Award meetings and Contractor completed appendicesb)
    
    Minutes of Post-Tender / Pre-Award Meetings including:
 th  st  rd  th th
 c)
    
    Contract Schedule dated 20th May, 2009d)
    
    Contractors Tender dated 26th June, 2009e)
    
    Contractors Quality Plans dated 24th February, 2009 (Koch) and 16th June, 2008 (York Forter)f)
    
    Contractors supplied drawing Q-1270-C REV 1 REVISEDg)
    
    The Letter of Acceptance, dated 29th June, 2009.
 3
    
    In consideration of the agreements on the part of LGL in this agreement the Contractor will
undertake and complete the work in conformity in all respects with the provisions of the contract
and will perform, fulfil, comply with, submit to and observe all and singular the provisions,
conditions, stipulations, and requirements and all matters and things expressed or shown in or
reasonable to be inferred from the contract and which are to be performed, fulfilled, complied
with, submitted to or observed by or on the part of the Contractor.4
    
    In consideration of the agreements on the part of the Contractor in this agreement LGL, will make
payments to the contractor in accordance with the provisions of this agreement and will perform,
fulfil, comply with, submit to and observe all and singular the provisions conditions stipulations
and requirements and all matters and things expressed or shown in or reasonably to be inferred
from the contract and which are to be performed, fulfilled, complied with, submitted to or observed
by, or on the part of LGL.




---



##### 



5
    
    If any party to this agreement consists of one or more persons or one or more corporations or two
or more persons or two or more corporations this agreement shall bind such person or persons and
such corporation or corporations or such persons or corporations (as the case may be) and their
respective executors, administrators, successors and permitted assigns (in the case of the
Contractor) and assigns (in the case of LGL) jointly and severally and the person or persons and or
corporation or corporations included in the term Contractor or the term LGL in this agreement
shall jointly be entitled to the benefit of this agreement and this agreement shall be read and
construed accordingly.6
    
    This agreement shall take effect according to its tenor notwithstanding any prior agreement in
conflict or at variance with it or any correspondence or documents relating to the subject matter
of the contract which may have passed between the parties to the agreement prior to its execution.7
    
    The undersigned authorised representatives of each party have initialled each page of this
document and each change appearing on the face thereof.Initialled by 
 (For and on behalf of the Contractor) 
and by

 (For and on behalf of LGL)
 
  &n
bsp;
 &n
bsp;
 &n
bsp;
 &n
bsp;
 &n
bsp;
 &n
bsp;
 &n
bsp;




---



##### 



CONTRACT DOCUMENTS
 VOLUME 3ASection 1
    
    General Project DetailsSection 2
    
    Conditions of TenderingSection 3
    
    Appendices to Conditions of TenderingSection 4
    
    General Conditions of ContractSection 5
    
    Appendices to General Conditions of ContractSection 6
    
    Special Conditions of ContractSection 7
    
    Appendices to Special Conditions of ContractVOLUME 3BSection 8
    
    Scope of WorkSection 9
    
    Tender Conditions of Particular ApplicationSection 10
    
    Appendices to Tender Conditions of Particular ApplicationSection 11
    
    Special Conditions of Particular ApplicationSection 12
    
    Appendices to Special Conditions of Particular ApplicationSection 13
    
    Technical SpecificationsSection 14
    
    General SpecificationsSection 15
    
    Total Project ProgramVOLUME 3CContract DrawingsReference DrawingsOther Reference Information




---



##### 



STANDARD TENDER & CONTRACT DOCUMENTS
 VOLUME 3/A
 Lump Sum / Schedule of Rates Contract  Major Expansion Work Packages




---



##### 



INDEX
 VOLUME 3A
 Section 1
    
    General Project DetailsSection 2
    
    Conditions of TenderingSection 3
    
    Appendices to Conditions of TenderingSection 4
    
    General Conditions of ContractSection 5
    
    Appendices to General Conditions of ContractSection 6
    
    Special Conditions of ContractSection 7
    
    Appendices to Special Conditions of Contract




---



##### 



SECTION I  GENERAL PROJECT DETAILS
 INDEX
 1.1
    
    Introduction1.2
    
    Description of the Total Project and Site1.3
    
    Access1.4
    
    Climate1.5
    
    Open Site Policy1.6
    
    Site Facilities1.7
    
    Total Project Program1.8
    
    Total Project Data




---



##### 



1.1
    
    INTRODUCTION1.1.1
    
    Lihir Gold Limited (ARBN 069 803 998), a company incorporated in Papua New Guinea, of Level
7, Pacific Place, Port Moresby, Papua New Guinea(hereinafter referred to as LGL) is the owner
and operator of the Lihir Mine located on Lihir Island (hereinafter referred to as the Mine) and
is carrying out expansion work, generally described as the Million Ounce Project (hereinafter
referred to as the Total Project).1.1.2
    
    To manage the Total Project, LGLwill be entering into a number of Contracts (Work
Packages), with various contractors, to carry out sections of the Total Project in individual Work
Packages. It is essential for the successful completion of the Total Project that all Contractors
work together with LGLas a team, and contribute positively to the resolution of problems and to
the completion of the Total Project on time and on budget.1.1.3
    
    The conditions and procedures by which the Contracts will be managed are based on the
following general principles:
 a.
    
    The Contractors awarded Work Packages shall be experienced and proficient in the specific Work
Package field and shall therefore be conversant with the day-to-day problems encountered on a
project of this size, and shall have made adequate allowance in their Tender Price to overcome such
problems by efficient management, supervision, and co-ordination. Accordingly, only major issues
will require resolution/ direction at the project management level.b.
    
    During the course of performing the Work, it is unlikely that idyllic work conditions will
exist. The interface between related contracts, and ongoing mining operations, necessary changes to
the Work, material deliveries, the terrain, and the prevailing weather conditions will all
contribute to varying the programmed flow of work. The Contractors Tender shall recognize this and
shall include the necessary flexibility, including alterations of resource levels and workforce
relocations to optimize productivity and progress, in the Tender Price.c.
    
    This Work Package is an integral part of the Total Project. Therefore, it is essential that the
Contract be completed in accordance with the Contract Schedule to ensure that the Total Project is
completed in accordance with the Total Project Program. Accordingly, time is of the essence of this
Contract.d.
    
    In order to ensure the resolution of issues as they occur, and to afford LGLLGLthe opportunity
to investigate alternative options, all matters involving extra payment will be subject to strict
notification requirements which will be rigidly enforced as LGLLGLshould not be required to pay
for anything it has not had the opportunity to approve, avoid, or minimise.
 1.2
    
    DESCRIPTION OF THE TOTAL PROJECT AND SITE1.2.1
    
    To assist the Contractor in becoming familiar with the Total Project, this section contains a
brief description of the Total Project and other general information. Some aspects of this
information may change, or be inaccurate, therefore no reliance should be placed upon it. It is
simply offered by way of general introduction.1.2.2
    
    The Mine is located on Lihir Island within the Lihir Island Group. The Lihir Island Group
consists of four islands, of which Niolam Island (commonly known as Lihir Island) is the largest.
Lihir Island is located at longitude 152°38 E, latitude 3°07 S, and approximately 700 kilometres
North-East of the PNG capital of Port Moresby. The Mine is located approximately 50 metres above
sea level. The temperature at the Mine ranges from +19°C to +35°C and the average precipitation is
4,800 millimetres per year.
 3A Issue 1 October 2006 version 3
    
    Section 1 Page No 1




---



##### 



1.2.3
    
    Lihir Island is a volcanic sea mountain which rises steeply from sea level to about 600
metres above sea level. It is roughly 22 kilometres long from North to South, and 14.5 kilometres
from East to West at its widest points. The Luise Caldera, in which all of the known ore deposits
on Lihir Island are located, is on the east coast of the island, and both the Mine and Processing
Plants are located there. An aircraft landing strip is located on the northern tip of the island,
about 9.5 kilometres from the Mine.1.3
    
    ACCESS1.3.1
    
    Lihir Island is serviced daily by Air Niugini from Port Moresby.1.3.2
    
    LGLs freight arrives at Putput harbour, adjacent to the process plant, on regularly
scheduled shipping services from either Brisbane, Port Moresby or Lae. General freight for Lihir
Island arrives at a small harbour located at the township of Londolovit.
 3A Issue 1 October 2006 version 3
    
    Section 1 Page No 2




---



##### 



1.4
    
    CLIMATE1.4.1
    
    Lihir Island experiences a high level of rainfall, averaging about 3,700 millimetres per
year, and has an annual mean relative humidity of about 80%. The temperature generally varies
between 20°C and 30°C (68°F and 86°F) with a recorded maximum of 34.7°C (94.5°F) and a recorded
minimum of 19.3°C (66.7°F). Lihir Island is north of the area most affected by cyclones, which
occur mainly in a belt from latitudes 10°S to 20°S. Natural vegetation on the island is mostly rain
forest.1.5
    
    OPEN SITE POLICY1.5.1
    
    The construction of the Total Project will be carried out under an open site policy.1.5.2
    
    Workers who are represented by different trade unions and workers who are not represented by
any trade union may be working along side each other or supplying, delivering, and/or removing
materials to and from the site at the same time.1.6
    
    SITE FACILITIES1.6.1
    
    LGLmay establish some facilities that can be utilised by Contractors on site, subject to the
conditions nominated. The provision of all other services necessary for the execution of Work will
be the responsibility of the Contractor. Refer to Section 6 Special Conditions of Contract for
further details. Refer to Volume 3C for site service drawings.1.7
    
    TOTAL PROJECT PROGRAM1.7.1
    
    The Work described in this document is part of the Total Project. Completion of the Work
described herein in accordance with the Contract Schedule is essential to the completion of the
Total Project in accordance with the Total Project program.1.7.2
    
    LGLmay identify to the Contractor certain milestone dates for the Work that are to be
incorporated into the Contract Schedule (Refer to Section 9)1.7.3
    
    The Contractors attention is drawn to Clauses 2.5.4 (j), 2.11 and 4.2.4, with respect to the
preparation of Tender and Contract Schedules.1.8
    
    TOTAL PROJECT DATA1.8.1
    
    The following information lists data relevant to the Total Project and which is referred to
and referenced in the Contract.
 a.
    
    The Total Project will by managed by the owner and operator of Lihir Mine (or its appointed
delegate):
 Lihir Gold Limited.
 
 Mailing Address:
 Lihir Gold Limited
 3A Issue 1 October 2006 version 3
    
    Section 1 Page No 3




---



##### 



b.
    
    Construction of Contract:Clause 4.5.1 This Agreement shall be construed and governed in accordance with the laws of
Queensland, Australia.c.
    
    Currency:Clause 2.4.1 The Contract currency shall be in Australian Dollars.d.
    
    Place for Payments:Clause 4.2.6.9 Payments shall be made at Brisbane, Queensland, Australia.e.
    
    Units of Measurements:Clause 4.5.1.3 The units of measurement are metric (SI).
 3A Issue 1 October 2006 version 3
    
    Section 1 Page No 4




---



##### 



SECTION 2  CONDITIONS OF TENDERING
 INDEX
 2.1
    
    Acceptance of Conditions of Tendering2.2
    
    Tender Documents2.3
    
    Tenderer to Inform Itself2.4
    
    Tender Price2.5
    
    Submission of Tender2.6
    
    Lodgement of Tender2.7
    
    Tender Validity Period2.8
    
    Informal Tenders2.9
    
    Additional Information2.10
    
    Post Tender Pre-award Meeting2.11
    
    Detailed Construction Schedule2.12
    
    Complementary Documents2.13
    
    Acceptance of Tender2.14
    
    Return of Tender Documents




---



##### 



2.1
    
    ACCEPTANCE OF CONDITIONS OF TENDERING2.1.1
    
    The Tenderer, by submission of its Tender, unconditionally agrees, in consideration of LGL
evaluating and considering its Tender, to be bound by the Conditions of Tendering set out herein.2.2
    
    TENDER DOCUMENTS2.2.1
    
    The Tender Documents shall be the entire contents of Volumes 3A, 3B and 3C hereof, and any
schedules, addenda or other documents issued by LGLfor the purpose of tendering.2.3
    
    TENDERER TO INFORM ITSELF2.3.1
    
    The Tenderer understands and acknowledges that it has, and in any event, that it is
reasonable to deem that it has:
 a.
    
    examined carefully and acquired actual knowledge of the Tender Documents and any other
information made available in writing by LGLto the Tenderer for the purpose of tendering;b.
    
    inspected the Site and its surroundings and as a result of careful examination, has satisfied
itself as to any and all restrictions resulting from carrying out the Work on an operating mine
site, the nature, extent and location of the Work, the formation and geology of the ground, the
character, quality and quantity of the surface or sub-surface materials and structures to be
encountered, the character of equipment and facilities needed preliminary to and during the
prosecution of the Work, the availability of labour, water, power, communications, roads and means
of transportation, disposal, handling and storage of materials, the general local conditions,
including weather conditions, and all other matters or things which may affect the execution of the
Work;c.
    
    examined all information and made all necessary inquiries relevant to the risks, contingencies
and other circumstances having an effect or which could have an effect on its Tender, including
making inquiries regarding all geotechnical information produced for exploration and/or mine
development, and satisfied itself that it has examined sufficient information for the purpose of
preparing its Tender;d.
    
    satisfied itself as to the correctness and sufficiency of its Tender and that its Tender Price
covers the cost of complying with all the obligations of the Contract and of all matters and things
necessary for the due and proper performance and completion of the Work described in the Tender
Documents including any risks and contingent liabilities related thereto.
 2.3.2
    
    LGLwill not bear the cost of any errors, misunderstandings or deficiencies of the Tenderer.
Therefore, no claims will be accepted based on the assertion of the Tenderer that it was not aware
of the provisions or conditions covered by the Tender Documents or had otherwise omitted to make
some provision in its Tender Price.2.3.3
    
    Should any Tenderer find any discrepancies, inconsistencies, errors or omissions in the
Tender Documents or should it be in doubt as to their meaning, it shall at once notify LGLin
writing and LGLwill explain or amend the Tender Documents. No explanation or amendment to the
Tender Documents will be recognised, unless in the form of a written notice of explanation or
addendum issued by LGLin the form set out in Tender Form Appendix 3/A or 3/B, respectively.2.3.4
    
    Verbal advice or information given or obtained in respect of this Tender shall not constitute
a warranty or a statement to the Tenderer on which the Tenderer may rely and shall not be binding
on LGL. LGLshall be bound only by written advice or written information furnished by LGLto the
Tenderer.
 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 1




---



##### 



2.4
    
    TENDER PRICE2.4.1
    
    The Tender Price submitted in accordance with these Conditions of Tendering shall be
expressed in the currency stated in Clause 1.8 (Total Project Data).2.4.2
    
    The Tender Price shall be fixed in wage rates or allowances, material costs, transportation
costs, primage, fees, taxes and all other costs or expenses of whatsoever kind, whether or not of
the forgoing nature unless specifically provided for in Section 9. Where unit rates are tendered, a
complete detailed breakdown showing all components that make up each rate shall be provided.2.4.3
    
    The Tender Price shall be expressed as either:
 a.
    
    a total lump sum, orb.
    
    a schedule of all-inclusive Tender Rates, extended by the provisional unit quantities to give
an Estimated Total Cost,
 as nominated in Volume 3B, Section 9, Tender Conditions of Particular Application.2.4.4
    
    For Lump Sum contracts, the Tenderer shall provide a breakdown of its Tender Price in
accordance with the items listed in Tender Form Appendix 10/A. Each item must be priced and the
quantity, material and erection components for each item provided. No items shall be included or
merged in other items. Tender Form Appendix 10/A is required for budget control and the assessment
of Progress Claims, and therefore must accurately reflect the Tenderers estimate. If LGLconsiders
that the Tenderer has loaded Tender Form Appendix 10/A to artificially increase the value of the
earliest items of Work to be executed, it may amend Tender Form Appendix 10/A as it thinks
appropriate and such amended Tender Form Appendix 10/A shall be used for the assessment of Progress
Claims. Any such amendment shall not be subject to dispute by the Tenderer / Contractor. The
Tenderer shall add to Tender Form Appendix 10/A any additional item for which it requires payment
and shall ensure the total of Tender Form Appendix 10/A equals the Tender Price.2.4.5
    
    For Unit Rate contracts, the Tenderer shall submit Tender Rates as required by Tender Form
Appendix 10/A, which shall be used to pay the Contractor for the actual Work done. The Tender Rates
shall be either Unit Rates covering the entire cost of performing identifiable units of Work (such
as cubic meters of excavation) or shall be all-inclusive Hourly Hire Rates for personnel and
equipment where units of Work cannot be readily identified, or may be a combination of both,
depending upon the nature of Work required. Tender Form Appendix 10/A may, where appropriate, also
include some items for which a Lump Sum is required. The Tenderer shall extend each Tender Rate in
the Tender Form Appendix 10/A by the number of units estimated to be required to execute the
provisional Scope of Work, if any, set out in the Tender Documents, and shall add to Tender Form
Appendix 10/A any additional Tender Rate or Lump Sum item for which it will require payment. The
extended Tender Rates, additional Tender Rates and Lump Sums shall then be totalled to give an
Estimated Tender Price. The Estimated Tender Price will only be used for LGLbudget purposes and to
monitor the performance of the Tenderer if it is awarded the Contract. It shall not be taken to
imply a guaranteed scope of work, a minimum or maximum price, or any other such thing of whatsoever
nature. The extent of work to be performed will be solely determined by LGLduring the course of
the Contract.2.4.6
    
    Where plant and equipment Hourly Hire Rates are tendered on Tender Form Appendix 10/A, the
rates shall exclude plant operators and shall only apply to the period which such plant and
equipment actually executes work or is necessarily retained at the location of a specific item of
work to perform periodic tasks necessary for the execution of the Work (Stand By). Labour Hourly
Hire Rates tendered on Tender Form Appendix 10/A including plant operators, shall apply to the full
hours, days or weeks that such labour is engaged in performing Work at the direction of LGL
excluding public holidays,
 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 2




---



##### 



rostered leave periods and any non-working periods due to such things as sick leave, absenteeism or
strikes.2.5
    
    SUBMISSION OF TENDER2.5.1
    
    The Tender shall be submitted on the form of Tender set out in Tender Form Appendix 3/C.2.5.2
    
    If the Tenderer is a natural person, the Tenderer shall sign the Tender, clearly indicating
his/her full name together with his/her signature. If the Tenderer is a corporation or company, it
shall affix its common seal, in the manner prescribed by its articles, by-laws or other
constituting documents, or shall otherwise have the Tender formally executed.2.5.3
    
    Where the Tenderer is a corporation that is directly or indirectly a subsidiary of another
corporation or is a corporation that is directly of indirectly related to another corporation, the
Tenderer shall submit details of the relationship between the respective corporations on Tender
Form Appendix 3/D. If the Tenderers Tender is accepted, the Tenderer shall, if requested in
writing by LGL,lodge a document of guarantee, undertaking and substitution for the performance of
the obligations and the discharge of the liabilities of the Contractor under the Contract in the
form set out in Tender Form Appendix 3/E, duly executed by the corporation(s) nominated in the
request in writing from LGL.For the purpose of this Clause:
 a.
    
    A Tenderer is a subsidiary of another corporation, where that corporation, directly or
indirectly, owns more than 50% of the equity of the Tenderer; andb.
    
    A Tenderer is related to another corporation where the Tenderer, directly or indirectly,
controls, is controlled by, or is under common control with, such other corporation, and for that
purpose, control means control in fact.
 2.5.4
    
    The Tenderer, in addition, as part of its Tender, shall submit the Tender Forms and other
information as set out hereunder:Tenders shall not be accepted which do not include all of these Tender Forms or which contain
 Tender Forms which have not been properly completed and any such Tender may be excluded from the
Tender evaluation process.In the event that any Tenderer reproduces any of the Tender Forms for the purpose of submitting its
Tender, such forms shall be deemed to be identical in every respect to the Tender Forms issued in
the Tender Documents and no variation or omission on any such reproduced form shall effect or alter
the terms, conditions or obligations of the Contract unless listed and priced on Tender Form
Appendix 3/F.
 a.
    
    Departure from Tender Documents  Tender Form Appendix 3/FA Tenderer must submit its Tender strictly in accordance with the Tender Documents, however, should
the Tenderer, in addition to its conforming Tender, wish to submit alternative offers based on
departures from the Tender Documents, it shall list the offered departures and the resultant
variation to the conforming Tender Price for each departure. If the Tenderer has no departures from
the Tender Documents, then it shall insert on Tender Form Appendix 3/F no departures and shall
duly sign Tender Form Appendix 3/F in acknowledgment that its Tender strictly complies with the
requirements of the Tender Documents. For design and construct Tenders, the submission and
acceptance of design drawings shall not constitute acceptance or agreement to any departures from
the requirements of the Tender Documents unless such departures are specifically listed in Tender
Form Appendix 3/F and accepted by LGL.
 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 3




---



##### 



b.
    
    Key Personnel  Tender Form Appendix 3/GThe Tenderer shall list the on-Site and head office management and supervision personnel to be
engaged on the Work (Key Personnel) and shall attach thereto, the curriculum vitae thereof, which
shall include the projects upon which they are currently engaged or, if not currently engaged, the
projects upon which they were last engaged. The Tenderer shall also nominate on this Tender Form
the position of persons on Site who will be authorised to act in all respects for and on behalf of
the Tenderer / Contractor. At least one full-time position on Site must be nominated.c.
    
    List of Current Projects  Tender Form Appendix 3/HThe Tenderer shall list the ten largest projects currently being undertaken by the Tenderer. If the
Tenderer has less than 10 current projects, the balance shall be made up of the most current
completed projects. By submission of its Tender, the Tenderer unconditionally authorizes LGLto
make whatever inquiries it wishes in relation to the Tenderers performance on these projects, and
the accuracy of the information provided.d.
    
    Wages, Allowances and Employment Conditions  Tender Form Appendix 3/INotwithstanding that the Tender is a fixed price Tender, the Tenderer shall list the wages,
allowances and employment conditions of the on-Site management, supervision and labour force to be
engaged on the Work. This information shall be treated as confidential and shall not form part of
the Contract.e.
    
    Tenderers Plant and Equipment  Tender Form Appendix 3/JThe Tenderer shall list the plant and equipment to be committed to the Contract on Tender Form
Appendix 3/J, Sheet 1 of 2, and shall provide an Equipment Inspection Report for each item of plant
and equipment, on Sheet 2 of 2. If awarded the Contract, the listed plant and equipment or plant
and equipment of equal or better standard must be supplied.f.
    
    Work to be Subcontracted  Tender Form Appendix 3/KThe Tenderer shall list all sections of the Work to be executed by Subcontractors to the Tenderer.
Approval to Subcontract any section of the Work will not be given unless nominated herein. Subject
to the provisions of Clause 4.2.11 of the General Conditions of Contract, the Tenderer shall list,
if known, the names of proposed Subcontractors.Acceptance of a Tender shall not constitute acceptance of any Subcontractors listed on this Tender
Form.Tenderers intending to utilize Subcontractors for sections of the Work at an early stage of the
Contract, should include requests for approval of these Subcontractors with all appropriate
documentation (as required by Clause 4.2.11.2) with their Tender.g.
    
    Cash Flow Program  Tender Form Appendix 3/LThe Tenderer shall submit a detailed cumulative cash flow program, as per Tender Form Appendix 3/L.
The total progress payments shall not exceed this cash flow program, adjusted for any variations
in the Scope of Work.
 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 4




---



##### 



h.
    
    Components of Tender Price  Tender Form Appendix 10/A (Volume 3B, Section 10)For Lump Sum Tenders, the Tender Price (as shown on Tender Form Appendix 3/C) shall be broken into
its constituent parts on Tender Form Appendix 10/A. (Refer to Clause 2.4.4).For Unit Rate Tenders, the Tender Rates, additional Tender Rates or Lump Sum items shall be set out
on Tender Form Appendix 10/A. and totalled to give an Estimated Total Cost (Refer to Clause 2.4.5)i.
    
    Schedule of Tender Rates for Variations & Dayworks  Tender Form Appendix 10/B, Sheets 1, 2 & 3.
(Volume 3B, Section 10)On Sheet 1, Tenderers shall submit all-inclusive Tender Rates for executing the units of Work.On Sheet 2, Tenderers shall submit all-inclusive Hourly Hire Rates for labour, including plant
operators. These Tender Rates shall include for all tools of trade and consumables.On Sheet 3, Tenderers shall submit all-inclusive Hourly, Daily, weekly and monthly Hire Rates for
Constructional Plant (excluding any operators cost). These Tender Rates shall include provision for
all fuels, lubricants and consumables.A detailed breakdown of each Tender Rate shall be attached showing clearly the derivation of each
Tender Rate.The above Tender Rates shall be applied to determine the value of Variations (additions and
deductions) to the Contract and for valuing Dayworks. For Variations, the tendered Unit Rates shall
take precedence over the tendered Hire Rates.j.
    
    Tender Schedule  Tender Form Appendix 10/C (Volume 3B, Section 10)The Tenderer shall submit a Tender Schedule in bar chart form, similar to Tender Form Appendix
10/C, to show commencement and completion dates of all major activities of the Work, including the
completion and milestone dates, if any, set out in section 9 (Tender Conditions of Particular
Application). The Tenderer shall include in its Tender provision for loss of working time due to
inclement weather. No variation to either the Contract Sum or the Contract Schedule will be allowed
for inclement weather. The Tender Schedule shall assume award of the Contract seven (7) days after
the closing date of Tenders. The purpose of the Tender Schedule is to demonstrate the Tenderers
ability to properly program the Work and for LGLsassistance in the evaluation of Tenders. The
Tender Schedule shall not, however, form part of the Contract as a detailed Contract Schedule will
be agreed upon in the post-tender pre-award period.k.
    
    Projected Construction Weekly Manpower  Tender Form Appendix 10/D (Volume 3B, Section 10)The Tenderer shall show its projected weekly manpower requirements on Tender Form Appendix 10/D and
shall note therein its preferred roster and leave periods. Acceptance of a Tender shall not
constitute acceptance by LGLthat the projected manpower is sufficient. It shall be the
Contractors responsibility to provide whatever manpower is necessary to meet the requirements of
the Contract.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 5




---



##### 



l.
    
    Quality Control ProceduresThe Tenderer shall submit details of its quality management and quality control systems that it
intends to implement on the Work. Such systems shall be subject to the approval of LGLand
consistent with the complexity of Work.m.
    
    Safety and EnvironmentThe Tenderer shall include in its Tender:
 a.
    
    Statements of its safety and environmental management policy, including any
incentive/recognition programs;b.
    
    Details of its proposed program and resources to manage safety and environmental matters on
Site;c.
    
    Statements of the safety and environmental protection practices employed as standard operating
procedures; andd.
    
    Statements of safety and environmental protection record (including statistics for the past
three (3) years) and expertise to carry out the Work safely and with due regard to protecting the
environment. Any safety or environmental violations, charges, proceedings or orders issued against
the Tenderer, any affiliate of the Tenderer, any Subcontractor or any of their respective
directors, officers, employees, agents or consultants who will be engaged in the Work, shall be
fully disclosed to LGLin these statements.
 Safety and environmental record and practices are considered as factors in selecting contractors.n.
    
    Other RequirementsThe Tenderer shall submit as part of its Tender, all other information (if any) as required by
Volumes 3A, 3B and 3C of the Tender Documents.The Tenderer shall submit with its Tender, a copy of the last audited Balance Sheet of the Tenderer
and notes thereof. If this Balance Sheet is more than 7 months old, the Tenderer shall also submit
an updated Balance Sheet authenticated by a consistent criteria review indicating if there have
been variations thereof, made by the same auditor certifying the former Balance Sheet.
 2.6
    
    LODGMENT OF TENDER2.6.1
    
    Tenders shall be submitted in duplicate and enclosed in a sealed envelope marked with the
description and number of the Work Package. The Tender shall be lodged in the Tender Box at, or
sent by prepaid post and delivered to, the place named in the Invitation to tender, by the date and
time for closing of Tenders nominated therein.2.6.2
    
    If advised in writing by LGL,tenders may be submitted via email to the specific Tender Email
Address provided by LGLfor the purpose of the tender. Upon sending of a Tender via email, the
Tenderer shall contact the person nominated in section 9 for INQUIRIES DURING TENDER PERIOD via
telephone and advise that the Tender has been sent.2.7
    
    TENDER VALIDITY PERIODThe Tender shall remain valid for a period of sixty (60) calendar days from the expiration of the
date of closing of Tenders.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 6




---



##### 



2.8
    
    INFORMAL TENDERS2.8.1
    
    Any Tender which does not comply with the requirements of or which contains provisions not
required or allowed bythe Tender Documents shall be considered an informal Tender and may be
rejected.2.8.2
    
    Unless a departure or other commercial exception is accepted in writing by LGL (either
through correspondence or at a post-tender briefing), it will have no affect under the contract and
will not bind LGL despite being incorporated into the contract under the formal instrument of
agreement.2.9
    
    ADDITIONAL INFORMATION2.9.1
    
    Notwithstanding any other requirements of the Tender Documents, LGLmay require a Tenderer to submit additional information before any Tender is accepted. Should the Tenderer fail
to submit any of the information required by the date and time stipulated by LGL,the Tender shall
be considered an informal Tender and may be rejected.2.10
    
    POST TENDER PRE-AWARD MEETING2.10.1
    
    Following submission of Tenders, a Tenderer may be required to attend a post tender
pre-award meeting at a place and time notified in writing by LGL.In addition to any other
personnel the Tenderer may wish to be present, such meeting shall be attended by:
 a.
    
    A person with the authority to contractually bind the Tenderer;b.
    
    The principal person(s) who prepared the Tender;c.
    
    The person(s) who visited the Site; andd.
    
    The nominated Key Personnel.
 A draft agenda for the post tender pre-award meeting is set out in Appendix 3/M.2.11
    
    DETAILED CONSTRUCTION SCHEDULE2.11.1
    
    Tenderers required to attend a post tender pre-award meeting shall prepare for presentation
at the meeting, a detailed construction schedule, in critical path / precedence form, listing all
activities, dependencies, resources and durations. The construction schedule shall take into
account the necessary preliminary and concurrent work of others, the requirement for co-ordination
of the Work with the work of others and the operation of the mine, the requirement to allow for
loss of working time due to inclement weather, and for delays other than those caused by acts,
omissions or defaults of LGL.The construction schedule shall also show the completion and
milestone dates (Key Dates), if any, set out in section 9 (Tender Conditions of Particular
Application).2.11.2
    
    If the Contract involves any LGL-supplied material or equipment, this shall be clearly shown
on the construction schedule. The Tenderer shall confirm all delivery dates with LGL at the post
tender pre-award meeting.2.11.3
    
    When approved, the construction schedule shall form part of the Contract and shall be
considered the Contract Schedule.2.11.4
    
    Approval of the construction schedule shall not constitute acceptance by LGLthat any
activities, resources, durations or allowances are sufficient but shall establish the time
performance obligations of the Contractor irrespective of the means necessary to achieve progress
in accordance with the Contract Schedule.2.12
    
    COMPLEMENTARY DOCUMENTS
 Volume 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 7




---



##### 



2.12.1
    
    The Tender Documents are complementary and each shall be read in conjunction with one
another to explain each other and subject to any clauses providing for order of precedence in case
of inconsistencies, with the intention of making the whole package of Tender Documents consistent.2.13
    
    ACCEPTANCE OF TENDER2.13.1
    
    LGLshall not be bound to accept the lowest or any Tender.2.13.2
    
    A Tender shall not be deemed to have been accepted unless and until notice in writing of
such acceptance is issued by LGLto the Tenderer in a form similar to that set out in Appendix 3/N
or through the execution of a Formal Instrument of Agreement.2.13.3
    
    Tenders will not be opened in public or made public.2.14
    
    RETURN OF TENDER DOCUMENTS2.14.1
    
    All unsuccessful Tenderers shall return to LGLthe Tender Documents issued to them.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 2 Page No 8




---



##### 



SECTION 3
 APPENDICES TO CONDITIONS OF TENDERING
 3/A
    
    Form of Notice of Explanation3/B
    
    Form of Addendum3/C
    
    Tender Form3/D
    
    Inter-Relationship of Corporations3/E
    
    Deed of Guarantee, Undertaking and Substitution3/F
    
    Departures from Tender Documents3/G
    
    Key Personnel3/H
    
    List of Current Projects3/I
    
    Wages, Allowances & Employment Conditions3/J
    
    Tenderers Plant and Equipment (2 sheets)3/K
    
    Work to be Subcontracted3/L
    
    Cash Flow Program3/M
    
    Agenda for Post Tender, Pre-award meeting (2 sheets)3/N
    
    Form of Letter of Acceptance




---



##### 



APPENDIX 3/A
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Notice No
    
    X###-##-####A4
    
    Date
    
    12-June-2009
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
          
 Signed
    
    Engineering Manager
   Signed
    


    (Tenderer)
    Date 12-June-2009BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA




---



##### 



APPENDIX 3/B
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Addendum No
    
    X###-##-####A4
    
    Date
    
    12-Jun-2009
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
   all questions discussed at 19 February preaward meeting and subsequent MOPU Terms and Conditions
Negotiation Table meetings. See applicable meeting notes issued. Special Terms and Conditions will
be issued to document the agreement.
 Signed
    

Engineering Manager
    Signed
    
    Date 12-Jun-09




---



##### 



APPENDIX 3/C
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Addemdum No
    
    X###-##-####A4
    
    Date
    
    12-Jun-09
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
  USD
    
    
    AUDYork subcontractKnignit services
    
    $
   Signature of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:
    
    BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:Tenderers address for service of notices:
    
    KOCH AUSTRALIA, PO BOX 1451,
PARRAMATTA NSW 2124 AUSFacsimile
    
    TelephoneEmail addressTenderers Bank (Name)
    
    Branch
  1234




---



##### 



APPENDIX 3/D
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Addendum No
    
    X###-##-####A4
    
    Date
    
    12-Jun-09
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
 Affiliated Corporations
    
    Form Of Relationship
    
    Shares HeldKOCH CHEMICAL 
TECHNOLOGY GROUP
    
    OWNS KOCH AUSTRALIA PTY LTD 
AND KOCH
KNIGHT LLC
    
    100%BEROA GROUP
    
    OWNS YORK FORTER AUSTRALASIA PTY LTD
    
    100%
  Dated this
12TH
Day of JUNE 2009Signature
of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:
    
    BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:




---



##### 



APPENDIX 3/E
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Addendum No
    
    X###-##-####A4
    
    Date
    
    12-Jun-09
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
     Signature and Seal of GuarantorSignature of Witness:Name of Witness:
    
    BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:Guarantors address for service of notices:Facsimile
    
    TelephoneEmail address




---



##### 



APPENDIX 3/F
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Australia Pty Ltd, Koch Knight Division
    
    Addendum No
    
    X###-##-####A4
    
    Date
    
    12-Jun-09
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir
Island
  Item
    
    Departure
    
    Variation to Tender Price/RateAddition
    
    Deduction
 PLEASE REFER TO THE NOTED KOCH AUSTRALIA OFFER LETTERFOR DETAILS OF OUR PROPOSAL. THE FORTHCOMING SPECIAL CONDITIONSSECTION 11, DEVELOPED FROM THE TERMS AND CONDITIONS NEGOTIATING TABLESPREPARED OVER SEVERAL MEETINGS, WILL NOTE ALL VARIATIONS FROM THETENDER DOCUMENTS AS ISSUED.
  Signature of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:




---



##### 



APPENDIX 3/G
 To all Tenderers
    
    Work Package
    
    MOPU-0035Koch Knight Division, Koch Australia Pty Ltd
    
    Notice No
    
    X###-##-####A4
    
    Date
    
    12-June-2009
 Tender For
    
    Autoclave Internal Equipment Installation
  Location
    
    Time Allocated To
    
    Proposed DatesName
    
    Position
    
    On/Off Site
    
    Contract (%)
    
    Start
    
    FinishVP ENGINEERING & CONSTRUCTION, KOCH KNIGHT LLCoffsite
    
    
    5
    %
    
    Oct-08
    
    ONGOINGBUSINESS  DIRECTOR, KOCH AUSTRALIA KOCH KNIGHT DIVISIONoffsite
    
    
    15
    %
    
    Oct-08
    
    ONGOINGSITE SUPERVISORS (2 to 4)onsite
    
    
    100
    %
    
    Apr-10
    
    Sep-11PROJECT MANAGER AUSTRALIAoffsite
    
    
    60
    %
    
    Oct-08
    
    Sep-11onsite
    
    
    40
    %
    
    Apr-10
    
    Sep-11MANAGING DIRECTOR YORK-FORTER, SUBCONTRACTORoffsite
    
    
    1
    %
    
    Oct-08
    
    Sep-11onsite
    
    
    1
    %
    
    Nov-10
    
    Sep-11TBD
    
    PROJECT MANAGERS AND SUPERVISORS OF YORK-FORTER, SUBCONTRACTORoffsite
    
    
    60
    %
    
    Oct-08
    
    Sep-11onsite
    
    
    40
    %
    
    Apr-10
    
    Sep-11
   Dated this 12TH Day of JUNE 2009
 Signature of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:
    
    BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:




---



##### 



APPENDIX 3/H
 Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir Island
    
    Work Package MOPU-0035Date 12-Jun-09
 Tenderer
    
    Koch Knight Division, Koch Australia Pty Ltd
###-##-####A4
    
    Koch Knight Projects ordered, constructed or completed in 2008, 2009
  Approximate
    
    Tenderers
    
    
    
    Contact At Supervising Body
    
    Current %
    
    Start
    
    CompletionProject
    
    Project Value
    
    Original Contract
    
    Supervising Body
    
    Name
    
    Telephone
    
    Complete
    
    Date
    
    Date
 Dated this 12TH Day of JUNE 2009
 Signature of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:




---



##### 



APPENDIX 3/I
 To all Tenderers
    
    Work Package
    
    MOPU-0035
    Work PackageKoch Knight Division, Koch Australia Pty Ltd
    
    Notice No
    
    X###-##-####A4
    
    Date
    
    12-June-2009
 Autoclave Internal Equipment Installation
   1. Salaried Personnel  Position PROJECT MANAGER
    
    
    
    Per Working DayPer Travel, Standby Day(a) Base Rate
    
    X
    
    Per Month(b) Other Allowances (Specify)
    
    X
    
    Per MonthX
    
    Per MonthX
    
    Per MonthTotal
    
    X
    
    Per Month2. Wages Personnel  Position / Category(a) Base Rate for  hours
    
    X
    
    Per Hour(b) Hourly Adjustedr Allowances (Specify)
    
    X
    
    Per HourX
    
    Per HourX
    
    Per HourSubtotal
    
    X
    
    Per Hour(c) Other Hourly Payments (Specify)
    
    X
    
    Per HourX
    
    Per HourTotal for  hours
    
    X
    
    Per Week(d) Adjustments for site working hours & roster
    
    X
    
    Per Week(e) Weekly allowances (Specify)
    
    X
    
    Per WeekX
    
    Per WeekSubtotal
    
    X
    
    Per Week(f) Total gross hourly wages for site working hours
    
    X
    
    Per Hour
 Dated this 12TH Day of JUNE 2009
 Signature of Tenderer:MANAGING DIRECTOR, KOCH AUSTRALIASignature of Witness:Name of Witness:BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIAAddress of Witness:




---



##### 



APPENDIX 3/J Sheet 1 Of 2
 To all Tenderers
    
    
    
    Work Package MOPU-0035Koch Knight Division, Koch Australia Pty Ltd
    
    
    
    Notice No    X###-##-####A4
    
    
    
    Date 12-June-2009
 Autoclave Internal Equipment Installation
  SUMMARY SHEET
 Item
    
    Plant & Equipment General
    
    
    
    
    
    ProposedNo
    
    Description
    
    Model / Type
    
    Age
    
    Start Date
    
    Finish DateThe exact equipment that will be used in construction cannot be determined 
(eg - serial number, etc) this far ahead of the
construction period. YFA hold an extensive list of equipment, maintained in excellent working order, on site or oncall for
emergencies.Bricksaw
    
    Clipper 18"
    
    1 yr
    
    Full DurationBricksaw
    
    Clipper 18"
    
    1 yr
    
    Full DurationBricksaw
    
    Clipper 14"
    
    1 yr
    
    Full DurationDistribution Boards
    
    
    
    
    
    Full DurationDistribution Boards
    
    
    
    
    
    Full DurationFesto Mixers
    
    Protool MXP 1602 B
    
    1 yr
    
    Full DurationFesto Mixers
    
    Protool MXP 1602 B
    
    1 yr
    
    Full DurationFesto Mixers
    
    
    
    
    
    Full DurationFesto Mixers
    
    
    
    
    
    Full DurationHobart Mixers
    
    Hobart D 300 T
    
    3 yr
    
    Full DurationHobart Mixers
    
    
    
    
    
    Full DurationPositive Air Helmets
    
    RaKel 3M
    
    1 yr
    
    Full Duration415V Fan
    
    Bluw Wizard
    
    3 yr
    
    Full Duration
 Dated this 12TH Day of JUNE 2009




---



##### 



APPENDIX 3/J Sheet 2 Of 2
TENDERERS PLANT & EQUIPMENT
EQUIPMENT INSPECTION REPORT
 To all Tenderers
    
    Work Package MOPU-0035
    
    Work PackageKoch Knight Division, Koch Australia Pty Ltd
    
    Notice No X###-##-####A4
    
    Date 12-June-2009
 Autoclave Internal Equipment Installation
 Note: All items must be completed
 Sheet 1 Item No
    
    General Description
 SPECIFIC EQUIPMENT NEEDED FOR THIS CONSTRUCTION WILL BE SET WHEN
START DATE IS SET
 Unit
    
    Attachment(s)
 Make
    
    Replacement Cost
    
    F.O.B.
 Model
    
    Serial No
    
    Engine
 Hours
    
    Expected Life(Hours)                                   (Years)
 Ownership
    
    Estimated Value
 General Condition
 
 
 
 Tires
    
    Hydraulics
 Dimensions
    
    Length
    
    Width
    
    Height
 
 Maintenance Log Book
 Operating Test
    
    Rating
 
 Comments
 
 
 
 Dated this 12TH Day of JUNE 2009




---



##### 



APPENDIX 3/K
 To all Tenderers
    
    Work Package MOPU-0035Koch Knight Division, Koch Australia Pty Ltd
    
    Notice No         X###-##-####A4
    
    Date 12-June-2009
 Autoclave Internal Equipment Installation of Brick
Lining and Titanium Walls, on Lihir Island
  Section Of The Work
    
    Value
    
    Proposed SubcontractorBRICK LINING, TITANIUM INTERNALS INSTALLATION LABOURAUDNOTE: Personnel from Koch Knight LLC USA will be seconded to Koch Australia for this work.
 Dated this 12TH Day of JUNE 2009




---



##### 



APPENDIX 3/L
 Tender For   Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir Island
    Work Package MOPU-0035Tenderer
    
    Koch Knight Division, Koch Australia Pty Ltd
###-##-####A4
    
    
    Date 12-Jun-09
  WeekEvent

    
    1


74
    
    
    78
    
    
    82
    
    
    86
    
    
    90
    
    
    94
    
    98
    
    
    Totals USD
    
    
    Totals AUDPOBegin WorkProgressProgressProgressProgress
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    ProgressCompleteFrom Koch proposal noted,Tenderers Proposed Terms of Payment nowTotals
 Dated this 12TH Day of JUNE 2009




---



##### 



APPENDIX 3/M
 AGENDA FOR POST-TENDER / PRE-AWARD MEETING
  1
    
    Safety & EnvironmentReview of Tenderers Safety & Environment SystemsDiscuss Training2
    
    Tender Form 3/A  Notice of ExplanationInclusion of Form of Notice of Explanation in Tender Price3
    
    Tender Form 3/B  AddendumInclusion of Addendum in Tender Price4
    
    Tender Form 3/C  Tender FormConfirmation of Tender Price5
    
    Tender Form 3/D  Interrelationship Of CorporationConfirmation of full disclosure6
    
    Tender Form 3/E  Deed Of Guarantee, Undertaking & SubstitutionRequired / Not Required7
    
    Tender Form 3/F  Departures From Tender DocumentsDetails Discussion  Additional Information  Acceptance / rejection / further consideration8
    
    Tender Form 3/G  Key PersonnelIntroduction. Confirmation of availability  Confirmation of Positions of Authorisation9
    
    Tender Form 3/H  List Of Current ProjectsUpdate of Project Status / Progress. Discuss interference with / by other Projects10
    
    Tender Form 3/I  Wages Allowances & Employment ConditionsConfirm preference for local employees  Confirm working week and R & R provision-Transportation of personnel  Meals for personnel  Sanitary installations11
    
    Tender Form 3/J  Sheets 1 & 2  Tenders Plant & EquipmentAdequacy / sufficiency of resources  Alternative resources  Current uncommitted
resource-Transportation to Site of plant and equipment12
    
    Tender Form 3/K  Work To Be SubcontractedUrgent approval required. Date required for submission of request and Approval13
    
    Tender Form 3/L  Cash Flow ProgramReview against Tender Program. Confirm Tender Price14
    
    Tender Form 10/A  Components Of Tender PriceAccuracy of Tender break-up  Correctness of RatesAdjustments /Additions required15
    
    Tender Form 10/B  Rates For Variations & DayworksAdequacy / correctness of rates. Confirmation of detailed break-up of each rateConfirmation of work week and site hours. Adjustments /Additions requiredAccepted /
RejectedDetailed Construction Schedule
 Page 14 of 15




---



##### 



Submission of Detailed Construction Schedule  Consideration of Activities,
Dependencies,Resources, Durations, float / delay periods  Review of LGL supplied materials
and equipment  Approval / Rejection as Contract Schedule  Discussion of Clause 4.2.417
    
    Tender Form 10/D  Projected ManpowerComparison to Tender Form 10/C  Accepted / Rejected18
    
    Quality Control ProceduresReview of Tenderers Quality Management System19
    
    Confirmation Of Site InspectionAcknowledgement of Site Inspection and Adequacy of Inspection made  Acknowledgement that
Tenderer has informed itself as required by Clause 2.320
    
    InsurancesConfirmation of arrangement of insurances as per Section 6  Confirmation of any LGL insurances and excesses21
    
    Financial ConsiderationsConfirm currency of Tender, inclusion of    Holdback and    Security22
    
    Tender LetterConfirmation of rejection of any conditions in Tenderers submission or Post-Tender correspondence23
    
    Specification / Scope Of WorkDetailed discussion to determine understanding of Specifications  Confirmation of
inclusion of all work in Scope Of Work  Alternative specification if any24
    
    Alternative Tender SubmissionDetailed discussion of alternative tender submission (if any)  Acceptance / Rejection25
    
    Date For Re-submission Of InformationSummary of information to be re-submitted  Date for re-submission




---



##### 



APPENDIX 3/N
  To:
    
    The Tenderer
    
    Koch Australia Pty Ltd, Koch Knight Division###-##-####A4Re:
    
    Tender For
    
    Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir IslandWork Package
    
    MOPU-0035We are pleased to advise that LGL hereby accepts your Tender dated  fora)
    
    Fixed price lump sum ofb)
    
    Estimated total cost of(Based on the Tendered unit rates)The following documents have been incorporated into the Contract Documents and form part of the Contract:a)
    
    Addenda & Notices Of Explanation (list)b)
    
    Tender Documents as issued by LGL including: Volumes 3A, 3B & 3Cc)
    
    Minutes of Post-Tender / Pre-Award meeting and post tender correspondence (list)d)
    
    Contract Schedule (attach)e)
    
    Contractors TenderYour attention is drawn to the following matters:1
    
    Pursuant to Clause 4.1.2 of the General Conditions Of Contract you are advised that the supervision of your Work will be the responsibility of:a)
    
    Construction Managerb)
    
    Engineering Managerc)
    
    Area Manager2
    
    Pursuant to Clause 4.1.6 of the General Conditions Of Contract you are required to lodge Security in the sum of
 on or before .3
    
    Pursuant to Clause 4.1.7 of the General Conditions Of Contract you are requested to
lodge evidence of the Insurances effected by you for the purposes of the Contract within
thirty (30) days of work commencing.4
    
    Pursuant to Clause 4.2.3.1 of the General Conditions Of Contract you are requested to
contact the Engineering Manager two (2) days prior to your mobilisation to Site to arrange a
suitable time for a Pre-Start meeting.5
    
    Pursuant to Clause 4.1.4 of the General Conditions Of Contract you are required to commence Work on Site by .
  
 Page 15 of 15




---



##### 



SECTION 4  GENERAL CONDITIONS OF CONTRACT
 INDEX
 4.1
    
    Preliminaries4.1.1
    
    Introduction4.1.2
    
    Supervision of the Work4.1.3
    
    Contractors Superintendence4.1.4
    
    Commencement of the Work4.1.5
    
    Access to Site4.1.6
    
    Security4.1.7
    
    Inspection and Provision of Insurance Policies4.2
    
    Administration4.2.1
    
    Written Communications4.2.2
    
    Site Instructions4.2.3
    
    Site Meetings4.2.4
    
    Progress and Programming of the Work4.2.5
    
    Suspension of the Work4.2.6
    
    Progress Claims and Payments4.2.7
    
    Variations4.2.8
    
    Dayworks4.2.9
    
    Adjustments to the Schedule of Rates4.2.10
    
    Goods or Services Provided by LGL4.2.11
    
    Assignment and Sub-contracting4.2.12
    
    Practical Completion4.2.13
    
    Completion4.3
    
    Work Procedures4.3.1
    
    Setting Out of the Work4.3.2
    
    Materials, Workmanship and Quality Control4.3.3
    
    Compliance with Applicable Laws and Standards4.3.4
    
    Control of Contractors Employees and the Employees of Sub-contractors4.3.5
    
    Industrial Relations4.3.6
    
    Occupational Health and Safety4.3.7
    
    Protection of Persons, Property and Existing Services4.3.8
    
    Care of the Work4.3.9
    
    Cleaning Up4.3.10
    
    Environmental responsibilities4.4
    
    Liabilities4.4.1
    
    Defects4.4.2
    
    Royalties, Patents, Copyrights and Other Intellectual Property Rights4.4.3
    
    Accident or Injury to Employees4.4.4
    
    Property Damage and Public Risk4.4.5
    
    Taxes and Contributions4.4.6
    
    Survival of Indemnities4.5
    
    Legalities4.5.1
    
    Construction of The Contract4.5.2
    
    Evidence of The Contract4.5.3
    
    Documents4.5.4
    
    Default or Insolvency4.5.5
    
    LGLsRight to Terminate the Contract4.5.6
    
    Disputes4.5.7
    
    Service of Documents4.5.8
    
    LGLsRight to Audit




---



##### 



4.5.9
    
    Definitions and Interpretations




---



##### 



4.1
    
    PRELIMINARIES4.1.1
    
    IntroductionThis section sets out the general terms and conditions, which are to regulate the
performance of the Work, and the obligations and requirements of the various parties
involved in the execution of the Work. These general terms and conditions set out the
procedures to be followed by the various parties in relation to standard tasks or in
the event of common occurrences and should be strictly followed to ensure the efficient
administration of the Contract. The terms and conditions have been set out herein under
headings and subheadings to assist in the practical use of the document. However, such
headings do not form part of the General Conditions of Contract and cannot be used in
the interpretation of the Contract. For example, conditions relating to liabilities are
not restricted to those terms and conditions headed 4.4 LIABILITIES.4.1.2
    
    Supervision of the Work4.1.2.1
    
    LGLshall generally supervise the Work. The purpose of this general supervision is to
advise the Contractor of any observed deviations from the requirements of the Contract, to
direct variations to the Work, to accept or reject Work or material, and to decide all
questions which arise in the execution of the Work. Such general supervision shall not
relieve the Contractor in any way from providing continuous superintendence for the detailed
direction of the Work or from its obligation to complete the Work in accordance with the
Contract.4.1.2.2
    
    The operational structure of LGLwill be generally as shown in Appendix 5/A and general
supervision of the Work will occur on three levels: Area Manager, Engineering Manager and
Construction Manager, in accordance with the guidelines set out hereunder:
 i)
    
    Area ManagerThe Area Manager shall be directly responsible for the day-to-day general
supervision of the Work and will be the Contractors communication link
with LGL.The role of the Area Manager will be such that to ensure positive
progress he or she will assist, direct and, if appropriate, offer advice to
the Contractor both verbally and in writing but shall do so with the
benefit of immunity from causing any liability or additional costs as a
result of his or her actions.If the Contractor considers that any actions of the Area Manager could
cause additional costs or create any liability, whether for negligence or
otherwise, the Contractor shall ignore such actions and immediately seek
directions from the Engineering Manager. By agreement to these conditions,
the Contractor absolves the Area Manager and LGLfrom any such liability
and accepts that such immunity is necessary for the effective day-to-day
general supervision of the Work and that its rights are otherwise
sufficiently protected by its access to the Engineering Manager for
directions.In cases where the Contractor may be performing Work in more than one area,
different Area Managers may be nominated for each area.ii)
    
    Engineering ManagerThe Engineering Manager shall be responsible for the technical and
engineering supervision of the Work, shall deal with all matters relative
to design, testing and approval of the Work, and shall decide all questions
which arise in the execution of the Work which cannot be resolved by the
Area Manager or which may involve any extra cost.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 1




---



##### 



All directions issued by the Engineering Manager shall be in writing in
the form of Site Instructions and where practical, shall be issued to the
Contractor via the Area Manager. The Contractor shall comply with all
such directions.iii)
    
    Construction ManagerThe Construction Manager shall be responsible for the overall supervision
and co-ordination of the Total Project. In relation to this Contract, that
responsibility will involve attendance at meetings and discussions with the
Contractor on overall performance. If the Contractor believes that any
action or direction by the Construction Manager constitutes a variation to
the Contract, or will involve it in any additional costs, it shall obtain a
Site Instruction from the Engineering Manager, prior to proceeding with the
variation or complying with the direction.
  4.1.3
    
    Contractors Superintendence4.1.3.1
    
    Activities relating to the execution of the Work shall be directly supervised by the
Contractors Key Personnel listed on Tender Form Appendix 3/G. Should the Contractor wish to
substitute for any of these Key Personnel, such substitution shall be subject to the approval
of LGLand shall be conditional upon the substituted Key Personnel being of equal experience
and competence. The Contractors supervisory staff, such as foremen and leading hands, shall
continuously superintend all Work (whether executed by Subcontractors or otherwise) to
provide detailed direction of the Work at the location where Work is being executed.4.1.3.2
    
    It shall be the responsibility of the Contractor to effectively organize its own internal
communications, therefore any direction given to any person supervising the Work on behalf of
the Contractor shall be deemed to have been given to the Contractor and any matters within
the knowledge of such persons, shall be deemed to be within the knowledge of the Contractor.4.1.3.3
    
    The Contractors Key Personnel shall be fluent in the English language.4.1.4
    
    Commencement of the Work4.1.4.1
    
    The Contractor shall commence Work on Site within seven (7) days of the date of issue of
the Letter of Acceptance or within such extended period as may be nominated in the Letter of
Acceptance.4.1.5
    
    Access to Site4.1.5.1
    
    LGLshall, on the date for the Contractor to commence Work on Site, give to the Contractor
access to sufficient of the Site to enable it to commence Work and thereafter to execute the
Work in accordance with the requirements of the Contract. As the Work is being carried out as
part of an expansion to an operating mine, access will not be free and clear or unrestricted
but will be subject to operating restrictions. At all times, operating requirements shall
take precedence over access requirements for the Work.4.1.5.2
    
    Should any delay take place in giving the Contractor initial access to the Site to
commence Work, the delay shall be deemed not to constitute a breach of contract but the
Contract Schedule shall be amended to the extent necessary to overcome such delay. The
objective of any such amendment shall be to maintain completion dates. Should any
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 2




---



##### 



subsequent delay in providing ongoing access take place, the provisions of Clause
4.2.4 shall apply.4.1.5.3
    
    The Contractor shall not be entitled to unrestricted access or sole possession of any part
of the Site as other contractors and persons will be carrying out work on the Site
concurrently with the Contractor and in many instances in the same work area. The Contractor
shall adopt all necessary measures to prevent and avoid conflicts.4.1.6
    
    Security4.1.6.1
    
    The Contractor shall provide security equal to                of the Contract Sum for the purpose of
ensuring the due and proper performance of the Contract and of satisfying the obligations of
the Contractor under the Contract. LGLmay recover all debts due and owing from the
Contractor to LGLfrom the security if not otherwise paid by or recovered from the
Contractor. The security shall be in the form of cash, bank cheque, irrevocable letter of
credit or Unconditional Bank Guarantee in the form set out in Appendix 5/B.4.1.6.2
    
    The security shall be lodged by the Contractor with LGLwithin fourteen (14) days after
the Date of Acceptance of Tender.4.1.6.3
    
    If the Contractor fails to provide the security within the time prescribed in Clause
4.1.6.2, LGLmay terminate the Contract, pursuant to Clause 4.5.4.4.1.7
    
    Inspection and Provision of insurance Policies4.1.7.1
    
    Before commencing the Work and whenever requested in writing, at any time and from time to
time thereafter, so to do by LGL,the Contractor shall produce evidence to the satisfaction
and approval of LGLof the insurances effected and maintained by the Contractor and its
Subcontractors for the purposes of this Contract.4.1.7.2
    
    The identity of the insurers and the form of the policies shall be subject to the approval
of LGL.4.1.7.3
    
    If, after being requested in writing by LGLso to do, the Contractor fails to produce
evidence of compliance with its insurance obligations under this Contract, LGLmay effect and
keep in force any such insurance and pay such premiums as may be necessary for that purpose,
and the amount so paid shall be a debt due from the Contractor to LGL.4.1.7.4
    
    The Contractor shall, as soon as practicable, inform LGLin writing of the occurrence of
any event that may give rise to a claim under a policy of insurance effected as required by
this Contract. The Contractor shall ensure that LGLis kept fully informed of subsequent
actions and developments concerning the claim.4.1.7.5
    
    The effecting of insurance as required by this Contract shall not in any way limit the
liabilities or obligations of the Contractor under the Contract.4.1.7.6
    
    The insurance requirements of this Contract are set out in Section 6.4.2
    
    ADMINISTRATION4.2.1
    
    Written Communications4.2.1.1
    
    All written communications from the Contractor to LGLshall be addressed to the
Engineering Manager and shall have a reference code on the top right-hand corner. This code
shall be:C/Work Package No./ Reference No.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 3




---



##### 



The reference No. can be any consecutive series of numbers provided that the same
number is never used twice.4.2.1.2
    
    All written communications from LGLto the Contractor shall be similarly referenced but
prefixed with the letter L, i.e. L/Work Package No./Reference No.4.2.1.3
    
    All communications shall be in the English language.4.2.1.4
    
    The Contractor shall treat all information relating to the business, operations,
practices, policies, procedures, notes, memorandums, reports or logs of LGL as strictly
confidential and shall only disclose this information to a third party upon receipt of prior
written approval from LGL.4.2.2
    
    Site Instructions4.2.2.1
    
    Ail written directions and on Site communications (other than verbal communications by
the Area Manager pursuant to Clause 4.1.2.2) shall be issued to the Contractor by Site
Instructions as detailed in Appendix 5/C and in accordance with the Site Instruction Flow
Chart Appendix 5/D.4.2.2.2
    
    All Site Instructions are issued subject to the condition that they are either:
 i)
    
    No cost variation to the Contract;ii)
    
    Issued with Quotation Price Request N° xx (work not to proceed until Contract Variation is issued); oriii)
    
    Issued with Dayworks sheet N° xx (work to proceed on Dayworks basis).
 as indicated by the notation adjacent to the checked box.4.2.2.3
    
    The Contractor is required to sign the Site Instruction and return copy No. 4 to the
Engineering Manager. By signing the Site Instruction, the Contractor agrees to the
condition(s) as noted. In the event that any Site Instruction is inadvertently issued without
any checked box it shall be deemed to be issued on the condition that it is a No cost
variation to the Contract. If the Contractor does not agree with the conditions as noted,
the Contractor shall immediately, and prior to taking any action in relation to the Site
Instruction, arrange a meeting with the Engineering Manager to resolve the issue. If the
Contractor fails to sign the Site Instruction but proceeds to comply with the Site
Instruction, such action shall be deemed to constitute acceptance by the Contractor of the
conditions. This deemed acceptance shall not affect LGLs right to suspend payments due to
the Contractors failure to sign the Site Instruction4.2.2.4
    
    Notwithstanding the issue of any Site Instruction, Quotation Price Request, Contract
Variation or Dayworks Sheet, in the event that any such document is subsequently found to
authorize additional Work which is already within the Scope of Work, the Contractor shall
not be entitled to any adjustment to the Contract Sum.4.2.3
    
    Site Meetings4.2.3.1
    
    LGLshall convene a pre-start meeting with the Contractor to correspond with the
Contractors mobilization to Site. The purpose of this meeting will be to introduce the
Contractors Key Personnel to LGLs on-site personnel and to discuss Site procedures and the
Contract Schedule.4.2.3.2
    
    During the execution of the Work, LGLshall convene a weekly co-ordination meeting.
Twenty-four (24) hours prior to this meeting, the Contractor shall submit its Progress
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 4




---



##### 



Reports required by Clause 4.2.4 and any subsequent revisions to the Contract
Schedule. A draft agenda for this meeting is set out in Appendix 5/E.4.2.3.3
    
    The Contractor shall be represented at site meetings, as may be convened by LGL,by the
attendance of its Key Personnel and any other personnel requested to be in attendance by
LGL.4.2.3.4
    
    The purpose of site meetings shall be to openly discuss all matters relative to the Work
and the progress thereof. Minutes of the meetings shall be kept by LGLand issued to the
Contractor as soon as possible thereafter. Should the Contractor not agree with the accuracy
of the minutes, it shall notify LGLwithin forty-eight (48) hours of receipt thereof of any
inaccuracy. Failure to so notify will be deemed acceptance by the Contractor of the minutes
as a true and accurate record.4.2.3.5
    
    Notwithstanding the recording of such minutes, nothing which transpires at any meeting,
shall constitute a direction or an agreement of any kind unless and until the Engineering
Manager has issued a Site Instruction confirming such direction or agreement.4.2.4
    
    Progress and Programming of the Work4.2.4.1
    
    The Contractor shall proceed with the Work in accordance with the Contract Schedule.4.2.4.2
    
    If the Contractor is not achieving a rate of progress, which is in accordance with the
Contract Schedule, LGLmay proceed in accordance with Clause 4.5.4.4.2.4.3
    
    The Contractor shall submit Progress Reports in the format set out in Appendix 5/F (Sheets
1 to 3). The Progress Report (Appendix 5/F, Sheet 1) shall be submitted to and agreed with
the Area Manager, at least every seven (7) days (and at least twenty-four (24) hours prior to
the weekly coordination meeting). Appendix 5/F, Sheet 2 Daily manpower and Sheet 3 Plant
and Equipment Usage shall be submitted to and agreed with the Area Manager each day.4.2.4.4
    
    If the Contractors weekly Progress Report shows any actual or predicted progress less
than the progress required to maintain the Contract Schedule, then the Contractor shall,
together with the Progress Report, submit a RevisedSchedule showing the effect of the lack
of progress and an AlternativeSchedule showing how the lost time can be made up so that all
Work can be completed in accordance with the Contract Schedule. If the Revisedand/or
Alternativeschedules are relatively minor changes to the existing Contract Schedule they
may, in the first instance, be marked up on a copy of the existing Contract Schedule in two
distinctly different colours.4.2.4.5
    
    If the Contractor considers that any delay in progress since its last Progress Report has
or will be caused by an act or omission on the part of LGL,it shall, together with the
weekly Progress Report (Appendix 5/F, Sheet 1), submit a statement of facts upon which it
bases such an assertion and a quotation for the extra costs, if any, of proceeding in
accordance with the AlternativeSchedule. The Contractor shall have no entitlement to any
extra costs incurred more than seven (7) Days prior to submission of the statement of facts.4.2.4.6
    
    LGLshall direct the Contractor, by written Site Instruction, which schedule to follow
and thereafter such schedule shall become the Contract Schedule. If the Contractor has
submitted only a marked up copy of the existing Contract Schedule, it shall immediately
produce a properly amended Contract Schedule to show either the Revised or Alternative form
in accordance with the direction given by LGL.4.2.4.7
    
    In the event that LGLdirects the Contractor to proceed with the AlternativeSchedule and
considers that the lack of progress was or would have been caused wholly or in part
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 5




---



##### 



by an act or omission on the part of LGL,an appropriate Contract Variation shall be
issued.4.2.4.8
    
    In the event that LGLdirects the Contractor to proceed with the RevisedSchedule and
considers that the lack of progress was or would have been caused wholly or in part by an
act or omission of LGL,no Contract Variation shall be issued at this time, however, the
Site Instruction directing the use of the RevisedSchedule shall record the extent to which
LGLaccepts responsibility for the delay. At Practical Completion, such Site Instructions
shall be reviewed in accordance with the following principles:
 i)
    
    The period of delay for which LGLhas accepted responsibility shall be totalled (and where partial responsibility has been accepted a
corresponding portion of the period by which the completion date changed
shall be used).ii)
    
    A credit period shall be determined for Variations and Dayworks by determining the percentage value of Contract Variations and Dayworks to
the Contract Sum and applying this percentage to the Original Contract
Period.iii)
    
    The actual period of overrun (if any) of the Date for
Practical Completion shall be determined by calculating the difference
between the Date for Practical Completion and the date upon which the
Contractor first applied for Practical Completion pursuant to Clause 4.2.12.iv)
    
    The Reimbursable Period of delay (if any) shall be
calculated by the following formula:Reimbursable Period = the lesser of:
 a)
    
    actual period of overrun less credit period; orb)
    
    total period of delay for which LGLhas accepted responsibility.
 4.2.4.9
    
    A Contract Variation shall be issued for the Contractors Actual Onsite Overhead Costs
(as defined by Clause 4.5.9.1) for the Reimbursable Period calculated by ascertaining the
average of the Contractors Actual Onsite Overheads at the time of each accepted delay and
applying this to the Reimbursable Period.4.2.4.10
    
    It is specifically agreed that the amount of the Contract Variations issued pursuant to
Clause 4.2.4.7 or 4.2.4.9 shall represent the Contractors total entitlement for the
consequence of any delays for which LGL has accepted responsibility.4.2.4.11
    
    Where the Contract Schedule makes provisions for delays by the inclusion of float
periods, the use of such float periods in amended Contract Schedules shall be subject to
the approval of LGL.4.2.4.12
    
    Where two or more concurrent events cause delay, then the events, if any, caused by or
which are the responsibility of the Contractor shall be regarded as the cause of delay for
the purpose of Clauses 4.2.4.7 and 4.2.4.8.4.2.4.13
    
    Each issue of the Contractors amended Contract Schedule shall be appropriately marked
with the date of issue and an issue identification number or letter and shall list the
amendments made from the previous issue.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 6




---



##### 



4.2.4.14
    
    The Contractor shall not be entitled to any additional payment for complying with the
provisions of this Clause except as expressly set out herein, it being expressly agreed that
such requirements form part of the Contractors offer to perform the Work for the Contract
Sum and that any risks in relation thereto are accepted by the Contractor.4.2.4.15
    
    The Contractor shall only be entitled to recover the costs of delay or acceleration in
accordance with the procedures set out in this clause 4.2.4.4.2.5
    
    Suspension of the Work4.2.5.1
    
    LGLmay instruct the Contractor to suspend the progress of the whole or any part of the
Work, for such time or times as LGLmay think fit.4.2.5.2
    
    Should the Contractor wish to suspend the progress of the whole or any part of the Work,
it shall, in writing, notify LGLand explain the reasons for the suspension. LGLshall
thereupon, if it considers it necessary or reasonable so to do, grant permission for a
suspension of the whole or any part of the Work for such time or times as it deems fit.4.2.5.3
    
    When the reason for the suspension no longer exists, LGLshall instruct the Contractor to
recommence work on the whole or on any relevant part of the Work and the Contractor shall
comply with such direction promptly.4.2.5.4
    
    The Contractor shall have no right to receive any additional payment by reason of any
direction to suspend the progress of all or any part of the Work other than in accordance
with the provisions of Clause 4.2.4.4.2.5.5
    
    The suspension of the progress of the whole or any part of the Work shall not affect the
obligation of the Contractor to execute the Work.4.2.6
    
    Progress Claims and Payments4.2.6.1
    
    The Contractor shall only be entitled to claim by way of progress payments for Work
executed (excluding materials not incorporated in the works) comprising:
 i)
    
    The Contract value of Work executed;ii)
    
    The value of Work executed pursuant to any issued Contract Variations; andiii)
    
    The value of Work executed pursuant to an issued Site
Instruction authorising Work to proceed on a Dayworks basis and evidenced by
Dayworks sheets signed by the Area Manager.
 4.2.6.2
    
    Once each month, the Contractor shall prepare and present to the Area Manager a Progress
Claim in the form set out in Appendix 5/G (Sheets 1 to 4). The Area Manager shall then make
an assessment of the value of Work done and completed and sign the appropriate sections of
the Progress Claim forms noting any adjustments thereto.4.2.6.3
    
    Should the Area Manager make any adjustments to the Contractors Progress Claim, the Area
Manager and the Contractor shall jointly review the adjustments so that the Contractor may
accept or reject the adjustment. Such acceptance or rejection shall be noted on the
appropriate section of the Progress Claim forms and shall be signed by one of the
Contractors Key Personnel holding a position of authorization as noted in Tender Form
Appendix 3/G4.2.6.4
    
    Should the Contractor not accept the adjustments, the matter shall be referred to the
Engineering Manager who shall decide the extent or amount of Work for the purpose of the
Progress Claim. In making this decision, the Engineering Manager shall not be under any
obligation to measure or otherwise correctly determine the extent or amount of Work,
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 7




---



##### 



but shall merely make an expedient decision to resolve the issue. The Engineering
Managers decision shall be final and binding for the purpose of the Progress Claim
and the Contractor shall not be entitled to claim any additional monies, including
interest, as a consequence of the Engineering Managers decision.4.2.6.5
    
    As soon as the extent of Work has been agreed upon by the Area Manager and the Contractor,
or decided by the Engineering Manager, the Contractor shall submit the Progress Claim to the
Engineering Manager complete with any statutory required documents and the originals of any
Dayworks sheets claimed for.4.2.6.6
    
    The Engineering Manager shall not accept and shall return to the Contractor any Progress
Claim which is either not in the prescribed form, including cost codes, etc., not signed by
the Area Manager (and Engineering Manager if required) or hot accompanied by the appropriate
documentation.4.2.6.7
    
    The Engineering Manager shall determine the amount of the progress payment, which shall
be the total gross value of the Work, executed in accordance with Clause 4.2.6.1 less:
 i)
    
    Any progress payments already made in respect of the Work
for which the gross value was determined;ii)
    
    hold back on the Adjusted Contract Sum;iii)
    
    The amount of any payments which are overdue from the
Contractor to any employees, agents, consultants, Subcontractors or Suppliers
relating to the Work; andiv)
    
    Any other proper withholding or deduction (including
debts due from the Contractor to LGL).
 The Engineering Manager shall issue to the Contractor a copy of the Progress Claim
showing the value certified and the adjustments (if any) made.4.2.6.8
    
    LGLshall pay the Contractor the net amount for payment to the Contractor shown on the
Progress Claim within Thirty (30) days from the date of acceptance by the Engineering Manager
of the Contractors Progress Claim.4.2.6.9
    
    All amounts due and payable to the Contractor shall be paid to the Contractor either by
cheque at the place for payment nominated in Clause 1.8 (Total Project Data) or via
electronic funds transfer into the Contractors nominated bank account,4.2.6.10
    
    If LGLshall be in default in making any payment, and if such default continues for seven
(7) days after service of a notice in writing by the Contractor demanding such payment, then
the Contractor shall be entitled to claim interest at the Contractors then current bank
overdraft rate from seven (7) days after the date of such notice until payment is made.4.2.6.11
    
    The payment of monies shall not be taken as evidence against, or as an admission by, LGL
that any Work or item of Work has been constructed or executed in accordance with the
Contract, or of the value thereof, but shall be taken to be payment on account only.4.2.6.12
    
    By submission of each Progress Claim, the Contractor certifies that all employees,
agents, consultants, Subcontractors and suppliers have been paid all amounts properly due to
them relating to the Work and that the Contractor has notified LGLof all Claims of
whatsoever nature that it may have against LGLarising out of circumstances occurring since
submission of the Contractors previous Progress Claim. LGLshall not be liable to
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 8




---



##### 



the Contractor for any Claim of whatsoever nature with respect to which it has not
been so notified.4.2.6.13
    
    If at any time the Contractor has not done something which it is required to do under the
Contract (such as complied with a Site Instruction, provided Progress Reports, submitted
Quotation Price Request forms or produced documents) LGLmay withhold payments until such
obligations are complied with and the provisions of Clause 4.2.6.10 shall not apply.4.2.7
    
    Variations4.2.7.1
    
    The Contractor shall vary the Work as directed in writing by LGLand no Variation shall
vitiate this Contract. If at any time during the progress of the Work, LGLdetermines that
the form, quality or quantity of the Work should be varied, LGLmay require the Contractor
to:
 i)
    
    Increase, decrease or omit any part of the Work;ii)
    
    Change the character or quality of the Work;iii)
    
    Change the levels, lines, positions or dimensions of any part of the Work; oriv)
    
    Execute additional work.
 4.2.7.2
    
    The Contractor shall vary the Work only upon receipt of a Contract Variation or a Site
Instruction authorising the Variation to proceed on a Dayworks basis.4.2.7.3
    
    If a Variation to the Work is required by LGL,the Contractor shall be issued with a Site
Instruction as per Appendix 5/C (Site Instruction) together with either a Dayworks sheet or a
Quotation Price Request. If the Site Instruction is issued with a Dayworks sheet, the
requirements of Clause 4.2.8 shall be followed. If the Site Instruction is issued with a
Quotation Price Request, the procedure to be followed shall be as set out in Clauses 4.2.7.4
to 4.2.7.6.4.2.7.4
    
    Quotation Price Requests will be issued as per Appendix 5/H (Sheets 1 and 2) and generally
in accordance with the Quotation Price Request flow chart, Appendix 5/I.4.2.7.5
    
    Upon receipt of the Quotation Price Request, the Contractor shall price the Variation at
the rates included in the Schedule of Rates for Variations and Dayworks (Tender Form Appendix
10/B sheet 1) to the extent that such rates are applicable. If no such rates are applicable,
the Contractor shall set out the labour and plant components of each item of the Variation
and extend the quantities at the unit labour and plant rates applicable to the class of
labour or plant involved as set out in the Schedule of Rates for Variations and Dayworks
(Tender Form Appendix 10/B sheets 2 and 3) and shall set out the material cost components of
each item of the Variation plus any Additional, Reasonable and Valid Charge for Procurement
and Delivery to the Site (refer to Clause 4.5.9.1) of such material. All items shall be
totalled to arrive at the total fixed price lump sum quotation.4.2.7.6
    
    The Contractor shall present the completed Quotation Price Request to the Engineering
Manager within forty eight (48) hours of its issue and provide whatever explanations or
details as may be required in order to satisfy the Engineering Manager that the quoted price
is correct and reasonable. If any adjustments are agreed upon, such adjustments shall be
noted on the Quotation Price Request. Once satisfied of the correctness and reasonableness of
the Quotation Price, the Engineering Manager shall approve the Quotation Price Request for
issue of a Contract Variation as per appendix 5/J and generally in accordance with the
Contract Variation flow chart appendix 5/K). The approval of the Engineering Manager shall be
in principle only and will be subject to checking the quantities and rates in detail.
Acceptance of the quotation will only be
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 9




---



##### 



affected by the issue of a Contract Variation. The Contractor shall not proceed with
the Variation until receipt by it of the Contract Variation.4.2.7.7
    
    If the Contractor and LGLdo not agree upon the value of the Variation, LGLmay have the
Variation executed by others and if the Variation affects any of the Work not commenced or
not completed, then that part of the Work or the remaining balance thereof, may also be
deleted from the Contract at the full Contract value thereof and the Contractor shall not be
entitled to claim any costs, loss or damage as a consequence of such deletion.4.2.7.8
    
    LGLmay issue to the Contractor from time to time during the progress of the Work revised
drawings or new details which may or may not involve Variations to the Work. All drawings and
details will be issued to the Contractor by way of a Site Instruction. Should the Contractor
come into possession of any revised drawings or new details without a Site Instruction, it
shall immediately refer to the Engineering Manager for a Site Instruction.4.2.7.9
    
    Revised drawings or new details shall not form a part of the Contract nor shall they be
used for execution of the Work unless accompanied by a Site Instruction authorising their
use. If revised drawings or new details issued by LGLfor the purpose of a Quotation Price
Request affect any part of the Work in progress, the Contractor shall immediately refer to
the Engineering Manager for directions.4.2.7.10
    
    Variations to the Work shall only be executed by the Contractors existing resources if
such resources have the capacity to carry out the Variation, without impact on the Contract
Schedule. In all other cases, the Contractor shall provide additional resources (the costs of
which are included, or shall be deemed included, in the rates tendered by the Contractor in
the Schedule of Rates for Variations and Dayworks  Appendix 10/B).4.2.8
    
    Dayworks4.2.8.1
    
    If the Engineering Manager issues a Site Instruction on the condition that a Variation is
to proceed on a Dayworks basis, the Contractor shall immediately proceed with the Variation
so directed and shall record the resources utilised on the first day, on the Dayworks sheets
(Appendix 5/L) which are issued with the Site Instruction.4.2.8.2
    
    At the conclusion of the first days Work, the Contractor shall present to the Area Manager
the completed Dayworks sheet for verification and approval, whereupon the Area Manager shall
issue the Dayworks sheet for the following days Work. This procedure shall be repeated until
completion of the Variation ordered.4.2.8.3
    
    Under no circumstances will the Area Manager verify or approve a Dayworks sheet other than
an original Dayworks sheet issued for Dayworks on that day.4.2.8.4
    
    LGLshall not be liable to pay the cost of any Variation executed pursuant to a Site
Instruction issued on the condition that the Variation is to proceed on a Dayworks basis,
unless the Work is recorded, verified and approved as set out above.4.2.8.5
    
    Dayworks shall be priced as follows:
 i)
    
    LABOUR shall be priced at the unit labour rates for Variations and Dayworks
(Tender Form Appendix 10/B sheet 2) applicable to the class of labour
engaged on the Work (excluding superintendence and administration).ii)
    
    PLANT AND EQUIPMENT shall be priced at the unit plant and equipment
rates for Variations and Dayworks (Tender Form Appendix 10/B sheet 3).
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 10




---



##### 



iii)
    
    MATERIAL shall be priced at the Contractors Actual Direct
Cost plus any Additional Reasonable and Valid Charges for Procurement and
Delivery (refer to Clause 4.5.9.1).
 4.2.8.6
    
    If the Schedule of Rates for Variations and Dayworks does not contain a rate necessary for
pricing the Dayworks, a new rate shall be calculated based on the same method of calculation
used to derive similar rates in the Schedule of Rates for Variations and Dayworks (Tender
Form Appendix 10/B).4.2.8.7
    
    Dayworks shall only be executed by the Contractors existing resources if such resources
have the capacity to carry out the Work, without impact on the Contract Schedule. In all
other cases, the Contractor shall provide additional resources (the cost of which are
included, or shall be deemed included, in the rates tendered by the Contractor in the
Schedule of Rates for Variations and Dayworks  Appendix 10/B)4.2.8.8
    
    At the end of each Progress Claim period, when the extent of Dayworks for the period has
been agreed upon, a Contract Variation shall be issued to adjust the Contract Sum by the
value so agreed. This Contract Variation number shall be noted on subsequent Dayworks
Progress Claims (Appendix 5/G, Sheet 4/4) but shall not be included in the Schedule of
Variations (Appendix 5/G, Sheet 3/4).4.2.9
    
    Adjustments to the Schedule of Rates4.2.9.1
    
    If the Contract is a Schedule of Rates Contract, the quantities listed are provisional
only and are estimates of the quantities of work required to execute the Work defined in the
Original Scope of Work. Should the actual quantities required be different to the provisional
quantities, the Contractor shall, as soon as the difference becomes apparent, but in any
event, prior to including any additional quantities in a Progress Claim, submit a detailed
quantity take off to the Engineering Manager who shall verify the quantities.4.2.9.2
    
    The amount payable to the Contractor for each item in the Schedule of Rates shall be
determined by application of the Tender Rates to the actual quantity unless the actual
quantity varies from the provisional quantity by more than in which case the following
procedure shall apply:
 i)
    
    where the actual quantity is greater than of the provisional
quantity, the rate applicable to the quantity in excess of the of the provisional
quantity shall be adjusted to reflect any change in the Actual Direct Costs of
carrying out that additional quantity; andii)
    
    where the actual quantity is less than of the provisional quantity,
the rate shall be adjusted to reflect any change in Actual Direct Costs of
carrying out that quantity.
 4.2.9.3
    
    This Clause shall be read subject to the provisions of Clause 4.5.3 and shall not operate
to defeat the intent and purpose of that Clause. All costs associated with the Original Scope
of Work shall be deemed included in the Tender Rates, even if these costs are not described
in any item description in the Schedule of Rates.4.2.10
    
    Goods or Services Provided by LGL4.2.10.1
    
    During the execution of Work, in addition to items specifically referred to in the
Contract, various goods and services may be provided to the Contractor by LGL.The
Contractor will be charged for such additional goods and services at LGLs cost plus
which shall be deducted from payments due to the Contractor as back charges or may be
otherwise recovered as a debt due.4.2.10.2
    
    The provision of such goods and services shall be recorded on warehouse requisitions or
agreed back charge forms.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 11




---



##### 



4.2.11
    
    Assignment and Subcontracting4.2.11.1
    
    The Contractor shall not assign, mortgage, charge or encumber this Contract or any part
hereof, or any benefit or monies or interest hereunder, without the written approval of LGL.4.2.11.2
    
    The Contractor shall not Subcontract any section of the Work without the written consent
of LGL. Any request by the Contractor to Subcontract any section of the Work shall nominate
the proposed Subcontractor and shall include Key Personnel, Current Projects, Wages and
Employment Conditions, Plant and Equipment details and safety and environmental information
for the Subcontractor in the same form as those submitted by the Contractor at time of Tender
and shall state whether any such items are in addition to, or replace, those items nominated
by the Contractor in its Tender.4.2.11.3
    
    Approval to Subcontract any section of the Work shall not alter, in any way, the
Contractors obligations and/or liabilities under the Contract.4.2.12
    
    Practical Completion4.2.12.1
    
    The Contractor shall give the Engineering Manager fourteen (14) days notice in writing of
the date upon which the Contractor anticipates that Practical Completion will be reached. At
the commencement of the fourteen (14) day period, the Contractor shall arrange with the Area
Manager and any technical advisers to the Area Manager (such as electrical and mechanical
inspectors) a preliminary inspection of the Work. The purpose of this inspection will be to
prepare a provisional list of items requiring attention prior to Practical Completion. The
Area Manager may add to this list as any other items become apparent prior to the Contractor
applying for Practical Completion.4.2.12.2
    
    The purpose of these provisional lists is to assist the Contractor, but they shall not
substitute for the Contractors own quality control, nor shall they replace the Practical
Completion inspection by the Engineering Manager from which additional items may result.4.2.12.3
    
    When the Contractor is of the opinion that Practical Completion has been reached, the
Contractor shall request, in writing, the Engineering Manager to issue a Certificate of
Practical Completion. Within fourteen (14) days of the receipt of the request, the
Engineering Manager shall give to the Contractor a Certificate of Practical Completion as per
Appendix 5/M, stating the date of Practical Completion, or shall give the Contractor, in
writing, the reasons for not issuing the certificate and detailing any matter which the
Contractor should attend to before re-applying to the Engineering Manager for the issue of a
Certificate of Practical Completion in the same manner as the original application.4.2.12.4
    
    The issue of a Certificate of Practical Completion issued pursuant to this Clause, shall
not constitute approval of any Work or other matter in respect of which it is issued, nor
shall it be taken as an admission by LGL of the due performance of the Contract, or any part
thereof, or of the accuracy of any Claim or demand made by the Contractor, or of additional
or varied Work having been ordered by LGL, nor shall any such Certificate negate or prejudice
any of the rights or remedies of LGL. Following the issue of the Certificate of Practical
Completion, the Contractor shall be entitled to claim a Progress Payment pursuant to
Clause 4.2.6 for the full value of Work executed, which payment shall not be subject
to the hold back. LGL however may, at its absolute discretion, hold back an amount sufficient
to cover the full costs of any minor defects or omissions existing at the stage of Practical
Completion, until all such items are rectified. LGL may also, at its absolute discretion,
allow a reduction in the amount of security held pursuant to Clause 4.1.6. However, LGL shall
not be under any obligation to allow such reduction, as the intent of such security is that
it should be held, in full, until Contract Completion.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 12




---



##### 



4.2.12.5
    
    As the Work is part of the Total Project, it will be necessary for LGLto take over
sections of the Work as they reach an appropriate stage of completion so that LGLand other
contractors can execute other work in, upon, or associated with a section of the Work to
achieve completion of the Total Project. Such takeover shall not constitute Practical
Completion of any such section and shall not relieve the Contractor of any of its obligations
under the Contract.4.2.13
    
    Completion4.2.13.1
    
    At the expiration of the Defects Liability Period, when all Work has been finally and
satisfactorily executed, and the Contractor has fulfilled all its other obligations under
the Contract, LGLshall issue to the Contractor a Final Certificate, as per Appendix 5/N.4.2.13.2
    
    The issue of the Final Certificate shall constitute conclusive evidence that all Work
has been finally and satisfactorily executed by the Contractor except in so far as it is
proven in any proceedings in a court of competent jurisdiction that the Final Certificate is
in any particular erroneous by reason of:
 i)
    
    fraud, dishonesty or deliberate concealment, on the part of the Contractor or
any of its Subcontractors, or of any of the employees or agents of the
Contractor or its Subcontractors, relating to the Work or any part
thereof, or to any matter dealt with in the Final Certificate; orii)
    
    any defect, including any omission, in the Work or any part thereof which reasonable inspection at the time of the issue of the Final Certificate
would not have disclosed; oriii)
    
    any accidental or erroneous inclusion or exclusion of any
Work, materials, goods or figure in any computation, or an arithmetical error
in any computation.
 4.2.13.3
    
    Following the issue of the Final Certificate, the Contractor shall be required to sign a
Deed of Release as per appendix 5/0. Upon receipt of the Deed of Release, LGLshall return to
the Contractor, the security or such part of it as LGLis then holding.4.3
    
    WORK PROCEDURES4.3.1
    
    Setting out of the Work4.3.1.1
    
    LGLshall supply the information necessary to enable the Contractor to set out the Work
and, if appropriate, shall supply reference level and location marks. The Contractor shall
set out the Work in accordance with the Contract and shall provide all instruments necessary
for that purpose.4.3.1.2
    
    The Contractor shall keep in their true position all level and location marks supplied by
LGL,and if disturbed, shall immediately reinstate same and notify LGLof the reinstatement
prior to proceeding with any Work which could be affected by the reinstated level or
location mark.4.3.2
    
    Materials, Workmanship and Quality Control4.3.2.1
    
    Materials used in the Work and the standards of workmanship shall be in conformity with
the provisions of the Contract. In the absence of any such provision in the Contract in
respect of any material or standard of workmanship, that material or standard of
workmanship, as the case may be, shall be of a kind which is suitable for its purpose and is
consistent with the nature and character of the Work.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 13




---



##### 



4.3.2.2
    
    Unless otherwise specified in the Contract, any materials to be incorporated into the Work
shall be new.4.3.2.3
    
    The Contractor shall, at its own cost, provide adequate storage and protection for all
materials so as to preserve their quality and fitness for the Work.4.3.2.4
    
    The Contractor shall maintain a system of quality control acceptable to LGLand consistent
with the complexity of the work undertaken. The system shall be maintained solely by the
Contractor and shall not be delegated as part of any Subcontract, purchase agreement or
otherwise.4.3.2.5
    
    LGLmay, at any time before the issue of the Final Certificate, reject any part of the
Work which is not in accordance with the Contract, and may direct its replacement, correction
or removal (whether it has been the subject of a payment or not). Such rejection or direction
shall be made or given as soon as practicable after the discovery by LGLof its
non-compliance with the Contract. If LGLdirects the Contractor to replace or correct any
part of the Work, the Contractor shall commence the replacement or correction within five (5)
Days after the receipt by it of the direction and shall complete the replacement or
correction promptly and to the satisfaction of LGLwithout affecting the Contract Schedule.
If LGLdirects the Contractor to remove from the Site any material, which is not in
accordance with the Contract, the Contractor shall do so promptly. All such replacements,
corrections and removals shall be at the Contractors cost. If the Contractor fails to comply
with any direction given by LGLpursuant to this Clause, LGLmay carry out the replacement,
correction or removal and the cost incurred shall be a debt due from the Contractor to LGL.4.3.2.6
    
    All costs, expense, loss or damage borne or incurred by LGLas a result of, or
consequential upon the Contractor failing to carry out the Work or any part of the Work in
accordance with the Contract shall be reimbursed or made good to LGLby the Contractor upon
request and in default thereof may be recovered by LGLas a debt due from the Contractor to
LGL.4.3.3
    
    Compliance with Applicable Laws and Standards4.3.3.1
    
    The Contractor shall comply with all Applicable Laws and shall give all notices and pay
and bear all fees in connection therewith. The Contractor shall ensure that the Work complies
with all relevant Standards.4.3.3.2
    
    If in the opinion of the Contractor, the provisions of any document forming part of the
Contract are at variance with any Applicable Laws or Standards, the Contractor shall give
written notice to LGLspecifying the departure from such provisions which it considers
necessary to comply with Applicable Laws and applying for instructions thereon.4.3.3.3
    
    When requesting the Certificate of Practical Completion or upon demand in writing made by
LGL,the Contractor shall surrender to LGLall documents in its possession evidencing any
approval required under Applicable Laws.4.3.3.4
    
    Where particular Standards are referred to in the Contract, the latest edition or
supplement thereto in effect at the time of Invitation to Tender shall be the issue, unless a
specific edition is referred to, which establishes the Contractors Original Scope of Work.
The Contractor shall, however, be responsible for ensuring that all Work complies with any
subsequent revised or replacement Standards.4.3.4
    
    Control of Contractors Employees and the Employees of Subcontractors4.3.4.1
    
    The Contractor shall employ and ensure that its Subcontractors employ, in connection with
the Work, only such persons as are responsible, careful, skilled and experienced in their
respective trades and jobs.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 14




---



##### 



4.3.4.2
    
    LGLmay object to and direct the Contractor to immediately remove or have removed from the
Site or from any activity connected with the Work within such time as LGLdirects, any person
employed by the Contractor or by any Subcontractor to it, who refuses to comply with any
requirement of the Contract, engages in misconduct or is incompetent or negligent in the
performance of duties. The Contractor shall comply with such direction and any such person
shall not be employed on the Site or on activities connected with the Work. The Contractor
shall pay the cost of removing and replacing any such person. A direction issued pursuant to
this Clause shall not be the subject of dispute or otherwise contested by the Contractor.4.3.4.3
    
    The Contractor shall, at all times, be responsible and liable for the actions of its
employees and the employees of its Subcontractors and shall be responsible for the payment
of any claims for damage or compensation as a consequence of the actions of such employees.
In the event of the Contractors failure to pay such claims, LGLmay, on behalf of the
Contractor, pay such claims and recover the amount thereof as a debt due from the Contractor
to LGL.4.3.5
    
    Industrial Relations4.3.5.1
    
    The Contractor shall be responsible for maintaining good industrial relations with its own
employees while at the same time refraining from any action which could affect LGLand other
contractors, subcontractors and tradespeople engaged on the Total Project.4.3.5.2
    
    The Contractor shall pay such wage rates, and observe and meet such terms and conditions
of employment as shall apply by virtue of any Award, Collective or Industrial Agreement or
Applicable Laws.4.3.5.3
    
    The Contractor shall immediately report to LGLany industrial dispute which has arisen or
which may, in the opinion of the Contractor,.arise. If a dispute is developing with any of
the Contractors employees or the employees of any of its Subcontractors or Suppliers, the
Contractor shall consult with and pay regard to advice given by LGL,however, the Contractor
shall have no claim against LGLas a consequence of any advice so given.4.3.5.4
    
    The Contractor shall provide all facilities not provided by LGLwhich are necessary to
comply with any Award, Collective or Industrial Agreement or Applicable Laws and shall keep
these facilities serviced and in excellent condition.4.3.5.5
    
    To the extent permitted by law, the following provisions shall apply. Neither the
Contractor nor its Subcontractors or Suppliers shall enter into any agreement whatsoever with
their employees to pay, provide or do anything not required by any Award, Collective or
Industrial Agreement or Applicable Laws, without prior consultation and written approval of
LGL.The Contractor shall not do anything to induce the employee of another contractor,
subcontractor or LGLto leave his or her present employer. In the event that any such
employee applies for an advertised position with the Contractor and is subsequently employed
by the Contractor, such employee shall not be engaged upon the Work for a period of six (6)
months from the date of their employment by the Contractor, unless otherwise approved in
writing by LGL.4.3.6
    
    Occupational Health and Safety4.3.6.1
    
    LGLplaces and requires the Contractor to place the highest importance and priority on
occupational health and safety during the performance of the Work. The Contractor shall be
responsible for ensuring that all the Work is executed in a safe manner and that adequate
safe working practices are at all times adopted to ensure that a safe and healthy work
environment is maintained.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 15




---



##### 



4.3.6.2
    
    Notwithstanding that the Contractor is required to comply with all Applicable Laws, the
Contractor shall, in addition, comply with any LGL occupational health and safety policy, Mine
safety requirements or other document as set out in Section 6 (LGL Safety Requirements).
Should there be any difference between the requirements of Applicable Laws and the LGL Safety
Requirements, the highest requirement shall be adopted.4.3.6.3
    
    LGL will conduct induction courses for all personnel commencing work on Site. The
Contractor shall ensure that all its employees and those of its Subcontractors attend the
induction course prior to commencing work on Site. The cost incurred by the Contractor due to
the attendance of its employees shall be borne by the Contractor. LGL shall not charge for
conducting the courses.4.3.6.4
    
    Without limiting the extent of the Contractors responsibility and liability for
occupational health and safety, the Contractor shall:
 a)
    
    Before commencing any of the Work on the Site, publish at
all work areas, rest areas and accommodation facilities all occupational
health and safety regulations and LGL Safety Requirements;b)
    
    Establish, publish and distribute to all its employees its
own occupational health and safety manual incorporating Applicable Laws, LGL
Safety Requirements, policies and procedures, construction methods and
incentive programs to encourage occupational health and safety;c)
    
    Ensure that its employees and the employees of its
Subcontractors, before they begin and throughout their employment, are made
aware of all occupational health and safety requirements and are notified
that compliance therewith is a condition of their continued employment;d)
    
    Give adequate instructions on a regular basis to all its
employees and the employees of its Subcontractors, in accident prevention and
safe working practices;e)
    
    Provide all safety devices, equipment and apparel as are
necessary to prevent accidents, injuries and fires, which devices and
equipment shall include adequate life protection equipment, machinery guards,
fire extinguishers, walkways, ladders, scaffolds and gang planks;f)
    
    Provide adequate facilities for safe and protected means of
entrance and exit to the Work and for the proper inspection and maintenance
of all safety devices, equipment and apparel; andg)
    
    Continuously inspect all Work, materials and Constructional
Plant to discover and determine any conditions involving a risk of bodily
harm to persons or a risk of damage to property and be solely responsible for
discovery, determination and correction of any such conditions.
 4.3.6.5
    
    The Contractor shall, prior to commencing the Work, submit a written occupational health
and safety program for the Work for LGLs review and approval. Such review and approval shall
not relieve the Contractor of its responsibility for occupational health and safety or its
obligations to undertake any action that may be necessary or required to establish and
maintain healthy and safe working conditions on the Site.4.3.6.6
    
    The Contractor shall coordinate its occupational health and safety procedures with LGL and
all other contractors and subcontractors on Site. In recognition of the Contractors and
LGLs commitment to improving occupational health and safety without financial restraints,
the Contractor unconditionally agrees to work with LGL and accept and carry
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 16




---



##### 



out any direction of LGL relating to occupational health and safety without making any
Claim.4.3.6.7
    
    The Contractor shall, at all times, have one of its employees on Site responsible for
occupational health and safety who shall be nominated by the Contractor as its Safety
Officer. The Contractor shall advise LGL in writing of the nominated Safety Officer and of
any designate thereof during absence from the Site of the nominated Safety Officer.4.3.6.8
    
    The Contractor shall immediately report any accident or other occupational health and
safety incident to LGLs senior safety officer on Site and shall, within forty-eight (48)
hours thereof, submit an accident/incident report in the form of Appendix 5/P.4.3.6.9
    
    In the event that any situation of whatsoever nature arises which could present a risk to
the occupational health and safety of a worker, LGL shall have the absolute right to suspend
the Work or any part thereof pursuant to Clause 4.2.5 at no cost to LGL, until the situation
has been rectified.4.3.6.10
    
    The Contractor covenants, represents and warrants to LGL that:
 i)
    
    The Contractor is familiar with Applicable Laws relating to occupational
health and safety, and that the Contractors activities will be conducted
in compliance with all such Applicable Laws, so as not to give rise to any
breach thereof or any non-compliance therewith by LGL or any of its
directors, officers, employees, agents, consultants or related
corporations;ii)
    
    All employees of the Contractor have been properly trained with respect to
occupational health and safety concerns associated with the Contractors
activities, and methods and systems for ensuring worker safety;iii)
    
    The Contractor will exercise due diligence in ensuring the
protection and safety of workers and without limitation, the Contractor shall
implement such systems and procedures, and provide all such equipment and
facilities, necessary so as to ensure worker protection and safety;iv)
    
    The Contractor shall be fully responsible for acts or omissions of any
Subcontractors and shall ensure that any Subcontractor complies with the
provisions of this Clause 4.3.6 and any other provision of the Contract
which relates to occupational health and safety matters as if such
Subcontractor was the Contractor hereunder;
 4.3.7
    
    Protection of Persons, Property and Existing Services4.3.7.1
    
    The Contractor shall provide, erect and maintain all barricades, guards, fencing,
temporary roadways, footpaths, bridges to excavations, signs and lighting and provide and
maintain all watching and traffic flagging required by Applicable Laws or necessary for the
protection of any person or property and shall remove the same when no longer required.4.3.7.2
    
    The Contractor shall avoid obstruction or damage to roadways, footpaths, drains,
watercourses, public utility and other services on or adjacent to the Site, which are visible
or the location of which can be ascertained by the Contractor from the appropriate authority
or from LGL. The Contractor shall have any obstruction or damage, which it causes, rectified
immediately at its own cost. In the event that the Contractor fails to have such
rectification carried out, LGL may arrange for such rectification on behalf of the Contractor
and recover the costs as a debt due from the Contractor to LGL.4.3.7.3
    
    The Contractor shall avoid interference with or damage to property on or adjacent to the
Site and shall provide temporary protection for and shall pay the cost of any repair and
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 17




---



##### 



reinstatement of all damage caused by the Contractor, its employees, agents or
Subcontractors or the employees of any such agents or Subcontractors, either directly
or indirectly. In the event of the Contractors failure to pay such costs, LGLmay
make payment on behalf of the Contractor and recover the costs as a debt due from the
Contractor to LGL.4.3.7.4
    
    The Contractor shall prevent nuisance to and minimise the impact of its activities on the
owners, tenants or occupiers of properties adjacent to the Site and to the public.4.3.7.5
    
    Should it be necessary for the execution of the Work or any Temporary Works, to alter,
shutdown or otherwise affect any existing service, the Contractor shall advise the
Engineering Manager of same forty-eight (48) hours prior to such alteration, shutdown or
affect and shall co-ordinate same with the Engineering Manager to minimise the effect
thereof.4.3.8
    
    Care of the Work4.3.8.1
    
    From the commencement of the Contract to the expiration of the Defects Liability Period
the Contractor shall be solely liable for the care of the Work, the Temporary Works and all
materials, Constructional Plant and other things that are brought on to the Site by or on
behalf of the Contractor or any of its Subcontractors for the purpose of carrying out the
Work or that are entrusted to it by LGL.4.3.8.2
    
    The Contractor shall at its own cost make good to the satisfaction of LGLany loss of or
damage to the Work, the Temporary Works, materials, Constructional Plant and other things
resulting from any cause whatsoever (save and except the Excepted Risks as defined in Clause
4.3.8.3) when such making good is necessary for the satisfactory completion of the Work. When
so ordered by LGLany such loss or damage caused by any of the Excepted Risks shall be made
good by the Contractor as a Variation to the Contract.4.3.8.3
    
    The Excepted Risks are:
 i)
    
    Any negligent act or omission of LGLor the employees, consultants or
agents of LGL;ii)
    
    Any risk specifically excepted in the Contract;iii)
    
    War, invasion, act of foreign enemies, hostilities (whether
war be declared or not), civil war, rebellion, revolution, insurrection or
military or usurped power, martial law or confiscation by order of any
Government or public authority.
 4.3.9
    
    Cleaning Up4.3.9.1
    
    The Contractor shall keep the Work clean and tidy as it proceeds and regularly remove from
the Site rubbish and surplus material arising from the execution of the Work.4.3.9.2
    
    Within fourteen (14) days of the issue of the Certificate of Practical Completion, the
Contractor shall remove all buildings, workshops, Temporary Works and Construction Plant
which it may have constructed or brought on the Site for carrying out the Work.4.3.9.3
    
    If the Contractor fails to comply with any obligation imposed on it by this Clause, LGL
may, without prejudice to any other rights or remedies, after giving notice in writing to the
Contractor, carry out the work of cleaning and tidying up and remove all buildings,
workshops, Temporary Works and Construction Plant to a point of storage and the costs
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 18




---



##### 



incurred by LGLin carrying out such work and providing such storage may be recovered
by LGLas a debt due to LGLby the Contractor.4.3.10
    
    Environmental Responsibilities4.3.10.1
    
    LGLplaces and requires the Contractor to place the highest importance and priority on
environmental protection during the performance of the Work. The Contractor shall be
responsible for ensuring that the Work is executed in an environmentally responsible manner
and that adequate practices are at all times adopted to ensure that LGLsenvironmental
responsibilities are met with respect to carrying out the Work.4.3.10.2
    
    The Contractor shall ensure that its employees on Site are familiar with Applicable Laws
relating to protection of the environment and shall ensure that all its employees and the
employees of its Subcontractors comply with all such Applicable Laws.4.3.10.3
    
    The Contractor shall immediately report any environmental accident or incident to LGLs
senior safety officer on Site and shall, within forty-eight (48) hours thereof, submit an
environmental accident/incident report in the form of Appendix 5/P.4.3.10.4
    
    In the event that any situation of whatsoever nature arises which could present a risk to
the environment, LGLshall have the absolute right to suspend Work pursuant to Clause 4.2.5
at no cost to LGL,until the situation has been rectified.4.3.10.5
    
    The Contractor covenants, represents and warrants to LGLthat:
 i)
    
    The Contractor is familiar with Applicable Laws relating to environmental protection, and that the Contractors activities will be conducted in
compliance with all such Applicable Laws, so as not to give rise to any
breach thereof or any non-compliance therewith by LGLor any of its
directors, officers, employees, agents, consultants or related
corporations;ii)
    
    All employees of the Contractor have been properly trained with respect to environmental concerns associated with the Contractors activities, and
methods and systems for ensuring environmental protection;iii)
    
    The Contractor will exercise due diligence in ensuring
environmental protection and, without limitation, the Contractor shall
implement such systems and procedures, and provide all such equipment and
facilities, necessary so as to ensure environmental protection; andiv)
    
    The Contractor shall be fully responsible for acts or
omissions of any Subcontractors and shall ensure that each Subcontractor
complies with the provisions of this Clause 4.3.10 and any other provision of
the Contract which relates to environmental protection as if such
Subcontractor was the Contractor hereunder.
 4.3.11
    
    General Contractor Warranties4.3.11.1
    
    The Contractor covenants, represents and warrants to LGLthat:
 i)
    
    The Contractor has and will continue (for as long as it has any obligation or
liability under this Contract) to have the requisite power and authority to
enter into and perform its obligations and discharge its liabilities under
this Contract;ii)
    
    The Contractor has taken all necessary action to authorise the execution,
delivery and performance by it of this Contract;
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 19




---



##### 



iii)
    
    this Contract and the obligations created by it are binding
obligations;iv)
    
    all consents necessary to be obtained by it in relation to
the execution, delivery, performance, validity and enforceability of this
Contract have been obtained or effected and are in full force and effect;
andv)
    
    it will, and it will ensure that its employees, contractors and agents will, at
all times:
 (A)
    
    be suitably qualified and experienced;(B)
    
    be appropriately licensed and
authorised in accordance with Applicable Laws; and(C)
    
    obtain all necessary approvals and required government consents;to perform the Work.
 4.4
    
    LIABILITIES4.4.1
    
    Defects4.4.1.1
    
    The Contractor shall, in addition to any liability which may exist under any Applicable
Laws, be liable for the rectification of all omissions and defects in the Work listed on the
Certificate of Practical Completion or becoming apparent during a Defects Liability Period of
twelve (12) months which shall commence on the Date of Practical Completion. Such
rectification shall include the making good, repair or replacement of any other works or
property affected by the defect or rectification works.4.4.1.2
    
    The Contractor shall rectify any minor omissions and minor defects listed on the
Certificate of Practical Completion within fourteen (14) days of the issue of the Certificate
of Practical Completion.4.4.1.3
    
    Any omissions and defects which become apparent during the Defects Liability Period and
which are due to any cause, including design, workmanship or materials for which the
Contractor is responsible shall be rectified by the Contractor when directed to do so by LGL.
At its discretion, LGLshall state the omissions or defects or in what respect the Work is
otherwise defective, the making good, repair or replacement of any other works or property
required and the date by which rectification shall be commenced and completed, but no such
direction shall be given by LGLlater than twenty-eight (28) days after the expiration of the
Defects Liability Period.4.4.1.4
    
    If any rectification referred to in Clauses 4.4.1.2 or 4.4.1.3 is not commenced or
completed within the time stipulated, LGLmay carry out the rectification at the Contractors
expense but without prejudice to any other rights that LGLmay have against the Contractor in
respect of the rectification. The cost incurred by LGL in so carrying out the rectification
shall be a debt due from the Contractor to LGL.Notwithstanding the provisions of this
Clause, the Contractor shall not be responsible for the effects of fair wear and tear during
the Defects Liability Period.4.4.1.5
    
    If it becomes necessary for the Contractor to carry out any rectification, the provisions
of this Contract relating to the Work shall apply to the rectification as if it were the Work
and the Defects Liability Period for that part of the Work on which the rectification was
executed shall commence on the day on which the rectification work is completed. LGLmay
approve a shorter Defects Liability Period in respect of any rectified work.4.4.1.6
    
    For the purposes of carrying out any rectification or making tests or inspecting the
working records of the Work and taking notes there from, and subject to the approval and
requirements of LGL,the Contractor shall have the right of entry in so far as it may be
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 20




---



##### 



necessary for all or any of those purposes, at its own risk and cost and at all
reasonable times, to the Site and the Work.4.4.1.7
    
    Any action taken by the Contractor for any of the purposes expressed in this Clause shall
not disrupt or inconvenience the normal activities of the Mine.4.4.2
    
    Royalties, Patents, Copyrights and Other Intellectual Property Rights4.4.2.1
    
    Unless otherwise provided for in the Contract, all payments (whether or not accrued, due
and payable at the date of the Contract) for royalties and patent rights, registered designs,
trade marks or names, copyright and other protected rights and all fees then or thereafter to
become payable for or in connection with any land (excluding mineral royalties), matter or
thing used or required to be used in performance of the Contract or to be supplied under the
Contract shall be included by the Contractor in the Contract sum and shall be paid by it to
those to whom and at the time at which they become payable.4.4.2.2
    
    The Contractor shall indemnify LGLand its directors, officers, employees, agents and
consultants against any action, suit, proceeding, claim or demand, in respect of all costs or
expenses arising from, or incurred by reason of, any infringement or alleged infringement of
letters patent, registered design, trade mark or name, copyright or other protected rights,
in respect of any machine, equipment, work, material or thing, system or method of using,
fixing of or working, or any arrangement used or fixed or supplied by the Contractor for the
purposes of the Contract.4.4.2.3
    
    Title to, copyright in and other intellectual property rights in any documents, plans,
specifications, designs, drawings, sketches, reports and materials produced for or in
connection with the Works vests in LGL on creation and LGL grants to the Contractor an
irrevocable royalty free, non-exclusive licence to use that material in connection with the
supply of the Works.4.4.3
    
    Accident or Injury to Employees4.4.3.1
    
    The Contractor indemnifies LGLand its directors, officers, employees, agents and
consultants, against liability for all loss or damage resulting from personal injury to or
the death of (reduced to the extent of any contribution by LGLor its directors, officers,
employees, agents and consultants) the Contractor or of any Subcontractor or any employee or
agent of the Contractor or of any Subcontractor occurring during the currency of the Contract
and arising out of or in connection with the execution of the Work under claims, demands,
actions, suits or proceedings, including costs and expenses under Applicable Laws.4.4.4
    
    Property Damage and Public Risk4.4.4.1
    
    Subject to Clause 4.4.4.2, the Contractor indemnifies LGLand its directors, officers,
employees, agents and consultants against all loss of or damage to property of LGLand its
directors, officers, employees, agents and consultants, or any of them, and from and against
any claim, demand, action, suit or proceeding that may be made or brought by any person
against LGLand its directors, officers, employees, agents and consultants, or any of them,
in respect of personal injury to or the death of any person or loss of or damage to any
property arising out of or as a consequence of the construction or maintenance of the Work by
the Contractor or its Subcontractors and also from any costs and expense that may be incurred
in connection with any such claim, demand, action, suit or proceeding.4.4.4.2
    
    The Contractor shall not, under Clause 4.4.4.1, be rendered liable for or in respect of
loss of or damage to property or personal injury to or death of any person resulting from any
breach by LGLof any provision of the Contract or any negligent act or omission of LGL
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 21




---



##### 



or for or in respect of any claims, demands, actions, suits or proceedings, costs and
expenses whatsoever in respect thereof or in relation thereto.4.4.5
    
    Taxes and Contributions4.4.5.1
    
    The Contractor shall be solely responsible for and indemnifies LGL against claims or
liability for the payment of all corporate taxes, statutory levies, payroll taxes and fringe
benefit taxes related to or arising from performance of the Work. Further, the Contractor
shall make all contributions to pension funds that may be required to be made on behalf of its
employees or agents under any Applicable Laws, or any Award, or Collective or Industrial
Agreement to which they are subject, and indemnifies LGLand its directors, officers,
employees, agents and consultants against liability for all loss including claims, demands,
actions, suits and proceedings, and the costs and expenses relating thereto, arising as a
result of its failure to do so.4.4.5.2
    
    The Contractor indemnifies LGLand its directors, officers, employees, agents and
consultants against liability for all loss including claims, demands, actions, suits and
proceedings, and the costs and expenses relating thereto arising out of or caused by failure
of the Subcontractor to fully and properly comply with these requirements.4.4.5.3
    
    Liability for TaxIn this clause:Tax means any tax, levy, royalty, rate, duty, fee, impost, or other charge imposed
by any governmental, semi-governmental, or other body authorised by law whether in
PNG, Australia or elsewhere to impose such Tax. Without limiting the generality of the
foregoing, Tax includes any withholding tax (including foreign Contractor withholding
tax), goods and services tax, value added tax, petroleum resource rent tax, any tax
respecting environmental effects including a carbon tax.Income Tax means any tax of general application imposed on net income.4.4.5.3
    
    (a) The Contractor shall reimburse LGL for the amount of LGLs liability for any Tax
(excluding Income Tax) in respect of any supply made by the Contractor under this Contract.4.4.5.3
    
    (b) Any consideration to be paid or provided for a supply made under or in connection with
this Contract is expressed inclusive of all Tax, other than GST, in force at the Commencement
Date.4.4.5.3
    
    (c) Should LGL be required to withhold any amounts on account of any Tax (excluding income
Tax), the corresponding withheld amount will be taken as a reduction in the consideration to
be paid or provided.4.4.5.4
    
    GST4.4.5.4
    
    In this clause:Australian GST Law has the meaning given to the term GST Law by the A New Tax
System (Goods and Services Tax) Act 1999(Cth);Consideration has the meaning given by the Australian GST Law or the PNG GST Law;Goods has the meaning given to that term by the Australian GST Law or the PNG GST
Law, as applicable;
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 22




---



##### 



PNG GST Law means the Goods and Services Tax Act 2003(PNG);Recipient has the meaning given to that term by the Australian GST Law or the PNG
GST Law, as applicable;Tax Invoice has the meaning given by the Australian GST Law or the PNG GST Law, as
applicable; andTaxable Supply means a taxable supply as that term is defined in the Australian GST
Law (excluding the reference to section 84-5 of the A New Tax System (Goods and
Services Act 1999(Cth)) or a supply upon which goods and services tax is imposed by
the PNG GST Law, as applicable.4.4.5.4
    
    (a) Any consideration to be paid or provided for a supply made under or in connection with
this Contract, unless specifically described in this Contract as GST inclusive, does not
include an amount on account of GST. LGL is zero rated for GST for supplies made in PNG.4.4.5.4
    
    (b) The Contractor will make all reasonable endeavours to ensure the supply of any Goods
is GST-free under Australian GST Law. In this regard and where applicable to supply of
equipment with the Works, the Contractor warrants that it will export any Goods within 60
days of the earlier of receiving any consideration for the supply or issuing an invoice for
the supply and that it will hold sufficient documentary evidence to substantiate the export
of the Goods within the 60 day timeframe.4.4.5.4
    
    (c) Despite any other provision in this Contract, if a party (Supplier) makes a supply
under or in connection with this Contract on which GST is imposed to any extent (not being a
supply the consideration for which is specifically described in this Contract as GST
inclusive):
   Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 23




---



##### 



4.4.5.5
    
    Reimbursements4.4.5.5
    
    (a) If a payment to a party under this Contract is a reimbursement or indemnification,
calculated by reference to a loss, cost or expense incurred by that party, then the payment
must be reduced by the amount of any input tax credit to which that party is entitled for
that loss, cost or expense. That party is assumed to be entitled to a full input tax credit
unless it proves, before the date on which the payment must be made, that its entitlement is
otherwise.4.4.5.6
    
    Adjustment Events4.4.5.6
    
    (b) If, at any time, an adjustment event arises in respect of any supply made by a party
under this Contract, a corresponding adjustment must be made between the parties. Payments to
give effect to the adjustment must be made between the parties and the Supplier must issue a
valid adjustment note in relation to the adjustment event.4.4.5.7
    
    No Merger4.4.5.7
    
    (a) This clause does not merge on completion or termination of this Contract.4.4.6
    
    Survival of Indemnities4.4.6.1
    
    All indemnities provided for under the Contract shall survive termination of the Contract.4.5
    
    LEGALITIES4.5.1
    
    Construction of the Contract4.5.1.1
    
    The Contract shall be governed by and construed with reference to the laws for the time
being in force in the jurisdiction stated in Clause 1.8.(Total Project Data)4.5.1.2
    
    All prices and sums of money and all payments made under the Contract shall be in the
currency stated in Clause 1.8 (Total Project Data) and payments shall be made at the place
named therein.4.5.1.3
    
    All measurements of physical quantities shall be in the units stated in Clause 1.8 (Total
Project Data).4.5.1.4
    
    If any provision of the Contract shall be determined to be void, illegal or unenforceable
by a court of competent jurisdiction, such provision shall be separable and struck from the
Contract and the validity and enforceability of the remaining provisions of the Contract
shall not be effected thereby.4.5.1.5
    
    LGL may, at any time, deduct from any amount due or becoming due to the Contractor under
this Contract all debts and amounts due from the Contractor to LGL whether under or in
connection with this Contract or otherwise.4.5.2
    
    Evidence of the Contract
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 24




---



##### 



4.5.2.1
    
    Until the Formal Instrument of Agreement referred to in Clause 4.5.2.2 is executed by the
parties, the agreement in writing between the Contractor and LGLfor the execution of the
Work, including the documents or the parts of the documents to which reference may properly be
made in order to ascertain the rights and obligations of the parties in relation to the Work,
shall constitute the Contract between them.4.5.2.2
    
    As soon as practicable after the Date of Acceptance of Tender, LGLshall prepare, in
duplicate, a Formal Instrument of Agreement incorporating all Contract Documents.4.5.2.3
    
    Within fourteen (14) days after being requested in writing by LGLso to do, the Contractor
shall execute both copies of the Formal Instrument of Agreement at the place and in the
manner directed in writing by LGLand shall return both copies to LGLduly executed.4.5.2.4
    
    On receipt from the Contractor of the two copies of the Formal Instrument of Agreement
duly executed by the Contractor, LGLshall, as soon as practicable, execute both copies of
the Formal Instrument of Agreement and shall forward one of such copies to the Contractor.4.5.2.5
    
    If the Contractor fails to duly execute the Formal Instrument of Agreement within the time
and in the form prescribed herein, LGLshall be entitled to treat such failure as a default
under Clause 4.5.4 (Default or Insolvency).4.5.2.6
    
    The Formal Instrument of Agreement shall be in a form similar to that set out in Appendix
5/Q.4.5.3
    
    Documents4.5.3.1
    
    The documents, which constitute or evidence the Contract, shall be taken as mutually
explanatory and, subject to any clauses providing for order of precedence in case of
inconsistencies, anything contained in one but not in another shall be equally binding as if
contained in all. The Engineering Manager shall explain any ambiguity, discrepancy or
inconsistency, which is identified and is not covered by a clause providing for order of
precedence in case of inconsistencies. If the Contractor finds any such ambiguity,
discrepancy or inconsistency it shall immediately refer it in writing to the Engineering
Manager.4.5.3.2
    
    Minor items not expressly mentioned in the Contract but which are necessary for the
satisfactory completion of the Work shall be supplied and executed by the Contractor without
adjustment to the Contract Sum.4.5.3.3
    
    The Contractor shall make allowance for slight variations in dimensions shown on drawings
which may be caused by unavoidable inequalities in the sizes of materials.4.5.3.4
    
    Drawings made to larger scales and those showing details of particular parts of the Work
shall be taken as correct in preference to those made to smaller scales and for more general
purposes. Where any discrepancy exists between figured and scaled dimensions, the figured
dimensions shall prevail.4.5.3.5
    
    LGLshall supply to the Contractor free-of-charge, all reasonable quantities of drawings
or other written information as are necessary for the purposes of execution of the Work. If
the Contractor shall require additional drawings or other written information, then the
Contractor shall make such requests in writing. All such additional drawings or other written
information supplied to the Contractor shall be deemed to be part of the Contract Documents.
All documents supplied to the Contractor under this clause or otherwise shall be returned to
LGLon demand in writing and shall not be used by the Contractor for any purpose other than
execution of the Work.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 25




---



##### 



4.5.3.6
    
    The Contractor shall supply to LGLfree-of-charge, at least three (3) copies of such
drawings or other written information as it is required by this Contract to supply. If the
Engineering Manager considers that such drawings or other written information are suitable for
use, the Contractor shall be given permission to use them accordingly and one copy shall be
returned to it. Notwithstanding the grant of permission to use any such drawings or other
written information, the Contractor shall be bound to carry out and complete the Work strictly
in accordance with the Contract. Permission for the use of any such drawings or other written
information shall not relieve the Contractor from the full responsibility for the correctness
of such drawings or other written information except in so far as any error in or omission
from any such drawings or other written information has been caused by an error in or omission
from any document which LGLhas issued or caused to be issued.4.5.3.7
    
    During the execution of the Work, the Contractor shall keep and maintain on Site, two (2)
complete sets of drawings in print form progressively marked up to show all as constructed
detail to the satisfaction of LGL.On completion of appropriate stages of the Work as
determined from time to time by the Engineering Manager, one (1) set of drawings shall be
handed to LGL.As a requirement of Practical Completion, the Contractor shall prepare and
provide to LGLone (1) full set of as constructed drawings in electronic and hard copy format.4.5.4
    
    Default or Insolvency4.5.4.1
    
    If the Contractor defaults in the performance of its obligations under the Contract or
refuses or neglects to comply with any direction given in writing in accordance with the
Contract, LGLmay issue to the Contractor a Show Cause Notice, in a similar form to Appendix
5/R, requiring the Contractor to show cause in writing why the powers hereinafter contained
should not be exercised. Such notice shall specify the period (which shall not be less than
three (3) days after service of notice) by which the Contractor is required to show cause as
aforesaid. If the Contractor fails to show cause to the satisfaction of the Engineering
Manager, why the powers hereinafter contained should not be exercised, LGL,without prejudice
to any other rights or remedies that it may have against the Contractor, by notice in writing
may:
 i)
    
    Take any part of the Work remaining to be completed wholly or
partly out of the hands of the Contractor or of any person in whose hands or
possession the Work or any part of it may be; orii)
    
    terminate the Contract.
 4.5.4.2
    
    If LGLelects to exercise the power conferred on it by Clause 4.5.4.1, it may:
 i)
    
    Suspend progress payments;ii)
    
    Complete any part of the Work remaining to be completed and for that
purpose may let a contract, or may employ persons to carry out the
completion of the Work;iii)
    
    Take possession of, use, and permit other persons to use any
materials, Constructional Plant, and other things, which are owned by the
Contractor and are requisite and necessary for the purpose of completing the
Work. The Contractor shall have no right to any compensation or allowance in
respect thereof, other than the right to require LGLto ensure the maintenance
in good working order of the Contractors Constructional Plant during the use
thereof; and/or
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 26




---



##### 



iv)
    
    Require the Contractor to assign, within three (3) days,
to LGLwithout payment, the benefit of any agreement for the supply of
materials or for the execution of any part of the Work.
 4.5.4.3
    
    On completion of the Work, LGLshall determine the cost of the Work comprising payments to
the Contractor and costs incurred by LGLin carrying out the completion of the Work. If the
costs so determined are greater than the amount which would have been paid to the Contractor
if the whole of the Work had been carried out by it, the Contractor shall pay LGLthe
difference between the two amounts and such sum shall be a debt due from the Contractor to
LGL. Should the costs so determined be less than the amount which would have been paid to the
Contractor, LGLshall pay to the Contractor whichever is the lesser amount of either the
balance of the Contract value of that part of the Work actually executed by the Contractor but
not paid or the amount by which the costs are determined to be less.4.5.4.4
    
    No action taken by LGLunder this clause shall vitiate the Contract or operate to the
prejudice of any other rights or remedies of LGLat law or in equity.4.5.4.5
    
    If the Contractor:
 i)
    
    being a person, commits an act of bankruptcy or presents against himself or
herself or has presented against him or her a petition in bankruptcy or a
sequestration order is made against him or her or he or she enters into
any scheme of arrangement or any composition with his or her creditors or
executes as a debtor a deed of arrangement or a deed of assignment; orii)
    
    being a company, takes or has taken or instituted against it any action or
proceeding whether voluntary or compulsory which has as an object or may
result in the winding up of the company, other than a voluntary winding up
by members for the purpose of reconstruction or amalgamation, or is placed
under official management or enters into a compromise or other arrangement
with its creditors or a controller is appointed or a receiver or receiver
and manager is appointed to carry on its business for the benefit of its
creditors or any of themiii)
    
    breaches a safety requirement or direction from LGL in relation to safety
which is of a nature significant enough to justify termination
 LGLmay, by notice in writing, proceed as per Clause 4.5.4.1 (i) or (ii) above but
without the requirement to issue a Show Cause Notice as detailed therein.4.5.4.6
    
    All remedies for any breach of, or default under, the Contract are cumulative and not
exclusive, and a party may pursue and enforce any and all remedies available at law, in
equity or under the Contract concurrently, consecutively or alternatively, unless the
contrary is stated expressly in the Contract.4.5.5
    
    LGLs Right to Terminate the Contract4.5.5.1
    
    LGLmay, at its option, at any time and for any reason it may deem advisable, terminate
the Contract, in which event the Contractor shall, having regard to any progress payments
already made and any debts due from the Contractor to LGL,be entitled to receive payment and
compensation as follows:
 i)
    
    FOR LUMP SUM ITEMS: The Engineering Manager shall determine the
percentage completion of such items up to the time of the termination of the
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 27




---



##### 



Contract and the Contractor shall be paid the percentage so determined of
the value of the Lump Sum items.ii)
    
    FOR UNIT PRICE ITEMS: The Engineering Manager shall determine
the number of items completed up to the time of the termination of the
Contract and the Contractor shall be paid for the number of items so
determined at the unit prices listed in the Contract.iii)
    
    DEMOBILIZATION: The Contractor shall be paid such an amount
as in the opinion of the Engineering Manager will adequately compensate the
Contractor for moving its employees, equipment, tools, supplies and materials
off the Site.iv)
    
    ADDITIONAL COMPENSATION: The Contractor shall be paid an
additional amount to compensate the Contractor for any inconvenience, loss or
damage incurred by it due to the termination of the Contract. Such
compensation shall be determined by the Engineering Manager but shall amount to
not more than of the Contract value of Work which the Contractor executed in
the period of sixty (60) Days prior to the date of the notice of termination
of the Contract.
 4.5.5.2
    
    It is specifically agreed that the amounts determined pursuant to Clause 4.5.5.1 shall be
the Contractors total entitlement for the consequences of any such termination.4.5.6
    
    Disputes4.5.6.1
    
    In case any dispute or difference shall arise between LGL and the Contractor, either
during the progress of the Work or after termination, repudiation or breach of the Contract,
as to the construction of the Contract or as to any matter or thing whatsoever arising
thereunder or in connection therewith, then the aggrieved party shall give to the other
notice in writing setting out in full the detailed particulars of the dispute or difference.
Upon receipt or issue of the notice, LGL shall give written notice to the Contractor
appointing a date, time and venue for a conciliation meeting to be held to discuss in detail
the dispute or difference and may appoint such further time as may be necessary for the
continuation thereof. The parties shall not be legally represented at the conciliation
meeting but shall present in their own manner, with the assistance of witnesses and
documentary evidence, the details of their respective cases.4.5.6.2
    
    If at the conclusion of the conciliation meeting the parties fail to resolve the dispute
or difference, either party may give to the other within fourteen (14) days, a notice stating
that at the expiration of thirty (30) days, it will proceed to have the dispute or difference
referred to senior management representatives of both LGL and the Contractor who shall meet
on a without prejudice basis to discuss the dispute and use their reasonable endeavours to
resolve the dispute amicably and in the interests of both parties in reliance on this
contract.. Each party is to meet its own costs of preparation and attendance at any dispute
resolution process under clauses 4.5.6.1 or 4.5.6.2.4.5.6.3
    
    If at the conclusion of the meeting between senior executives or the expiration of 60
days whichever is the earlier, the parties fail to resolve the dispute or difference, either
party may give to the other within fourteen (14) days, a notice stating that at the
expiration of thirty (30) days, it will proceed to have the dispute or difference referred to
a court of competent jurisdiction in the jurisdiction stated in Clause 1.8 (Total Project
Data) and at the expiration thereof, but not before, may so proceed.4.5.7
    
    Service of Documents4.5.7.1
    
    Any notice, communication or other document shall be deemed to have been given or served
if delivered in person, in the case of LGL, to the Engineering Manager and in the case of the
Contractor, to a person occupying one of the positions of authorization set out
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 28




---



##### 



in Tender Form Appendix 3/G, or if mailed by prepaid mail, in the case of LGL,to the
address given for LGLin Clause 1.8 (Total Project Data) or in the case of the
Contractor, to the address given for it in Tender Form Appendix 3/C (or at such
substitute address as either party may, from time to time, direct in writing) or if
sent by facsimile transmission, to the facsimile number at the partys normal place of
business. Any such notice shall be deemed to have been received, if delivered, or sent
by facsimile, on the first business day following the date of delivery or transmission,
and if mailed, on the tenth business day after the date of mailing.4.5.7.2
    
    Where any notice or other document requires an act or thing to be done or performed or
allowed within the time or period specified in that notice or document, then the same shall
be sent by certified or registered mail, served personally, or shall be sent by facsimile
transmission.4.5.8
    
    LGL Right to Audit4.5.8.1
    
    LGLreserves at its discretion, the right to audit the Contractors books, records
(including payroll and primary accounting records) and supporting documentation for any
purpose, including the verification of any Claim made by the Contractor.4.5.8.2
    
    In the event that LGLapplies to the Contractor to exercise its right under Clause
4.5.8.1, the provision of access to such books, records and supporting documentation shall be
a condition precedent to the Contractors right to receive any further payments, return or
release of security or to commence or proceed in accordance with Clause 4.5.6 whether such
proceedings have commenced or not.4.5.9
    
    Definitions and Interpretations4.5.9.1
    
    In the Contract (as hereinafter defined) the following words and expressions shall have
the meanings hereby assigned to them, except where the context otherwise requires:Actual Direct Costs shall mean the actual monetary value paid by the Contractor as
evidenced by both invoices and payment receipts or, with respect to depreciation, the
actual percentage taken into account in the Contractors balance sheets.Actual Onsite Overhead Costs shall mean for any given period, the actual direct cost
to the Contractor of its:
 
    
    Buildings on Site (based on cost of depreciation);
    
    Senior Site representative (providing such person is not
directly engaged in physical construction of the Work);
    
    Clerical staff;
    
    Services costs (such as telephone, fax, power and water);
    
    Liability and Works Insurances, other than workers compensation;
    
    Office furnishings and equipment (based on cost of depreciation); and
    
    Office consumables at Site.
  Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 29




---



##### 



LGL
    LGL
  i)
    
    Where payment is to be made on a Lump Sum basis, the sum which is
stated in the Contract to be payable to the Contractor for the execution of
the Work by the Contractor and the performance of the obligations of the
Contractor under the Contract.ii)
    
    Where payment is to be made on a Schedule of Rates basis, the sum
ascertained upon completion of the Work by calculating the products of the
unit rates set out in the Schedule of Rates and the actual quantities of
Work executed to complete the Original Scope of Work and adding to the sum
thereof, the total of any amount properly payable for Work done in respect
of Lump Sums, provisional sums, contingency sums, or other sums included in
the Schedule of Rates for the Original Scope of Work.iii)
    
    Where payment is to be made on a part Lump Sum and part
Schedule of Rates basis, the aggregate of the sums referred to in paragraphs i)
and ii).
  LGL
  Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 30




---



##### 



LGL
  LGL
   LGL
   LGL
         i)
    
    the Work is complete except for minor defects or omissions:
 
    
    which do not prevent the Work from being reasonably capable
of being used for its intended purpose;
    
    in relation to which the Engineering Manager determines
that the Contractor has reasonable grounds for not promptly rectifying them;
and
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 31




---



##### 




    
    rectification of which will not damage the convenient use
of the Work, and
 ii)
    
    those tests which are required by the Contract to be carried out and passed before the Work is handed over to LGL, have been carried out and passed; andiii)
    
    such documents and other information required under the
Contract which, in the opinion of the Engineering Manager, are essential for
the use, operation and maintenance of the Work, have been supplied.
  LGL
    LGL
    LGL
  LGL
 LGL
   Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 32




---



##### 



Tender Schedule means the schedule submitted by the Contractor at time of Tender in
accordance with the requirements of Clause 2.5.4 (j)Total Project means the project described in Clause 1.1.1.Unit Rates means rates of payment for identifiable units of WorkVariation means a change in the Original Scope of Work and/or Contract Sum
authorised by LGLby issue of a Contract Variation.Work or Works means all of the deliverable obligations of the Contractor pursuant
to the Contract and includes all management, supervision, labour, and materials
necessary to achieve those obligations.4.5.9.2
    
    The Clause headings and sub-clause headings in these General Conditions of Contract shall
not be deemed to be part thereof and shall not be used in the interpretation or construction
thereof or of the Contract.4.5.9.3
    
    Words in the singular shall include the plural and words in the plural shall include the
singular, according to the requirements of the context.4.5.9.4
    
    Words importing the masculine gender shall include the feminine gender or the neuter
gender, as the case may require.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 4 Page No 33




---



##### 



SECTION 5
 APPENDICES TO GENERAL CONDITIONS OF CONTRACT
 5/A
    
    Organization Chart Construction Management5/B
    
    Form of Unconditional Bank Guarantee5/C
    
    Site Instruction5/D
    
    Project Control System  Site Instruction Flow Chart5/E
    
    Draft Agenda for Weekly Coordination Meeting5/F
    
    Resources and Progress Report (3 Sheets)5/G
    
    Progress Claim (4 Sheets)5/H
    
    Quotation Price Request (2 Sheets)5/1
    
    Project Control System  Quotation Price Request Flow Chart5/J
    
    Contract Variation5/K
    
    Project Control System  Contract Variation Flow Chart5/L
    
    Dayworks Sheet (2 Sheets)5/M
    
    Certificate of Practical Completion5/N
    
    Final Certificate5/O
    
    Deed of Release5/P
    
    Accident/ Incident Report5/Q
    
    Formal Instrument of Agreement (2 Sheets)5/R
    
    Show Cause Notice




---



##### 








---



##### 



APPENDIX 5/B
 
  
   (a)
    
    notification has been received by the Surety from both the Obligee and Contractor that
this(b)
    
    until payment has been made to the Obligee by the Surety in accordance with the term
hereof, of




---



##### 



APPENDIX 5/C
 L  [Work Package No]  [Reference No
]Contractor:
 Work Package:Project:
 Date:Subject:The Contractor is hereby advised:
  
 o
    
    No cost Variation to the Contracto
    
    Issue with QPR No___
(work NOT to proceed until CV is issued)o
    
    Issued with Dayworks Sheet No___
(work to proceed on Dayworks basis)
   Signed
    
    
    
    SignedFor & On Behalf Of LGL
    
    
    
    For & On Behalf Of The ContractorDate:
    
    
    
    
    
    Date:




---



##### 








---



##### 



APPENDIX 5/E
  1.0
    
    Safety &Security
 1.1
    
    Review of safety reports and statistics. Review of ongoing safety action
plans and incentive programs.
 2.0
    
    Progress Reports
 2.1
    
    Submission of Contractors Weekly Progress Report (Appendix 5/F Sheet 1 Of 3)2.2
    
    If status of Weekly Progress Report shows any item behind schedule,
submission of alternative and revised schedules as per Clause 4.2.4
 3.0
    
    Contract Schedule
 3.1
    
    Discussion and review of Contract
Schedule
 Quotation Price Requests
 4.1
    
    Submission and review of any outstanding
QPRs
 Technical Review
 5.1
    
    Review of any technical
problems
 Interface Review
 6.1
    
    Review of any interface
problems
 Materials & Logistics
 7.1
    
    Review of any problems with materials or
logistics
 Quality Control
 8.1
    
    Review of Quality Plans and Reports. Review action required on
NCRs
 Manpower & Accommodation
 9.1
    
    Review of existing and projected manpower. Review of accommodation requirements
 General Business
 10.110.210.3




---



##### 



APPENDIX 5/F Sheet 1 Of 3 I Work Package: C    [Work
Package No]    [Reference No] Date: I Contractor For Period Ending: MEASURED
AGAINST EXISTING APPROVED CONSTRUCTION PROGRAMME No DATED Construction
Programme Actual Progress Forecast Progress Ahead (+) MMy Description      %Complete
Start | Finish |  Start | Finish  start Finish  Weighted      % Complete =
(% Value of Contract Sum) x (% Complete) Signed Signed Date
(Contractors Site Representative) (Area Manager)




---



##### 



APPENDIX 5/F Sheet 2 Of 3Work Package: C    [Work Package No] -
[Reference No] Contractor: Report For: Hours Worked & Classification Of Work
name ID Total No Ori 9 inal Contract
Davworks Hours
Contract Variations c V No Payworks shee
nq Totals 0 0 0 0 Signed Signed Contractors Site
Representative) (Area Manager) Date: Date:




---



##### 



APPENDIX 5/F Sheet 3 Of 3Work Package: C    [Work Package No] -
[Reference No] Contractor: Report For: Hours Worked & Classification Of
Work Description Of ID Total
Plant/Equipment No I Origi nal Contract Dayworks Dayworks Hours
___Contract Variations
C V N0 Dayworks
sheet No
SignedSigned Contractors Site
Representative) (Area Manager)
Date: Date:




---



##### 



APPENDIX 5/G SHEET 1 Of 4C    [Work Package No]    [Progress Claim
No] Work Package: Date: Contractor: For Period Endingj
CUMULATIVE TOTAL OF CONTRACT WORK(As per attached details sheet 2 of
4) CUMULATIVE TOTAL OF CONTRACT VARIATIONS(As per attached details sheet
3 of 4) CUMULATIVE TOTAL OF DAYWORKS(As per attached details sheet 4 of
4) TOTAL VALUE OF PROGRESS CLAIM $0.00 THE CONTRACTOR HEREBY CERTIFIES
THAT: 1 All employees, agents, consultants, Subcontractors and Suppliers have
been paid all amounts properly due to them in 2 That it has notified LGL of all
Claims and particulars thereof which it may have against LGL arising out of
circumstances Signed Date: (For and on behalf of the Contractor)
SCHEDULE OF ADJUSTMENTS TO CONTRACTORS PROGRESS CLAIMREASON FOR ADJUSTMENT
I VALUE OF ADJUSTMENT Addition Deduction TOTAL ADJUSTMENTS NET
ADJUSTMENT ACCEPTANCE OF ADJUSTMENTS BY THE CONTRACTOR: Signed Date:
For and on behalf of the Contractor) APPROVAL BY ENGINEERING
MANAGERTOTAL PROGRESS CLAIM VALUE APPROVED TOTAL PAYMENT VALUE CERTIFED
LESS TOTAL PAYMENT VALUE PREVIOUSLY CERTIFIED LESS HOLD BACK OF 10% PAYMENT VALUE
CERTIFIED FOR THIS PERIOD Signed Date: Engineering Manager)
SCHEDULE OF DEBTS DUE FROM THE CONTRACTOR TO LGLItem Advice
Reference Details Amount TOTAL DEBTS DUE TO BE DEDUCTED NET AMOUNT APPROVED
GST 10% TOTAL VALUE THIS PAYMENT!




---



##### 



APPENDIX 5/G Sheet 2 Of 4Work Package: C    [Work Package No] -
[Reference No] Page No Date: Contractor: For Period Ending: AIM AREA
MANAGERS AREA MANAGER & ENGINEERING MANAGERS UUINIKAUUK5U-AIM ASSESSMENT
CONTRACTORS REVIEW DETERMINATION Contract I      %or Qty 10/A Unit Value      %or
Qty Adjustment Accept Or Reject c|aim Item Code Work Description
Vag|ue Rate Cl a|med complete To Claim Value
Comments No Addition Deduction A/R Commenls TOTAL VALUE
CLAIMED OR CONTRACT WORKS $ 0 $0 Total Assessment £0 Total Determination
Signed Signed Sjgned Signed Contractors Representative Area Manager
Contractors Representative Engineering Manager




---



##### 



APPENDIX 5/G Sheet 3 Of 4Mark Package: C    [Work Package No] -
[Reference No] Page No Date: Sontractor: For Period Ending: CONTRACTOTS
CLAIM AREA MANAGERS ~~| AREA MANAGERS ENGINEERING MANAGERS
CONTRACTORS CLAIM ASSESSMENT CONTRACTORS REVIEW DETERMINATION cv|totI
Contract I      %or Qty I 10/A I Unit Value      %orQty I A d]ustment ~ Accept Or
Reject No Code Work Description ^ ^ ^C|ajmed J e ToC^
By Contractor value Comments ___^_^___^Additon _Deduction
A/R Comments _^^^___^_^^^^^^___TOT AL VALUE CLAIMbUhUU CON IRAQ I
wUKK,y~ SO  JO SO Total Assessment SO Total Determination Signed
Signed Signed Signed Contractors Representative Area Manager Contractors
Representative Engineering Manager




---



##### 



APPENDIX 5/G Sheet 4 Of 4Work Package: C    [Work Package No] -
[Reference No] Page No Date: Contractor: For Period Ending:
nAuar/iB^,.. .». nor^.,.. a rr,i^l  : - Onginals of Dayworks
Sheets for period from last dam to b 9 attached hereto j, ~~..-..
| AREA MANAGERS ] ENGINEERING MANAGERS
DAYWORKS CLAIMEO PREVIOUS PERIODS ^ DAYWORKS CLAIMED FOR THIS PERIOD ASSESSMENT
DETERMINATION Date ., Amount Date Work Description Cost Code Amounl Amount
Comments Amount Comments No No Sheet No otai Previous periods $0 TOTAL
AMOUNT CLAIMED FOR DAYWORKS THIS PERIOD $0,00 $Q.QQ Total Assessment $ 0.00
Total Determination TOTAL PERVIOUS PERIODS $ 0 $ Q (Area Manager)
$q(Engineering Manager) TOTAL VALUE TO DATE: $Q,OQ $Q,og $0.0(1
Signed Signed Signed Signed Contractors Representative Area Manager
Area Manager Engineering Manager




---



##### 



APPENDIX 5/H Sheet 1 Of 2
L    [Work Package No]    Work Package:
QPR No: Contractor: Date: You are hereby
requested to provide a quotation for the
following PRICE BREAKDOWN
Item ___Description Unit Quantity Rate
Amount TOTAL FIXED PRICE
LUMP SUM QUOTATION    ~ If
additional space is required, please use
copies of sheet 2, and attach them to sheet
1 and bring forward the totals of each
sheet 2 Signed ___Date
(Contractors Representative)
AGREED ADJUSTMENTS I Unit I
Quantity I Rate I Amount
TOTAL ADJUSTMENTS -REVISED QUOTATION
-[ Signed Date i
Contractors Representative) in acknowledgement
of adjustment Signed
Signed 3y Contractor upon
receipt By LGL upon issue Date
Date This Quotation shall
provide for execution of the Work without
impact on the Contract Schedule
USE ONLY Approved for issue of
Contract Variation Signed Date
(Engineering Manager)




---



##### 



APPENDIX 5/H Sheet 2 Of 2
L    [Work Package No]    Work
Package: QPR No: Contractor Date:
PRICE BREAKDOWN
Item Description Unit Quantity Rate Amount BALANCE CARRIED
FORWARD TO SHEET 1 




---



##### 



APPENDIX 5/1
ENGINEERING MANAGER
(ORIGINATE) (File) N
(EVALUATE)
Copies ~S.CONT~S.CONT ~S.CONTAREA MANAGER
Issue Contract
Variation as
Required (See
Appendix 5/K)
(File)
Copies
CONTRACTOR
(Fiie)
NOTE    THE
QUOTATION PRICE REQUEST
MUST BE ISSUED IN
CONJUNCTION WITH A SITE
INSTRUCTION




---



##### 



APPENDIX 5/J L    [Work Package No] -
Work Package: CV No: Contractor: Date:
The Contract Sum is hereby varied as follows: S.I.
No Q.P.R. No Cost Code
Additions Deductions
HI P + + 1 1 + 41 1 1 p- 1 1 M 1 1 + + I l + »m
     -..-..
TOTALS -
NET ADJUSTMENT    YOU ARE HEREBY AUTHORIZED TO
PROCEED WITH THE WORK INSTRUCTED BY THE ABOVE LISTED SITE
INSTRUCTIONS Signed Date Engineering
Manager) CONTRACT RECONCILIATION (LGL use only)
DETAILS AMOUNT Original Contract Sum
   Total Adjustments for C.V.s to Previous C.V.
No Net Adjustment this C.V.    Total
Adjustments for C.V.s to date    REVISED CONTRACT SUM
-




---



##### 



APPENDIX 5/K ENGINEERING MANAGER(ORIGINATOR OF CONTRACT VARIATIONS)
~S.CONT
Copies ~S.CONTQUOTATION PRICE REQUEST RETURNED BY
CONTRACTOR
AREA MANAGER
(See Appendix 5/1)
(File) Copy CONTRACTOR
(File) ACTION SITE INSTRUCTIONS NOTE  THE QUOTATION PRICE
REQUEST MUST BE ISSUED IN CONJUNCTION WITH A SITE INSTRUCTION




---



##### 



APPENDIX 5/L Sheet 1 Site Instruction No
o CD |f Dayworks Sheet No Previous
Dayworks Sheet No Month Day Shift 3
O Please list alt Labour as per Tender Form Appendix 10/B used to
perform the Work, If material has been supplied, attach a list of the material
supplied and copies of the invoices for that material. Work Package
Contractor CD «- Total Chargable Hours Badge
No Name Classification Allocated Hours Rate
Total Hours Total Costs
Distribute Total Costs For This Sheet (Including Materials) Into The
Respective Cost Codes. Total Labour Total Material
ARVC (Clause 4.2.8.5) Total Costs Signed Signed Date
Note: Dayworks Sheets will only be approved on the day after the Work s
performed. (Contractors Site Representative) (Engineering Manager)




---



##### 



APPENDIX 5/L Sheet 2 Site Instruction No o
CD «___%f § Dayworks Sheet No Previous Dayworks
Sheet No Month Day Shift ^ro 3
2 Please list all Plant as per Tender Form Appendix 10/B used
Work Package Contractor to perform the Work. 0
o 1° CD - Total Chargable Hours Item No
Plant Description Allocated Hours Unit Rate
Quantity Total Costs      ~~-    
-          Distribute
Total Costs For This Sheet Into The Respective Cost Codes. Total Costs
$0.00 Signed Signed Date Note: Dayworks Sheets will
only be approved on the day after the Work is performed. (Contractors Site
Representative) (Engineering Manager)




---



##### 



APPENDIX 5/ML    [Work Package No]    Certificate No Work Package:
Contractor: Pursuant to Clause 4.2.12 of the General Conditions Of Contract, the
Work is certified as having The following minor omissions and / or minor defects
currently exist in the Work and you are i Minor Omissions And / Or
Defects No Description(ATTACH ADDITIONAL LIST AS REQUIRED) Your attention is also
drawn to the following: a) Pursuant to Clause 4.3.3 of the General Conditions
Of Contract you are required to b) Pursuant to Clause 4.3.9 of the General Conditions
Of Contract you are required to c) Pursuant to Clause 4.5.3 of the General Conditions
Of Contract you are instructed to NOTE    THIS CERTIFICATE MUST BE ISSUED IN
CONJUNCTION WITH A SITE INSTRUCTION
Issued this Day of 200 Signed Engineering Manager)




---



##### 



APPENDIX 5/NL    [Work Package No]    Certificate No Work Package:
Contractor: Pursuant to Clause 4.2.13 of the General Conditions Of Contract it is
hereby certified that the above Pursuant to Clause 4.1.6 of the General Conditions Of
Contract the security presently held by LGL Details Of SecurityIs
hereby returned and notice is hereby given to the suretys that this or these
Guarantees NOTE    THIS CERTIFICATE MUST BE ISSUED IN CONJUNCTION WITH A
SITE INSTRUCTION
ssued this Day of 200 Signed Name For and on behalf of LGL) n
the presence of Mame of Witness Address of Witness




---



##### 



APPENDIX 5/OContractor Work Package: To: LGL
WITH RESPECT TO THE ABOVE REFERENCED CONTRACT (hereinafter called the
and after deduction of backcharges and other adjustments, the net payment to
us of: (Agreed Net Payment] hereby remises, releases and forever
discharges LGL and the Owner as defined in the It is further agreed that
for the consideration and Agreed Net Payment aforesaid, the i The Contractor
shall indemnify and save harmless the Releases against and from any and all IN
WITNESS WHEREOF we the said Contractor have executed these presents according to
Dated this Day of 200 SIGNED for and on behalf of the Contractor by its
duly constituted attorneys: n the presence of: ^Jame of Witness: Address of
Witness:




---



##### 



APPENDIX 5/PContractor: Work Package: Project; f^ J^*-
Date: TO BE SUBMITTED WITHIN FOL^^^J-iGHT (48) HOURS e£
Date of Accident ^^f; Time Exact location < -^ PERSONS INVOLVED
^^"^ Name Involvement * t-i <^J> | ~OjT  
WITNESSES -^^l"^ Slame Address l ^^^ Tel No
Details of injury to personnel and / or damage tp^cjPTprrifcnt and / or
property: CL^ Sequence of events leading up to
accident: £^^ ^s Detailed description of the accident: *
K^ Conclusions: ^ ml <3
Recommendations: ^. N&^ /Vhen and by whom will the
recommendatrf^T t^ carried out: j^ 3 0*3 Signed
(Contractors Safety Officer)




---



##### 



APPENDIX 5/QTHIS AGREEMENT made the day of 200 between of
(LGL) of the one part and of (Contractor) of the other part WHEREAS
LGL requires the following work should be undertaken: AND has accepted a
tender by the Contractor to undertake and completion such work for the total contract
price of: The parties agree as follows: 1 In this agreement words
and expressions shall, unless the context otherwise require, have the same meaning 2
The following documents shall be deemed to form and be read and construed as part of
this agreement: a) Addenda and Notices Of Explanation (list) b) Tender documents as
issued by LGL including Volume 3A, 3B & 3C c) Minutes of Post-Tender/ Pre-Award Meeting
and post-tender correspondence (list) d) Contract Schedule (attach) e) Contractors
Tender 3 In consideration of the agreements on the part of LGL in this agreement the
Contractor will undertake and 4 In consideration of the agreements on the part of the
Contractor in this agreement LGL will make payments to 5 If any party to this
agreement consists of one or more persons or one or more corporations or two or more
6 This agreement shall take effect according to its tenor notwithstanding any prior
agreement in conflict or at 7 The undersigned authorised representatives of each party
have initialled each page of this document and each Initialled by (For and on
behalf of the Contractor) and by (For and on behalf of LGL) IN WITNESS WHEREOF
the parties have executed this agreement the day and year first above written
ixecuted by the Contractor by its authorised representative: n the presence
of: Name of Witness: Address of Witness: ixecuted by LGL by its authorised
representative: the presence of: Name of Witness:
Address of Witness:




---



##### 



APPENDIX 5/RL    [Work Package No]    Work Package: Contractor:
Address (From Contract for Service of Notices) NOTICE is hereby given pursuant to
Clause 4.5.4 of the General Conditions Of Contract that you Defaults,
Refusals, Neglects or Acts(Specify in details the defaults, refusals,
neglects or acts.) (ATTACH ADDITIONAL LIST AS REQUIRED) vJOTE    To be
served personally on one of the person occupying the positions of authorisation on j
site nominated in Tender Form 3/G to accept Service of Notices or sent by certified
or registered mail or facsimile to the normal place of business of the Contractor or
otherwise served in accordance with Clause 4.5.7 of the General Conditions Of
Contract. Dated this Dayjrf 200 Signed Engineering Manager)




---



##### 



SECTION 6
 SPECIAL CONDITIONS OF CONTRACT
 6.1
    
    Introduction6.2
    
    Country Specific Amendments and Additions to Section 46.3
    
    Training and Localisation Policy6.4
    
    Freight, Duty and Taxes6.5
    
    Travel to Site6.6
    
    Accommodation and Messing6.7
    
    Power6.8
    
    Communications6.9
    
    Potable Water6.10
    
    Construction Water6.11
    
    On Site Facilities6.12
    
    Site Security6.13
    
    Hours of Work6.14
    
    LGLSafety Requirements6.15
    
    Vehicles6.16
    
    Insurance to be Arranged by LGL6.17
    
    Insurance to be Arranged by the Contractor




---



##### 



6.1
    
    INTRODUCTION6.1.1
    
    This Section sets out the Special Terms and Conditions of Contract, which are to
regulate the performance of the Work, and the obligations and requirements of the
various parties involved in the execution of the Work. These terms and conditions
are of special application to the Contract and to the extent if any, that they may
be inconsistent with the General Conditions of Contract, these terms and conditions
shall take precedence over the General Conditions.6.2
    
    COUNTRY SPECIFIC AMENDMENTS AND ADDITIONS TO SECTION 46.2.1
    
    In addition to the requirements of Clause 4.1.3.3, the Contractors workforce shall be
sufficiently conversant in the English Language to understand the induction courses
(Clause 4.3.6.3), the LGLSafety Requirements (Clause 4.3.6.2) and any instructions
regarding industrial safety and health.6.3
    
    TRAINING AND LOCALISATION POLICY6.3.1
    
    LGLhas a specific policy for the training and use of local persons, suppliers and
organizations (the LGL Training and Localisation Policy). It is a requirement of this
contract that the Contractor strictly complies with this policy (the costs of which are
deemed included generally in the Contract Price or Contract Rates). A copy of the policy is
included as Appendix 7/A.6.3.2
    
    Lihirian residents shall be given employment preference where they are suitably
qualified.6.4
    
    FREIGHT, DUTY AND TAXES6.4.1
    
    As set out in General Condition 4.4.5.4(a), LGL is zero rated for GST in PNG and all
Contractor invoices to LGL should reflect this. For the removal of doubt, LGL will
not be responsible for the payment of GST on sub-contractors invoices as it is the
responsibility of the Contractor to be registered for GST in PNG.6.5
    
    TRAVEL TO SITE6.5.1
    
    Travel to site shall only be permitted if LGL approve the Contractors Accommodation
Request Form (see appendix 7/A).6.5.2
    
    The Contractor is responsible for all costs associated with transport of its personnel to
Lihir.6.6
    
    ACCOMMODATION AND MESSING6.6.1
    
    LGL will provide accommodation and messing together with laundering facilities at Site
(Site Accommodation).6.6.2
    
    Site Accommodation will be provided at no charge to the Contractor for the Contractors
Projected Manpower as set out in Tender Form Appendix 10/D, and for any additional mandays
required for Variations. The Contractor must provide the Site Accommodation to its
employees and Subcontractors at no cost. Any additional accommodation that the Contractor
requires shall be deducted from payments due to the Contractor as back charges or may be
otherwise recovered as a debt due.6.6.3
    
    Accommodation will be available on both a single and share basis with detached ablution
blocks. The single accommodation shall be limited to key personnel however, no guarantee on
availability of single accommodation is given.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 1




---



##### 



6.6.4
    
    All occupants of the Site Accommodation must strictly comply with the LGL Camp Rules &
Procedures. The Contractor shall ensure that all its employees including the employees of any
of its Subcontractors are given a copy thereof and acknowledge receipt by signature, and that
they are fully familiar with the provisions of these Rules & Procedures.6.6.5
    
    Any person who wilfully causes damage to any part of the Site Accommodation premises or
its facilities or acts in a manner which interferes with the use or enjoyment of same by
other residents, will have their Site Accommodation withdrawn without notice.6.6.6
    
    Advance booking must be made as part of travel arrangements. No one shall be provided
camp accommodation without prior approval by LGL.6.6.7
    
    All persons shall be required to book into the accommodation through the camp manager in
the camp office. The camp manager shall only allocate accommodation to those persons who
have been approved by LGL.6.6.8
    
    All departing residents must book out through the camp office and obtain a departing
residents clearance.6.6.9
    
    The Contractor hereby indemnifies and holds harmless LGLand its directors, officers,
employees, agents and consultants from and against any and all claims, demands, debts,
accounts, expenses, costs, liens, actions and proceedings of any and every kind whatsoever
by any person arising from the accommodation of any person who whilst booked into LGLscamp
was an employee of the Contractor or an employee of any Subcontractor to the Contractor6.7
    
    POWER6.7.1
    
    The Contractor shall be provide all necessary construction power.6.7.2
    
    All temporary construction power distribution shall be in full compliance with all Applicable
Laws6.8
    
    COMMUNICATIONS6.8.1
    
    Telephone and facsimile services are available in limited supply at the Mine for use by the
Contractor. Contractors who use LGLfacsimiles and telephones shall have all costs accrued,
deducted from payments due or otherwise recovered as a debt due.6.8.2
    
    The Contractor shall provide, at its expense, any onsite H.F. / VHF / UHF. radio
communications system it may require. Any such systems shall be properly licenced and
operated in accordance with all Applicable laws.6.9
    
    POTABLE WATER6.9.1
    
    Limited potable water shall be available at the Site. Any other requirements and
distribution of potable water shall be arranged and paid for by the Contractor.6.10
    
    CONSTRUCTION WATER6.10.1
    
    Limited construction water will be available to the Contractor from the Londolovit weir.
The Contractor shall provide all equipment necessary to load and haul the water to its
Work site.6.11
    
    ON SITE FACILITIES6.11.1
    
    The Contractor shall supply all necessary on site facilities, such as crib huts and
construction offices. Such facilities shall be located as required by LGL.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 2




---



##### 



6.11.2
    
    LGLwill establish and maintain ablution blocks on Site at various locations for the
general use by any person.6.12
    
    SITE SECURITY6.12.1
    
    The Contractor shall be responsible for the security of the Work, including but not limited
to materials, plant and tools whilst performing the Work.6.12.2
    
    No employee will be permitted to remove any materials (including scraps or waste), tools or
other equipment from the Site, without the written authority of the Contractors Site
representative.6.12.3
    
    The Contractor shall be bound to follow the directions of the general security regulations
issued by LGLand any amendments to such security regulations as may be issued by LGLfrom
time to time.6.12.4
    
    For the purpose of safeguarding property, LGLreserves the right to examine any package or
container entering or leaving the Site.6.12.5
    
    The Contractor must provide LGLwith a list of all proposed personnel prior to starting
work for LGLs review. LGLreserves the right to deny access to the Mine to any individual.
This right is arbitrary and absolute.6.12.6
    
    LGLreserves the right to have any Contractors personnel excluded from the Site and the
Work for any deemed or apparent breach of safety or security. LGLs interpretation of safety
or security breeches will be arbitrary and absolute.6.13
    
    HOURS OF WORK6.13.1
    
    The Site will be available for the Work to be undertaken seven days per week, twenty-four
hours per day. LGLwill provide supervision seven days per week ten hours per day.6.13.2
    
    The Contractor shall work a roster schedule acceptable to LGLand indicate its preferred
work schedule in its Tender submission  Appendix 10/D, Projected Construction Weekly
Manpower.6.13.3
    
    The Contractor shall maintain work continuity during the period its employees are rostered
off. This shall be shown on the Contractors work schedule.6.13.4
    
    The Contractors employees shall vacate the Site when not actively engaged in the Work.6.13.5
    
    The hours worked by all employees, other than staff and superintendents, shall be recorded
on the daily manpower records (Appendix 5/F, Sheet 2 of 3).6.14
    
    LGL SAFETY REQUIREMENTS6.14.1
    
    The Contractor shall, at all times, have a first aid attendant on site who is properly
trained in all matters of general first aid.6.14.2
    
    Should a medical situation require an evacuation from site, LGLwill assist in making the
appropriate arrangements, at the cost of the Contractor, for the evacuation of the employee.6.14.3
    
    If medical and first-aid facilities are made available to the Contractors employees, then,
in consideration of the use of such facilities and the receipt of such services, the
Contractor hereby agrees that it will release, defend, indemnify and hold harmless; LGLand
its directors, officers, employees, agents and consultants from and against any and all
claims, suits, demands and liabilities arising from the receipt of such
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 3




---



##### 



services by the Contractors employees or the use of such facilities by the
Contractors employees.6.14.4
    
    In the event that Contractors personnel require the use of LGLs on-site first aid
facilities then the Contractor will be charged per person for each treatment received.6.14.5
    
    LGLwill provide a safety indoctrination for all Contractors personnel. The safety
indoctrination is mandatory and must be taken prior to the personnel starting work at site.
The Contractor must provide a request for the course 48 hours in advance, detailing the
number of persons attending.6.14.6
    
    The following Occupational Health and Safety manuals and/or documents shall be complied
with:
 
    
    LGLs LihirSafe Policy
    
    MOPU Specific Safety Management System (SMS)
    
    LGLs Environmental Management System
    
    MOPU Specific Environmental Management System (copies
available upon request).
 6.15
    
    VEHICLES6.15.1
    
    The restricted use of vehicles on the site will be enforced.6.15.2
    
    Only vehicles absolutely required will be allowed on the Mine.6.15.3
    
    The maximum speed of vehicles on site is 25 km per hour.6.15.4
    
    All equipment on the site shall be equipped with devices to produce an auditory signal
when the vehicle is moving in reverse.6.16
    
    INSURANCE TO BE ARRANGED BY LGL6.16.1
    
    LGLshall maintain comprehensive general liability insurance on its own behalf and on
behalf of the Contractor. LGLsinsurance in respect of the Contractor shall be secondary to
the Contractors primary coverage for comprehensive general liability in an amount of not
less than.6.16.2
    
    LGLwill provide upon request, a summary of the coverage in place and a copy of the
insurance certificate.6.16.3
    
    LGLshall be entitled at any time, and from time to time during the currency of the
comprehensive general liability insurance policy, to arrange or agree to such alterations to
the amount therein or any of the terms and conditions thereof, as LGLin its absolute
discretion thinks fit.6.16.4
    
    The Contractor shall at all times observe and perform the appropriate procedures and
requirements, specified or implied in relation to any claims made by the Contractor under the
comprehensive general liability insurance policy.6.16.5
    
    The Contractor shall be responsible for the amount of the deductibles specified in the
comprehensive general liability insurance policy and shall indemnify LGLand its directors,
officers, employees, agents and consultants against all losses, claims and demands up to the
amount of such deductibles.6.16.6
    
    The effecting and keeping in force of insurance by LGLin favour of the Contractor and
Subcontractors shall not in any way limit the responsibilities, obligations and liabilities
of the Contractor under the provisions of the Contract.6.17
    
    INSURANCE TO BE ARRANGED BY THE CONTRACTOR
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 4




---



##### 



6.17.1
    
    The Contractor shall, at its own expense, obtain and maintain in effect and cause its
Subcontractors (including those at sub-tier levels) to take out and maintain in
effect, for the duration of the Work, the following insurances:6.17.1.1
    
    Motor Vehicle Related InsurancesMotor Vehicle Third Party Insurance covering third party personal injuries liability
for all motor vehicles, as required by the PNG Motor Vehicles (Third Party Insurance)
Act;Comprehensive Motor Vehicle Liability Insurance covering use of all motor vehicles
used by the Contractor or its Subcontractors (whether or not owned by them) in
connection with the execution of the Contract, with not less than the following
limits:
 a.
    
    Death and Bodily Injury  the Kina equivalent
of each person/occurrence;b.
    
    Property Damage.
 6.17.1.2
    
    Third Party Liability InsuranceThird Party Liability Insurance covering all operations of the Contractor in the
performance of work on or off the Site, including contractual liability insurance
covering the liability assumed in this Contract. This policy or policies
shall provide combined single limits for all injuries or death to persons
and damages per occurrence.6.17.1.3
    
    Workers Compensation and Occupational Health InsurancesInsurances covering any damage, expense, loss or liability suffered or incurred by
any person employed by it or its Subcontractors during the performance of the Work,
whether
arising;
 (a)
    
    by virtue of the any Applicable Laws relating to
workers or accident compensation or employers liability in any relevant
jurisdiction where the Work is to be performed;(b)
    
    by virtue of the PNG Workers Compensation Act; or(c)
    
    at common law at least 0.(d)
    
    WETHA clause
 Such insurance shall include the following special coverage extensions:
 (a)
    
    Employers Liability Insurance coverage with
limits of not less than for any one occurrence attributable to a
single source/each employee;(b)
    
    Such insurance shall indemnify and keep indemnified
LGL as principal in respect of any claim made under any relevant workers
or accident compensation legislation or at common law in Papua New Guinea
and will include where non Papua New Guinea domiciled employees,
contractors and agents are engaged in the provision of the Works in Papua
New Guinea an additional WETHA Policy Extension.(c)
    
    LGL to be noted as Owner on the Workers Compensation Policy.
 6.17.1.4
    
    Contractors Plant and Equipment InsuranceInsurances covering all of the Contractors and/or its Subcontractors major plant
and equipment which the Contractor or its Subcontractors intend to bring or bring
onto the Site for the execution of the Work.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 5




---



##### 



6.17.1.5
    
    Professional LiabilityIf the Contractor is providing any professional services, professional liability
insurance with a limit of not less than  inclusive for any one claim [and in
the aggregate?] or such greater amount may be  required by any applicable
professional organization or licensing authority. Such insurance shall be continued
in place for at least six years following completion of the Work6.17.2
    
    It is the Contractors responsibility and liability to ensure that any subcontractor they
engage is fully insured in accordance with the conditions of this Contract.6.17.3
    
    The Contractor shall, and ensure that each of its Subcontractors shall comply with the
requirements of the PNG Insurance Act which requires all insurance covering risks situated
in Papua New Guinea to be arranged with PNG licenced insurers, unless an exemption is
obtained.6.17.4
    
    Where, in accordance with the provisions of the Contact, insurances effected by the
Contractor and its Subcontractors are effected in joint names, the Contractor must ensure
that the insurance policies provide that all insurance agreements and endorsements (with
the exception of limits of liability) operate as if there was a separate policy of
insurance covering each party comprising the insured under each policy.6.17.5
    
    The Contractor must ensure that each insurance policy effected by it and its
Subcontractors provides or contains an endorsement that:
 (i)
    
    the insurer waives all rights, remedies or relief to which it might become
entitled by way of subrogation against any of the parties comprising the
insured under each policy;(ii)
    
    failure by any insured under each policy to observe and
fulfil the terms of the policy does not prejudice the insurance in regard to
any other insured under that policy;(iii)
    
    the giving of notice of an occurrence by one insured shall
constitute notice by each insured;(iv)
    
    it may not be cancelled or the protection afforded thereby
substantially changed without 30 days prior written notice to LGL;(v)
    
    LGLand its subsidiaries, associated and affiliated
companies and their respective officers, directors and employees are noted as
named insureds; and(vi)
    
    the Contractors coverage is primary to any coverage LGLmay
elect to carry for its own account, or for the Contractor and its
Subcontractors.
 6.17.6
    
    The Contractor shall be liable for all deductibles specified in insurances.
 Volume 3A Issue 1 October 2006 version 3
    
    Section 6 Page No 6




---



##### 



SECTION 7
 Appendices to Special Conditions of Contract
 INDEX




---



##### 



(LGL LOGO)
    
    LIHIR GOLD LIMITED
Towns & Camps Administration
 ACCOMMODATION REQUEST
 
    
    Please complete all details and forward to LGL Cam
Operations Department. Allow      5 and
days for processing.
    
    Accommodation is requested for the following person (one per person). Authorization of
relevant Department Head must be obtained.
  Date:
    
    / /
    
    Gender Male/FemaleGiven Name(s)
    
    
    
    Last Name:Company:
    
    
    
    Point of Hire:Position Title:
    
    
    
    (If Lihirian, please state village)Reason for Accommodation;
   SINGLE:
    
    
    
    SHARED:
    
    
    
    HOTEL:
 The following section must be completed in full by the request originator.
 1st Field
    
    Room AllocationPermanent or Short
    
    Roster Cycle eg.
    
    Break Travel
    
    (Camp AdminSite Based:
    
    
    
    Term
    

21/9, 21/12
    
    Out Date
    
    Only)From:To:
 
  Print Name:
    
    
    
    Department:Section:Site Phone:
    
    
    
    Trunk Radio:Signature:
    
    
    
    Contract/Cost Code:LGL Camp Operations AuthorisationPrint Name:
    
    
    
    Date:
    
    //Signature:
 NOTE:
 
    
    This request does not guarantee accommodation until approved by Camp Operations. Do not
proceed with travel arrangements until confirmation has been received as to availability.
    
    Failure to compete R&R or final departure form will result in continued charging.
    
    All new bookings (in and out) of camp will be carried out at
both NCS Camp Offices. Accommodation will not be processed
until all details are filled in.




---



##### 



STANDARD TENDER & CONTRACT DOCUMENTS
 VOLUME 3/B
 Lump Sum / Schedule of Rates Contract  Major Expansion Work Packages




---



##### 



MILLION OUNCE PLANT UPGRADE
PROJECT
 INSTALLATION OF AUTOCLAVE
INTERNAL EQUIPMENT
 SECTION 8
SCOPE OF WORK
 Revision
    
    Date
    
    Author
    
    Approved By
    
    CommentsOB
    
    11/06/09
    
    AD
    
    IMcN
    
    Removed Pyroflex installation from SoWOA
    
    14/10/08
    
    IMcN
    
    
    
    Initial Draft




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 2/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 Table of Contents
 8.1 Introduction
    
    
    38.2
Work Included
    
    
    38.2.1 Work Summary
    
    
    38.2.2 Battery Limits
    
    
    38.2.3 General Requirements
    
    
    38.2.4 Methodology
    
    
    48.2.5 Temporary Works
    
    
    48.2.6 Survey and Set Out
    
    
    48.2.7 Quality Control & Testing
    
    
    58.2.8
Refractory Lining
    
    
    68.3
Work Not Included
    
    
    98.4
Attachments
    
    
    108.4.1 LGL Technical Specifications
    
    
    108.4.2 Contract Drawings
    
    
    108.4.3 Volume 3C
    
    
    11




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 3/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 8.1
    
    INTRODUCTIONThe Work under this Contract consists of the supply of labour, supervision,
transportation, materials, equipment, tools and supplies (except those items described
in clause 8.3 Work Not Included) necessary for the complete installation of the
Autoclave internal equipment for the MOPU project at LGLs operation on Lihir island.The internal equipment to be installed includes:
 
    
    Refractory Lining
    
    Cluster Blinds and Dip Pieces
    
    Titanium Internals
 8.2
    
    WORK INCLUDED8.2.1
    
    Work SummaryThe Contractor shall supply all labour, supervision, transportation, materials, plant,
equipment, consumables and supplies necessary to perform the Works as set out in the
Drawings, Specifications and this scope.A summary description of the works by project facility is outlined below, with detailed
requirements covered in Section 8.2.8 and 8.2.9:
 Facility
    
    Facility Name
    
    Requirements1343
    
    Pressure Oxidation
    
    Installation of the corrosion
resistant membrane lining, refractory
lining, cluster blinds, dip pieces,
and titanium internal baffles and
walls.
 The Work includes, but is not limited to, installation, monitoring and testing of
installation, and site clean-up.8.2.2
    
    Battery LimitsThe physical limits of work for this package shall be defined
by the following:
 
    
    The internals of the new 44.8 m x 5.6 m
autoclave shell.
 8.2.3
    
    General RequirementsAll material, equipment and services to be furnished by the Contractor shall conform
with the requirements of all statutory authorities having jurisdiction over the work, to
the Specifications and Drawings, to the current local and international standards
relevant to the work, and to all other relevant publications, which by this reference,
shall form part of the contract.At all times during The Works, the Contractor shall observe and adhere to the statutory
limitations / restrictions under which the Mine licence operates.At all times, the Contractor shall observe and respect LGLs OH&S standards, and
maintain and promote a high regard for safety. The Contractor shall prepare and
implement Project specific safety and environmental management plans that covers all
aspects of the Works.All requirements of this Scope of Work shall be minimum requirements unless otherwise
specifically stated.Hazardous materials shall be stored, handled and used in such a manner that workers and
the environment are protected. All hazardous waste resulting from the work shall be
properly disposed of




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 4/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 8.2.4
    
    MethodologyPrior to commencement of the Works on Site, the Contractor shall prepare, for LGL
review, construction methodologies for the various components of the Works. The works
methodologies shall address the following as a minimum:
 
    
    Undertaking of the Works within the constraints imposed by the
available land footprint, available height clearances and the location of other
existing infrastructure;
    
    Management of access to Works area given identified accessibility constraints;
    
    Specific job safety assessment (JSA) requirements;
    
    Planned working hours / shifts;
    
    Power and water requirements;
 The Contractor shall not commence work on Site until the works methodologies have been
approved by LGL.8.2.5
    
    Temporary WorksThe Contractor shall establish any temporary offices, sheds, stores and working areas
as may be required for the execution of the Works under the Contract within the area
occupied by the Works or such other areas as may be shown on the Drawings or designated
by LGL.Any temporary construction which the Contractor requires for the performance of the
Works, such as construction of haul roads, bridging of toe drains, additional access
ramps to the Site of Works, equipment yards, etc, shall be to the approval of LGL and
shall be performed at the Contractors expense. Prior to practical completion of the
Contract, the Contractor shall remove all Temporary Works and reinstate affected areas
to their original condition at its own expense, and to the complete satisfaction of
LGL, unless otherwise directed by LGL.8.2.6
    
    Survey and Set OutThe Contractor shall be responsible for all survey and set out required for the Works
and, unless otherwise approved by LGL, shall provide a licensed surveyor to perform all
such work.Unless otherwise advised, all coordinate and level information shall be related to the
Lihir Grid which is a plane coordinate system in metres aligned on AMG North. The
site position datum is PSM 12340 UNIFORM 8 with the
following characteristics:
 Coordinates andParameter
    
    RL to Lihir Grid
    
    AMG Coordinates and RLEasting
    
    
    11 843.12
    
    
    
    461 842.3Northing
    
    
    5 030.31
    
    
    
    9 655 030.1RL
    
    
    18.50
    
    
    
    18.60
 The Lihir Grid bearing is AMG plane bearing at PSM12340.LGL will provide details of any existing local benchmarks in the vicinity of the Site of
Works. Where no such benchmarks are available the Contractor shall be responsible for
transferring control to the Site from the nearest available benchmark or site position
datum PSM 12340 as appropriate.The site also uses a second level datum for the mine pit and general topographical
survey. This mine datum is based on a level at PSM 12340 of RL1018.50 and conversion to
the project level datum entails subtraction of 1000.000m. Certain survey / reference
information may reflect the mine datum and should be converted to the project datum as
required to support design and construction.




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 5/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 8.2.7
    
    Quality Control & Testing8.2.7.1
    
    Quality PlanThe Contractor shall prepare a Quality Plan for all Works to be carried out under the
Contract, whether on Site or off Site. A controlled copy of the Quality Plan shall be
provided to LGL prior to commencement of any Works.The Contractors Quality Plan shall describe the application of the Contractors
Quality System to the Contract and shall identify the Contractors proposed methods of
assuring that the requirements of the Contract are met. In particular, the Quality
Plan shall address the following:
 
    
    Survey control;
    
    Daily record keeping during the course of the Works;
    
    Inspection and testing plans;
    
    The requirements of each Hold Point for the Works, including
information to be supplied at the Hold Point and the party responsible for
approval to proceed;
    
    Collection of information to facilitate preparation of as-constructed documentation.
 No provision of the Quality Plan shall over-rule any requirement of the Contract.8.2.7.2
    
    Inspection, Testing and Daily Work RecordsThe Contractor shall maintain daily records during the execution of the works. As a
minimum, the record shall include the following information:
 
    
    Description / sketch of the work completed;
    
    Details of any inspections or testing carried out;
    
    Other pertinent observations such as weather constraints or other unusual outcomes.
 All inspection reports, test records and daily work sheets shall be available for
inspection by LGL within twenty-four (24) hours of completion of the inspection, test
or days work. Copies of relevant information shall be supplied to LGL upon request.8.2.7.3
    
    Hold PointsFor the purposes of this Contract, Hold Points shall mean those points beyond which
the Work shall not proceed without review and release by LGL.The Contractor shall agree the Hold Points with LGL prior to the work commencing and
in accordance with the Manufacturers recommendations and procedures. The Hold Points
shall form part of the Contractors schedule.Unless otherwise directed by LGL, the Contractor shall give at least two (2) working
days prior notice of each Hold Point and shall ensure that all relevant test and
verification results are available for inspection by LGL at the time of the Hold Point.The Contractor shall allow for one (1) working day at the Hold Point for LGL to attend
the Site and inspect the work and documentation.8.2.7.4
    
    Non-ConformanceThe Contractor shall promptly notify LGL of any product or service non-conformances.
Such notification shall require submission of a non-conformance report which shall
clearly identify the issue and indicate the proposed method of rectification for
approval by LGL.The Contractor shall use standard forms approved by LGL for all non-conformance reports.8.2.7.5
    
    AuditsLGL may carry out a Quality Audit of the Contractors Quality System at any time. Such
audits




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 6/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 may include system or compliance audits and require access by
LGL to the
Contractors offices, factories or Site of Works.Where LGLs audit indicates non-conformance in a process or procedure, the Contractor
shall submit a proposal for remedial action, for the approval of LGL.Where LGLs audit indicates a non-conformance in a test or measurement which would lead
to a failure of a lot or batch to satisfy specified requirements for acceptance, then
the Contractor shall either:
 (i)
    
    Accept LGLs test or measurement, and submit a proposal for
remedial action for the approval of LGL, or(ii)
    
    Carry out a repeat test or measurement which shall be used for
determining acceptance or otherwise of the lot or batch. Any repeat test or
measurement shall be at the Contractors cost, and shall be subject to a
process audit by LGL.
 8.2.7.6
    
    As-Built DocumentationThe Contractor shall provide LGL with a collated copy of all documentation developed
during the course of the Works including as-built drawings / drawing mark-ups, daily
work sheets, inspection reports, test records, photographs, information registers,
calculations, hand sketches, software input files, computer models, documentation and
compliance certificates from suppliers, MSDSs, etc.As an absolute minimum, as-built drawings shall comprise a full set of the design
drawings marked up in red with the following information:
 
    
    Any changes to the designed general arrangement;
    
    Any new information developed during the course of the Works
including set out of works designed by the Contractor, survey levels and
locations of underground construction, etc.
 Where electronic information exists in a recognised standard format, the information
shall be handed over electronically. All other information shall be handed over as
suitably collated and bound hardcopies.Practical Completion will not be awarded until a suitable as-built documentation
package has been handed over to LGL.
 8.2.8
    
    Refractory Lining8.2.8.1
    
    GeneralThe acid resistant refractory lining system is to be installed by this Contractor after
completion of the corrosion resistant membrane lining.The acid resistant refractory lining system shall be installed at the plant site.8.2.8.2
    
    Documents, Drawings, and DataThe following documents will be available from LGL:
 
    
    an overall assembly drawing
    
    detailed drawings
    
    certificates of manufacturing materials (ISO or other),
including all production tests conducted during manufacture and qualification
of the products
    
    other material records specified by applicable codes and/or standards
 The Contractor shall provide the following documents and data to LGL:
 
    
    As-Built drawings




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 7/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 
    
    Contractors quality control program
    
    installation records as required by the applicable codes and/or
standards and the liner manufacturer/supplier
 All Contractor supplied documentation shall be identified with LGLs name, LGLs
contract number, item number, and job location.8.2.8.3
    
    Materials and InstallationThe Autoclave will be supplied and erected at the Site by others. The Contractor shall
install the brick lining comprising ceramic paper, and acid resistant bricks,
compartment divider walls and the titanium nozzle liners. The Contractors scope of
supply shall include, but is not limited to the following:
 
    
    install the brick lining as detailed on the
manufacturer/suppliers design drawings which will consist of a ceramic paper
layer (if detailed as the Supplier as part of the lining system), backing
mortar joint, backing course of brick, face course mortar joint, and face
course of brick.
    
    install the brick lining to the nozzles which nominally
consists of a ceramic paper layer (if deemed required by the Supplier),
mortars as detailed, polymer blocks or sleeve as detailed, and the titanium
sleeve.
    
    installation of titanium compartment divider walls and
titanium nozzle liners as detailed on the drawings
    
    all materials (not detailed in clause 8.3 as being supplied by
others), equipment, manpower, supervision, transportation as required to
complete the installation of the brick lining
    
    post installation treatment and/or curing in accordance with
the manufacturer/suppliers recommendations and procedures
    
    inspection, examinations, and testing
 8.2.8.4
    
    Brick LiningThe supplied bricks will be the suppliers brick shapes required to suit the internal
layout of the Autoclave. Straight through mortar joints from the face course brick
through to the corrosion resistant membrane shall be minimised.The bricks forming the chases for the compartment wall corbels and head baffles shall
be saw cut and shall form an even surface within the chase. The Contractor shall
install the chases and corbels in accordance with the suppliers design drawings.Special bricks shall be sued to line the Autoclave dished heads. The supplier will
supply bricks such that the size and tapers provide a close fit lining minimising the
mortar filled gap (ged gap) between brick and ceramic paper.Specially shaped bricks shall be used for the nozzle openings so that the bricks form a
compression ring around the nozzle opening for the nozzle necks. This is applicable to
all courses.Each baffle shall be built though the face course brick, which shall serve as a chase.
The head baffles shall be constructed of brick using alternate header and stretcher
courses keying the bricks in both horizontal directions.8.2.8.5
    
    Installation8.2.8.5.1
    
    GeneralAll exposed membrane lined surfaces on which workers have to stand shall be protected
from damage (gouges, punctures, scratches or nicks) and from contamination by
particulates and impurities.




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 8/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 Any protective covering installed by the Contractor to prevent damage to the
membrane lined surfaces shall remain intact until that area is ready for brick lining.The Contractor shall repair the membrane lining at its cost where the repairs are
required due to damage made by the Contractor during the installation of the brick
lining.8.2.8.5.2
    
    MortarThe mortar joints shall be in accordance with the Suppliers design which will include
the average design mortar joint thickness and maximum and minimum mortar joint
thicknesses.All mortar joints shall be full and tight with no air inclusions or voids. The bricks
shall be buttered on three sides and pressed into place. Excess mortar shall be
cleaned off with a trowel and mortar surface finished. During the work, LGL or its
inspector will have the right to request the Contractor to remove random bricks to
ensure that mortar coverage is complete on the brick backside.The mortar mix, its application, and curing shall be made in strict accordance with the
mortar manufacturers instructions. Mixed mortar life, as specified by the
manufacturer, shall be strictly adhered to and not exceeded. Nothing shall be added to
prepared mortar to extend its life beyond that specified by the manufacturer. Leftover
mortar, not used within the prescribed hardening time, shall be discarded.8.2.8.5.3
    
    BricksDamaged, broken or chipped bricks shall not be installed. LGL and the Contractor shall
establish guidelines regarding the acceptance of marginally damaged bricks.Cutting of the bricks shall be done outside the Autoclave. The cuts shall be smooth and
straight to provide a good bonding surface. The cuts shall be made with a brick cutting
saw only. All residual water on the cut piece shall be wiped off with a clean dry rag.To prevent air moisture condensation, which would impair mortar quality, no bricks
shall be laid when the temperature is less than 3°C above the ambient air dew point at
the location where the refractory lining is being installed.The temperature of the brickwork must be maintained within the range of 10°C and 32°C
until the mortar is set.6.2.8.5.4
    
    NozzlesThe nozzle necks shall be lined with special shaped polymer brick to suit the nozzle
internal diameter.The Contractor shall install the metallic nozzle sleeves. The sleeves shall be
installed so that no voids exist between the sleeve and nozzle brick
lining.8.2.8.5.5
    
    Compartment WallsThe Contractor shall install the compartment walls after the barrel, head, and nozzle
bricks have been installed.The Contractor shall install the compartment walls as detailed on the drawings.8.2.8.5.6
    
    Autoclave InternalsThe Contractor shall install the Autoclave internals as detailed on the drawings.8.2.8.6
    
    Inspection and Testing8.2.8.6.1
    
    GeneralLGLs Area Manager and inspector shall have access to the work during its preparation or
progress. The Contractor shall provide facilities and access for this inspection.Deficiencies found by LGL during lining installation shall be promptly reported to the
Contractor




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 9/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 before the end on the day the deficiency is identified. Failure of LGL to identify
deficiencies shall not relieve the Contractor from its responsibility to repair or
replace any areas found to be deficient.The Contractor shall satisfy LGL that the tests described have been performed according
to the test method requirements, and that the test results meet or exceed the
specification.The Contractor shall notify LGL at least 3 days in advance of readiness of each agreed
upon witness point.Defective materials disclosed by testing shall be rejected and not used.8.2.8.6.2
    
    Mortar
 Samples of mixed mortar shall be randomly taken once per day during installation of the
brick lining. Sufficient material shall be taken to make three 2.54 cm right cylinders
from each mix. Consistency in taking the samples is important. The samples shall be
uniformly cured at 20°C for seven days or 20 °C for 24 hours and 60°C for 16 hours.Following curing, the Contractor shall perform compressive strength in accordance with
ASTM C579, method A and water adsorption tests in accordance with ASTM C413 on one of
the cylinders from each batch. The compressive strength of the mortar samples shall be
greater than 90% of the value specified by the supplier for that mortar type. If the
sample fails the test, then the Contractor shall test a second sample. If the
2nd sample also fails, then LGL and the Contractor shall evaluate the impact
of the failed sample and, at its discretion, LGL may require the affected brick lining
affected by the sub-standard mortar, reinstalled at no cost to LGL.Untested samples will be delivered by the Contractor to LGL clearly identifying the lot
number, date manufactured, batch number, batch time/cure time, compressive strength,
and water absorption as documented in the Contractors QA/QC documentation. LGL at its
discretion and cost, may test additional cylinders to verify the Contractors QA/QC
documentation.8.2.8.6.3
    
    RejectionIf the workmanship is not in accordance with the suppliers design and specification,
this scoe of work, or the Contractors QCP, then LGL will require repairs or
alterations to rectify the defect.If defects in the materials or workmanship are discovered after Practical Completion,
they will be handled in accordance with the Defects Liability.Any omission or failure on the part of LGL to disapprove or reject any work or
materials shall not be construed as an acceptance of any defective work or materials.8.3
    
    WORK NOT INCLUDEDThe following items are specifically excluded from the Contractors scope:
 
    
    Supply and installation of the Autoclave shell
    
    Supply of the corrosion resistant membrane lining materials
    
    Installation of the corrosion resistant membrane lining
    
    Supply of the refractory brick lining components including
bricks, mortar, and ceramic paper if required
    
    Supply of oxygen sparger blinds A & B; vent blind, and feed dip
pipes as detailed on the drawings
    
    Supply of the titanium internals as detailed on the drawings
    
    Supply of power and water for construction purposes;
    
    Supply of diesel fuel;
    
    Provision of on-site accommodation and messing arrangements;




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 10/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 
    
    Provision of bus transport from the accommodation village to the Work site at the start of
the shift and return at the end of the shift.
 8.4
    
    ATTACHMENTSAll material, equipment, and services to be furnished by the Contractor shall conform
with the requirements of all Applicable Laws, to the specification and relevant
drawings, and to the latest edition of the relevant LGL Technical specifications,
technical Association Standards, and all other relevant publications and regulations
and they shall form part of this Contract.The following information is attached as Volume 3C to the Contract Documentation and
shall be read as part of this scope of work:8.4.1
    
    LGL Technical SpecificationsThe following LGL Technical Specifications shall be applicable to the Work:
 
    
    General reference documentation:
 Specification Number
    
    Rev
    
    TitleNone Included
 In the case of a conflict between the requirements of the Technical Specifications
and those of the listed referenced Standards, the requirements of the most stringent
specification shall prevail.If there is a question as to whether any material, product, or system is in
conformance with applicable Standards, then the Contractor shall pay the costs
associated with any testing or certification to demonstrate conformance.Any reference to Engineer or Consultant contained within the LGL Technical
Specifications shall have the meaning of LGL.The Technical Specifications are contained in Section 13.8.4.2
    
    Contract DrawingsThe materials, equipment, and services furnished shall be in accordance with the
drawings nominated as Contract Drawings, listed below. By this reference they shall
form part of the Specification.




---



##### 



SCOPE OF WORK
    
    Section 8WORK PACKAGE MOPU-0035
    
    Page 11/11INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT
 8.4.3
    
    Volume 3CThe drawings referred to in clause 8.4.2 form an attachment to this documentation and
shall be referred to as Volume 3C.




---



##### 



TENDER CONDITIONS OF PARTICULAR APPLICATION
WORK PACKAGE
MOPU-0035  AUTOCLAVE INTERNAL
EQUIPMENT INSTALLATION
    
    Section 9
  9.1
    
    
    Introduction9.2
    
    
    Contract Key Dates9.3
    
    
    Contract Currency9.4
    
    
    Components of Tender Price  Tender Form 10/A9.5
    
    
    Site Travel9.6
    
    
    Post Tender / Pre-Award Meeting9.7
    
    
    Enquiries During Tender Period




---



##### 



TENDER CONDITIONS OF PARTICULAR APPLICATION
    
    Section 9WORK PACKAGE MOPU-0035
    
    Page 1 / 4AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 9.1
    
    INTRODUCTIONThis section sets out the Special Conditions of Particular application to
the Tender that are of special application to the Work Package and to the
extent, if any, that these Conditions may be inconsistent with the conditions
of Tendering set out in Sections 2 and 3 of Volume IB, these conditions shall
take precedence over those conditions.9.2
    
    CONTRACT KEY DATES9.2.1
    
    The following Contract Key Dates shall apply to this Contract:
 Activity
    
    Week
    
    Contract Key DateContract Award
    
    
    0
    
    
    5 Dec 2008Autoclave installed on-Site ready for installation of internal equipment
    
    
    75
    
    
    14 May 2009Personnel mobilised to Site
    
    
    75
    
    
    14 May 2009Corrosion Resistant Membrane Lining & Refractory Lining and all built-in
equipment installation complete
    
    
    85
    
    
    22 July 2009Curing & installation of miscellaneous equipment
    
    
    88
    
    
    12 August 2009Demobilisation
    
    
    88
    
    
    12 August 2009
 9.3
    
    CONTRACT CURRENCYThe Tenderer shall price its Tender in its native currency, then in United States Dollars (USD)
detailing the exchange rate it has assumed. The last line item on Tender form 10/A requests the Tenderer to
nominate the cost of fixing the Tendered lump sums and rates into USD.9.4
    
    COMPONENTS OF TENDER PRICE TENDER FORM 10/A9.4.1
    
    This Contract shall be Lump Sum Contract in accordance with Clause 2.4, not subject to escalation
during the Contract Period as extended by LGL. The Contractor shall submit lump sums for the units of Work
set out in Appendix 10/A hereto and include any additional Lump Sum items for which it will require
payment.9.4.2
    
    Mobilisation  Lump SumAll costs associated with the following shall be included in the item in Tender Form 10/A referred to as
Mobilisation:
 a)
    
    all transport of Contractors construction plant, small tools, consumable products and other
temporary materials necessary to carry out the Work from the point of origin to the Site;b)
    
    all crating, packaging, and loading of materials, plant, etc., at their point of origin;c)
    
    all uncrating and unpacking, set-up and commissioning of all materials and plant, etc., on Site;d)
    
    all transport costs, wages, and salaries of personnel being mobilised to Site;e)
    
    all Contractor overheads applicable to items a to d shall be included in this item.
 Demobilisation  Lump Sum




---



##### 



TENDER CONDITIONS OF PARTICULAR APPLICATION
    
    Section 9WORK PACKAGE MOPU-0035
    
    Page 2 / 4AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 All costs associated with the following shall be included in the item in
Tender Form 10/A referred to as Demobilisation:
 a)
    
    all dismantling, crating, packing on Site, and
transport of Contractors construction plant, small tools, consumable
products, and other temporary materials from the Site to the point of
origin.b)
    
    All transport costs, wages, and salaries of personnel being
demobilised from Site;c)
    
    All Contractor overheads applicable to items a and b shall be
included in this item.
 9.4.4
    
    InsuranceThe cost of the Contractor providing the insurance detailed in Volume
3A clause 6.17 shall be detailed on Tender 
form 10/A.9.4.5
    
    All Other Items  Lump SumsAll other items are self explanatory. The Contractor shall include all
costs in each Lump Sum associated with the identifiable item of Work
including transportation of permanent materials for inclusion into the Work
from the point of origin to the Site, overheads, and profits.9.5
    
    SITE TRAVELTenderers shall include an allowance for travel on Site, particularly
from the nominated campsite to the Site of Work which could be a distance
of up to 15 kilometres and could take up to one half hour travel time one
way. LGL will provide bussing for Contractors personnel. Tenderer
shall nominate the number of personnel to be transported at the
beginning and end of each shift.9.6
    
    POST TENDER / PRE AWARD MEETINGShould LGL require the Tenderer to attend a Post Tender / Pre Award
Meeting pursuant to Clause 2.10, the Tenderer shall make all adequate
arrangements at its own cost, to attend the meeting. This meeting will be
held in LGLs Lihir Site Office or LGLs Brisbane Office at the date and
time nominated by LGL.9.7
    
    ENQUIRIES DURING TENDER PERIODAll enquiries during the Tender Period should be made in writing to:Contracts Engineer- Lihir MOPU Project




---



##### 



APPENDICES TO TENDER CONDITIONS OF PARTICULAR APPLICATION
    
    Section 10WORK PACKAGE MOPU-0035AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
  Appendix 10/A
    
    Components of Tender PriceAppendix 10/B
    
    Schedule of Rates (3 pages)Appendix 10/C
    
    Tender ScheduleAppendix 10/D
    
    Projected Weekly Manpower




---



##### 



COMPONENTS OF TENDER PRICE  APPENDIX 10/A Work Package MOPU-0035 Submitted
16 June 2009 Tender For Autoclave Internal Equipment Installation, Lihir Island
Tenderer Koch Australia Pty Ltd, Koch Knight Division Proposal Number: ###-##-####
A4 Rev 4.1 The total Tender Price as shown on the Tender Form (Appendix 3/C) shall be
broken out into its constituent parts on this form Cost Provisional Unit Currency Total
Total Item No Code Description Unit Quantity Rate Total Conversion (USD) (AUD) 1 Mobilisation
LS Included Included 2 Demobilisation LS Included Included 3 Site Superintendence LS Included
Included 4 Accommodation No 5,040 Man-Days Quantity Only Quantity Only 5 6 Project Insurance LS
Included Included Surface Preparation of 7 Steel Substrate LS NOT INCLUDED Install Corrosion 8 Resistant
Membrane LS NOT INCLUDED Install Refractory Lining including built-in items of 9 equity LS Install all other
10 items of equipment LS 11 Fee for fixing currency LS split currencies, none applicable NA NA The progress
claim procedures must follow the above breakdown for consideration of payment by LGL. Progress Payment Schedule
to be agreed, Koch Australia4 March offer proposes: Tenderers Proposed Terms of Payment now: with order;
when brick installation begins when lining installation completes; via monthly billings as installation work
proceeds. Progress Claims to follow LGL Procedures Signature of Tenderer: MANAGING DIRECTOR, KOCH AUSTRALIA Dated
this 16TH DAY OF JUNE 2009 Signature of Witness: Name of Witness: BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH
AUSTRALIA Address of Witness: Components of Tender Price  Appendix 10/A Page 1/6 | Page 1/6




---



##### 



LGL MOPU PROJECT TENDER FOR: AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION SCHEDULE OF RATES
WORK PACKAGE No: MOPU-0035 TENDER FORM 10/B TENDERER: Koch Australia Pty Ltd. Koch Knight
Division SHEET 1 OF 3 ###-##-#### A4 Rev 4.1 16 June 2009 Tenderers shall submit all inclusive
Unit Rates for units of Work listed hereunder. The value of any Variations and Dayworks ordered
shall be determined by applying these rates to the units of Work executed. For further requirements,
refer Vol I, Clauses 4.2.7 Variations and 4.2.8 Dayworks. The unit rates applicable thereto shall
be inclusive of all labour bases on 84 hrs/week, materials, plant and equipment, transport and freight,
accommodation, industrial overheads, small tools, and all on-costs (including site superintendents,
site administration, head office administration, drafting costs and profit. Page 1 of 1 MATERIAL
ERECT/LABOUR TOTAL TENDERED ITEM DESCRIPTION UNIT COST PER UNIT COST PER UNIT LUMP SUM USD, AUD
1 Site Holiday Shutdown LS 2 Demobilization in LS case of cancellation 3 Mobile Dust Each
Prices good for order placed Collector  Negative before 1 Sept 2010 Air Unit (See Note A Below) 4
Environmental Each Prices good for order placed Control AC Unit (See before 1 Sept 2010 Note B Below)
5 6 7 NOTE A: Mobile Dust Collector: 1 Unit Required 8 NOTE B: Environmental Control AC Unit: 3 Units
Required 9 10 11 12 13 14 15 16 17 18 19 20 TOTAL MOPU-0035 These rates shall provide for the
execution of additional Works without impact on the Contract Construction Schedule. Signature
of Witness Signature of Tenderer MANAGING DIRECTOR, Name of Witness BUSINESS DIRECTOR, KC
KOCH KNIGHT DIVISION KOCH AUSTRALIA Dated this 16TH DAY OF JUNE 2009 Address of Witness




---



##### 



LGL MOPU PROJECT TENDER FOR: AUTOCLAVE INTERNAL EQUIPMENT INSTALATION SCHEDULE OF RATES WORK
PACKAGE No: MOPU-0035 TENDER FORM 10/B SHEET 2 OF 3 TENDERER: Koch Australia Ptv Ltd. Koch Knight
Division Submitted 16 June 2009 692-Ofl-5893 A4 Rev 4-1 Tenderers shall list hereunder all classes
of Labour (including Leading Hands and Foremen) to be engaged on the Works (but excluding
superintendents and administrative personnel). The hourly rates applicable thereto shall be based
on 84 hrs/week and be inclusive of all costs including transport, accommodation, industrial
overheads, small tools and all on-costs (including site superintendents, site administration,
head office administration, overheads at Page 1 of 1 ITEM LABOUR DESCRIPTION TENDERED DAILY RATES 1
Average Daily Rates, 12 Hours Days  Day Work Only $2 Including Standard Safty Gear (PPE) and
Small Tools $3 York Supervisor $4 York Lead Hand $5 York Bricklaver $6 York L/H Ref Asst $7
York Fork Driver $8 York Ref Asst $9 $10 Koch Knight Supervisortlnspector These rates shall
provide for the execution of additional Works without impact on the Contract Construction Schedule.
Signature of Tenderer Signature of Witness MANAGING DIRECTOR, KOCH AUSTRALIA Name of Witness
BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA Dated this 16TH DAY OF JUNE 2009 Address of
Witness




---



##### 



LGL MOPU PROJECT TEMDER FOR: AUTOCLAVE INTERNAL EQUIPMEDNT INSTALLATION SCHEDULE OF RATES WORK
PACKAGE No: MOPU-0035 TENDER FORM 10/B SHEET 3.OF 3 TENDERER Koch-Austratla Pty Ltd. Koch Knight
Division Submitted 16 June 2009 ###-##-#### A4 Rev 4-1 Tenderers shall list hereunder all items of
Plant and Equipment to be utilised on the Works and the hourly rates applicable thereto inclusive
of all costs including operators (if applicable), accomodation, transport, fuel, maintenance,
consumables and all on-costs (including Company overheads, administration and profit). The rates
shall be based upon operating hours worked only and exclude time for maintenance, standby (unless
directed by LGL) and fuelling. Page 1 of 1 ITEM ITEM OF PLANT OR:EQUIPMENT YEAR MAKE MODEL.
CAPACITY HOURLY RATE DAILY (10 HRS) WEEKLY (70 HRS) MONTHLY (250 HRS) HOURLY (OVER 250) EST FUEL
CONSUMPTION (LITRES/HR)  Coast 1 Bricksaw 2008 Clipper 18"/14 415V N/A 2 Bricksaw Blades 3 Festo
Mixer 2008 Protool MXP 1602 N/A 4 HobartMixer 2006 Hobart D 300 T N/A 5 Brout Pump N/A 6
Distribution Board N/A 7 Air Blowers & Ducting Bluw Wizard N/A 8 Gravity Rollers N/A 9 Grinder 5
Air Power N/A 10 Grinding Cups 11 Site Container N/A 12 Materials Hoist N/A 13 Lights (each) N/A 14
Globes 15 Standard Safety Gear (PPE) each man Included in Daily Rates shown on Form 10BSH2 N/A 16
Small Tools N/A 17 Power Leads N/A 19 20 21 These rates shall provide for the execution of
additional Works without impact on the Contract Construction Schedule. Signature of Tenderer:
Signature of Witness managing director, koch australia Name of WItness BUSINESS DIRECTOR,
KOCH KNIGHT DIVISION KOCH AUSTRALIA Dated this 16tHlSA* Of JUNE 2009 Address of Witness




---



##### 



UPROJECTPERSCHEDULE-TENDERFORM10/Cofthis16THDAYOFJUNE2009TENDERFOR:WORKPACKAGENo:TENDERERAUTOCLAVEIN
TERNALEQUIPMENTINSTALLATIONMOPU-0035KochAustraliaPtyLtd.KochKnightDivision
###-##-####A4Rev41Page1of1loirACTIVITYWeekNo.12345GTftDtDJlIS13Id15IS1718192dWeekBeginingGENERAL_[_
\"\ff|ITI|]J|"\\\JJ\j1~Y34Properte-QuartyyControlPlanandSubit|uLGLFora
*Uflbtli^flEqui(mn]/LU^pjjih
SL-pniiiD^;f^t-itm"*\MruhirONsiteWOrK67Seti-upstateIVfUtri-triH*,tlX-L-,.i,nrl.flJ^n-J-prii-,irgr-r
tnu^iablurfKoPnpnttonofStMlSub«n
uDetailedKochKnightscheduleisattachedtothe12Juneoffer,andabarchartsent..-separately.Thisformleft
inplacefordirectiontotheKnightbarchartanHattatiofir
rCnrtoiH)r.R«nt«nlMamtrt-wt0Cureln(CniffJtJqtrRtaivjilMflTTbrgng11Prgic^iHBCurrutitnfttntlftrtiVnmh
farie2nitiBSlpCnrM11MHttacfcryLtrunrjITn«*fliT*l%DfllMCflmnnlilVftfi?W;tlh-T;;f;:::nnriltuwnflJiK r Ai|g-^nvtl^cmahT!:CU^rhoflfl!ractoryu
i:ng_..tt;;^nn^pP?aa.cnlCompktwnT3ewhi[jiAl£nrtTTKo r
orOrk-SifaPGiMnnnl-STAFFMa.0rCivSi10FijAftrsnc|.31RiECT\.ASQU*.ThtTenderershalfincorporateanCortfmdK
ftyDateslisledinClause9.2ContractKeyDatesintheTenderSchedule.IftheTendererconsidersthatInsufficien
tactivitiesarelistedthenitshouldinsertadditionalitemsasitrequires.ShowKeyDates|SignatureofTendererSi
gnatureofVUilnessNameoFWrtness;AddressofWitness




---



##### 



PROJECTED WEEKLY MANPOWER TENDER FOR: AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION APPENDIX 10D
Submitted 16 June 2009 WORK PACKAGE # MOPU-0035 The Total Manpower levels for both STAFF and DIRECT
LABOUR shown below must be the same as those listed on Tender Form 10/C (Tender Schedule) TENDERER:
Koch Australia Ptv Ltd, Koch Knight Division ###-##-#### A4 Rev 4.1 ON A WEEKLY BASIS Total
MANPOWER 1 2 3 4 5 6 7 8 9 10 11 1.2. 13 14 15 16 17 18 19 20 Manpower Staff 36 Max. 36 Max. 36
Max, 36 Max. 36 Max. 36 Max. 36 Max 33 Max 36 Max 36 Max 36 Max 36 Max 36 Max 36 Max 36 Max 36 Max
36 Max 36 Max 36 Max 36 Max. 36 Maximum Foreman Tradesmen Labourers Other (Tenderer to Nominate)
Detailed Koch Knight schedule is attached to the 12 June 2009 offer, to be revised per LGL schedule
to be updated. Site manpower and accommodation will be at maximum 36 people in the last 20 weeks of
the contract, during brick lining installation. TOTAL MANPOWER 36 36 i 36 36 36 36 36 36. 36 36 36
36 : 36 36 36 36 36 36 36 36 MAXIMUM ACCOMMODATION Total Free Issue Accommodation
Person-Days Number of Rooms Required at LGL Camp 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36 36
36 36 36 5,040 Man-Days The work roster the Tenderer proposes to use as per Clause 9.4.4 is 12 hr
days, 13 days per fortnight Signature of Witness: Signature of Tenderer Name of Witness BUSINESS
DIRECTOR, KOCH MANAGING DIRECTOR, KOCH AUSTRALIA KNIGHT DIVISION KOCH AUSTRALIA Dated this 16TH DAY
OF JUNE 2009 Address of Witness Page 6 of 6 Page 6 of 6




---



##### 



SECTION 11  SPECIAL CONDITIONS OF PARTICULAR APPLICATION
 INDEX
 11.1
    
    
    Introduction11.2
    
    
    Advertising11.3
    
    
    Site Facilities11.4
    
    
    Personnel Instruction and Training11.5
    
    
    Handling of LGL Supplied Materials or Equipment11.6
    
    
    Project Reporting Requirements11.7
    
    
    Special Conditions




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 1 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.1
    
    INTRODUCTION11.1.1
    
    This Section sets out the special terms and
conditions of Contract which have particular application
to this Contract and to the extent, if any, that they
may be inconsistent with the General or Special
Conditions of Contract, these terms and conditions shall
take precedence.11.2
    
    ADVERTISING11.2.1
    
    The Contractor shall not in any manner advertise,
publish or release for general information, any
statement mentioning LGL or the MOPU Project, without
first obtaining the written consent of LGL, including
LGLs approval of the material requested to be
advertised, published, or released for general
information. The Contractor shall use its best efforts
to ensure that its employees, offices, agents,
representatives, Subcontractors, vendors, and suppliers
abide by this restriction.11.3
    
    SITE FACILITIES11.3.1
    
    The Contractors site facilities shall be kept
clean and tidy and maintained in good conditions at all
times during the Works.11.3.2
    
    The Contractor shall adhere to LGLs environmental
policy by ensuring that all hydrocarbon product storage
areas within its site facilities are bunded and lined
with HDPE liner.11.4
    
    PERSONNEL INSTRUCTION AND TRAINING11.4.1
    
    The Contractors employees and Subcontractors
shall be adequately trained, instructed, tested, and
certified in the operation of plant and equipment, or
carrying out tasks, required by their class of
work.11.4.2
    
    The Contractor shall issue to each operator a LGL
site Operators Permit to operate specific mobile
equipment upon satisfactory completion of an on-site
test of competency. A copy of all permits shall be
forwarded to LGL.11.4.3
    
    The Contractor shall implement an instruction and
training program for all operators of plant and
equipment on site. These programs shall be submitted to
LGL for approval.11.4.4
    
    LGL may direct the Contractor to modify aspects of
its instruction and training programs at any time during
the Contract if, in its opinion, it does not adequately
meet the requirements of safe operation of plant and
equipment, or safe operating practices on the site.11.4.5
    
    The Contractor shall maintain a register on site
of the induction, training, authorization, and licences
that each employee and Subcontractor has received. The
register shall be made available to LGL upon
request.11.4.6
    
    The Contractors employees and Subcontractors
shall adopt and actively participate in LGLs Safety
Management System.




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 2 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.5
    
    HANDLING OF LGL SUPPLIED MATERIALS OR EQUIPMENT11.5.1
    
    The Contractor shall be fully responsible for any damage to LGL supplied materials or
equipment caused by mishandling, improper storage, or failure to follow the manufacturers
recommendations and/or accepted practices.11.5.2
    
    Any damage or loss to LGL supplied materials or equipment, resulting from the
Contractors actions shall be the sole liability of the Contractor.11.6
    
    PROJECT REPORTING REQUIREMENTS11.6.1
    
    General11.6.1.1
    
    The Contractor shall prepare and submit to LGL daily, weekly, and monthly reports. All
reports shall be in a format acceptable to LGL.11.6.1.2
    
    LGL may direct that additional information, forms, or reports be completed as deemed
necessary and appropriate for the performance and control of the Works, and such information
shall be provided by the Contractor at no additional cost to LGL.11.6.1.3
    
    All reports shall be signed by the Contractor upon submission, and by LGL as evidence of
receipt only of the report, not necessarily acceptance of the details and accuracy of the
report.11.6.1.4
    
    The Contractor shall provide3, on the request of LGL, monthly consumables usage figures
for, but not limited to lubricants and chemicals used during the Works.11.6.2
    
    Daily Reports11.6.2.1
    
    The daily production report must be submitted to LGL at the time designated by the Area
Manager. The report shall be an Excel spreadsheet and submitted to the Area Manager
electronically.11.6.2.2
    
    The Contractor shall keep records of all reports both electronically and hard-copy.11.6.2.3
    
    The daily reports shall address, as a minimum, the following listed topics with regards to
the previous twenty-four (24) hour period:
 
    
    Any safety or industrial relations incidents involving the
Contractors or Subcontractors employees.
    
    All Works undertaken during the preceding twenty-four (24) hour period
    
    Progress of the Works compared to the Schedule
    
    Manpower on-site and hours worked
    
    Details of any damage to the Contractors or LGLs materials, plant,
equipment or facilities
    
    Mechanical availability of each item of the Contractors plant and equipment
    
    Hours of work performed by each item of equipment and type
of work it performed
    
    Downtime hours of each item of plant and the cause of the
downtime Status of any Variation aughorised by LGL




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 3 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 
    
    Any problem or potential problem area(a)
    
    Any other activity or event that has or may impact on
the timely and satisfactory
performance and completion of the Contract
 11.6.3
    
    Weekly and Monthly Reports11.6.3.1
    
    Weekly and monthly reports shall include a summary of information supplied in
daily reports and detailed status reports on the overall performance of the Works.11.6.3.2
    
    The reports shall be submitted within a time period following the end of the week
or month as directed by the Area Manager.11.7
    
    SPECIAL CONDITIONS11.7.1
    
    Inspection and Provision of Insurance Policies11.7.1.1
    
    Amend clause 4.1.7.5 by adding the following words after the first paragraph.
For the avoidance of doubt, the parties agree that the Contractors liability is
limited as provided in clause 11.7.24, and as otherwise provided in the Contract.11.7.2
    
    Security11.7.2.1
    
    Delete existing Clause 4.1.6.1, and replace with The Contractor shall provide two forms of security, each equal to of the
Contract Sum for the purpose of ensuring the due and proper performance of the
Contract and of satisfying the obligations of the Contractor under the Contract.
LGL may recover all debts due and owing from the Contractor to LGL from the
security if not otherwise paid by or recovered from the Contractor. The security
shall be in the form of an Unconditional Bank Guarantee in the form as agreed
between the Contractor and LGL, as detailed in Section 12.11.7.2.2
    
    Amend Clause 4.1.6.2 by replacing the words 14 days with 30 days.11.7.3
    
    Progress Claims and Payments11.7.3.1
    
    Amend Clause 4.2.6.7, by deleting subclause ii), and subclause iii).11.7.3.2
    
    Amend clause 4.2.6.1, by adding the words in accordance with the milestone
payments detailed in clause 11.7.31, to the end of clause 4.2.6.1.11.7.3.3
    
    Amend clause 4.2.6.10 by adding the following paragraph to the existing clause:
Contractor shall have the right to suspend performance of the Contract from
seven
(7) days of the date of such notice until payment is made. The Proposed Project
Schedule shall be extended by the period of the suspension for non-payment.11.7.4
    
    Variations11.7.4.1
    
    Amend clause 4.2.7.7 by replacing the existing words with the following
wording:If the Contractor and LGL do not agree upon the value of the Variation,
LGL may have the Variation executed by others. The work of the Contractor in this
area will resume on completion of the Variation work. The Contractor provides no
warranty for the Variation Work provided by others. The Contractor shall not be
entitled to claim from LGL any cost or Contract Value for this Variation Work
supplied by others.




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 4 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.7.5
    
    Goods or Services Provided by LGL11.7.5.1
    
    Delete clause 4.2.10 in its entirety.11.7.6
    
    Completion11.7.6.1
    
    New Special Conditions: Deed of Release Appendix 5/0 modified as agreed
between parties on 10lh June, 2009 and as referenced in Section 12.11.7.7
    
    Materials, Workmanship, and Quality Control11.7.7.1
    
    Amend Clause 4.3.2.5 by adding after the words 5 days, (prior to issue of
certificate of practical completion), or within 30 days (within DLP).11.7.7.2
    
    Amend clause 4.3.2.5 be deleting the last sentence, If the Contractor fails to comply
with any direction given by LGL pursuant to this Clause, LGL may carry out the
replacement, correction or removal and the cost incurred shall be a debt due from the
Contractor to LGL.11.7.7.3
    
    Delete clause 4.3.2.6 in its entirety.11.7.8
    
    Occupational Health and Safety11.7.8.1
    
    Amend clause 4.3.6.4 by deleting the word solely from sub clause g).11.7.8.2
    
    Amend clause 4.3.6.6 by adding the word reasonable before the word direction in the last sentence.11.7.9
    
    Protection of Persons, Property and Existing Services11.7.9.1
    
    Delete clause 4.3.7.1 in its entirety, and replace with the following:Light sets will be provided by the contractor for use inside of the Autoclave. Power
and associated cabling to the Contractors distribution box for such lighting equipment
will be provided by LGL.11.7.10
    
    Care of the Work11.7.10.1
    
    Amend clause 4.3.8.1 by deleting the words expiration of the Defects
Liability
Period and replacing with issue of the Certificate of Practical Completion.11.7.10.2
    
    Clause 4.3.8.2 is deleted and replaced with The Contractor shall at its own cost
make good to the satisfaction of LGL any loss of or damage to the Work, the
temporary Works, materials and Constructional Plant resulting from the negligence of
the Contractor, its employees, agents or Subcontractors (save and except the
Excepted Risks as defined in clause 4.3.8.3) when such making good is necessary
for the satisfactory completion of the Work. When so ordered by LGL any such loss
or damage caused by any of the Excepted Risks shall be made good by the Contract
as a Variation to the Contract.11.7.10.3
    
    Amend clause 4.3.8.3 by adding new subclause iv) as follows:iv) Contractor and/or LGL will be excused from their respective obligations in the
event and to the extent that their respective performance is delayed or prevented (a)
by any circumstance (except financial) reasonably beyond their control or (b) by fire,
explosion, breakdown of machinery or equipment, plant shutdown, strikes or other
labour disputes, riots or other civil disturbances, or voluntary or involuntary
compliance with any law, order, regulation, recommendation or request of any
governmental authority.




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 5 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.7.11
    
    Environmental Responsibilities11.7.11.1
    
    Amend clause 4.3.10.5, subclause iv), by inserting the words of its before the
words Subcontractors and shall ensure... and before the words Subcontractors complies with
the provisions....11.7.12
    
    General Contractor Warranties11.7.12.1
    
    Amend clause 4.3.11.1, subclause v)(C), by replacing clause with the following:(C) obtain all necessary government authorisations required for the Contractor and
its subcontractors to carry on a business within PNG and all required PNG work permits
and visas for its expatriate employees;11.7.13
    
    Defects11.7.13.1
    
    Amend clause 4.4.1.3 by deleting the words, But no such direction shall be given by
LGL later than twenty-eight (28) days after the expiration of the Defects Liability
Period.11.7.13.2
    
    Amend clause 4.4.1.4 be replacing the clause with the following words:If any rectification referred to in Clauses 4.4.1.2 or 4.4.1.3 is not commenced or
completed within 5days (prior to issue of certificate of practical completion), or
within 30 days (within DLP), LGL may carry out the rectification at the Contractors
expense but without prejudice to any other rights that LGL may have against the
Contractor in respect of the rectification. The cost incurred by LGL in so carrying out
the rectification shall be a debt due from the Contractor to LGL. Notwithstanding the
provisions of this Clause, the Contractor shall not be responsible for the effects of
fair wear and tear during the Defects Liability Period, nor will it be responsible for
warranty on work carried out by others.11.7.13.3
    
    Delete clause 4.4.1.5 in its entirety.11.7.13.4
    
    Amend clause 4.4.1.6 by deleting the words or making tests.11.7.14
    
    Royalties, Patents, Copyrights and Other Intellectual Property Rights11.7.14.1
    
    Delete clause 4.4.2.1 in its entirety.11.7.14.2
    
    Amend clause 4.4.2.2 by deleting the words and its directors, officers, employees,
agents and consultants. Insert the following new paragraph:Additionally, this indemnification does not apply to any liability for infringement
(i) of any method patent where the equipment is used with other apparatus for carrying
out a process resulting in a combination of elements which is deemed to infringe a
method patent or patent directed to a combination of elements, (ii) the equipment is
modified by LGL without the prior written approval of the Contractor, or (iii) the
equipment is used by LGL in a manner different than the use communicated to and
understood by the Contractor at the time the equipment was sold to LGL (under a
separate equipment supply purchase order) and such use constitutes infringement.11.7.14.3
    
    Amend clause 4.4.2.3 to read:Title to, copyright in and other intellectual property rights in any documents, plans,
specifications, designs, drawings, sketches, reports and materials produced for or in
connection with the Works vests in the Contractor and the Contractor grants to LGL an
irrevocable royalty free, non-exclusive licence to use that material in connection with
the Works for the life of the LGL Mine.




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 6 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.7.15
    
    Accident or Injury to Employees and Property Damage and Public Risk11.7.15.1
    
    Delete clauses 4.4.3 and 4.4.4 in their entirety.11.7.16
    
    Construction of the Contract11.7.16.1
    
    Amend clause 4.5.1.5 by deleting the words whether and or otherwise, then adding
the following words at the end of the clause: The parties agree that the U.N. Convention on
Contracts for the International Sale of Goods (CISG) will not apply to this agreement.11.7.17
    
    Documents11.7.17.1
    
    Amend clause 4.5.3.5 by adding the words provided, however, that Contractor may
retain one complete copy thereof in its legal archives in order to determine its rights and
obligations hereunder. to the last sentence.11.7.18
    
    LGLs Right to Terminate the Contract11.7.18.1
    
    Replace Clause 4.5.5.1, sub clause i) with:i) FOR LUMP SUM ITEMS: The Engineering Manager and Contractor shall determine and
agree the percentage completion of such items up to the time of the termination of the
Contract and the Contractor shall be paid the percentage so determined of the value of
the Lump Sum items.11.7.18.2
    
    Replace Clause 4.5.5.1, sub clause ii) with:ii) FOR UNIT PRICE ITEMS: The Engineering Manager and Contractor shall determine and
agree the number of items completed up to the time of the termination of the Contract
and they Contractor shall be paid for the number of items so determined at the unit
prices listed in the Contract.11.7.18.3
    
    Replace clause 4.5.5.1, sub clause iii) with:iii) DEMOBILIZATION: The Contractor shall be paid to fully compensate the Contractor
for moving its, employees, equipment, tools, supplies and materials off the Site.11.7.19
    
    Disputes11.7.19.1
    
    Amend clause 4.5.6.3 by deleting the words the jurisdiction stated in Clause
1.8 (total Project Data) and replacing with the words Brisbane, Queensland11.7.20
    
    Definitions and Interpretations11.7.20.1
    
    Amend the definition of Contractor in clause 4.5.9.1 by deleting the words that
persons heirs, executors, administrators and permitted assigns, and in the case of a
corporate body, its successors and permitted assigns and replacing with its successors and
permitted assigns.11.7.20.2
    
    Amend the definition of Practical Completion in clause 4.5.9.1 by deleting the words
in the opinion of the Engineering Manager.11.7.20.3
    
    Amend the definition of Standards in clause 4.5.9.1 by deleting the words or if no
relevant standard is specified, the standard published by the International Standards
Organization (ISO) or if no relevant ISO standard exists, the standard published by




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 7 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 the standards organization for the country in which the
Work is performed. and replacing with the words including the
Contractors and Sub-contractors Quality plans..11.7.21
    
    Export Compliance11.7.21.1
    
    LGL shall, to the extent that it is legally required to do
so, comply with all applicable export and re-export control laws and
regulations, including without limitation the Export Administration
Regulations (15 C.F.R. Parts 730 et se.) maintained by the United States
Department of Commerce and the Office of Foreign Assets Control Regulations
(31 C.F.R. Chapter V) of the U.S. Treasury Department. Specifically, LGL
shall not  directly or indirectly  sell, export, re-export, transfer,
provide, divert, loan, lease, consign, or otherwise dispose of any goods,
services, software, source code, or technology received in connection with
this transaction and covered by this Agreement to any person, entity, or
destination prohibited by the laws or regulations of the United States,
without obtaining prior authorisation from the competent government
authorities as required by those laws and regulations.11.7.22
    
    Contractors Limited Warranty  Workmanship Guarantee




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 8 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
    11.7.23
    
    Contractors Indemnification
     11.7.24
    
    Limitation of Liability11.7.24.1
    
    Limitation on LGLs Liability
 (a)  The total liability of LGL arising out of or in connection with the Contract including
a claim in tort, under statute, for rectification or frustration or like claim available
under the law governing the Contract is limited to the Contract Sum as adjusted pursuant to
the Contract.(b)
    
    The limitation of liability under clause 11.7.24.1 (a) shall not
apply to:
 (i)
    
    loss arising through fraud or Wilful Misconduct by
LGL;(ii)
    
    liability for infringement of any third party intellectual property
rights;(iii)
    
    the extent that liability is otherwise limited by another provision of
the Contract; and(iv)
    
    liability out of which by law LGL cannot contract.




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 9 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 11.7.24.2
    
    Limitation on the Contractors Liability
 Liability)
  Limitation).
   Trade Practices Act
 (i)
    
    in the case of the Works, at the Contractors option:
 (A)
    
    the replacement of the Works or the supply of equivalent Works;(B)
    
    the repair of the Works;(C)
    
    the payment of the cost of replacing the Works or of acquiring
equivalent Works; or(D)
    
    payment for having the Works repaired, and
 (ii)
    
    in the case of services, at the Contractors option:
 (A)
    
    the supply of the Works again; or




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 10 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 (B)
    
    the payment of the cost of having the Works supplied again.
 (d)
    
    The limitation of liability under clause 11.7.24.2(a) shall not apply to:
 (i)
    
    loss arising through fraud or Wilful Misconduct by the Contractor;(ii)
    
    liability for infringement of any third party intellectual property
rights;(iii)
    
    the extent that liability is otherwise limited by another provision
of the Contract; and(iv)
    
    liability out of which by law the Contractor cannot contract.
 11.7.24.3
    
    General provisions
      11.7.25
    
    Travel to Site11.7.25.1
    
    Amend clause 6.5.2 by deleting the word Lihir and replacing with Cairns. LGL will
arrange and pay for transportation from Cairns to Lihir Island and return to Cairns.11.7.25.2
    
    For MOPU-0063, this clause needs to be modified: Change title to Contractor Travel,
delete 1st paragraph, 2nd paragraph  replace Lihir with the Work
site, which is located at Melaka, Malaysia.11.7.26
    
    Power11.7.26.1
    
    Amend clause 6.7.1 by deleting the words The Contractor shall be provide all necessary construction power. and replace with the words LGL will provide 3Phase
440-480V 100A power supply, wired directly to the Contractors panel box. Three
connection points will be allowed. Local distribution from the panel boxes by the
Contractor.11.7.27
    
    Communications11.7.27.1
    
    Amend clause 6.8.1 by deleting the words Telephone and facsimile services are
available in limited supply at the Mine for use by the Contractor. Contractors who use
LGL facsimiles and telephones shall have all costs accrued, deducted from




---



##### 



SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 11WORK PACKAGE MOPU-0035
    
    Page 11 / 11AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION
 payments due or otherwise recovered as a debt due, And replacing with
the words LGL to provide the Contractor with one(1) telephone line and
one (1) facsimile line for the duration of the Works.11.7.28
    
    Potable Water11.7.28.1
    
    Amend clause 6.9.1 by deleting the words Limited potable water shall be
available at the Site. Any other requirements and distribution of potable water
shall be arranged and paid for by the Contractor. and replacing with the words
LGL will supply the contractor with a minimum of 500 litres of Potable water per
day. LGL will also provide Potable ice to fill the Contractors supplied containers.
These containers to be filled with ice and potable water prior to leaving the camp
each day.11.7.29
    
    Construction Water11.7.29.1
    
    Amend clause 6.10.1 by deleting the words Limited construction water will be
available to the Contractor from the Londolovit weir. The Contractor shall
provide all equipment necessary to load and haul the water to its Work site.
and replace with the words LGL will provide a minimum of 500 litres of
construction water per day. This water will be provided to 8 delivery points
in the Work area.11.7.30
    
    Insurance arranged by the Contractor11.7.30.1
    
    Delete clause 6.17.1.1 in its entirety.11.7.30.211.7.30.3
    
    Delete clause 6.17.1.5 in its entirety.11.7.30.4
    
    Delete clause 6.17.5, subclause (v).11.7.31
    
    Milestone Payments11.7.31.1
    
    Contract milestone payments to occur as follows:




---



##### 



APPENDICES TO SPECIAL CONDITIONS OF PARTICULAR APPLICATION
    
    Section 12WORK PACKAGE MOPU-0035AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION




---



##### 



APPENDIX 5/O
 Contractor:
    
    Work Package:
 
    
  
     Dated this
    Day of
    
    
    
    200




---



##### 



APPROVED FORM OF BANK GUARANTEE
  To: Lihir Gold Limited (the Company)
 In consideration of Lihir Gold Ltd. (the Company or Lihir Gold Limited) accepting this
undertaking in satisfaction of the Companys requirement for Koch Australia Pty Ltd., ( A.B.N. 70
080 357 366) (the Contractor or Koch Australia) to provide the Company with security for
performance in relation to the Companys contract no.   dated   (the Contract), JPMorgan Chase Bank, N.A., Australia (the Bank)
hereby undertakes irrevocably and unconditionally to pay to the Company on demand in writing any
sum or sums which may from time to time be demanded by the Company to an amount not
exceeding  (USD)  (Net of and exclusive of GST) (the
Sum) in the aggregate.
 The Demand in writing should include the following:
 1.
    
    Statement by Lihir Gold Limited on their letterhead manually signed by a
purported
office of Lihir Gold Limited stating that Koch Australia has failed to substantially meet
its obligations under the terms of Lihir Gold Limited purchase
order __________
dated, and this demand under Bank Guarantee
No._________ is made in accordance with the terms of said purchase order.2.
    
    A copy of your dated prior written notice to Koch Australia stating that Koch Australia
is in material breach of its obligations under purchase order
__________  dated __________,
by failing to meet the obligations of the Contract described in said purchase order
and Koch Australia has thirty (30) days to remedy the breach.3.
    
    A copy of your letter to Koch Australia dated no less than thirty (30) days after the
date of the notice in paragraph 2 above stating under purchase order ________
dated________, Koch Australia has failed to respond within the thirty (30) day period
and Lihir Gold Limited plans to call the demand payment under this bank guarantee as
Koch Australia has refused or failed to take the necessary steps to remedy the breach.
 The Banks liability hereunder will not be impaired or discharged by any alterations which may be
made in the terms of the Contract or by any extension of time or other forbearance on the part of
either the Company of the Contractor to the other.
 This undertaking will continue in force either until notification in writing has been received by the
Bank from the Company that this undertaking is no longer required by the Company of until
payment to the Company by the Bank of the whole of the Sum or the balance thereof remaining
after any part payment or payments, until this guarantee is returned to the Bank or the end of the
performance period but, in no event, this guarantee will expire no
later than___
 Notwithstanding anything herein before contained, the Bank reserves the right to terminate this
undertaking at any time upon payment to the Company of the Sum or the balance thereof remaining
after any part payment or payments or such lesser amount as the Company may require.
 On
expiry or when no longer required, please return this document for cancellation to The Manager,
JPMorgan Chase Bank, N.A., Trade Services, Level 33, 259 George Street, Sydney, NSW, 2000,
Australia.
 This
(BG #__________) undertaking will become effective from the (date).




---



##### 



TECHNICAL SPECIFICATIONS
    
    Section 13WORK PACKAGE MOPU-0035AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION




---



##### 



GENERAL SPECIFICATIONS
    
    Section 14WORK PACKAGE MOPU-0035AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION




---



##### 



TOTAL PROJECT PROGRAM
    
    Section 15WORK PACKAGE MOPU-0035AUTOCLAVE INTERNAL EQUIPMENT
INSTALLATION




---



##### 



OTHER DOCUMENTS FORMING PART OF THE AGREEMENT
 Table of Contents
 1.
    
    Kochs Quality plans2.
    
    Kochs Proposal3.
    
    Minutes of Meetings4.
    
    Contract Schedule5.
    
    Koch Drawing Q-1270-C Rev 1 Revised




---



##### 



Kochs Quality Plans
 Table of Contents
 th
 th




---



##### 



KOCH KNIGHT LLC
  REVISION:
A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 1 of 10
 TITLE
 Project
Quality Plan  Liher Autoclave No. 4
 MOPU-0035 and MOPU-1010
 Document Originator:
 Kevin Brooks
    
    
    
    2/24/2009NAME
    
    
    
    DATEVP Engineering and Construction

*TITLE
 President
    
    Date: 3/5/09Engineering Manager
    
    Date: MAR-5-09Project Manager
    
    Date: MAR-5-09
 Revision
History;




---



##### 



KOCH KNIGHT LLC
  REVISION: A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 2 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 1.0
    
    General -
 1.1
    
    These quality plans were prepared specifically for the project named in the title
block.
Customer requirements as defined in documents submitted and Koch Knight general
practice and procedures form the core of the plan.
 2.0
    
    Responsibility and Authority
 2.1
    
    Koch Knight management believes that quality is a leading method of
differentiating
competitors in the marketplace. Thats why the management team at Koch Knight is actively
involved in evaluating and defining the quality plans and practices employed to meet customer
needs.2.2
    
    This Quality Plan is authored by the Process Improvement Manager and approved by the
President and other key operations managers as defined on the cover page of this document.
The president and other top management participate in a review of this and other components
of the quality system at the bi-annual management review. This participation includes a review
and analysis of results related to the goals and objectives contained in the plans.2.3
    
    Koch Knight designates personnel responsible for:
 2.3.1
    
    Management, including management of the Quality System.2.3.2
    
    Operations that effect product and service quality2.3.3
    
    Inspection, testing and verification activities that prove processes are in control and
meet specified requirements.
 2.4
    
    All assigned personnel are properly trained to carry out required tasks properly.2.5
    
    Bach department that is responsible for work that effects product or service
quality is
responsible and authorized to control actions that directly or indirectly determine
customer
satisfaction.2.6
    
    All employees have the authority and the responsibility to stop work
processes when the
employee identifies a problem that could affect product or service quality.
 3.0
    
    Responsibilities for the Quality System:
 3.1
    
    President  Koch Knight LLCThe President of Koch Knight is responsible for setting policy, goals and objectives
for the




---



##### 



KOCH KNIGHT LLC
 385
 Revision:
A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 3 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 quality system at Koch Knight. The President will schedule and attend
the Management Review where these goals are established and reviewed on a
bi-annual basis.3.2
    
    Business DirectorBusiness Directors are responsible for ensuring products and services provided meet
the contractual needs and requirements of the customer. This includes a review of
all contracts prior to acceptance. In addition the manager is required to prepare
and document the service and support requirements for products as necessary, provide
input design requirements, and prepare product literature.3.3
    
    Engineering ManagerThe manager in charge of Design and Development is responsible to ensure that all
appropriate steps required to design a quality product which meets customer
specifications are performed as necessary. This includes design reviews,
verification tests, design-input analysis to customer requirements, regulatory
requirement analysis, design change review and documentation, and qualification
tests, all where applicable. This manager is responsible for generating, issuing and
maintaining all appropriate documentation regarding the coordination and operation
of the design and development function. This manager ensures that design activities
are properly staffed with appropriately trained personnel. The design system is
maintained to ensure that all requirements are understood, those that can be
implemented are, and that the design output is measured to ensure that this in fact
occurs.3.4
    
    Plant ManagerThe plant manger is in charge of manufacturing operations and is responsible for
performing all necessary tasks and preparations to commence production of released
products. The manager is responsible for ensuring that all required equipment is
available and properly maintained, that personnel are trained as required prior to
performing tasks which affect quality and that all required documents used in
production are current and understood by all related personnel. Since the Plant
Manager is responsible for producing products that meet customer requirements, he has
full authority and responsibility to stop production of unacceptable materials. In
conjunction with requirements for continual improvement, he is responsible for
gathering quality data, analyzing, and taking corrective action as required.3.5
    
    Contract AdministratorThe Contract Administrator is responsible for contract and purchase order review and




---



##### 



KOCH KNIGHT LLC
  Recision:
A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 4 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 acceptance.The administrator ensures that contract requirements are
adequately defined and documented and that we can meet the contractual
requirements of the order. This will include working with the Manufacturing
Scheduler/Planning personnel to define the commitment for delivery.3.6
    
    Construction ManagerThe Construction Manager is responsible for documenting and
implementing a system to ensure proper installation and support of all
products. These installations may be conducted in-house or at a job site, by
Koch Knight employees or by sub-contracted installers anywhere in the world.
The Construction Manager will implement control procedures for the receipt,
storage, and return of materials. The Construction Manager is responsible to
ensure Koch Knight and customer safety procedures and practices are observed
at all times during an install, in-house or at a job site. The manager will
insure that all required documents and reports are completed to demonstrate
the safe, efficient completion of a quality installation project. The
manager is responsible for reviewing the training needs of personnel, and
providing training required to ensure personnel performing all tasks are
appropriately trained.3.7
    
    Senior Project ManagerThe Senior Project Manager is responsible for monitoring the process
during each step of the design, manufacturing, inspection, delivery and
installation of the product. The Senior Project Manager is responsible for
understanding all aspects of the supply requirement and coordinating all
aspects to the efficient processing of products and services to the customer.
This thorough understanding of the project, and real time understanding of
each facet within the scope of supply, should make the Project Manager the
primary customer contact during the performance of a contract.3.8
    
    Logistics ManagerThe Procurement/Logistics Manager is responsible for the shipment of materials
per documented procedures and customer contract. The Procurement/Logistics
Manager will have primary responsibility of the shipment from the production
site to the customers designated delivery point or point of entry. The
Procurement/Logistics Manager is responsible for selecting carriers and
methods of packaging when not otherwise specified by the customer.3.9
    
    Procurement Manager and BuyerPurchasing personnel are responsible for documenting and implementing a system to ensure the




---



##### 



KOCH KNIGHT LLC
 385
Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone:
(330)488-1651 / Fax:(330)   488-1656
 REVISION:
A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 5 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 purchasing of quality materials from quality suppliers. This system includes
supplier selection, purchase order generation and placement, change control,
specification agreement with the supplier, data acquisition and reporting, and delivery
coordination.3.10
    
    Process Improvement ManagerThe Process Improvement Manager is the site representative and is responsible for
the overall quality system. This includes controlling, documenting and implementing
systems affecting quality of products, services and philosophies of customer
satisfaction and continual improvement. The manager is responsible for resolving
differences between customer requirements and products intended for delivery. The
manager is also responsible for ensuring that customer required documents such as
certificates are processed per request. Additional Quality System responsibilities
of the manager include establishing, implementing, and maintaining quality
procedures relevant to the quality functions. Manager internal quality audit
functions. Investigate, resolve and implement preventive actions in answer to
quality problems within manufacturing. Report quality indicators to upper management
through management review and other appropriate means. Support and promote the
supplier quality process in conjunction with purchasing goals and objectives. The
Process Improvement Manager and all quality managers and technicians have the
authority and responsibility to stop shipment of products that have a probability of
being defective or not meeting specified requirements.3.11
    
    Shipping and Receiving SupervisorThe manager in charge of receiving is responsible for receipt inspection, handling,
and control of all products and materials supplied to the company. This
responsibility includes the proper identification and storage of materials used in
production of manufactured products. The manager is responsible to select and
maintain storage, handling and packaging controls to prevent damage and deterioration
of all materials and products. As manager of shipping this supervisor is responsible
for appropriate handling, packaging and shipment of products to meet customer
requirements and preclude damage or deterioration in transit.3.12
    
    Manufacturing Scheduling/Planning ManagerThe Manufacturing Scheduling/Planing Manager is responsible for order scheduling
and material and control functions to ensure materials and products are available to
meet forecasted product demands and customer delivery requirements.




---



##### 



KOCH KNIGHT LLC
  REVISION:
A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 6 of 10
 TITLE
 Project
Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 4.0
    
    Procedures
 4.1
    
    The following procedures are relevant to the work required and are attached
to the Quality Plan
 4.1.1 Purchasing
    
    P0740-104.1.2 Control of Nonconforming Product
    
    P0830-104.1.3 Corrective Action Process
    
    P0850-104.1.4 Construction & Preparation of Steel Shell for Sheet Linings
    
    TL-111D4.1.5 Application of PYROFLEX® Sheet Lining
    
    TL-117B4.1.6 Acid Proof Brick Laying Procedure
    
    B-100A
 5.0
    
    Test Methods
 5.1
    
    The customer has specified ASTM test methods to be used for testing of product.
Koch
Knights own Inspection and Test Plans also use ASTM methods as a basis and most
methods specified are utilized by Koch Knight. Below are the methods specified and
the Koch Knight methods that are derivatives from the specified ASTM methods
specified. Where Koch Knight methods are called out, the method is also attached as
requested.
 5.1.1
    
    Brick Testing
 5.1.1.1 Acid Solubility
    
    WI-950 (Based ASTM C-279)5.1.1.2 Brick Drawing and Physical Inspection
    
    WI-2345.1.1.3 Moisture Determination of Clay Mixtures
    
    WI-9805.1.1.4 Bend Test
    
    WI-2115.1.1.5 Chemical Analysis of Soda Lime
    
    ASTM C-1695.1.1.6 Sulfur in Ash from Coal
    
    ASTM D-50165.1.1.7 Apparent Porosity
    
    ASTM C-205.1.1.8 Liquid Absorption
    
    ASTM C-205.1.1.9 Bulk Density
    
    ASTM C-205.1.1.10 Modulus of Rupture
    
    ASTM C-1335.1.1.11 Dimensions, Squareness and Warp
    
    ASTM C-134
 The following brick testing will be conducted outside Koch Knight laboratories at a
third party testing facility.
 5.1.1.12 Modulus of Elasticity
    
    ASTM C-885




---



##### 



KOCH KNIGHT LLC
  REVISION: A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 7 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 MOPU-1010
 5.1.1.13 Thermal Conductivity
    
    ASTM C-11135.1.1.14 Thermal Expansion Coefficient
    
    ASTM E-2285.1.1.15 Crushing Strength
    
    ASTM C-133
 5.1.2
    
    Silicate and Litharge Mortars
 5.1.2.1 Bond Strength
    
    ASTM C-3215.1.2.2 Absorption
    
    ASTM C-20*5.1.2.3 Working Life
    
    ASTM C-4145.1.2.4 Shrinkage
    
    ASTM C-5315.1.2.5 Compressive Strength
    
    ASTM C-5795.1.2.6 Flexural Strength
    
    ASTM C-580
 The following mortar testing will be conducted outside Koch Knight laboratories at a third party testing facility
 5.1.2.7 Coefficient of Thermal Expansion
    
    ASTM E-2285.1.2.8 Modulus of Elasticity
    
    ASTM C-580
 5.1.3
    
    Pyroflex® 500 Membrane
 5.1.3.1 Softening Point
    
    WI-960 (Based on ASTM D-36)5.1.3.2 Slump Test
    
    WI-9605.1.3.3 Sheet Weights and Measurements
    
    WI-9605.1.3.4 Bulk Density
    
    WI-9605.1.3.5 Weight loss during cook off (Proprietary)
    
    WI-700
 6.0
    
    Inspection and Test Plans
 6.1
    
    Inspection and Test Plans (ITPs) shall be prepared and
submitted for all products manufactured at Koch Knight, as well as
Sub-contract Suppliers.
 7.0
    
    Field Installation Audits
 This Specification shall pertain to the Operation and Manufacturing process of at Koch
Knight LLC East Canton, Oh. Under no circumstances is any person allowed to alter this
specification in any way unless it has been approved in writing by the Quality Assurance Supervisor and or the Technical Manager.




---



##### 



KOCH KNIGHT LLC
  REVISION: A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 8 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 All lining installation shall be performed by experienced and competent personnel in
a safe, quality oriented and productive manner. Koch Knight trained personnel will
perform all PYROFLEX DUPLY Lining installations per Koch Knight Bulletin TL- 117B
APPLICATION OF PYROFLEX SHEET LINING. Koch Knight has sub-contracted the brick
installation to York Linings Inc. under the direct supervision of a Koch Knight site
superintendent. Site installation is part of the subject order scope of supply and Field
Inspection Checklists (FICs) are part of the requirements of the project. In addition to
the required FICs, daily and periodic audits and checklists will be utilized to ensure a
quality installation.
 7.1
    
    Field Inspection Checklists
 7.1.1
    
    Electrostatic test of PYROFLEX membrane7.1.2
    
    Daily Quality Control Checklist for PYROFLEX and DUPLY membranes7.1.3
    
    Daily Quality Control Inspection Report for Acid-Proof Brick Installation7.1.4
    
    Site curing process
 7.2
    
    Additional daily or periodic audits
 7.2.1
    
    Project Daily Production Report7.2.2
    
    Vessel Lining Quality Assurance Inspection Report7.2.3
    
    Visual inspection of PYROFLEX for uniform thickness, smoothness and no air pockets7.2.4
    
    Visual inspection of DUPLY for uniform coverage and tap test for bonding7.2.5
    
    Mortar samples taken per batch to ensure adequate set-up and workability7.2.6
    
    Visual and/or dimensional inspection of brick installation to ensure the lining is pockets
drawings and specifications, including checking for:
 7.2.6.1
    
    Adequate stagger of mortar joints7.2.6.2
    
    High-low between consecutive brick faces7.2.6.3
    
    Levelness of brick courses7.2.6.4
    
    Mortar joint thickness7.2.6.5
    
    Proper cut brick sizes7.2.6.6
    
    Properly culled brick with excessive chips or nicks
 2.0
    
    Supplier Audits




---



##### 



KOCH KNIGHT LLC
  REVISION: A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 9 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 8.1
    
    Within one month from the date of award of contract, internal audits will be
performed on all procedures noted in paragraph 4.0 of this document. An exception to
this commitment will be made for those procedures that had already been audited
within one month prior to that date. In all cases these procedures will be audited
every six months until the contract is complete.8.2
    
    Sub-contract suppliers used in the performance of this contract will all have
quality system that
conform to the requirements of AS/NZS ISO 9000 or the equivalent. All sub-contract
suppliers will be subject to audits per the existing audit plan. Each primary sub-contractor
(steel vessel fabricators, installation services for example) will be audited one month prior to
beginning fabrication or providing service.
 9.0
    
    Sub-contract Suppliers
 9.1
    
    It is the intention of Koch Knight LLC to obtain the services of a few key sub-contract
suppliers. Koch Knight will approve the quality and inspection and testing plans of all
sub-contract suppliers. The following products have been identified as those to be supplied by
sub-contractors.
 9.1.1 Titanium fabrication9.1.2 Installation services
 9.2
    
    Koch Knight will perform periodic in-process site inspections for all sub-contract supplied
items to verify all supplied items and services are in accordance with the project drawings and
specifications. These inspections will include site visits to the sub-contractor fabrication
facilities as deemed necessary. In-process inspection checks shall include the following.
 9.2.1
    
    Visual inspection9.2.2
    
    Dimensional checks9.2.3
    
    Progress monitoring9.2.4
    
    Sub-contractor quality control records including dimensional, material
certification and
NDE9.2.5
 9.3
    
    If the Koch Knight inspector or designate identifies a fabricated item or
installation service that
does not meet specification, he will describe the nonconformance in Section 1 
Originator
of the Nonconforming Material Report and turn it into the Project Manager for
review and




---



##### 



KOCH KNIGHT LLC
  REVISION: A
    
    East Canton, OhioDATE: 24 February 2009
    
    General Procedures
    
    Page 10 of 10
 TITLE
 Project Quality Plan  Lihir Autoclave No. 4
 MOPU-0035 and MOPU-1010
 disposition. If necessary, photographs will be attached for clarity.
In his absence the Engineering Manager or Construction Manager may decide
the disposition of item.The Project Manager or his designate will determine product disposition based on the
total effects of the nonconformity and document the decision on the Nonconforming
Material Report in Section 2- Disposition. If it is determined that the product
will meet customer requirements and application the customer will be contacted and
told of the nonconformance and provided a copy of the report. The customer will have
final say if the nonconforming item is acceptable. This acceptance must be in
writing and the release included with nonconformance disposition paperwork. The item
can then be acceptance stamped and fabrication or installation may proceed.




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Projecrt Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 Project Quality Plan
 For




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
  TABLE OFCONTENTS
    
    PAGE NUMBERProject Quality Plan Summary
    
    
    3SECTION 1Acceptance of Project Quality Plan
    
    
    4Scope
    
    
    5SECTION 2Project Management Structure and Quality Assurance Responsibilities
    
    
    62.1 Brief description of project
    
    
    62.2 Quality Management
    
    
    6Company Quality Policy Statement
    
    
    7Site Organisational Chart
    
    
    83.0 Responsibilities
    
    
    93.1 Managing Director
    
    
    93.2 Site Administration Officer
    
    
    93.3 Site Manger
    
    
    93.4 Site Supervisor
    
    
    93.5 Direct Labour
    
    
    103.6 Quality Inspectors
    
    
    103.7 Suppliers and Subcontractors
    
    
    10SECTION 3Quality Assurance Procedures
    
    
    111. Project Document Control
    
    
    122. Purchased Materials
    
    
    123. Commencement of Work
    
    
    134. Controlling Construction Processes
    
    
    135.Identification and Traceability
    
    
    146. Monitoring Subcontractors
    
    
    147. Control of Nonconforming Product
    
    
    148. Corrective and Preventitve Action
    
    
    169. Quality Records
    
    
    1610. Variations
    
    
    1711. Project Quality Audits
    
    
    1712. Induction and Training
    
    
    1713. Health and Safety Management
    
    
    1714. Enviromental Management
    
    
    17SECTION 4Examples of Standard Forms
    
    
    19




---



##### 



(KOCH LOGO)
    
    York Porter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 
 P.Q.P SUMMARY PAGE
 
 PROJECT:
    
    JOB No:
 LOCATION: 
DRAWING No:CLIENT:CLIENT CONTACT:
    
    PHONE:VFA SITE CONTACT:
    
    PHONE:BRIEF DESCRIPTION OF PROJECT
 SUPPLIER
    
    PRODUCT
    
    CERTIFICATE REQUIRED
 SUBCONTRACTOR
    
    WORK SUBCONTRACTED
    
    Q.A BY
    
    Q.A BY YFASUBCONT
 CHECKLISTS
    
    QUALIFICATIONS1. I.T.P2. SITE ESTABLISHMENT
    
    TRADES CERTIFICATE3. MATERIALS RECIEPT
    
    CONFINED SPACE4. DEMOLITION
    
    FORK LIFT LICENCE5. PROTECTIVE LINING
    
    MATERIAL HOIST6. INSTALL INSULATION
    
    TRUCK / BUS LICENCE7. INSTALL BRICKWORK
    
    OTHER8. INSTALL CASTABLE
    
    SITE SPECIFIC INDUCTION9. INSTALL GUNNING MATERIAL 
10. DAILY INSPECTIONS
    
    ACCREDITATION OF NOZZLEMAN11. FINAL INSPECTION12. TIME SHEETS
 TESTINGSITE SAFETY PLAN
    
    YES/NO
    
    MORTAR SAMPLESENVIROMENTAL CHECKLIST
    
    YES/NO
    
    BRICK TESTINGPROJECT QUALITY AUDIT
    
    YES/NOAPPROVED BY:DATE:
 ACCEPTANCE CRITERIA




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
  SECTION 1
  COMPANY:ACCEPTED BY:PRINT NAME:POSITION:DATE:
      COMPANY:
    
    
    
    POSITION:NAME:
    
    
    
    DATE:SIGNATURE:
    
    
    
    YFA REP:




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 SCOPE OF PROJECT QUALITY PLAN
  YORK FORTER AUSTRALASIA PTY LTD
  This project quality plan comprises general instructions and specific technical
procedures for project staff to follow, in accordance with YORK FORTER AUSTRALASIA ISO 9001
quality management system.
  SECTION 1.
    
    TITLE, ACCEPTANCE, CONTENTSSECTION 2.
    
    PROJECT MANAGEMENT STRUCTURE AND QUALITY ASSURANCE RESPONSIBILITIESSECTION 3.
    
    PROJECT QUALITY ASSURANCE PROCEDURESSECTION 4.
    
    PROJECT QUALITY ASSURANCE DOCUMENTATION




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 SECTION 2
 PROJECT MANAGEMENT STRUCTURE AND
 QUALITY ASSURANCE RESPONSIBILITIES
 2.1 BRIEF DESCRIPTION OF PROJECT:
 2.2 QUALITY MANAGEMENT
   ISO 9001




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 QUALITY POLICY STATEMENT
 YORK FORTER AUSTRALASIA Pty Ltd (YFA) was formed in 1974 and is now
established as one of the leading Independant Refractory Engineering Installation Companies in the Australasian region. With a reputation for providing a first class
and reliable service, the company is able to undertake new construction, repair and maintenance
contracts for a wide range of industrial applications. These contracts can range from supplying
skilled, specialist labour through to the management of complete projects involving the initial
supply of components right through to the completion of the total installation. No matter how large
or small the task, YFA has the expertise and flexibility to meet the challenge.
 The Management of YFA will ensure that quality is everybodys aim throughout the
organisation and that each employee has the proper understanding of the importance of the Quality System.
The organisational goal of the company is to provide continual
Training, Occupational Health and Safety Awareness and Refractory Installation Quality to ensure our success and sustained growth
within the Refractory Installation Industry, both nationally and internationally.
 Employing a permanent workforce of skilled and un-skilled installation personnel, YFA is able to
provide the specialist labour necessary for the skilful installation of refractory, insulation,
acid and wear resistant materials for all industrial applications. This Quality Manual outlines how
YFA meets the Quality requirements of ISO 9001:2000 which is applicable to all of our in house and
site operations. It is the policy of YFA to provide the customer with products which conform to all
aspects of accepted standards of workmanship and contractually specified requirements. In order to
meet these objectives, we have implemented a quality system which meets the requirements of ISO
9001:2000. These objectives shall be reviewed by YFA Management at regular intervals to ensure
corporate goals and customer expectations are being achieved.
 Managing Director
YORK FORTER AUSTRALASIA Pty Limited
May 2008




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1            16/06/08
S.Speers
 Site Organisational Chart




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
 3. RESPONSIBILITIES
  3.1 MANAGING DIRECTOR
  *
    
    compiling the Project Quality Plan, with assistance from the Site Manager:
 *
    
    Project Review
 *
    
    Determining and implementing corrective actions and preventive actions.
 3.2 SITE SAFETY/ ENVIRONMENTAL OFFICER
   3.3
PROJECT MANAGER
  *
    
    implementing the Project Quality Plan;
 *
    
    construction programming and precommencement activities;
 *
    
    selecting plant and equipment with suitable capability for the job;
 *
    
    preparation of subcontract documentation;
 *
    
    all testing, inspection and review necessary to demonstrate of the work with
contract
requirements;
 *
    
    maintaining a non conformance reporting system, including authority to restrict further
work pending disposition of nonconformance;
 3.4 SITE SUPERVISOR
 in-process




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
 3.5
DIRECT LABOUR
  3.6
QUALITY ASSURANCE/QUALITY CONTROL MANAGER
  *
    
    Rubber linings;
 *
    
    Epoxies;
 *
    
    Brickwork;
 *
    
    Insulation materials;
 *
    
    Mortar mixing;
 *
    
    Castables and gunning materials.
   3.7 FIRST AID ATTENDANTS.
 
 YORK FORTER AUSTRALASIA emergency contact numbers are as follows;
Project Manager
Site Supervisor
Safety Officer
QA Officer
All other relevant emergency contact numbers will be posted in crib sheds and YORK
FORTER AUSTRALASIA site office.
 3.8
SUPPLIERS AND SUBCONTRACTORS




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
   SECTION
3
  Q
 QP1: Document And Data Control
 QP2: Tenders And Receipt Of Orders
 QP3: Provision And Allocation Of Labour Hired Equipment
 QP4: Approved Suppliers And Subcontractors
 QP5:
Purchasing
 QP6:
Identification And Traceability
 QP7:
Monitoring, Measurement, Improvement
 QP8:
Customer Satisfaction / Dissatisfaction
 QP9: Control Of Maintenance And Service
 QP10: Control Of Measuring Devices
 QP11:
Internal Quality Audits
 QP12: Inspection And Testing
 QP13:
Control Of Non Conformities
 QP14:
Delivery, Preservation And Handling
 QP15:
Control Of Critical Records
 QP16: Resource Management




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
 1. PROJECT DOCUMENT CONTROL (see QP1)
        2. PURCHASED MATERIALS (see QP 5)




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
  3.
COMMENCEMENT OF WORK
  
  4.
CONTROLLING CONSTRUCTION PROCESSES (see QP12)




---



##### 



(YFA LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
 5. IDENTIFICATION AND TRACEABILITY (see QP6)
  6. MONITORING SUBCONTRACTORS (see QP4)
  7. CONTROL OF NONCONFORMING PRODUCT (see QP13)
     Minor Defects




---



##### 



(YFA LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
  Nonconformance in Construction
  a)
    
    Immediately arrange for the nonconforming work to be suitably identified by labels, flags,
markers or other appropriate means to distinguish it from conforming work or materials.
Wherever possible, physically isolate the nonconforming work.b)
    
    Immediately record the nature of the nonconformance on a Nonconformance Report NCR
001.c)
    
    Assess whether the construction process is likely to produce more nonconforming work
and whether further output should be restricted. Consider the significance of the
nonconformance and the progress of the project. Where appropriate, restrict production
until a rectification for the nonconformance has been resolved and note this on the
Nonconformance Report.d)
    
    Immediately examine the nature of the nonconformance and determine the appropriate
method for rectifying the problem. This may be by rework, repair, replacement or use-as-is.
Record the rectification method and when you intend to undertake it, on the
Nonconformance Report.e)
    
    Where the proposed rectification involves a change from the design plans or YORK
FORTER AUSTRALASIA Standards, submit a copy of the Nonconformance Report to the
Site Manager for concurrence to the rectification. Do not commence rectifying the
nonconformance without the concurrence of the  Site Manager (and from YORK FORTER
AUSTRALASIA; if  applicable).f)
    
    Where the Site Supervisor has determined the rectification in the absence of the Site
Manager, the Site Manager shall review the Nonconformance Report to determine if any
further action is needed.g)
    
    The rework, repair or replacement shall be inspected or tested in accordance with the
Inspection and Test Plan or as otherwise agreed with the Site Manager to ensure that the
required qualify has been achieved. This shall be confirmed on the Nonconformance
Report.




---



##### 



(YFA LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
 h)
    
    If required by YORK FORTER AUSTRALASIA, a HOLD POINT shall apply prior to
covering up rectification work. In such cases notify the Site Manager when the
rectification work has achieved conformance.
 Subcontractor Non conformances
    8. CORRECTIVE AND PREVENTIVE ACTION (see QP13)
   9. QUALITY RECORDS (see QP15)
 The site Supervisor shall promptly file quality records at the site in lever-arch folders,
grouped as follows:
 
    
    Construction Processes  For each process, include ITP Checklists, test results and daily
inspections separately for each lot or work area.
    
    Supplied goods and Materials-For each supplier, include delivery dockets, receiving
inspection records, certificates etc.
    
    Nonconformance Records
    
    Site Safety Records




---



##### 



(YFA LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers
  10. VARIATIONS
  11. PROJECT QUALITY AUDITS (see QP11)
 YES
 12. INDUCTION AND TRAINING (see QP16)
   13. HEALTH AND SAFETY MANAGEMENT
   YORK FORTER AUSTRALASIA,
 14. ENVIRONMENTAL MANAGEMENT
   SPILLS/LEAKAGE TO GROUND, DUST, NOISE, WASTE DISPOSAL.




---



##### 



(KOCH LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan 
YFA-039
Rev. 1      |     16/06/08
S.Speers




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Project Quality Plan
YFA-039
Rev. 1     |     16/06/08
S. Speers
  SECTION 4
  * CONSTRUCTION SCHEDULE (TO BE ISSUED ON A WEEKLY BASIS)
    
    þ* VESSEL TAKE OVER CERTIFICATE
    
    þ* VESSEL RELEASE CERTIFICATE
    
    þ* SITE MANNING SHEET
    
    þ* EMPLOYEE TIME SHEET
    
    þ* CHANGE IN SPECIFICATION
    
    þ* CONTACT RECORD SHEET
    
    þ* INSPECTION and TEST PLANS
    
    þ* EQUIPMENT HIRE REGISTER
    
    þ* ENTRY PERMIT CONFINED SPACE
    
    þ* CONFINED SPACE RECORD SHEET
    
    þ* CHECKLIST PRIOR TO STARTING WORK
    
    þ* DAILY INSPECTION SHEET  REFRACTORIES
    
    þ* DOCUMENT REGISTER
    
    þ* CASTING SHEET
    
    þ* NON  CONFORMANCE REPORT
    
    þ* INCOMING INSPECTION REPORT
    
    þ* SITE PROGRESS REPORT  DAILY
    
    þ* YFA DRUG AND ALCOHOL POLICY
    
    þ* YFA ENVIRONMENTAL POLICY
    
    þ* ACCIDENT LOG
    
    þ* RISK ASSESSMENT
    
    þ* ENVIRONMENTAL PLAN
    
    þ* SITE SAFETY PLAN
    
    þ* EMPLOYEE INDUCTION HANDBOOK
    
    þATTACHMENTS
 Page 19 of 19




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
 LEGEND:W=Witness R=Review H=HoldSTP No.
    
    
    CONTRACT
    
    
    CONTRACT
    
    
    SU=Survellance I=In HouseCONTRACTOR CONTACT
    
    
    CONTRACTOR
    
    
    
    
    
    
    
    
    
    
    REV No.
    
    
    No.
    
    
    ITEM No.
    
    

S=SubcontractorLOCATION
    
    
    QUALITY
    
    
    CONTROLLING
    
    
    APPROVAL
    
    
    DESCRIPTION OF ITEM OR SERVICE
    
    
    VESSEL. No.TASK
    
    task
    
    
    CODE
    
    
    CONTROL
    
    
    PROCEDURE OR
    
    
    ACCEPTANCE
    
    
    VERIFYING
    
    

INSP.
REQ. - W/H/R/SU/S
    
    
    
    
    
    
    SIGNATURESNo.
    
    DESCRIPTION
    
    
    (1 or 5)
    
    
    ACTIVITY
    
    
    INSTRUCTION
    
    
    CRITERIA
    
    
    DOCUMENTS
    
    
    CONTR (YFA)
    
    
    INSPECT.
    
    
    
    
    
    
    
    
    
    
    SUPT.
    
    
    CONTRACTOR(YFA)1234
 Page 1 of 1




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Casting Record Sheet 
YFA-020 
Rev. 1     |     12/06/08
A. Richmond
 CASTING RECORD SHEET
 CLIENT:CONTRACT DESCRIPTION:YFA JOB REF No:
    
    CLIENT JOB REF No:
 DATE:
    
    
    
    /
    
    
    
    /
    
    
    
    
    
    AREA:
 POSITION:
 MIXING
    
    MATERIAL
    
    WATERSTART
    
    FINISH
    
    DURATION
    
    WEIGHT
    
    VOL
    
    TEMP
    
    BATCH No.
 Material Type:
    
    
    
    
    
    Weather Conditions:
 Material Manufacturer:
    
    
    
    
    
    Total Material Placed:
 Material Date of Manufacture:
    
    
    
    
    
    Sample Required?
    
    YES / NO
 Material Temperature:
    
    
    
    
    
    Sample Number:
 Ambient Temperature:
    
    
    
    
    
    (If yes, record batch number on sample)
 Completed By:
 Supervisors Signature:




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Daily Inspection  All Types 
YFA-021 
Rev. 1     |     12/06/08
A. Richmond
 DAILY INSPECTION SHEET  REFRACTORIES
 CLIENT:CONTRACT DESCRIPTION:YFA JOB REF No:
    
    CLIENT JOB REF No:SECTION OF PLANT BEING WORKED ON:
 INSPECTED BY:
    
    
    
    
    
    SIGNATURE:
 INSPECTION DATE:
    
    
    
    /
    
    
    
    /
 CERAMICCHECK LIST
    
    BRICKWORK
    
    
    CASTING
    
    
    GUNNING
    
    
    RAMMING
    
    
    FIBREManufacturer:Material Type:Batch Number:Identification Mark:Installation Surface Clean:Anchor Condition:Joint Condition:Expansion Joint Condition:Type of Mortar being Used:
    
    
    
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/AMortar Batch
No:
    
    
    
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/A
    
    
    
    N/AFormwork Condition:
    
    
    N/A
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N/AAmbient Temperature:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N/AWater Temperature:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N/AWater Quality:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    N/AFinal Inspection: (Initials).




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Document Register Form
YFA-022
Rev. 1     |     12/06/08
A. Richmond
 
 DOCUMENT REGISTER
 
 Job Description
    
    YLI No.
 DOCUMENTDOCUMENT NAME
    
    REF No.
    
    STATUSC
    
    U
 
 C = ControlledU = Uncontrolled




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Incoming Inspection Report
YFA-027
Rev. 1     |     12/06/08
A. Richmond
 INCOMING INSPECTION REPORT
 CLIENT:CONTRACT DESCRIPTION:YFA JOB REF No:
    
    CLIENT JOB REF No:
 DATE:
    
    
    
    
    
    TIME:
 MATERIAL
/ ITEM
 PURCHASE ORDER NUMBER:DESCRIPTION:PROJECT:
 TEST CERTIFICATES RECEIVED      YES/NO
 INSPECTION REPORT
 VISUAL INSPECTION:
 DIMENSIONAL CONFORMANCE:
 AS PER PURCHASE ORDER          YES/NO
 NON CONFORMANCE REPORT ISSUED
 YES:
 NO: NOT REQUIRED
 INSPECTED BY:
    
    
    
    
    
    DATE:




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Non Conforrmance Report
YFA-034 
Rev.1        |     12/06/08
A. Richmond
 NON CONFORMING PRODUCT / CORRECTIVE ACTION REPORT
 a. Product / Work Identification
    
    Job No. :Client :Project :Supplier:
    
    Serial/Part No. :Purchase Order No. :
    
    Product Description :Drawing No. :Quantity:Date:Originator :b. Cause and Description of
    
    c. Corrective Action to ResolveNon-Conformance
    
    Root Cause
  The above requires your prompt attention for correction or
resolution
 DISPOSITION:
    
    REJECT:
 Please Initial
required
disposition.
    
    REPLACE:REPAIR :
 ACCEPT AS IS:
 CLIENT INSP REQD :
 RE-INSPECT AFTER REPAIR:
   d. Corrective Action Detail
    
    e . Corrective Action AcceptanceAction Required To Prevent Recurrence
    
    Completion Date :Client rep :Date :YFA rep :Date :Corrective Action Implemented :
    
    YES / NOQ.A Final Review NCR Closed :
    
    YES / NO
    
    Date :




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Site Shift Report (Internal)
YFA-044 
Rev. 1        |     12/06/08
A. Richmond
 SITE PROGRESS REPORT  PER SHIFT (Internal Only)
 CLIENT:CONTRACT DESCRIPTION:YFA JOB REF No:
    
    CLIENT JOB REF No:
 ORIGINATOR:
    
    
    
    
    
    SIGNATURE:
 SHIFT:
    
    
    
    
    
    DATE:___/ ___/ ___
 Qty Removed or InstalledItem
    
    Description
    
    (or % Done) for Shift123456789101112
   SIGNATURE (YFA):
    
    
    
    
    
    DATE:___/ ___/ ___




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Vessel Release Certificate
YFA-047 
Rev. 1        |     12/06/08
A. Richmond
 
 COMPLETION OF WORKS
VESSEL RELEASE CERTIFICATE
 
 CLIENT:
    
    
    
    
    
    
    
    CLIENT KEF No:CONTRACT:YFA REF No:
 SECTION OF PLANT WORKED ON:
 completed
 CLIENT:APPROVED BY:
    
    Name:Position:Signature:Date:___/ ___/ ___INSTALLED BY:
    
    
    
    YORK FORTER AUSTRALASIA.WITNESSED BY:
    
    Name:Position:Signature:Date:___/ ___/ ___COMMENTS:




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Vessel Take Over Certificate
YFA-048 
Rev. 1        |     12/06/08
A. Richmond
 
 COMMENCEMENT OF WORKS
VESSEL TAKE OVER CERTIFICATE
 
 CLIENT:
    
    
    
    
    
    
    
    CLIENT KEF No:CONTRACT:YLI
REF No:
 SECTION
OF PLANT TO BE WORKED ON:
 possession
 CLIENT:APPROVED BY:
    
    Name:Position:Signature:Date:___/ ___/ ___INSTALLED BY:
    
    
    
    YORK FORTER AUSTRALASIA.WITNESSED BY:
    
    Name:Position:Signature:Date:___/ ___/ ___COMMENTS:




---



##### 



(LOGO)
    
    York Forter Australasia Pty Ltd
    
    Work Method Statement 
YFA-1124 
Rev.1     |     23/02/09
S. Speers
 WORK METHOD STATEMENT
    Item
    
    Work Procedure
    
    Major Hazards123456




---



##### 



York Forter Australasia Pty Limited
ABN 11 280 836 918
 Unit 303 1B George Street MAYFIELD EAST NSW 2304 AUSTRALIA
  AS/NZS ISO 9001:2000
   Registered by:
 
  Certificate No.:
    
    QEC21609
    
    Certified Date:
    
    14 March 2005Issue Date:
    
    16 May 2008
    
    Expiry Date:
    
    13 March 2011
 (SIGNATURE)Alex Ezrakhovich General Manager Certification for and on behalf of SAI Global Limited
    
    (SIGNATURE)
Authorised Local Signatory, SAI Global
 (PICTURE)
    
    (PICTURE)




---



##### 



Kochs Proposal




---



##### 



LIHIR SERVICES AUSTRALIA PTY LTD
 
 Koch Australia, Koch Knight Division
Proposal 692 08 5893 A4
16 June 2009




---



##### 



(KOCH KNIGHT LOGO)
    
    A Division of Koch Australia Pty Ltd.
  Lihir Services Australia Pty Ltd        www.lglgold.com
 Subject: MOPU-0035, MOPU-0063, and MOPU-1010, Knight ###-##-####, Autoclave Lining
   OFFER SUMMARY
 
    
    Under MOPU 1010, all lining materials including titanium compartment walls and
nozzle liners will be provided.
    
    Under MOPU0063, the PYROFLEX® RESIBOND® DuPly Membrane System will be installed
at the fabricator shop in Malaysia before the autoclave shell ships.
    
    Under MOPU0035, the brick lining will be installed after the shell is in place at the
Lihir PNG site.
 LINING DESIGN AND SUPPLY, MOPU1010
  INSTALLATlON AND FIELD SERVICES
 IN MALAYSIA, MOPU0063
  IN LIHIR ISLAND, MOPU0035
  Registered Office: Suite 6 Level 1186-190 Church Street  P.O. Box 1451  Parramatta, NSW 2124  A.B.N.70 080 357 366
Perth Office, Phone     ; Fax 61-8-9368-4074, www.kochknight.com




---



##### 



LGL MOPU-0035, MOPU0063, MOPU-1010
Knight ###-##-#### A4 Rev 4.1
    
    16 June 2009
Page 3 of 7
     PRICES
    
    USD, AUD As NotedMOPU-1010: MATERIALS SUPPLY Autoclave Lining Materials, Firm Price FOB Rail Point Cleveland Ohio
    
    $ Titanium Baffles, Compartment Walls, and Nozzle Parts, Price Firm, Validity date
for ordering metal 30 June 2009, FOB Brisbane
    
    $MPOU-1010: Materials Supply Total
    
    $ Additional Item: Estimated Freight CIF Brisbane and Kuala Lumpur (for Membrane
only)
    
    $MOPU-0035: Labour & Services for Brick Lining Installation at Lihir Island Koch Knight Services, Firm Price to 30 September 2011
    
    $ York-Forter Subcontract, Firm price to 30 September 2011, in Australian Dollars
    
    $ Registration, visas, work permits for YFA and Koch, locally sourced insurance
coverage in PNG
    
    $ Travel for Crew to Cairns instead of Brisbane to Meet LGL Transport
    
    $ One Lot Lead Abatement PPE
    
    $ One Internal Scaffolding
    
    $Prices good for orders placed before September 2010MOPU-0035: Lining Installation in PNG, AUD Currency Total
    
    $USD Currency Total
    
    $




---



##### 



LGL MOPU-0035, MOPU0063, MOPU-1010
Knight ###-##-#### A4 Rev 4.1
    
    16 June 2009
Page 4 of 7
 PRICES
    
    USD, AUD As Noted Optional Item: Site Holiday Shutdown ( Secure Tools and
Materials, Travel in/out of Cairns, Reset Tools and Materials)
    
    $ Optional Major Tools, Shipment Before 1 September 2010:o One Mobile Dust Collector (Negative Air Unit), Each
    
    $o Three Environmental Control-AC Units, Each
    
    $MOPU-0063: Services, Labour, Expenses, Equipment for
PYROFLEX Membrane Installation in Malaysia Koch Knight Installation Services
    
    $ Visas, work permits, registration in Malaysia
    
    $ Lodging, Food, In Country Travel by Koch Knight Personnel
    
    $MOPU-0063: Membrane Installation in Malaysia Total
    
    $
    Standard Delivery, Manufacturing and Installation Program
  Activity
    
    Approximate DurationLining Drawings and CalculationsApproval by clientTitanium component submittal drawingsAutoclave brick, membrane manufactureTitanium component fabricationShipping Time to Brisbane or Malaysia, All MaterialsAutoclave Membrane Installation at the FabricatorShipping Time, Vessel Shell to LGL, and Erect BuildingAutoclave Brick, Compartment Walls Installation OnsiteTotal time to complete lining, Standard Delivery




---



##### 



LGL MOPU-0035, MOPU0063, MOPU-1010
Knight ###-##-#### A4 Rev 4.1
    
    16 June 2009
Page 5 of 7
 Considerations Regarding Installation of the Membrane and Brick Lining Components
 1.
    
    Membrane installation in Malaysia will be in the fabricators shop, with the shell in
a closed area on its saddles, stationary, surface prep complete and primed, with full
utilities including gas fuel supply, site facilities, humidity control, and access to the
vessel all provided by others2.
    
    Brick installation into the vessel will begin after the vessel is set in the
permanent building at the site3.
    
    Hole watch personnel and vessel entry controls and documentation will be by LGL.4.
    
    LGL shall provide priority access to the overhead crane for several hours daily, and
a forklift plus other materials handling services for stocking lining materials from the
laydown area to the work site. This includes moving contractor equipment needed during the
installation.5.
    
    Crews will have free and clear access to the man-ways and agitator openings of the
vessels via the permanent building structure, must be adequate for materials staging and
access to the vessel entry points.6.
    
    Lead monitoring and control protocols needed while installing the GLYSIL 90 litharge
mortar are included. This includes disposable coveralls for use during the GLYSIL 90
Mortar Installation.7.
    
    The autoclave work area must include area fan cooling, protection from the weather,
and shielding the shell from direct sunlight.8.
    
    LGL to provide for a four desk site office trailer and crib room, all air conditioned
and secured. A tool crib/container by York is included, delivered to Brisbane and set on
site by LGL.9.
    
    All work, storage and crib areas must be vehicle accessible in all site weather
conditions. Accessible covered storage space, nominal 12 m by 6 m, adjacent to the
construction site (maximum 50 metres away) shall be made available for storage of
materials and equipment.10.
    
    The York-Forter crew will work 12 hour days, 13 day fortnights, off every other
Sunday. R&R rotation on a 28 day schedule. A similar schedule will apply to the membrane
installation in the fabrication shop.11.
    
    The owner shall provide and maintain utilities, including an ablution block with
potable water and sewerage hookups, construction water, electricity 220 and 440v including
hookups, and transport for personnel, materials and equipment to/from the work area and
generally within the LGL site.12.
    
    Removal and replacement of all covers, process piping and connections, process
gaskets, and other items required for access will be by others.13.
    
    Emergency Medical Facilities will be available to our crews on a 24hr/day basis,
provided at no cost by others.14.
    
    The owner will furnish protection from process fumes and other plant conditions which
may interfere with our crew performing work.15.
    
    We have not included services for any extended acid-cure. Detailed start-up and
cool-down process condition requirements will be included as part of the documentation
with the order.16.
    
    Construction debris including GLYSIL 90 lead oxide mortar waste is to be placed in
owner provided containers for disposal by owner.
 Commercial Considerations




---



##### 



LGL MOPU-0035, MOPU0063, MOPU-1010
    
    16 June 2009Knight ###-##-#### A4 Rev 4.1
    
    Page 6 of 7
      Additional Items to Follow
  
    
    Recommended commissioning procedure, allows taking unit direct to operation without
acid curing.
    
    Startup and shutdown operating procedures recommendations.
    
    Executed copies of the contract documents to be prepared by LGL.
  
    
    An extended firm price commitment for the York-Forter installation services
past 30 September 2011.
    
    A maintenance agreement for subsequent inspections of this vessel, the other
autoclave trains, and other lined equipment.
    
    Prices for additional vessels, lined piping, etc. that are part of this system.
    
    Prices for spare parts.
    
    Knight can offer to purchase the required shipping containers for the lining
materials as an extra item. Purchased containers will not risk demurrage charge
assessments at loading or delivery to port, and can be held fully packed in Brisbane until
Lihir Island is ready to take delivery. Some of these containers can be outfitted for
temperature control to extend the life of the chemical mortars during transit, while
awaiting onward shipment, and while at site.
    
    Other items that are of value to Lihir can be offered on request.




---



##### 



LGL MOPU-0035, MOPU0063, MOPU-1010
    
    16 June 2009Knight ###-##-#### A4 Rev 4.1
    
    Page 7 of 7




---



##### 



Minutes of Post Tender Meetings
 Table of Contents
 th  st  rd  th th




---



##### 



MINUTES OF POST TENDER MEETING #4
    
    PAGE 1WORK PACKAGE MOPU-1010 & MOPU-0035
    
    9th and 10th June, 2009
 MINUTES OF MEETING
 MEETING TYPE:
    
    POST TENDER MEETING #4
WORK PACKAGE
    
    MOPU-1010 & MOPU-0035TENDERER:
    
    Koch Australia Pty LimitedDATE:
    
    9thJune 2009 and 10thJune 2009.VENUE:
    
    LSA Corporate Office, BrisbaneATTENDEES:
    
    LGL
    
    Contractor (Koch)
  Koch Australia Pty Limited Koch.
 MOPU-1010:
 Clause 5
         Clause 10
   Clause 13




---



##### 



MINUTES OF POST TENDER MEETING #4
    
    PAGE 2WORK PACKAGE MOPU-1010 &MOPU-0035
    
    9th and 10th June, 2009
 Clause 15 and 16
     Clause 19
  Clause 23
  Clause 26
 nd
 Clause 27
 th th
 Clause 31
   Proforma Bank guarantee proposed by Koch on 1 June 09:
  MOPU-0035 and MOPU-0063:
   nd rd




---



##### 



MINUTES OF POST TENDER MEETING #4
    
    PAGE 3WORK PACKAGE MOPU-1010 & MOPU-0035
    
    9th and 10th June, 2009




---



##### 



MINUTES OF POST TENDER MEETING #4
    
    PAGE 4WORK PACKAGE MOPU-1010 & MOPU-0035
    
    9thand 10th June, 2009
   th
               Tender Forms
   MOPU-0035.
 th th




---



##### 



MINUTES OF POST TENDER MEETING #4
    
    PAGE 5WORK PACKAGE MOPU-1010 & MOPU-0035
    
    9th and 10th June, 2009
 Closing
 th
    th th
 Minutes Recorded
    
    Minutes acceptedfor and On Behalf of
    
    For and On Behalf ofLGL
    
    Koch
 Date: 10/06/09
    
    Date:




---



##### 



MINUTES OF POST TENDER MEETING #3
    
    PAGE 1WORK PACKAGE MOPU-1010 & MOPU-0035
    
    03/06/2009
 MINUTES OF MEETING
 MEETING TYPE:
    
    POST TENDER MEETING #3WORK PACKAGE          MOPU-1010 & MOPU-0035TENDERER:
    
    Koch Australia Pty LimitedDATE:
    
    3rdJune 2009VENUE:
    
    LSA Corporate Office, BrisbaneATTENDEES:
    
    LGL
    
    Contractor(Koch)
  Koch Australia Pty Limited Koch.
 MOPU-1010:
  longer
        longer.




---



##### 



MINUTES OF POST TENDER MEETING #3
    
    PAGE 2WORK PACKAGE MOPU-1010 & MOPU-0035
    
    03/06/2009
     nd th
      Proforma Bank guarantee proposed by Koch on 1 June 09:
  MOPU-0035 and MOPU-0063:
 th
   Minutes Recorded
    
    Minutes acceptedfor and On Behalf of
    
    For and On Behalf ofLGL
    
    KochDate: 03/06/09
    
    Date:




---



##### 



MINUTES OF POST TENDER MEETING #2
    
    PAGE 1WORK PACKAGE MOPU-0035 & MOPU-1010
    
    01/04/2009
 MINUTES OF MEETING
 MEETING TYPE:
    
    POST TENDER MEETING #2WORK PACKAGE          MOPU-0035 & MOPU-1010TENDERER:
    
    Koch Australia Pty LimitedDATE:
    
    1stApril 2009VENUE:
    
    LSA Corporate Office, BrisbaneATTENDEES:
    
    LGL
    
    Contractor(Koch)
  Koch Australia Pty Limited Koch:
 1.
    
    Price Basis Discussion:Price basis for below prices includes Lining system, ex works, with installation, no freight.for March; made up of the following components: 1.2, 1.7,
0.4, 3.6for January, difference  Koch advised that the January proposal made
incorrect statement with regard to End date of September 2011, compared with 2010.
Koch reported that YF quote was to 2010, not 2011 as erroneously stated. YF reported
that the cost increase between March offer and Jan number relates to labour cost
differences.LGL stated that it did not accept this statement, as 2011 date was included in the
November submission (York Forter attachment to Kochs tender). Koch to confirm the
price basis is to September 2011, with pricing to compare with January submission,
not increased cost as proposed within the March proposal.Koch informed the meeting that the Brick lining installation is YFs scope, Pyroflex
is Kochs installation. figure includes Kochs installation, utilising light gauge
scaffold and utilisation of local labour, with W.E. Smiths assistance in sourcing
this labour. Pyroflex installation is now included within MOPU-1010.LGL requested that Kock resubmit their quotation to clearly reflect the above noted
pricing structure.2.
    
    Visa / Work Permits Proposal:Koch reported that it would be around per person. Proposal will be sent to LGL.
Approximately 40 persons will require visas. This will include Malaysia component as
well. Approx 5  6 for Malaysia, balance for PNG.LGL informed Koch that it would be required to have PNG Foreign company registration
and certification. Details of the government website were provided to Koch for their
information and consideration. (I cant find the e-mail with the web address -we
should insert the address here for completeness)




---



##### 



MINUTES OF POST TENDER MEETING #2
    
    PAGE 2WORK PACKAGE MOPU-0035 & MOPU-1010
    
    01/04/2009
 3.
    
    Titanium:Koch informed the meeting that five vendors provided pricing for Kochs
proposal, and they all stated that pricing offered had been on the down swing at the
time of the original quote, and could not be reduced any further. The validity
period can be extended, Koch to confirm new validity period.Koch offered for LGL to purchase Ti directly. LGL advised Koch that at this point in
time, the Ti would remain in Kochs scope.4.
    
    Payment Milestones:MOPU-1010:LGL agreed to the proposed amendment to the MOPU-1010 payment milestone
schedule, as noted in red above.MOPU-0035Koch advised that the proposed schedule for MOPU-0035 is acceptable.5.
    
    Drawings:Autoclave building elevation drawings to be issued to Koch for information
purposes.




---



##### 



MINUTES OF POST TENDER MEETING #2
    
    PAGE 3WORK PACKAGE MOPU-0035 & MOPU-1010
    
    01/04/2009
 6.
    
    Email 26/3/09 (further questions / clarifications) Discussion:
 1.
    
    Single mob / demob
 
    
    Price includes allowance for personnel mob / demob
    
    It is LGLs intention for the work to carry
on through Easter, should the schedule of works fall at this time.
Kock to confirm this is included in their price
    
    LGL may include Christmas break
    
    Kock advised that a Christmas break is not included in their price as
reflected in their proposed schedule. However a Christmas break would not
include a full mob / demob, only personnel
    
    Key dates from LGLs schedule will be provided to Koch, once available
 2.
    
    Pyroflex installation- utilisation of rollers
 
    
    No benefit to be had by utilising rollers
    
    Koch will not utilise rollers
 3.
    
    Tender Validity
 
    
    Koch to advise revised validity period
 4.
    
    Contract start / documents
 
    
    LoA taking 0035 as an example, creates
contract b/w parties, represented by everything we have done
collectively to come to that point, LoA wording mirrors that of that
in the documents.
    
    Instrument of Agreement is the covering note
for contract. The contract will include the LoA.
    
    Koch advised that their legal review had not been complete, and
suggested a wholesale review of the documentation. LGL advised that this
was not acceptable and would take an extended period of time to sort
through.
    
    Koch requested that some form of commitment
be made between LGL and Koch such as a Letter of Intent. LGL advised
that it would not make a commitment.
    
    LGL need to know exactly what Koch disagree
with in terms of the commercial terms and conditions prior to
advancing any further. LGL requested Koch to continue with the
contract negotiations, in order to be further considered in this
process, as LGL consider the commercial aspects of Kochs offer to be
equally important as the technical aspects and that until LGL know the
full extent of Kochs requested changes to the terms and conditions
they will be unable to progress towards any potential award. LGL
advised that they will respond to Kocks latest version of the
departures matrix for both MOPU-0035 and MOPU-1010 within a couple of
days and requested that Koch expedite their further response to this.
 5.
    
    Sheet 10/B Sheet 1, Agreed that this form was not applicable now.6.
    
    Sheet 10/B Sheet 2, typo with hourly rates, should be daily rates.7.
    
    Schedule to be revised8.
    
    Malaysian installation will be a third contract; LGL
consider the form of contract will be as per MOPU-0035, with some variation
to allow for Malaysian basis, in lieu of PNG basis. Koch to provide
breakout pricing for the Pyroflex supply and installation, for LGLs
consideration. Koch to re-submit pricing for correct split between
proposed contracts
 7.
    
    Email 25/3/09 (post tender meeting deliverables) Discussion:
 1.
    
    Insurances must comply with the requirements of the PNG
insurance act, with risks based in PNG, to be insured by PNG based insurer,
unless an exemption is obtained.2.
    
    Pyroflex pricing breakdown to be provided by Koch.3.
    
    Ti Price confirmed as CIF Brisbane.4.
    
    Price basis from YF to be reviewed by Koch.
 8.
    
    Post Meeting Note
 LGL has recently been advised that for work carried out in PNG (MOPU-0035),
LGL is obligated to make the payment in PNG Kina, regardless of the currency of
the contract.




---



##### 



MINUTES OF POST TENDER MEETING #2
    
    PAGE 4WORK PACKAGE MOPU-0035 & MOPU-1010
    
    01/04/2009
  Minutes Recorded
    
    Minutes acceptedfor and On Behalf of
    
    For and On Behalf ofLGL
    
    KochDate: 01/04/09
    
    Date:




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 1WORK PACKAGE MOPU-0035
    
    19/2/2009
 MINUTES OF MEETING
 MEETING TYPE:
    
    POST TENDER MEETINGWORK PACKAGE          MOPU-0035TENDERER:
    
    Koch Australia Pty LimitedDATE:
    
    19thFebruary 2009VENUE:
    
    Lihir Island OperationsATTENDEES:
    
    LGL
    
    Contractor (Koch)
  Koch Australia Pty Limited Koch.
  1.
    
    Safety and EnvironmentDiscuss the Kochs submission in accordance with clause 2.5.4 (m) of the Tender
document.
 o
    
    To be submitted by Koch (for both Koch & YF)
 2.
    
    Tender Form 3/A  Notices of Explanation:LGL advised that there were threeNotices of
Explanation issued during the Tender period.
 o
    
    MOPU-0035-L Invitation to Tender  Autoclave
Internal Equipment  Installation  Notice to Tenderers #1 (Issued
8/11/08)o
    
    MOPU-0035-L Invitation to Tender -
Autoclave Internal Equipment Installation  Notice to
Tenderers #2 (Issued 13/11/08)o
    
    MOPU-0035-L Invitation to Tender -
Autoclave Internal Equipment Installation  Notice to
Tenderers #3 (Issued 26/11/08)
 Kochconfirmed that it had included all of these Notices.
 3.
    
    Tender form 3/B  Addendum:LGL advised that there were no
Addendum (a) issued during the Tender period.4.
    
    Tender Form 3/C  Tender Form:LGL asked if this form had been submitted in accordance with
Clause 2.5.2 of the Conditions of Tendering. Koch to submit the form, with appropriate
signatory.




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 2WORK PACKAGE MOPU-0035
    
    19/2/2009
 Kochconfirmed that their Tender Price as , and needs to have the installation
of the Pyroflex removed and added to the supply contract MOPU-1010. The Tender Price
has a mjor component of at an exchange rate of toKochconfirmed that their Tender Price was based upon an Award date of
31st March, 2009 and a latest practical completion date of 30thSeptember, 2011 and complied with LGLs nominated key dates. YF noted that
their annual wage increases occur at the end of September each year.5.
    
    Tender Form 3/D  Interrelationship of Corporations:LGL advised that the form as submitted was acceptable as submitted, but needs to be
signed and resubmitted.6.
    
    Tender Form 3/E  Deed of Guarantee, Undertaking and Substitution:LGL advised that if Koch
were awarded this Contract that a Deed of Guarantee, Undertaking and Substitution would be
required. Koch to sign and resubmit this form.7.
    
    Tender Form 3/F  Departures From Specifications and Tender Documents:LGL requested Kochto
confirm that there were no other departures from Specifications and Tender Documents than as
detailed on this form.Kochconfirmed that there were no other departures, apart from those noted within the
submission. Koch to sign and resubmit this form.
 o
    
    Hole watch personnel and vessel entry control by LGL  notedo
    
    Dedicated materials handling equipment by LGL  noted.
YF noted that a crane may not be required full time, if works scheduled
well. Driver allocated for the forklift by YF.o
    
    Crews will have free and clear access to vessel, etc  Agreedo
    
    Monitoring included by Koch  agreedo
    
    Weatherproof or roofed structure required to be
in place -Agreedo
    
    Fan cooling to autoclave required by Koch, supplied by
LGL -Agreed. Koch noted that this is both internal and external cooling.o
    
    Office trailer / crib room / tool crib not
provided by Koch (contrary to written submission)  noted
 o
    
    YF stipulated requirement of space
for 4 office staff, 1 phone line, fax lineo
    
    Crib room space for 20 personnel  air con, fridgeo
    
    Tool crib included in YF scope, supplied to Brisbane.o
    
    Covered storage space  YF noted will
require a 12 x 6m space.
 o
    
    YF working hours  12 hours days, 13 day fortnight.
Every second Sunday noted included. RDOs banked by YF, so that no days off
apart from every second Sunday. Rotation of every 28 days  noted




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 3WORK PACKAGE MOPU-0035
    
    19/2/2009
 o
    
    Owner shall maintain utilities, ablutions, etc -Agreed.o
    
    Water usage  equipment washdown (not potable),
drinking water (potable). Agreedo
    
    415 and 240V supplied by LGL  Agreedo
    
    Removal and replacement of covers  by others  Agreedo
    
    No piping to be connected to Autoclave  agreedo
    
    Access to Emergency crews 24 hrs per day to be
provided by LGL  agreedo
    
    Protection from process fumes  agreedo
    
    Disposal of lead mortar  by LGL  agreedo
    
    YF letter 22nd Nov  Page 2
 o
    
    Additional line items costs  notedo
    
    Koch includes Ti wall installation
(although excluded by YF)o
    
    Installation of scaffold is included in both caseso
    
    Laundering facility -
decontamination area required by YF  notedo
    
    YF get workers compensation whilst in PNGo
    
    Koch also requires this PNG workers compensationo
    
    Only allowed 2 hrs for inductions.
LGL clarified post meeting, that up to 3 inductions may be
required, taking 2 days in total.o
    
    Clause 37  LGL takes issue with
this clause (specifically should company be divested, order would
be immediately terminated)  notedo
    
    Clause 38  needs to be mutual
determination, not YF determination.
 8.
    
    Tender Form 3/G  Key Personnel:Kochconfirmed that those personnel nominated on this Tender form would be fully
available for this Work Package, however was unable to nominate specific XX and XX
personnel at this time.Kochwould assign a project manager (probably), who would be primary point of contact
would report to KB. Mason superintendent on site (4/5 available with 20+ years
experience).Koch designated Project Manager would be authorised to accept documents or notices
from LGL, price extra work, and correspond with LGL in relation to financial and
confidential matters.Koch to sign and resubmit this form.9.
    
    Tender Form 3/H  List of Current Projects:LGL noted that Kochhad several current projects in progress, and asked how this
would affect this Work Package if awarded to Koch. Kochadvised that most projects
turn over in 6 -12 months, and that there is only one project that may overlap with
the LGL projects. YF advised that they have no issues with placement of personnel on
site.LGL noted these statements.Koch to sign and resubmit this form.




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 4WORK PACKAGE MOPU-0035
    
    19/2/2009
 10.
    
    Tender Form 3/I  Wages, Allowances and Employment Conditions:LGL confirmed that the site working hours were 24 per day. Kochconfirmed that its
price was based upon working 12 hrs / day, 13 days per fortnight.Kochconfirmed it had allowed an R&R roster of 28 days on, 7 days off (including
travel).LGL stated that rostered time off site for personnel must be staggered to ensure a
smooth continuity of work on site. Kochagreed to do this.Kochconfirmed that it had not allowed to provide crib huts in
accordance with all relevant requirements.LGL advised that toilet facilities would be provided for the use by the Contractor.Kochconfirmed that it had not allowed to transport all personnel from the camp to
and from the site on a daily basis as this is to be provided by LGL. LGL agreed.
Koch confirmed it had allowed to mobilise and demobilise all personnel from their
point of hire accordingly in its Tender price.Kochconfirmed that suitable vehicles would not be provided for
transportation of site personnel. LGL to supply bus service.Koch to sign and resubmit this form.11.
    
    Tender Form 3/J Sheets 1 and 2  Tenderers Plant and Equipment:LGL asked Kochto advise the meeting what items of plant it would mobilise to
site if awarded this work package.Kochadvised that they had allowed the plant as detailed in its Tender form 10/B
sheet 3 of 3. Provide details of relevant equipment to be supplied Koch, utilising
sheet Appendix 3/J.Kochconfirmed they had made all allowances in its Tender Price to transport all
necessary equipment and materials to and from Brisbane.LGL advised that all Contractors on site will be required to be self sufficient and
that no small tools or consumables would be available from LGLs warehouse. Koch
confirmed their understanding of this.Koch to sign and resubmit these forms.12.
    
    Tender Form 3/K  Work to be Subcontracted:LGL requested Kochto advise the meeting if they intended to subcontract
any portion of the work.Koch advised that York Forter would be sub contracted for the lining installation,
and Koch Knight LLC for the supply of the bricks.Titanium supplier to be determined  noted.Koch to sign and resubmit this form.13.
    
    Tender Form 3/L  Cash Flow Programme:LGL advised the meeting that a revised cash flow programme shall be submitted
[signed] once agreement on milestone payment schedule has been reached.




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 5WORK PACKAGE MOPU-0035
    
    19/2/2009
 14.
    
    Tender Form 10/A  Components of Tender Price:LGL advised that this form was acceptable as submitted.LGL advised that this form would have to be resubmitted [signed] to reflect any
changes in Kochsprice arising out of this meeting (including the removal of the
installation of the Pyroflex from this contract).15.
    
    Tender Form 10/B: Rates for Dayworks and Variation:Sheet 1 of 3:LGL advised that the sheet was incomplete. Koch to submit completed
form.Sheet 2 of 3:LGL advised the rates were unacceptable. Rates to be provided.Sheet 3 of 3:LGL asked Kochif the rates included operators where applicable? Koch
advised rates are not applicable to these equipment items.LGL advised the rates were unacceptable. Koch to resubmit form.
Koch to resubmit all three forms as above and signed.16.
    
    Tender Form 10/C  Tender Schedule:Kochconfirmed that their Tender Schedule was based upon an award date of
31st March, 2009 and with the latest practical completion of 30thSeptember 2011, and complied with all other nominated key dates within the
documents.LGL reiterated it intent to review progress and any possible claims only under the
auspices of Clause 4.2.4 Progress and Programming of the Works. LGL further stated
that any claims that were not presented within the procedures laid down in this
Clause would be rejected by LGL. Kochconfirmed their understanding and agreement
with this.Kock to resubmit their signed schedule once LGL advised their schedule.17.
    
    Tender Form 10/D  Projected Weekly Manpower:LGL advised the form was unacceptable as submitted. LGL requested Koch to update
from from meeting discussions and resubmit a signed form.18.
    
    Quality Control Procedures:LGL requested details of the quality control procedures that Kochwould implement if
they were awarded this Work Package:Kochadvised: Koch to submit Quality program for LGLs consideration, including York
Forter works and Kochs works. These are to be submitted by date in point 26 below.19.
    
    Confirmation of Site Inspection:Kochconfirmed that it had not inspected the site.Kochto confirm post meeting that it had fully informed itself in
accordance with Clause 2.3 Tenderer to Inform Itself.20.
    
    Insurances:Not discussed, as it is currently under negotaiton as part of the terms and
conditions negotations.21.
    
    Financial Considerations:Not discussed, as it is currently under negotaiton as part of the terms and
conditions negotations.




---



##### 



MINUTES OF POST TENDER MEETING
    
    PAGE 6WORK PACKAGE MOPU-0035
    
    19/2/2009
 22.
    
    Tender Letter:The following items from Kochcovering letter submitted with the Tender require
clarification:Clarification of tender letter points undertaken elsewhere in minutes.23.
    
    Specification / Scope of Work:Specification and Scope of Work deviations were discussed elsewhere in meeting.Tender schedule to be changed, in accordance with discussions.Kochconfirmed that it understood and had allowed for all Work required by the
Tender Scope of Work, as amended today.24.
    
    Alternative Tender Submission:Kochconfirmed that it had not submitted any alternative tender
submissions other than discussed herein.25.
    
    OtherLGL sent an email to dated 12th February for action by 17thFebruary. Koch to confirm receipt of email, and to now respond by 4pm
(Brisbane time), Thursday 26th February, 2009.26.
    
    Date for Resubmission of Information:LGL requested that the following outstanding information be submitted by
Thursday 26th February, 2009. Kochadvised that it would do so.Items for action are referenced in points 1, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 15, 16, 17, and 18.
  Minutes Recorded
    
    Minutes acceptedfor and On Behalf of
    
    For and On Behalf ofLGL
    
    KochDate: 19/2/09
    
    Date:




---



##### 



Proposed Project Schedule




---



##### 



Kochs Drawing
 Q-1270-C REV1 Revised