exv4wat





Exhibit (at)









	 	 	 
	CONTRACT NO.:

	 	MOPU-0035
	 
	 	 
	CONTRACT TITLE:

	 	INSTALLATION OF AUTOCLAVE
	 

	 	BRICK LINING AND TITANIUM
	 

	 	COMPONENTS
	 
	 	 
	CONTRACTOR:

	 	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 AGREEMENT

	 
	2. CONTRACT DOCUMENT

	 
	3. OTHER DOCUMENTS FORMING PART OF THE AGREEMENT











 









 








FORMAL INSTRUMENT OF AGREEMENT



THIS AGREEMENT made the 27th day of July 2009, between Lihir Gold Limited
                     of
                     Level 7, Pacific
Place, Cnr Champion Parade and Musgrave Streets, Port Moresby, PNG
                     (“LGL”) of the one part
                     and
                     Koch
Australia Pty Ltd                     
of
                      Suite 6, Level 1, 186 – 190 Church Street,
Parramatta, NSW, 2124                      (“Contractor”) of the other
part
                                        




WHEREAS LGL requires the following work should be undertaken:



the
Installation of the fourth Autoclave’s Brick lining and Titanium components on Lihir
Island

 


 


 




AND has accepted a tender by the Contractor to undertake and completion such work for the total
contract price
of:



                     Australian Dollars
                    
and also                      United States Dollars
                     


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)	 	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 appendices
	 
	 	b)	 	Minutes of Post-Tender / Pre-Award Meetings including:




Minutes
of Meeting 19th February, 2009

Minutes of Meeting 1st April, 2009

Minutes of Meeting 3rd June, 2009

Minutes of Meeting 9th and 10th June, 2009





	 	c)	 	Contract Schedule dated 20th May, 2009
	 
	 	d)	 	Contractor’s Tender dated 26th June, 2009
	 
	 	e)	 	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)
                                        





IN WITNESS
WHEREOF the parties have executed this                     



Executed by the Contractor by its authorised representative



In the presence of:
                                        
                                       &n
bsp;



Name of Witness:
                                        
                                       &n
bsp;



Address of Witness:
                                        
                                       &n
bsp;



Executed by LGL by its authorised representative:
                                        
                                       &n
bsp;



In the presence of:
                                        
                                       &n
bsp;



Name of Witness:
                                        
                                       &n
bsp;



Address of Witness:
                                        
                                       &n
bsp;








 









 








CONTRACT DOCUMENTS




	 	 	 	 	 
	VOLUME 3A	 	 
	 	 	 
	 	 
	Section 1
	 	General Project Details
	 	 
	 	 	 
	 	 
	Section 2
	 	Conditions of Tendering
	 	 
	 	 	 
	 	 
	Section 3
	 	Appendices to Conditions of Tendering
	 	 
	 	 	 
	 	 
	Section 4
	 	General Conditions of Contract
	 	 
	 	 	 
	 	 
	Section 5
	 	Appendices to General Conditions of Contract
	 	 
	 	 	 
	 	 
	Section 6
	 	Special Conditions of Contract
	 	 
	 	 	 
	 	 
	Section 7
	 	Appendices to Special Conditions of Contract
	 	 
	 	 	 
	 	 
	VOLUME 3B	 	 
	 	 	 
	 	 
	Section 8
	 	Scope of Work
	 	 
	 	 	 
	 	 
	Section 9
	 	Tender Conditions of Particular Application
	 	 
	 	 	 
	 	 
	Section 10
	 	Appendices to Tender Conditions of Particular Application

	 	
	 	 	 
	 	 
	Section 11
	 	Special Conditions of Particular Application
	 	 
	 	 	 
	 	 
	Section 12
	 	Appendices to Special Conditions of Particular Application

	 	
	 	 	 
	 	 
	Section 13
	 	Technical Specifications
	 	 
	 	 	 
	 	 
	Section 14
	 	General Specifications
	 	 
	 	 	 
	 	 
	Section 15
	 	Total Project Program
	 	 
	 	 	 
	 	 
	VOLUME 3C	 	 
	 	 	 
	 	 
	Contract Drawings	 	 
	 	 	 
	 	 
	Reference Drawings	 	 
	 	 	 
	 	 
	Other Reference Information	 	 










 









 












STANDARD TENDER & CONTRACT DOCUMENTS



VOLUME 3/A



Lump Sum / Schedule of Rates Contract — Major Expansion Work Packages



ISSUE ‘1’ October 2006 Version 3 September 2008



 









 





INDEX




VOLUME 3A



	 	 	 
	Section 1

	 	General Project Details
	 
	 	 
	Section 2

	 	Conditions of Tendering
	 
	 	 
	Section 3

	 	Appendices to Conditions of Tendering
	 
	 	 
	Section 4

	 	General Conditions of Contract
	 
	 	 
	Section 5

	 	Appendices to General Conditions of Contract
	 
	 	 
	Section 6

	 	Special Conditions of Contract
	 
	 	 
	Section 7

	 	Appendices to Special Conditions of Contract










 









 








SECTION I — GENERAL PROJECT DETAILS




INDEX



	 	 	 
	1.1	 	Introduction

	1.2	 	Description of the Total Project and Site

	1.3	 	Access

	1.4	 	Climate

	1.5	 	Open Site Policy

	1.6	 	Site Facilities

	1.7	 	Total Project Program

	1.8	 	Total Project Data











 









 







Section 1 General Project Details (Sample Only)





	1.1	 	INTRODUCTION
	 
	1.1.1	 	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, LGL will 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 LGL as 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 LGLLGL the opportunity
to investigate alternative options, all matters involving extra payment will be subject to strict
notification requirements which will be rigidly enforced as LGLLGL should 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 SITE
	 
	1.2.1	 	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










 









 







Section 1 General Project Details (Sample Only)







Lihir Group Location map.







Niolam (Lihir) Island map.




	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	 	ACCESS
	 
	1.3.1	 	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







 









 







Section 1 General Project Details (Sample Only)





	1.4	 	CLIMATE
	 
	1.4.1	 	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 POLICY
	 
	1.5.1	 	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 FACILITIES
	 
	1.6.1	 	LGL may 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 PROGRAM
	 
	1.7.1	 	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	 	LGL may 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 DATA
	 
	1.8.1	 	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.



Level 7, Pacific Place

Port Moresby,

Papua New Guinea



Mailing Address:



Lihir Gold Limited

Level 7, Pacific Place

Port Moresby,

Papua New Guinea





			
	 	 	 
	3A Issue 1 October 2006 version 3
	 	Section 1 Page No 3








 









 







Section 1 General Project Details (Sample Only)



Tel No. +675 321 7711

Fax No. +675 321 4705





	 	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 Tendering

	2.2	 	Tender Documents

	2.3	 	Tenderer to Inform Itself

	2.4	 	Tender Price

	2.5	 	Submission of Tender

	2.6	 	Lodgement of Tender

	2.7	 	Tender Validity Period

	2.8	 	Informal Tenders

	2.9	 	Additional Information

	2.10	 	Post Tender Pre-award Meeting

	2.11	 	Detailed Construction Schedule

	2.12	 	Complementary Documents

	2.13	 	Acceptance of Tender

	2.14	 	Return of Tender Documents







 









 




Section 2 — Conditions of Tendering





	2.1	 	ACCEPTANCE OF CONDITIONS OF TENDERING
	 
	2.1.1	 	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 DOCUMENTS
	 
	2.2.1	 	The Tender Documents shall be the entire contents of Volumes 3A, 3B and 3C hereof, and any
schedules, addenda or other documents issued by LGL for the purpose of tendering.
	 
	2.3	 	TENDERER TO INFORM ITSELF
	 
	2.3.1	 	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 LGL to 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	 	LGL will 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 LGL in
writing and LGL will 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 LGL in 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. LGL shall be bound only by written advice or written information furnished by LGL to the
Tenderer.







			
	 	 	 
	3A Issue 1 October 2006 version 3
	 	Section 2 Page No 1







 









 







Section 2 — Conditions of Tendering





	2.4	 	TENDER PRICE
	 
	2.4.1	 	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, or
	 
	 	b.	 	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 LGL considers
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 LGL budget 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 LGL during 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







 









 







Section 2 — Conditions of Tendering





	 	 	rostered leave periods and any non-working periods due to such things as sick leave, absenteeism or
strikes.
	 
	2.5	 	SUBMISSION OF TENDER
	 
	2.5.1	 	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; and
	 
	 	b.	 	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/F
	 
	 	 	 	A 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






 









 







Section 2 — Conditions of Tendering





	 	b.	 	Key Personnel — Tender Form Appendix 3/G
	 
	 	 	 	The 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/H
	 
	 	 	 	The 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 LGL to
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/I
	 
	 	 	 	Notwithstanding 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/J
	 
	 	 	 	The 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/K
	 
	 	 	 	The 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/L
	 
	 	 	 	The 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






 









 







Section 2 — Conditions of Tendering





	 	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’s assistance 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 LGL that 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








 









 







Section 2 — Conditions of Tendering





	 	l.	 	Quality Control Procedures
	 
	 	 	 	The 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 LGL and
consistent with the complexity of Work.
	 
	 	m.	 	Safety and Environment
	 
	 	 	 	The 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; and
	 
	 	d.	 	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 LGL in these statements.






	 	 	 	Safety and environmental record and practices are considered as factors in selecting contractors.
	 
	 	n.	 	Other Requirements
	 
	 	 	 	The 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 TENDER
	 
	2.6.1	 	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 LGL for 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 PERIOD
	 
	 	 	The 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









 









 







Section 2 — Conditions of Tendering





	2.8	 	INFORMAL TENDERS
	 
	2.8.1	 	Any Tender which does not comply with the requirements of or which contains provisions not
required or allowed by the 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 INFORMATION
	 
	2.9.1	 	Notwithstanding any other requirements of the Tender Documents, LGL may 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 MEETING
	 
	2.10.1	 	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; and
	 
	 	d.	 	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 SCHEDULE
	 
	2.11.1	 	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 LGL that 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








 









 







Section 2 — Conditions of Tendering





	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 TENDER
	 
	2.13.1	 	LGL shall 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 LGL to 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 DOCUMENTS
	 
	2.14.1	 	All unsuccessful Tenderers shall return to LGL the 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 Explanation

	3/B	 	Form of Addendum

	3/C	 	Tender Form

	3/D	 	Inter-Relationship of Corporations

	3/E	 	Deed of Guarantee, Undertaking and Substitution

	3/F	 	Departures from Tender Documents

	3/G	 	Key Personnel

	3/H	 	List of Current Projects

	3/I	 	Wages, Allowances & Employment Conditions

	3/J	 	Tenderer’s Plant and Equipment (2 sheets)

	3/K	 	Work to be Subcontracted

	3/L	 	Cash Flow Program

	3/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-0035
	Koch 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





Please be advised that the questions listed hereunder have been raised and such questions are
hereby answered by the explanations listed. This notice shall be read in conjunction with and form
part of the Tender Documents and shall be taken into consideration by all Tenderers in preparing
their Tenders.



Question:



Explanation:



Question:



Explanation:



Question:



Explanation:



Question:



Explanation:




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






Please sign in acknowledgement of receipt and immediately send to LGL.



Name of Tendererer Koch Australia Pty Ltd, Koch Knight Division




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











 









 








APPENDIX 3/B




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch 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





Please be advised that the Tender Documents are hereby amended as detailed hereunder. This Addendum
shall be read in conjunction with and form part of the Tender Documents and shall be taken into
consideration by all Tenderers in preparing their Tenders.



Amendments:





	 	 	 	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






Please sign in acknowledgement of receipt and immediately and send to LGL.


Name of Tendererer Koch Australia Pty Ltd, Koch Knight Division




BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA




			
	 	 	 
	Signed
	 	Date 12-Jun-09






MANAGING DIRECTOR, KOCH AUSTRALIA                         








 









 








APPENDIX 3/C




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch 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





I / We, the above referenced Tenderer do hereby tender to provide the materials and perform the Work
required in accordance with the Tender Documents and the referenced Koch Australia proposal for the
sum of:




	 	 	 	 	 	 	 	 	 
	 	 	USD	 	 	AUD	 
	York subcontract
	 	 	 	 	 	 	 	 
	Knignit services
	 	$	 	 	 	 	 	 





(State amount in words and figures. The amount must include any provisional sums set out in Tender
Form Appendix 10/A.)



Dated this 12TH Day of JUNE 2009




	 	 	 
	Signature of Tenderer:
	 	 
	 
	 

	 	MANAGING DIRECTOR, KOCH AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 
	 	 
	Name of Witness:

	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 
	 	 
	 
	Tenderer’s address for service of notices:

	 	KOCH AUSTRALIA, PO BOX 1451,
PARRAMATTA NSW 2124 AUS
	 
	 	 
	Facsimile

	 	Telephone
	 
	 	 
	Email address
	 	 
	 
	 	 
	Tenderer’s Bank (Name)

	 	Branch





If a Firm, the names and addresses of the individual members are:




	 	 	 
	1
	 	 
	 
	 
	 	 
	 
	 
	 	 
	2
	 	 
	 
	 
	 	 
	 
	 
	 	 
	3
	 	 
	 
	 
	 	 
	 
	 
	 	 
	4
	 	 
	 
	 
	 	 
	 
	 
	 	 









 









 








APPENDIX 3/D




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch 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 Held
	KOCH CHEMICAL 

TECHNOLOGY GROUP
	 	OWNS KOCH AUSTRALIA PTY LTD 

AND KOCH
KNIGHT LLC
	 	100%
	 	 	 	 	 
	BEROA GROUP
	 	OWNS YORK FORTER AUSTRALASIA PTY LTD
	 	100%





I/We the undersigned hereby declare that the above listed information is a full and accurate
disclosure of the relationship between the Tenderer and other affiliated Corporations.




	 	 	 
	Dated this
12TH
Day of JUNE 2009
	 	
	 
	Signature
of Tenderer:

	 	 
	 
	 

	 	MANAGING DIRECTOR, KOCH AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 
	 	 
	Name of Witness:

	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 
	 	 
	 









 









 








APPENDIX 3/E




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch 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





Please note that this Guarantee is not required to be submitted as part of the Tender, but is to be
submitted only if requested by LGL. This sheet included only to complete the attachment



In consideration of LGL awarding and entering into the above Contract, I / We the above referenced
Guarantor hereby unconditionally guarantees that the above referenced Contractor will well and
faithfully perform all its obligations and meet all of its liabilities under the above referenced
Contract or in relation thereto.



In the event that the said Contractor fails to perform any of its obligations to the satisfaction
of LGL or fails to meet any of its liabilities, and upon receipt of written notice thereof from
LGL, I / We hereby undertake to perform such obligations and / or meet such liabilities in
substitution of the said Contractor. This undertaking shall survive the bankruptcy, insolvency,
winding-up, or other termination of the corporate existence of the Contractor, and shall not be
released or limited by any amendment or variation to the Contract, but shall extend to all of the
obligations of the Contractor to LGL from time to time.



Dated
 this _____ Day ______ of
200 ____




	 	 	 
	Signature and Seal of Guarantor
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	Signature of Witness:
	 	 
	 
	 
	 	 
	Name of Witness:

	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	Guarantor’s address for service of notices:
	 	 
	 
	 
	 	 
	 
	 
	 	 
	 
	 
	 	 
	Facsimile

	 	Telephone
	 
	 	 
	Email address
	 	 





Please note that this Guarantee is not required to be submitted as part of the Tender, but is to be
submitted only if requested by LGL. This sheet included only to complete the attachment








 









 








APPENDIX 3/F




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch 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





In addition to the conforming Tender submitted, the Tenderer offers the following variations to the
Tender Price or Tender Rates for departures from the Tender Documents as listed hereunder. (If no
departures are offered then insert “No Departures”.)




	 	 	 	 	 	 	 
	Item
	 	Departure
	 	Variation to Tender Price/Rate
	 
	 	 	 	Addition
	 	Deduction






	 	 	 	 	 	 	 
	 	 	PLEASE REFER TO THE NOTED KOCH AUSTRALIA OFFER LETTER
	 	 	FOR DETAILS OF OUR PROPOSAL. THE FORTHCOMING SPECIAL CONDITIONS
	 	 	SECTION 11, DEVELOPED FROM THE TERMS AND CONDITIONS NEGOTIATING TABLES
	 	 	PREPARED OVER SEVERAL MEETINGS, WILL NOTE ALL VARIATIONS FROM THE
	 	 	TENDER DOCUMENTS AS ISSUED.





Dated this 12TH Day of JUNE 2009




	 	 	 
	Signature of Tenderer:
	 	 
	 
	 

	 	MANAGING DIRECTOR, KOCH AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 
	 	 
	Name of Witness:
	 	 
	 
	 

	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 
	 	 
	 






 











 





APPENDIX 3/G




	 	 	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Koch Knight Division, Koch Australia Pty Ltd

	 	Notice No
	 	X
	     ###-##-####A4

	 	Date
	 	12-June-2009






	 	 	 
	Tender For

	 	Autoclave Internal Equipment Installation





In the event of acceptance of our Tender the Contract would be managed and supervised by the
personnel listed below (Curriculum Vitae to follow).




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Location	 	Time Allocated To	 	Proposed Dates
	Name	 	Position	 	On/Off Site	 	Contract (%)	 	Start	 	Finish
	 	 	VP ENGINEERING & CONSTRUCTION, KOCH KNIGHT LLC
	 
	 	 	 	 	 	offsite	 	 	5	%	 	Oct-08	 	ONGOING
	 	 	BUSINESS  DIRECTOR, KOCH AUSTRALIA KOCH KNIGHT DIVISION
	 
	 	 	 	 	 	offsite	 	 	15	%	 	Oct-08	 	ONGOING
	 

	 	 	SITE SUPERVISORS (2 to 4)
	 
	 	 	 	 	 	onsite	 	 	100	%	 	Apr-10	 	Sep-11
	 

	 	 	PROJECT MANAGER AUSTRALIA
	 
	 	 	 	 	 	offsite	 	 	60	%	 	Oct-08	 	Sep-11
	 
	 	 	 	 	 	onsite	 	 	40	%	 	Apr-10	 	Sep-11
	 

	 	 	MANAGING DIRECTOR YORK-FORTER, SUBCONTRACTOR
	 
	 	 	 	 	 	offsite	 	 	1	%	 	Oct-08	 	Sep-11
	 
	 	 	 	 	 	onsite	 	 	1	%	 	Nov-10	 	Sep-11
	 

	TBD	 	PROJECT MANAGERS AND SUPERVISORS OF YORK-FORTER, SUBCONTRACTOR
	 
	 	 	 	 	 	offsite	 	 	60	%	 	Oct-08	 	Sep-11
	 
	 	 	 	 	 	onsite	 	 	40	%	 	Apr-10	 	Sep-11





Persons occupying the following positions on site will be fully authorised to act in all
respects for and on behalf of the Tenderer / Contractor if the Tender is accepted.



Positions of authorisation (Please note, at least one full time on site position must be nominated)




	 	 	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009

	 	
	 		 	 






	 	 	 
	Signature of Tenderer:
	 	 
	 
	 	 
	 
	 	MANAGING DIRECTOR, KOCH AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 	 
	 
	 	 
	Name of Witness:
	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	 
	 	 
	Address of Witness:
	 	 
	 
	 	 







 









 






APPENDIX 3/H




	 	 	 	 	 	 	 
	Tender For

	 	Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir Island
	 	Work Package MOPU-0035
	 
	 

	 	 	 	Date 12-Jun-09






	 	 	 	 	 
	Tenderer

	 	Koch Knight Division, Koch Australia Pty Ltd

###-##-####A4
	 	Koch Knight Projects ordered, constructed or completed in 2008, 2009





The Tenderer shall list below the ten (10) largest contracts (by original contract
value) which are currently being undertaken by the Tenderer. In the event that the
Tenderer has less than ten (10) current contracts the balance should be made up of the
most recently completed contracts irrespective of contract value.




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Approximate	 	Tenderers	 	 	 	Contact At Supervising Body	 	Current %	 	Start	 	Completion
	Project	 	Project Value	 	Original Contract	 	Supervising Body	 	Name	 	Telephone	 	Complete	 	Date	 	Date
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 





	 	 	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009

	 	
	 		 	 







	 	 	 
	Signature of Tenderer:
	 	 
	 
	 	 
	 
	 	MANAGING DIRECTOR, KOCH AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 	 
	 
	 	 
	Name of Witness:
	 	 
	 
	 	 
	 
	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 	 






Page 8 of 15







 









 








APPENDIX 3/I




	 	 	 	    	 	 	 
	To all Tenderers

	 	Work Package
	 	MOPU-0035
	Work Package	 
	Koch Knight Division, Koch Australia Pty Ltd

	 	Notice No
	 	X	 	 
	###-##-####A4

	 	Date
	 	12-June-2009	 






Tender For     Autoclave Internal Equipment Installation



The Tenderer shall list below the wages, allowances and employment conditions to be paid to the
Site Management, Supervision and labour force to be engaged in the Contract. This information
shall be treated as confidential and is required solely to assist in evaluation of the Tenders
and shall not form part of the subsequent Contract, Submit sufficient forms to cover all
categories of employees.




RATES ARE IN US DOLLARS




	 	 	 	 	 
	1. Salaried Personnel — Position PROJECT MANAGER
	 	 	 	Per Working Day
	 
	 	 	 	Per Travel, Standby Day
	(a) Base Rate
	 	X	 	Per Month
	 
	 	 	 	 
	(b) Other Allowances (Specify)
	 	X	 	Per Month
	 
	 	 	 	 
	 
	 	X	 	Per Month
	 
	 	 	 	 
	 
	 	X	 	Per Month
	 
	 	 	 	 
	Total
	 	X	 	Per Month
	 
	 	 	 	 
	 
	 	 	 	 
	2. Wages Personnel — Position / Category
	 	 	 	 
	 
	 	 	 	 
	(a) Base Rate for         hours
	 	X	 	Per Hour
	 
	 	 	 	 
	(b) Hourly Adjustedr Allowances (Specify)
	 	X	 	Per Hour
	 
	 	 	 	 
	 
	 	X	 	Per Hour
	 
	 	 	 	 
	 
	 	X	 	Per Hour
	 
	 	 	 	 
	Subtotal
	 	X	 	Per Hour
	 
	 	 	 	 
	 
	 	 	 	 
	(c) Other Hourly Payments (Specify)
	 	X	 	Per Hour
	 
	 	 	 	 
	 
	 	X	 	Per Hour
	 
	 	 	 	 
	 
	 	 	 	 
	Total for          hours
	 	X	 	Per Week
	 
	 	 	 	 
	(d) Adjustments for site working hours & roster
	 	X	 	Per Week
	 
	 	 	 	 
	 
	 	 	 	 
	(e) Weekly allowances (Specify)
	 	X	 	Per Week
	 
	 	 	 	 
	 
	 	X	 	Per Week
	 
	 	 	 	 
	Subtotal
	 	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 AUSTRALIA
	 
	 	 
	Signature of Witness:
	 	 
	 
	 	 
	 
	 	 
	Name of Witness:
	 	 
	 
	 	 
	 
	 	BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA
	 
	 	 
	Address of Witness:
	 	 
	 
	 	 







 











 





APPENDIX 3/J Sheet 1 Of 2




					
	To all Tenderers  
	 	 
	 	Work Package MOPU-0035
	Koch Knight Division, Koch Australia Pty Ltd
	 	 	 	Notice No    X                  
	  ###-##-####A4
	 	 	 	Date 12-June-2009





Tender For   Autoclave Internal Equipment Installation


The Tenderer shall list below the wages, allowances and employment conditions to be paid to the
Site Management,
Supervision and labour force to be engaged in the Contract. This information shall be treated as
confidential and is
required solely to assist in evaluation of the Tenders and shall not form part of the subsequent
Contract. Submit sufficient
forms to cover all categories of employees.


SUMMARY SHEET



	 	 	 	 	 	 	 	 	 	 	 
	Item	 	Plant & Equipment General	 	 	 	 	 	Proposed
	No	 	Description	 	Model / Type	 	Age	 	Start Date	 	Finish Date
	 	 	The 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 Duration

	 	 	Bricksaw	 	Clipper 18"	 	1 yr	 	Full Duration

	 	 	Bricksaw	 	Clipper 14"	 	1 yr	 	Full Duration

	 	 	Distribution Boards	 	 	 	 	 	Full Duration

	 	 	Distribution Boards	 	 	 	 	 	Full Duration

	 	 	Festo Mixers	 	Protool MXP 1602 B	 	1 yr	 	Full Duration

	 	 	Festo Mixers	 	Protool MXP 1602 B	 	1 yr	 	Full Duration

	 	 	Festo Mixers	 	 	 	 	 	Full Duration

	 	 	Festo Mixers	 	 	 	 	 	Full Duration

	 	 	Hobart Mixers	 	Hobart D 300 T	 	3 yr	 	Full Duration

	 	 	Hobart Mixers	 	 	 	 	 	Full Duration

	 	 	Positive Air Helmets	 	 RaKel 3M	 	1 yr	 	Full Duration

	 	 	415V Fan	 	Bluw Wizard	 	3 yr	 	Full Duration







									
	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009
	 	
	 	






Signature of Tenderer:

 




MANAGING DIRECTOR, KOCH AUSTRALIA




Signature of Witness:

 





Name of Witness: BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA





Address of Witness:

 





 








 





APPENDIX 3/J Sheet 2 Of 2

TENDERER’S PLANT & EQUIPMENT

EQUIPMENT INSPECTION REPORT




	 	 	 	 	 
	To all Tenderers
	 	Work Package MOPU-0035
	 	Work Package                     
	Koch Knight Division, Koch Australia Pty Ltd
	 	Notice No X     	 	 
	       ###-##-####A4	 	Date 12-June-2009
	 	 





Tender For 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

 





Appearance

 





 





Undercarriage

 





	 	 	 
	Tires

	 	Hydraulics
	 







							
	 	 	 	 	 	 	 
	Dimensions
	 	Length
	 	Width
	 	Height





 





Maintenance Log Book

 





	 	 	 
	Operating Test

	 	Rating





 





Comments

 





 





 






 





									
	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009
	 	 
	 	 
	 







Signature of Tenderer:

 




MANAGING DIRECTOR, KOCH AUSTRALIA




Signature of Witness:

 





Name of Witness:

 




BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA




Address of Witness:

 





 




 








 








APPENDIX 3/K




	 	 	 
	To all Tenderers

	 	Work Package MOPU-0035
	Koch Knight Division, Koch Australia Pty Ltd

	 	Notice No         X
	  ###-##-####A4

	 	Date 12-June-2009






Tender For    Autoclave Internal Equipment Installation of Brick
Lining and Titanium Walls, on Lihir Island


The Tenderer shall list below the sections of the Work to be executed by Subcontractors to the
Tenderer and if known the names of the proposed Subcontractors.




	 	 	 	 	 
	Section Of The Work	 	Value	 	Proposed Subcontractor
	BRICK LINING, TITANIUM INTERNALS INSTALLATION LABOUR
	 	 	 	 
	AUD
	 	 	 	 
	NOTE: Personnel from Koch Knight LLC USA will be seconded to Koch Australia for this work.






									
	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009
	 	
	 	 
	 







Signature of Tenderer:

 




MANAGING DIRECTOR, KOCH AUSTRALIA




Signature of Witness:

 





Name of Witness:

 




BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA




Address of Witness:

 




 









 





APPENDIX 3/L




	 	 	 	 	 
	Tender For   Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir Island	Work Package MOPU-0035
	Tenderer
	 	Koch Knight Division, Koch Australia Pty Ltd

###-##-####A4	 	 	Date 12-Jun-09





The Tenderer shall show the anticipated cash flow in this Appendix. Items shall be those identified in Tender Form Appendix 10/A, Components Of Tender Price. (Attach additional sheets as required).




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Week	 	 	 	 	 	 	 
	 	 	Event	 	 	1	 	 	74	 	 	78	 	 	82	 	 	86	 	 	90	 	 	94	 	98	 	 	Totals USD	 	 	Totals AUD	 
	 
	 	PO	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Begin Work	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Progress
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Progress
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Progress
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Progress
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	•	 
	 
	 	Progress
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Complete
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	From Koch proposal noted,	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Tenderer’s Proposed Terms of Payment now	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Totals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 






									
	 	 	 	 	 	 	 	 	 
	Dated this 12TH Day of JUNE 2009	 	 	 	 
	 







Signature of Tenderer:

 




MANAGING DIRECTOR, KOCH AUSTRALIA




Signature of Witness:

 





Name of Witness:

 




BUSINESS DIRECTOR, KOCH KNIGHT DIVISION KOCH AUSTRALIA




Address of Witness:

 





 




Page 13 of 15 


 












 





APPENDIX 3/M




AGENDA FOR POST-TENDER / PRE-AWARD MEETING


The following is an outline of the primary items which will be discussed at the Post-Tender / Pre-Award




	 	 	 
	1	 	Safety & Environment

	 	 	Review of Tenderers Safety & Environment Systems

	 	 	Discuss Training

	 	 	 

	2	 	Tender Form 3/A — Notice of Explanation

	 	 	Inclusion of Form of Notice of Explanation in Tender Price

	 	 	 

	3	 	Tender Form 3/B — Addendum

	 	 	Inclusion of Addendum in Tender Price

	 	 	 

	4	 	Tender Form 3/C — Tender Form

	 	 	Confirmation of Tender Price

	 	 	 

	5	 	Tender Form 3/D — Interrelationship Of Corporation

	 	 	Confirmation of full disclosure

	 	 	 

	6	 	Tender Form 3/E — Deed Of Guarantee, Undertaking & Substitution

	 	 	Required / Not Required

	 	 	 

	7	 	Tender Form 3/F — Departures From Tender Documents

	 	 	Details Discussion — Additional Information — Acceptance / rejection / further consideration

	 	 	 

	8	 	Tender Form 3/G — Key Personnel

	 	 	Introduction. Confirmation of availability — Confirmation of Positions of Authorisation

	 	 	 

	9	 	Tender Form 3/H — List Of Current Projects

	 	 	Update of Project Status / Progress. Discuss interference with / by other Projects

	 	 	 

	10	 	Tender Form 3/I — Wages Allowances & Employment Conditions

	 	 	Confirm preference for local employees — Confirm working week and R & R provision-Transportation of personnel — Meals for personnel — Sanitary installations

	 	 	 

	11	 	Tender Form 3/J — Sheets 1 & 2 — Tenders Plant & Equipment

	 	 	Adequacy / sufficiency of resources — Alternative resources — Current uncommitted
resource-Transportation to Site of plant and equipment

	 	 	 

	12	 	Tender Form 3/K — Work To Be Subcontracted

	 	 	Urgent approval required. Date required for submission of request and Approval

	 	 	 

	13	 	Tender Form 3/L — Cash Flow Program

	 	 	Review against Tender Program. Confirm Tender Price

	 	 	 

	14	 	Tender Form 10/A — Components Of Tender Price

	 	 	Accuracy of Tender break-up — Correctness of Rates—Adjustments /Additions required

	 	 	 

	15	 	Tender Form 10/B — Rates For Variations & Dayworks

	 	 	Adequacy / correctness of rates. Confirmation of detailed break-up of each rate—Confirmation of work week and site hours. Adjustments /Additions required—Accepted /
Rejected

	 	 	 

	 	 	Detailed 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 4.2.4

	 	 	 

	17	 	Tender Form 10/D — Projected Manpower

	 	 	Comparison to Tender Form 10/C — Accepted / Rejected

	 	 	 

	18	 	Quality Control Procedures

	 	 	Review of Tenderers Quality Management System

	 	 	 

	19	 	Confirmation Of Site Inspection

	 	 	Acknowledgement of Site Inspection and Adequacy of Inspection made — Acknowledgement that
Tenderer has informed itself as required by Clause 2.3

	 	 	 

	20	 	Insurances

	 	 	Confirmation of arrangement of insurances as per Section 6 — Confirmation of any LGL insurances and excesses

	 	 	 

	21	 	Financial Considerations

	 	 	Confirm currency of Tender, inclusion of    Holdback and    Security

	 	 	 

	22	 	Tender Letter

	 	 	Confirmation of rejection of any conditions in Tenderer’s submission or Post-Tender correspondence

	 	 	 

	23	 	Specification / Scope Of Work

	 	 	Detailed discussion to determine understanding of Specifications — Confirmation of
inclusion of all work in Scope Of Work — Alternative specification if any

	 	 	 

	24	 	Alternative Tender Submission

	 	 	Detailed discussion of alternative tender submission (if any) — Acceptance / Rejection

	 	 	 

	25	 	Date For Re-submission Of Information

	 	 	Summary of information to be re-submitted — Date for re-submission












 









 









APPENDIX 3/N



The following is an example of the form of the letter of acceptance.




	 	 	 	 	 
	To:

	 	The Tenderer
	 	Koch Australia Pty Ltd, Koch Knight Division
	 

	 	 	 	###-##-####A4
	Re:

	 	Tender For
	 	Autoclave Internal Equipment Installation of Brick Lining and Titanium Walls, on Lihir Island
	 

	 	Work Package
	 	MOPU-0035
	 
	 	 	 	 
	We are pleased to advise that LGL hereby accepts your Tender dated                      for
	 
	 	 	 	 
	 

	 	a)
	 	Fixed price lump sum of                     
	 
	 	 	 	 
	 

	 	b)
	 	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 & 3C
	 
	 	 	 	 
	 

	 	c)
	 	Minutes of Post-Tender / Pre-Award meeting and post tender correspondence (list)
	 
	 	 	 	 
	 

	 	 	 	                                        
	 
	 	 	 	 
	 

	 	 	 	                                        
	 
	 	 	 	 
	 

	 	d)
	 	Contract Schedule (attach)
	 
	 	 	 	 
	 

	 	e)
	 	Contractor’s Tender
	 
	 	 	 	 
	Your 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 Manager
	 
	 	 	 	 
	 

	 	b)
	 	                     Engineering Manager
	 
	 	 	 	 
	 

	 	c)
	 	                     Area Manager
	 
	 	 	 	 
	2	 	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                     .





We look forward to the successful performance of your Contract.




Yours faithfully,

LGL





Page 15 of 15









 









SECTION 4 — GENERAL CONDITIONS OF CONTRACT




INDEX




	 	 	 
	4.1	 	Preliminaries

	 	 	 

	4.1.1	 	Introduction

	4.1.2	 	Supervision of the Work

	4.1.3	 	Contractor’s Superintendence

	4.1.4	 	Commencement of the Work

	4.1.5	 	Access to Site

	4.1.6	 	Security

	4.1.7	 	Inspection and Provision of Insurance Policies

	 	 	 

	4.2	 	Administration

	 	 	 

	4.2.1	 	Written Communications

	4.2.2	 	Site Instructions

	4.2.3	 	Site Meetings

	4.2.4	 	Progress and Programming of the Work

	4.2.5	 	Suspension of the Work

	4.2.6	 	Progress Claims and Payments

	4.2.7	 	Variations

	4.2.8	 	Dayworks

	4.2.9	 	Adjustments to the Schedule of Rates

	4.2.10	 	Goods or Services Provided by LGL

	4.2.11	 	Assignment and Sub-contracting

	4.2.12	 	Practical Completion

	4.2.13	 	Completion

	 	 	 

	4.3	 	Work Procedures

	 	 	 

	4.3.1	 	Setting Out of the Work

	4.3.2	 	Materials, Workmanship and Quality Control

	4.3.3	 	Compliance with Applicable Laws and Standards

	4.3.4	 	Control of Contractor’s Employees and the Employees of Sub-contractors

	4.3.5	 	Industrial Relations

	4.3.6	 	Occupational Health and Safety

	4.3.7	 	Protection of Persons, Property and Existing Services

	4.3.8	 	Care of the Work

	4.3.9	 	Cleaning Up

	4.3.10	 	Environmental responsibilities

	 	 	 

	4.4	 	Liabilities

	 	 	 

	4.4.1	 	Defects

	4.4.2	 	Royalties, Patents, Copyrights and Other Intellectual Property Rights

	4.4.3	 	Accident or Injury to Employees

	4.4.4	 	Property Damage and Public Risk

	4.4.5	 	Taxes and Contributions

	4.4.6	 	Survival of Indemnities

	 	 	 

	4.5	 	Legalities

	 	 	 

	4.5.1	 	Construction of The Contract

	4.5.2	 	Evidence of The Contract

	4.5.3	 	Documents

	4.5.4	 	Default or Insolvency

	4.5.5	 	LGL’s Right to Terminate the Contract

	4.5.6	 	Disputes

	4.5.7	 	Service of Documents

	4.5.8	 	LGL’s Right to Audit







 









 







	 	 	 
	4.5.9	 	Definitions and Interpretations








 












 





Section 4 — General Conditions of Contract




	4.1	 	PRELIMINARIES
	 
	4.1.1	 	Introduction
	 
	 	 	This 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 Work
	 
	4.1.2.1	 	LGL shall 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 LGL will 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 Manager
	 
	 	 	 	The 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 LGL from 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 Manager
	 
	 	 	 	The 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






 









 




Section 4 — General Conditions of Contract






	 	 	 	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 Manager
	 
	 	 	 	The 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.






The terms Area Manager, Engineering Manager and Construction Manager shall also
include the duly and properly authorised (in writing) designate (s) of each.




	4.1.3	 	Contractor’s Superintendence
	 
	4.1.3.1	 	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 LGL and 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 Work
	 
	4.1.4.1	 	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 Site
	 
	4.1.5.1	 	LGL shall, 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






 









 





Section 4 — General Conditions of Contract





	 	 	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	 	Security
	 
	4.1.6.1	 	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. 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 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 LGL within 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, LGL may terminate the Contract, pursuant to Clause 4.5.4.
	 
	4.1.7	 	Inspection and Provision of insurance Policies
	 
	4.1.7.1	 	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 LGL of 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 LGL so to do, the Contractor fails to produce
evidence of compliance with its insurance obligations under this Contract, LGL may 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 LGL in 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 LGL is 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	 	ADMINISTRATION
	 
	4.2.1	 	Written Communications
	 
	4.2.1.1	 	All written communications from the Contractor to LGL shall 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.






			
	 	 	 
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	 	 	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 LGL to 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 Instructions
	 
	4.2.2.1	 	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); or
	 
	 	iii)	 	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 Instruction
	 
	4.2.2.4	 	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 Meetings
	 
	4.2.3.1	 	LGL shall 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, LGL shall convene a weekly co-ordination meeting.
Twenty-four (24) hours prior to this meeting, the Contractor shall submit its Progress






			
	 	 	 
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	 	 	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 LGL and issued to the
Contractor as soon as possible thereafter. Should the Contractor not agree with the accuracy
of the minutes, it shall notify LGL within 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 Work
	 
	4.2.4.1	 	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, LGL may 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 Revised Schedule showing the effect of the lack
of progress and an Alternative Schedule showing how the lost time can be made up so that all
Work can be completed in accordance with the Contract Schedule. If the Revised and/or
Alternative schedules 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 Alternative Schedule. 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	 	LGL shall 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 LGL directs the Contractor to proceed with the Alternative Schedule and
considers that the lack of progress was or would have been caused wholly or in part






			
	 	 	 
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	 	 	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 LGL directs the Contractor to proceed with the Revised Schedule 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 Revised Schedule shall record the extent to which
LGL accepts 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 LGL has 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; or
	 
	 	b)	 	total period of delay for which LGL has 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
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	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 Work
	 
	4.2.5.1	 	LGL may instruct the Contractor to suspend the progress of the whole or any part of the
Work, for such time or times as LGL may 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 LGL and explain the reasons for the suspension. LGL shall
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, LGL shall 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 Payments
	 
	4.2.6.1	 	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; and
	 
	 	iii)	 	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/G
	 
	4.2.6.4	 	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,






			
	 	 	 
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	 	 	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; and
	 
	 	iv)	 	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	 	LGL shall 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 LGL shall 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 LGL of all Claims of
whatsoever nature that it may have against LGL arising out of circumstances occurring since
submission of the Contractor’s previous Progress Claim. LGL shall not be liable to







			
	 	 	 
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	 	 	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) LGL may withhold payments until such
obligations are complied with and the provisions of Clause 4.2.6.10 shall not apply.
	 
	4.2.7	 	Variations
	 
	4.2.7.1	 	The Contractor shall vary the Work as directed in writing by LGL and no Variation shall
vitiate this Contract. If at any time during the progress of the Work, LGL determines that
the form, quality or quantity of the Work should be varied, LGL may 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; or
	 
	 	iv)	 	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.
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	 	 	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 LGL do not agree upon the value of the Variation, LGL may 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	 	LGL may 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 LGL for 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	 	Dayworks
	 
	4.2.8.1	 	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	 	LGL shall 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).






			
	 	 	 
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	 	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 Rates
	 
	4.2.9.1	 	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; and
	 
	 	ii)	 	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 LGL
	 
	4.2.10.1	 	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.







			
	 	 	 
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	4.2.11	 	Assignment and Subcontracting
	 
	4.2.11.1	 	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 Completion
	 
	4.2.12.1	 	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.






			
	 	 	 
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	4.2.12.5	 	As the Work is part of the Total Project, it will be necessary for LGL to take over
sections of the Work as they reach an appropriate stage of completion so that LGL and 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	 	Completion
	 
	4.2.13.1	 	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, LGL shall 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; or
	 
	 	ii)	 	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; or
	 
	 	iii)	 	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, LGL shall return to
the Contractor, the security or such part of it as LGL is then holding.
	 
	4.3	 	WORK PROCEDURES
	 
	4.3.1	 	Setting out of the Work
	 
	4.3.1.1	 	LGL shall 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 LGL of 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 Control
	 
	4.3.2.1	 	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.






			
	 	 	 
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	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 LGL and 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	 	LGL may, 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 LGL of its
non-compliance with the Contract. If LGL directs 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 LGL without affecting the Contract Schedule.
If LGL directs 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 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.
	 
	4.3.2.6	 	All costs, expense, loss or damage borne or incurred by LGL as 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 LGL by the Contractor upon
request and in default thereof may be recovered by LGL as a debt due from the Contractor to
LGL.
	 
	4.3.3	 	Compliance with Applicable Laws and Standards
	 
	4.3.3.1	 	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 LGL specifying 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 LGL all 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 Subcontractors
	 
	4.3.4.1	 	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.






			
	 	 	 
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	4.3.4.2	 	LGL may 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 LGL directs, 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, LGL may, 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 Relations
	 
	4.3.5.1	 	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 LGL and 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 LGL any 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 LGL as a consequence of any advice so given.
	 
	4.3.5.4	 	The Contractor shall provide all facilities not provided by LGL which 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 LGL to 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 Safety
	 
	4.3.6.1	 	LGL places 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.






			
	 	 	 
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	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; and
	 
	 	g)	 	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








			
	 	 	 
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		 	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 Services
	 
	4.3.7.1	 	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






			
	 	 	 
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	 	 	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, LGL may
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 Work
	 
	4.3.8.1	 	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 LGL any 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 LGL any 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 LGL or 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 Up
	 
	4.3.9.1	 	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







			
	 	 	 
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	 	 	incurred by LGL in carrying out such work and providing such storage may be recovered
by LGL as a debt due to LGL by the Contractor.
	 
	4.3.10	 	Environmental Responsibilities
	 
	4.3.10.1	 	LGL places 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’s environmental
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, LGL shall 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 LGL that:






	 	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 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 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; and
	 
	 	iv)	 	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 Warranties
	 
	4.3.11.1	 	The Contractor covenants, represents and warrants to LGL that:






	 	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;






			
	 	 	 
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	 	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;
and
	 
	 	v)	 	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	 	LIABILITIES
	 
	4.4.1	 	Defects
	 
	4.4.1.1	 	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, LGL shall 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 LGL later 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, 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.
	 
	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. LGL may
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






			
	 	 	 
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	 	 	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 Rights
	 
	4.4.2.1	 	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 LGL and 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 Employees
	 
	4.4.3.1	 	The Contractor indemnifies LGL and 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 LGL or 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 Risk
	 
	4.4.4.1	 	Subject to Clause 4.4.4.2, the Contractor indemnifies LGL and its directors, officers,
employees, agents and consultants against all loss of or damage to property of LGL and 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 LGL and 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 LGL of any provision of the Contract or any negligent act or omission of LGL






			
	 	 	 
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		 	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 Contributions
	 
	4.4.5.1	 	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 LGL and 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 LGL and 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 Tax
	 
	 	 	In 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	 	GST
	 
	4.4.5.4	 	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;






			
	 	 	 
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“GST” means GST as that term is defined by the Australian GST Law or the goods and
services tax referred to in sections 6 and 8 of the PNG GST Law, as applicable;




“GST Amount” means, in relation to a Taxable Supply, the amount of GST payable in
respect of that Taxable Supply under either the Australian GST Law of the PNG GST Law
as the case may be;




“GST Group” has the meaning given by the Australian GST Law or the PNG GST Law (as
applicable);




“Input Tax Credit” means an input tax credit as that term is defined in the
Australian GST Law or a credit for input tax as that term is defined in the PNG GST
Law, as applicable and a reference to an Input Tax Credit entitlement of a Party
includes, as applicable:




(i) An input tax credit for an acquisition made by that Party but to which
another member of the same GST Group is entitled; or




(ii) A credit for input tax for a supply which is made to that Party but which
is deemed by the PNG GST Law to be made to the representative member or a
group of companies;




	 	 	“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”):






(i) The consideration payable or to be provided for that supply under this
Contract is increased by, and the recipient of the supply (“Recipient”) must
also pay to the Supplier, an amount equal to the GST payable by the Supplier
on that supply;




(ii) The amount by which the GST exclusive consideration is increased must be
paid to the Supplier by the Recipient at the same time as the GST exclusive
consideration is payable or to be provided; and




			
	 	 	 
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(iii) Notwithstanding any other provision of this Contract, the Recipient is
not required to pay any amount unless it has received a valid tax invoice (or
valid adjustment note) for that taxable supply.




	4.4.5.5	 	Reimbursements
	 
	4.4.5.5	 	(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 Events
	 
	4.4.5.6	 	(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 Merger
	 
	4.4.5.7	 	(a) This clause does not merge on completion or termination of this Contract.
	 
	4.4.6	 	Survival of Indemnities
	 
	4.4.6.1	 	All indemnities provided for under the Contract shall survive termination of the Contract.
	 
	4.5	 	LEGALITIES
	 
	4.5.1	 	Construction of the Contract
	 
	4.5.1.1	 	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






			
	 	 	 
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	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 LGL for 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, LGL shall 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 LGL so 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 LGL and shall return both copies to LGL duly 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, LGL shall, 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, LGL shall 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	 	Documents
	 
	4.5.3.1	 	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	 	LGL shall 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
LGL on demand in writing and shall not be used by the Contractor for any purpose other than
execution of the Work.






			
	 	 	 
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	4.5.3.6	 	The Contractor shall supply to LGL free-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 LGL has 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 LGL one (1) full set of as constructed drawings in electronic and hard copy format.
	 
	4.5.4	 	Default or Insolvency
	 
	4.5.4.1	 	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, LGL may 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; or
	 
	 	ii)	 	terminate the Contract.






	4.5.4.2	 	If LGL elects 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 LGL to ensure the maintenance
in good working order of the Contractor’s Constructional Plant during the use
thereof; and/or






			
	 	 	 
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	 	iv)	 	Require the Contractor to assign, within three (3) days,
to LGL without 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, LGL shall determine the cost of the Work comprising payments to
the Contractor and costs incurred by LGL in 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 LGL the
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, LGL shall 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 LGL under this clause shall vitiate the Contract or operate to the
prejudice of any other rights or remedies of LGL at 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; or
	 
	 	ii)	 	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 them
	 
	 	iii)	 	breaches a safety requirement or direction from LGL in relation to safety
which is of a nature significant enough to justify termination






	 	 	LGL may, 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 Contract
	 
	4.5.5.1	 	LGL may, 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






			
	 	 	 
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Section 4 — General Conditions of Contract





	 	 	 	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	 	Disputes
	 
	4.5.6.1	 	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 Documents
	 
	4.5.7.1	 	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






			
	 	 	 
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	 	 	in Tender Form Appendix 3/G, or if mailed by prepaid mail, in the case of LGL, to the
address given for LGL in 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 Audit
	 
	4.5.8.1	 	LGL reserves 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 LGL applies 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 Interpretations
	 
	4.5.9.1	 	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.






“Additional Reasonable And Valid Charges For Procurement And Delivery To The Site”
shall mean the actual direct costs to the Contractor of ordering delivering and paying
for goods. As a matter of convenience, this will be generally regarded as the invoiced
delivery charges, plus of the invoiced cost of the goods unless actual cost records are
provided or called for






			
	 	 	 
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Section 4 — General Conditions of Contract







“Adjusted Contract Sum” means the Contract Sum as herein defined, adjusted by any
additions or deductions which may be required to be made pursuant to the Contract
including the addition or deduction of the value of Variations and Dayworks.




“Alternative Schedule” means an amended version of the current Contract Schedule which
alters the logic and/or duration and resources of the current Contract Schedule, such
that notwithstanding the delay, the same Contract completion date is achieved.




“Applicable Laws” means and includes all laws, by-laws, statutes and regulations and
any conditions, orders or requirements of any governmental or other authority having
jurisdiction over the Work or the execution of the Work.




“Area Manager” means the person or persons appointed in writing from time to time by
LGL to occupy the position of Area Manager for the Contract.




“Award, Collective Or Industrial Agreement” means any law or agreement which sets out
terms and conditions of employment applicable to the employees of the Contractor.




“Claim” means any assertion by the Contractor to be entitled to be paid any amount in
addition to the Contract Sum




“Clause” means a clause of the Contract




“Contract” means the final and concluded agreement between LGL and the Contractor
concerning the execution of the Work which is evidenced in accordance with Clause 4.5.2




“Contract Sum” means:




	 	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).






“Contractor” means the person who as party to the Contract is bound to execute the Work
in accordance with the Contract, and includes that person’s heirs, executors,
administrators and permitted assigns, and in the case of a corporate body, its
successors and permitted assigns.




“Construction Manager” means the person appointed from time to time by LGL to occupy the
Position of Construction Manager.




“Constructional Plant” means all plant, equipment, motor vehicles, appliances and things
(including scaffolding, formwork and the like) of whatsoever nature used or in use in or
about the execution of the Work, but does not include materials, plant, equipment or
other things intended to form or forming part of the Work.






			
	 	 	 
	Volume 3A Issue 1 October 2006 version 3
	 	Section 4 Page No 30







 









 





Section 4 — General Conditions of Contract







“Contract Variation” OR “C.V.” means a written authorization from LGL to the Contractor
in the form of Appendix 5/J to carry out a Variation




“Date for Practical Completion” means the date for Practical Completion shown on the
Contract Schedule agreed upon prior to Award of the Contract or if not so shown, as
otherwise set out in the Contract.




“Date of Acceptance of Tender” means the date, which appears upon the notice in
writing of acceptance of the Contractor’s Tender, issued by LGL.




“Date of Practical Completion” means the date certified by the Engineering Manager on
the Certificate of Practical Completion (Appendix 5/M) as the day upon which the Work
reached the stage of Practical Completion




“Day” means a calendar day




“Dayworks” means extra Work carried out by the Contractor pursuant to a Site
Instruction issued by LGL directing such extra Work to be carried out on a Dayworks
basis pursuant to Clause 4.2.8.




“Daily Hire Rates” means rates of payment per day




“Defects Liability Period” means the period from Practical Completion during which the
Contractor has an obligation under the Contract to rectify any defects in the Work
which become apparent during that period.




“Engineering Manager” means the person appointed in writing from time to time by LGL to
occupy the position of Engineering Manager for the Contract.




‘Hourly Hire Rates’ means rates of payment per hour.




“LGL” means the entity defined in section 1 as “LGL” and includes its successors and
assigns.




“Lump Sum” means total amount, global sum and is deemed to be inclusive of all costs of
whatsoever nature.




“Month” means calendar month.




“Original Contract Period” means the period from the Date of Acceptance of Tender to
the Date for Practical Completion




“Original Scope Of Work” means the extent of the Work which is evident from or which
can reasonably be inferred from the Contract.




“Person” includes a firm or corporation or unincorporated entity as well as an
individual.




“Practical Completion” is that stage in the execution of the Work when:




	 	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







 









 






Section 4 — General Conditions of Contract






	 	•	 	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; and
	 
	 	iii)	 	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.






“Progress Claim” means a claim for payment made by the Contractor in accordance with
Clause 4.2.6




“Quotation Price Request” or “Q.P.R.” means a request for a quotation in the form of
appendix 5/H issued by LGL via a Site Instruction and in accordance with Appendix 5/1.




“Revised Schedule” means an amended version of the current Contract Schedule, which
shows the projected effect of a delay without otherwise altering the logic of the
Schedule.




“Schedule of Rates” means a rate schedule included in the Contract which in respect of
any section or item of the Work, shows the rate or respective rates of payment for the
execution of that section of the Work and which may also include Lump Sums, provisional
sums, contingency sums, other sums, quantities and prices.




“Scope of Work” means the total extent of the Work required.




“Site” means the lands and other places to be made available and any other lands and
places made available to the Contractor by LGL for the execution of the Work.




“Standards” means the standards specified in the Contract for any part of the Work, 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 the standards organization for the country in which the Work is performed.




“Subcontractor” means any person or entity with which the Contractor has a contractual
relationship which provides for that person or entity to perform part of the Work.




“Supplier” means any person or entity that provides material, plant or equipment to the
Contractor for the Work.




“Temporary Works” means any work on the site (other than Constructional Plant) which is
required for the execution of the Work but which does not form part of the Work to be
handed over to LGL.




“Tender’ means the offer made by the Contractor.




“Tender Email Address” means a specific email address advised in writing by LGL during
the tender process for submission of tenders




“Tender Documents” means all of the documents issued by LGL to the Contractor prior to
the submission of the Contractor’s Tender.




“Tender Price” means the price tendered by the Contractor for performance of the Work or
if no price is tendered, the Estimated Tender Price as defined in clause 2.4




“Tender Rates” means the rates tendered by the Contractor at time of Tender.




			
	 	 	 
	Volume 3A Issue 1 October 2006 version 3
	 	Section 4 Page No 32





 









 






Section 4 — General Conditions of Contract





	 	 	“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 LGL by 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 Management
	5/B

	 	Form of Unconditional Bank Guarantee
	5/C

	 	Site Instruction
	5/D

	 	Project Control System — Site Instruction Flow Chart
	5/E

	 	Draft Agenda for Weekly Coordination Meeting
	5/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 Chart
	5/J

	 	Contract Variation
	5/K

	 	Project Control System — Contract Variation Flow Chart
	5/L

	 	Dayworks Sheet (2 Sheets)
	5/M

	 	Certificate of Practical Completion
	5/N

	 	Final Certificate
	5/O

	 	Deed of Release
	5/P

	 	Accident/ Incident Report
	5/Q

	 	Formal Instrument of Agreement (2 Sheets)
	5/R

	 	Show Cause Notice










 









 












 









 





APPENDIX 5/B


By
                                        
                     Bank of
                                        
                    



To: LGL



LGL of
                                        
                    
(the Obligee) has entered into a contract with,
                                        
                     of
                                        
                    (the Contractor) For the performance of certain works described as
                                        
                     and referred to as work package
                                        
                    
associated with the construction of
                                        
                    



WHEREAS the Contractor has agreed to provide security for the due and proper performance of the
Contract



NOW THESE PRESENTS WITNESS that at the request of the Contractor and in consideration of the
Obligee





	 	(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




Should the Obligee desire payment to be made to it of the whole or any part of the Security Sum the
Obligee



IN WITNESS WHEREOF the Surety has executed this Guarantee



Dated this
                                        
 Day of
                                        
 200                    



SIGNED for and on behalf of the Surety by its duly constituted attorneys:



 




in the presence of:



 




Name of Witness:



 




Address of Witness:



 




Surety’s address for service of notices:



 




 




Facsimile:
                                        
 Telephone:
                                        




Email address:
                                        





 









 





APPENDIX 5/C



	 
	                                     
                        L — [Work Package No] — [Reference No
]

	 

	Contractor:
                                        
 Work Package:
                                        


	 

	Project:
                                        
 Date:
                                        


	 

	Subject:
                                        


	 

	The Contractor is hereby advised:

	 

	 


	 

	 


	 

	 


	 

	 


	 

	 


	 

	 


	 

	 


	 

	 


	 

	 


	 

	 













LGL INTERNAL USE ONLY



If the Site Instruction does not
involve money, check the
box No Cost Variation to the Contract



If the Site Instruction does involve
money, the site instruction must be
completed in as much detail as
possible.





Area Manager’s Cost Estimate:



 














THIS SITE INSTRUCTION IS ISSUED ON THE
CONDITION THAT IT IS (Check the
appropriate box)





	o	 	No cost Variation to the Contract
	 
	o	 	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	 	 	 	Signed
	 	 	 	 	 
	For & On Behalf Of LGL	 	 	 	For & On Behalf Of The Contractor
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 





COPY — Engineering Manager, Area Manager, Contractor (Sign Copy & Return To Area Manager)



 









 










 









 





APPENDIX 5/E



The following is an outline of the primary items which will be discussed at the weekly
co-ordination Meeting:





	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




4.0 Quotation Price Requests





	 	4.1	 	Submission and review of any outstanding
QPR’s




5.0 Technical Review





	 	5.1	 	Review of any technical
problems




6.0 Interface Review





	 	6.1	 	Review of any interface
problems




7.0 Materials & Logistics





	 	7.1	 	Review of any problems with materials or
logistics




8.0 Quality Control





	 	8.1	 	Review of Quality Plans and Reports. Review action required on
NCR’s




9.0 Manpower & Accommodation





	 	9.1	 	Review of existing and projected manpower. Review of accommodation requirements




10.0 General Business





	 	10.1	 	 
	 
	 	10.2	 	 
	 
	 	10.3	 	 






 











 









	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 TM 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 3 Work 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 3 Work 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
Signed Signed Contractor’s Site
Representative) (Area Manager)
Date: Date: 














 











	APPENDIX 5/G SHEET 1 Of 4 C  —  [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 CLAIM REASON 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
MANAGER TOTAL 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 LGL Item 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 4 Work 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 4 Mark 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 4 Work Package: C  —  [Work Package No] -
[Reference No] Page No Date: Contractor: For Period Ending:
nAuar/iB^,.. .».TM nor^.,.. a rr,i^l • : -’” Onginals of Dayworks
Sheets for period from last dam to b 9 attached hereto jTM, ~’TM~ ‘.—.-.—.
| AREA MANAGER’S ] ENGINEERING MANAGER’S
DAYWORKS CLAIMEO PREVIOUS PERIODS ^ DAYWORKS CLAIMED FOR THIS PERIODTM” 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 ^r o 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/M L  —  [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/N L  —  [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 Security Is
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/O Contractor 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/P Contractor: 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/Q THIS 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/R L  —  [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

	 	Introduction
	6.2

	 	Country Specific Amendments and Additions to Section 4
	6.3

	 	Training and Localisation Policy
	6.4

	 	Freight, Duty and Taxes
	6.5

	 	Travel to Site
	6.6

	 	Accommodation and Messing
	6.7

	 	Power
	6.8

	 	Communications
	6.9

	 	Potable Water
	6.10

	 	Construction Water
	6.11

	 	On Site Facilities
	6.12

	 	Site Security
	6.13

	 	Hours of Work
	6.14

	 	LGL Safety Requirements
	6.15

	 	Vehicles
	6.16

	 	Insurance to be Arranged by LGL
	6.17

	 	Insurance to be Arranged by the Contractor






 









 






Section 6 — Special Conditions of Contract





	6.1	 	INTRODUCTION
	 
	6.1.1	 	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 4
	 
	6.2.1	 	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 LGL Safety Requirements (Clause 4.3.6.2) and any instructions
regarding industrial safety and health.
	 
	6.3	 	TRAINING AND LOCALISATION POLICY
	 
	6.3.1	 	LGL has 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 TAXES
	 
	6.4.1	 	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 SITE
	 
	6.5.1	 	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 MESSING
	 
	6.6.1	 	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.





			
	 	 	 
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Section 6 — Special Conditions of Contract





	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 LGL and 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’s camp
was an employee of the Contractor or an employee of any Subcontractor to the Contractor
	 
	6.7	 	POWER
	 
	6.7.1	 	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
Laws
	 
	6.8	 	COMMUNICATIONS
	 
	6.8.1	 	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 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 WATER
	 
	6.9.1	 	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 WATER
	 
	6.10.1	 	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 FACILITIES
	 
	6.11.1	 	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.





			
	 	 	 
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Section 6 — Special Conditions of Contract





	6.11.2	 	LGL will establish and maintain ablution blocks on Site at various locations for the
general use by any person.
	 
	6.12	 	SITE SECURITY
	 
	6.12.1	 	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 LGL and any amendments to such security regulations as may be issued by LGL from
time to time.
	 
	6.12.4	 	For the purpose of safeguarding property, LGL reserves the right to examine any package or
container entering or leaving the Site.
	 
	6.12.5	 	The Contractor must provide LGL with a list of all proposed personnel prior to starting
work for LGL’s review. LGL reserves the right to deny access to the Mine to any individual.
This right is arbitrary and absolute.
	 
	6.12.6	 	LGL reserves 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 WORK
	 
	6.13.1	 	The Site will be available for the Work to be undertaken seven days per week, twenty-four
hours per day. LGL will provide supervision seven days per week ten hours per day.
	 
	6.13.2	 	The Contractor shall work a roster schedule acceptable to LGL and 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 REQUIREMENTS
	 
	6.14.1	 	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, LGL will 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; LGL and
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
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Section 6 — Special Conditions of Contract





	 	 	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	 	LGL will 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	 	VEHICLES
	 
	6.15.1	 	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 LGL
	 
	6.16.1	 	LGL shall maintain comprehensive general liability insurance on its own behalf and on
behalf of the Contractor. LGL’s insurance 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	 	LGL will provide upon request, a summary of the coverage in place and a copy of the
insurance certificate.
	 
	6.16.3	 	LGL shall 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 LGL in 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 LGL and 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 LGL in 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





			
	 	 	 
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	 	Section 6 Page No 4






 









 






Section 6 — Special Conditions of Contract





	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 Insurances
	 
	 	 	Motor 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 Insurance
	 
	 	 	Third 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 Insurances
	 
	 	 	Insurances 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 Insurance
	 
	 	 	Insurances 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.





			
	 	 	 
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	 	Section 6 Page No 5






 









 






Section 6 — Special Conditions of Contract





	6.17.1.5	 	Professional Liability
	 
	 	 	If 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 Work
	 
	6.17.2	 	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)	 	LGL and 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 LGL may
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


Appendix



7/A            Accommodation Request Form




 









 








	 	 	 
	

	 	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.





Personnel
Details




	 	 	 	 	 	 	 
	Date:

	 	                    /                     /                     
	 	Gender Male/Female	 	 
	 
	Given Name(s)

	 	 	 	Last Name:	 	 
	 

	 	 
	 	 	 	 
	 
	Company:

	 	 	 	Point of Hire:	 	 
	 

	 	 
	 	 	 	 
	 
	Position Title:

	 	 	 	(If Lihirian, please state village)	 	 
	 
	Reason for Accommodation;
	 	 	 	 	 	 
	 	 	 





(Where applicable payment terms are excepted)




Type of Accommodation Requested




	 	 	 	 	 	 	 	 	 	 	 
	SINGLE:

	 	 	 	SHARED:
	 	 	 	HOTEL:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 




The following section must be completed in full by the request originator.




	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	1st Field	 	Room Allocation
	 	 	 	 	Permanent or Short	 	Roster Cycle eg.	 	Break Travel	 	(Camp Admin
	Site Based:	 	 	 	Term	 	21/9, 21/12	 	Out Date	 	Only)
	From:
	 	 	 	 	 	 	 	 	 	 
	 
	To:
	 	 	 	 	 	 	 	 	 	 






OFFICER RESPONSIBLE FOR VISITOR:                                                             




LGL Department Head Authorisation




	 	 	 	 	 	 	 
	Print Name:

	 	 	 	Department:	 	 
	 

	 	 	 	 	 	 
	 
	 

	 	 	 	Section:	 	 
	 

	 	 	 	 	 	 
	 
	Site Phone:

	 	 	 	Trunk Radio:	 	 
	 

	 	 
	 	 	 	 
	 
	Signature:

	 	 	 	Contract/Cost Code:	 
	 

	 	 
	 	 	 	 
	 
	LGL Camp Operations Authorisation
	 
	Print 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



AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION



October 2008



 









 









MILLION OUNCE PLANT UPGRADE

PROJECT



INSTALLATION OF AUTOCLAVE

INTERNAL EQUIPMENT



SECTION 8

SCOPE OF WORK



	 	 	 	 	 	 	 	 	 
	Revision	 	Date	 	Author	 	Approved By	 	Comments
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OB

	 	11/06/09
	 	AD
	 	IMcN
	 	Removed Pyroflex installation from SoW
	OA

	 	14/10/08
	 	IMcN
	 	 	 	Initial Draft






 









 






			
	SCOPE OF WORK
	 	Section 8
	WORK PACKAGE MOPU-0035
	 	Page 2/11
	INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT	 	 






Table of Contents




	 	 	 	 	 
	8.1 
Introduction
	 	 	3	 
	8.2
Work Included
	 	 	3	 
	8.2.1 Work Summary
	 	 	3	 
	8.2.2 Battery Limits
	 	 	3	 
	8.2.3 General Requirements
	 	 	3	 
	8.2.4 Methodology
	 	 	4	 
	8.2.5 Temporary Works
	 	 	4	 
	8.2.6 Survey and Set Out
	 	 	4	 
	8.2.7 Quality Control & Testing
	 	 	5	 
	8.2.8
Refractory Lining
	 	 	6	 
	8.3
Work Not Included
	 	 	9	 
	8.4
Attachments
	 	 	10	 
	8.4.1 LGL Technical Specifications
	 	 	10	 
	8.4.2 Contract Drawings
	 	 	10	 
	8.4.3 Volume 3C
	 	 	11	 






 









 






			
	SCOPE OF WORK
	 	Section 8
	WORK PACKAGE MOPU-0035
	 	Page 3/11
	INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT	 	 







	8.1	 	INTRODUCTION
	 
	 	 	The 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 INCLUDED
	 
	8.2.1	 	Work Summary
	 
	 	 	The 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	 	Requirements
	1343

	 	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 Limits
	 
	 	 	The 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 Requirements
	 
	 	 	All 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 8
	WORK PACKAGE MOPU-0035
	 	Page 4/11
	INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT	 	 







	8.2.4	 	Methodology
	 
	 	 	Prior 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 Works
	 
	 	 	The 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 Out
	 
	 	 	The 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 and	 	 
	Parameter	 	RL to “Lihir Grid”	 	AMG Coordinates and RL
	Easting

	 	 	11 843.12	 	 	 	461 842.3	 
	Northing

	 	 	5 030.31	 	 	 	9 655 030.1	 
	RL
	 	 	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.




 









 











			
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	INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT	 	 







	8.2.7	 	Quality Control & Testing
	 
	8.2.7.1	 	Quality Plan
	 
	 	 	The 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 Records
	 
	 	 	The 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 Points
	 
	 	 	For 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-Conformance
	 
	 	 	The 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 	 	
Audits
	 
	 	 	LGL may carry out a Quality Audit of the Contractor’s Quality System at any time. Such
audits




 









 











			
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	INSTALLATION 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 Documentation
	 
	 	 	The 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 Lining
	 
	8.2.8.1	 	General
	 
	 	 	The 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 Data
	 
	 	 	The 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




 









 











			
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	INSTALLATION 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 Installation
	 
	 	 	The 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 Lining
	 
	 	 	The 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	 	Installation
	 
	8.2.8.5.1	 	General
	 
	 	 	All 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.




 









 











			
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	 	 	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	 	Mortar
	 
	 	 	The 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	 	Bricks
	 
	 	 	Damaged, 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	 	Nozzles
	 
	 	 	The 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 Walls
	 
	 	 	The 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 Internals
	 
	 	 	The Contractor shall install the Autoclave internals as detailed on the drawings.
	 
	8.2.8.6	 	Inspection and Testing
	 
	8.2.8.6.1 	 	General
	 
	 	 	LGL’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




 









 











			
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	INSTALLATION 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	 	Rejection
	 
	 	 	If 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 INCLUDED
	 
	 	 	The 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;




 









 











			
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	INSTALLATION 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	 	ATTACHMENTS
	 
	 	 	All 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 Specifications
	 
	 	 	The following LGL Technical Specifications shall be applicable to the Work:






	 	•	 	General reference documentation:





	 	 	 	 	 
	Specification Number	 	Rev	 	Title
	None 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 Drawings
	 
	 	 	The 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.




 









 











			
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	INSTALLATION OF AUTOCLAVE INTERNAL EQUIPMENT	 	 







	8.4.3	 	Volume 3C
	 
	 	 	The 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






TABLE OF CONTENTS




	 	 	 	 	 
	 	9.1	 	 	Introduction

	 	 	 	 	 

	 	9.2	 	 	Contract Key Dates

	 	 	 	 	 

	 	9.3	 	 	Contract Currency

	 	 	 	 	 

	 	9.4	 	 	Components of Tender Price — Tender Form 10/A

	 	 	 	 	 

	 	9.5	 	 	Site Travel

	 	 	 	 	 

	 	9.6	 	 	Post Tender / Pre-Award Meeting

	 	 	 	 	 

	 	9.7	 	 	Enquiries During Tender Period







 









 







			
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	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 







	9.1	 	INTRODUCTION
	 
	 	 	This 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 DATES
	 
	9.2.1	 	The following Contract Key Dates shall apply to this Contract:





	 	 	 	 	 	 	 	 	 
	Activity	 	Week	 	Contract Key Date
	Contract Award
	 	 	0	 	 	5 Dec 2008
	Autoclave installed on-Site ready for installation of internal equipment
	 	 	75	 	 	14 May 2009
	Personnel mobilised to Site
	 	 	75	 	 	14 May 2009
	Corrosion Resistant Membrane Lining & Refractory Lining and all built-in
equipment installation complete
	 	 	85	 	 	22 July 2009
	Curing & installation of miscellaneous equipment
	 	 	88	 	 	12 August 2009
	Demobilisation
	 	 	88	 	 	12 August 2009







	9.3	 	CONTRACT CURRENCY
	 
	 	 	The 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/A
	 
	9.4.1	 	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 Sum
	 
	 	 	All 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






 









 







			
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	AUTOCLAVE 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	 	Insurance
	 
	 	 	The 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 Sums
	 
	 	 	All 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 TRAVEL
	 
	 	 	Tenderers 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 MEETING
	 
	 	 	Should 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 PERIOD
	 
	 	 	All enquiries during the Tender Period should be made in writing to:
	 
	 	 	Contracts Engineer- Lihir MOPU Project







 









 







			
	APPENDICES TO TENDER CONDITIONS OF PARTICULAR APPLICATION
	 	Section 10
	WORK PACKAGE MOPU-0035
	 	 
	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 






TABLE OF CONTENTS




	 	 	 
	Appendix 10/A
	 	Components of Tender Price

	 	 	 

	Appendix 10/B
	 	Schedule of Rates (3 pages)

	 	 	 

	Appendix 10/C
	 	Tender Schedule

	 	 	 

	Appendix 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	 	 	Introduction

	 	 	 	 	 

	 	11.2	 	 	Advertising

	 	 	 	 	 

	 	11.3	 	 	Site Facilities

	 	 	 	 	 

	 	11.4	 	 	Personnel Instruction and Training

	 	 	 	 	 

	 	11.5	 	 	Handling of LGL Supplied Materials or Equipment

	 	 	 	 	 

	 	11.6	 	 	Project Reporting Requirements

	 	 	 	 	 

	 	11.7	 	 	Special Conditions







 









 







			
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	11.1	 	INTRODUCTION
	 
	11.1.1	 	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	 	ADVERTISING
	 
	11.2.1	 	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 FACILITIES
	 
	11.3.1	 	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 TRAINING
	 
	11.4.1	 	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.





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	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 







	11.5	 	HANDLING OF LGL SUPPLIED MATERIALS OR EQUIPMENT
	 
	11.5.1	 	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 REQUIREMENTS
	 
	11.6.1	 	General
	 
	11.6.1.1	 	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 Reports
	 
	11.6.2.1	 	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





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	AUTOCLAVE 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 Reports
	 
	11.6.3.1	 	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 CONDITIONS
	 
	11.7.1	 	Inspection and Provision of Insurance Policies
	 
	11.7.1.1	 	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	 	Security
	 
	11.7.2.1	 	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 Payments
	 
	11.7.3.1	 	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	 	Variations
	 
	11.7.4.1	 	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.”





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	11.7.5	 	Goods or Services Provided by LGL
	 
	11.7.5.1	 	Delete clause 4.2.10 in its entirety.
	 
	11.7.6	 	Completion
	 
	11.7.6.1	 	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 Control
	 
	11.7.7.1	 	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 Safety
	 
	11.7.8.1	 	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 Services
	 
	11.7.9.1	 	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 Work
	 
	11.7.10.1	 	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.”





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	11.7.11	 	Environmental Responsibilities
	 
	11.7.11.1	 	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 Warranties
	 
	11.7.12.1	 	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	 	Defects
	 
	11.7.13.1	 	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 Rights
	 
	11.7.14.1	 	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.”





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	11.7.15	 	Accident or Injury to Employees and Property Damage and Public Risk
	 
	11.7.15.1	 	Delete clauses 4.4.3 and 4.4.4 in their entirety.
	 
	11.7.16	 	Construction of the Contract
	 
	11.7.16.1	 	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	 	Documents
	 
	11.7.17.1	 	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 Contract
	 
	11.7.18.1	 	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	 	Disputes
	 
	11.7.19.1	 	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 Interpretations
	 
	11.7.20.1	 	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





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	AUTOCLAVE 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 Compliance
	 
	11.7.21.1	 	“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




“The Contractor warrants to LGL that the Merchandise shall be of the
quality specified or of the best of their respective kinds if no quality is
specified, and shall conform to the specifications, drawings, samples, and
other descriptions set out in the Contract Documents.



If, within 18 (eighteen) months from the date of completion of brick lining or
12 (twelve) months after date of commencement of autoclave operations (defined
as the first introduction of oxygen to the autoclave when operating heat and
pressure is achieved during initial start-up) whichever comes first, any
services, material or equipment furnished by the Contractor proves to be
defective in material or workmanship upon examination by the Contractor within
30 days of written advice by LGL, the Contractor will repair the equipment or
supply replacement material or equipment. Should the Contractor fail to examine
the material or workmanship within the 30 days of LGL’s written advice, it
shall be deemed that the Contractor accepts that the material or workmanship in
question is defective, and the Contractor shall repair the equipment or supply
replacement material or equipment. Any replacement services, material or
equipment will be warranted against defects in material or workmanship for the
unexpired portion of the warranty applicable to the particular material or
equipment. If the defect requires a change in the original design by the
Contractor prior to repairing the defect, then a full 12 month warranty period
shall apply to the particular material or workmanship that was redesigned.
Warranty claims must be filed within the time period stated above.



If the Contractor is not the manufacturer of some or all of the Merchandise covered by the Purchase
Order, The Contractor shall, in addition to the warranties and guarantees set out in the preceding
paragraph, or in the alternative to the said warranties and guarantees, make necessary arrangements
whereby the manufacturers involved will extend the same warranties and guarantees to LGL directly.



The Contractor will not be responsible for and assumes no liability for cost of
material, transportation charges, labour costs or other related expenses by
third parties in the replacement of defective material or equipment, without
The Contractor’s prior written consent.



LGL’s remedies under this warranty are specifically limited to repair or replacement of the
defective material or equipment and are exclusive of all other remedies. Should these remedies be
found inadequate or to have failed of their essential purpose for any reason whatsoever, LGL agrees
that return of the amounts received by the Contractor for said services, material or




Vol 3B, October 2008




 









 







			
	SPECIAL CONDITIONS OF PARTICULAR APPLICATION
	 	Section 11
	WORK PACKAGE MOPU-0035
	 	Page 8 / 11
	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 






equipment shall prevent the remedies from failing of their essential purpose and shall be
considered by LGL as a fair and adequate remedy.



This warranty will be voided if (a) the material or equipment has not been stored, maintained or
operated in accordance with accepted industrial practice or any specific instruction provided by
the Contractor; (b) the material or equipment has been subjected to any accident, misapplication,
abuse or misuse; (c) LGL has used, repaired or modified the material or equipment after discovery
of the defect without the Contractor’s prior written consent; or (d) LGL refused to permit the
Contractor to examine the material, equipment and operating data to determine the nature of the
defect claimed.



THERE ARE NO OTHER GUARANTEES OR WARRANTIES EXPRESSED OR IMPLIED, EXCEPT AS PROVIDED HEREIN. THE
CONTRACTOR EXTENDS NO IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR PARTICULAR PURPOSE WITH
RESPECT TO ANY MATERIAL OR EQUIPMENT PURCHASED FROM THE CONTRACTOR.”





	11.7.23	 	Contractors Indemnification




“NOTHING IN THIS PARAGRAPH WILL LIMIT EITHER PARTY’S LIABILITY TO THIRD PARTIES FOR
CLAIMS BROUGHT DIRECTLY AGAINST THE NEGLIGENT PARTY.



LGL will be solely responsible for and shall indemnify the Contractor against all liability, loss
damage, cost or expenses, including attorneys’ fees, resulting from death, personal injury, loss
of or physical damage to property caused solely by the acts of LGL its agents, subcontractors or
employees.



The Contractor will be solely responsible for and shall indemnify LGL against all liability, loss
damage, cost or expenses, including attorneys’ fees, resulting from death, personal injury, loss
of or physical damage to property caused solely by the acts of the Contractor, its agents,
subcontractors or employees.



All liability, losses, damages, costs or expenses resulting from death, personal injury, loss of or
physical damage to property, caused by the joint or concurring acts of LGL and the Contractor,
shall be borne by LGL and the Contractor to the extent each is determined negligent either by
agreement of the parties or by a court of competent jurisdiction.”





	11.7.24	 	Limitation of Liability
	 
	11.7.24.1	 	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.





Vol 3B, October 2008




 









 






			
	SPECIAL CONDITIONS OF PARTICULAR APPLICATION
	 	Section 11
	WORK PACKAGE MOPU-0035
	 	Page 9 / 11
	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 







	11.7.24.2	 	Limitation on the Contractor’s Liability






(a) Subject to clause 11.7.24.2(b), the Contractors liability to LGL (its related
companies, associates, officers, agents, consultants, contractors or employees) arising
out of or in connection with all claims of any kind, whether based on contract
(including repudiation), indemnification, warranty, statute, tort, including negligence
and strict liability, or any other cause or combination of causes whatsoever, for any
loss, damage, cost or expense arising out of, or in connection with, or resulting from
the Contractor’s Works under the Contract, or from the performance of any other work or
services by the Contractor or supply of any goods, or any extension or expansion
thereof (including remedial warranty efforts if applicable) (known as “Liability’) is
limited in the aggregate to the total Contract Sum paid by LGL to the Contractor under
the Contract, minus:




(i) any insurance payments paid by the Contractor’s insurers, or any
letter of credit proceeds, bank guarantee proceeds, or bond proceeds received
by LGL or on its behalf in relation to the Contractor’s liability; and




(ii) any amounts reasonably incurred by the Contractor towards
rectification of the Works (known as the “Limitation”).




LGL undertakes to procure that any action is taken or claim made in relation to such
Liability by LGL itself on behalf of its related companies, associates, officers,
agents, consultants, contractors and employees, whose actions and/or claims so
advanced by LGL, will be subject to such Limitation.




(b) In no event, whether based on contract (including repudiation), indemnification,
warranty, statute, tort, including negligence (including negligent misrepresentation),
strict liability, or any other cause or combination of causes, including any theories
of concurrent liability arising from a duty of care by operation of law or otherwise,
shall the Contractor, its employees or suppliers, be liable to LGL and/or its related
companies, associates, officers, agents, consultants, contractors or employees for
special, indirect, punitive, incidental or consequential loss or damages, loss of
anticipated or actual profits, loss of anticipated or actual revenue, loss of contracts
or interest, loss from interruption of business, loss of reputation, loss of goodwill,
loss of use, labour costs, costs of substitute material, equipment or downtime costs or
costs of a similar nature.




(c) Certain legislation, including the Trade Practices Act 1974 (Cth), may imply
warranties or conditions or impose obligations which cannot be excluded, restricted or
modified under the Contract except to a limited extent. This Contract must be read
subject to those statutory provisions. If those statutory provisions apply,
notwithstanding any other provision of this Contract, to the extent to which the
Contractor is entitled at law to do so, the Contractor limits its liability in respect
of any claim under those provisions to:




	 	(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





Vol 3B, October 2008




 









 






			
	SPECIAL CONDITIONS OF PARTICULAR APPLICATION
	 	Section 11
	WORK PACKAGE MOPU-0035
	 	Page 10 / 11
	AUTOCLAVE 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






(a) Each party’s liability to any other party under the Contract (including any indemnity)
is reduced proportionately to the extent that any act or omission or negligent or
fraudulent act or omission or Wilful Misconduct by another party (including any
independent third party) caused or contributed to the loss, damage, cost or expense for
which the first party would otherwise be liable.




(b) For the purposes of this clause 11.7.24, “Wilful Misconduct” means in respect of any
significant duty or obligation under or arising out of the Contract, an intentional,
wanton or reckless act or omission of a party which is a breach of that duty or obligation
but does not include any innocent act, omission, mistake or error of judgement, whether
negligent or not, by a party acting in good faith.




(c) This clause 11.7.24 shall:




(i) prevail over any conflicting or inconsistent provisions of the Contract
and any other agreement between LGL and the Contractor; and




(ii) apply notwithstanding the failure of any rectification work performed
by the Contractor in accordance with its rectification obligations under the
Contract.”




	11.7.25	 	Travel to Site
	 
	11.7.25.1	 	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	 	Power
	 
	11.7.26.1	 	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	 	Communications
	 
	11.7.27.1	 	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





Vol 3B, October 2008




 









 






			
	SPECIAL CONDITIONS OF PARTICULAR APPLICATION
	 	Section 11
	WORK PACKAGE MOPU-0035
	 	Page 11 / 11
	AUTOCLAVE 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 Water
	 
	11.7.28.1	 	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 Water
	 
	11.7.29.1	 	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 Contractor
	 
	11.7.30.1	 	Delete clause 6.17.1.1 in its entirety.
	 
	11.7.30.2	 	 
	 
	11.7.30.3	 	Delete clause 6.17.1.5 in its entirety.
	 
	11.7.30.4	 	Delete clause 6.17.5, subclause (v).
	 
	11.7.31	 	Milestone Payments
	 
	11.7.31.1	 	Contract milestone payments to occur as follows:





Vol 3B, October 2008





 











 





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






TABLE OF CONTENTS




Negotiated Deed of Release




Agreed Form of Bank Guarantee





 









 








APPENDIX 5/O




	 	 	 
	Contractor:

	 	Work Package:





 





To: LGL



WITH RESPECT TO THE ABOVE REFERENCED CONTRACT (hereinafter called the “Contract”) KNOW ALL MEN BY
THESE PRESENTS that we the above referenced Contractor (hereinafter called the “Contractor” which
term includes successors and assigns) for and in consideration of the Adjusted Contract Sum in the
amount of:



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 Contract and their respective present and former
directors, officers, agents, servants and employees, (all of which are hereinafter called
the “Releases” which term includes successors and assigns,) of and from all actions, causes of action, suits, debts, dues, accounts, bonds,
covenants, contracts, forfeitures, damages, claims and demands whatsoever in law or in equity which we, the said Contractor ever
had, now have, or hereafter can, shall or might have, in connection with payment for the
supply  of labour, materials, services or equipment through the date hereof in connection
with the Contract or other agreements, understandings or arrangements entered into in connection
therewith.



It is further agreed that for the consideration and Agreed Net Payment aforesaid, the Contractor
will not make any claim or commence or maintain any action or proceeding against any person or
corporation or the Crown in which any claim could arise against the Releases or any of them for
contribution or indemnity or any other relief over.



The Contractor shall indemnify and save harmless the Releases against and from any and all losses,
costs and damages (including legal fees on a solicitor/ lawyer and client basis for full
indemnification and disbursements) which the Releases or any of them may suffer or incur in
connection with any breach of any of the foregoing agreements of the Contractor contained in this
Release, any nonobservance by the Contractor of any of the provisions of this Release, or any claim
that may be made by any Subcontractor, Supplier, employee or agent of the Contractor against the
Releases or any of them in respect of any cause, matter or thing existing up to the date hereof
arising out of or in respect of the Contract or other agreements, understandings or arrangements
entered into in connection therewith, including without limitation, any claim for lien.



IN WITNESS WHEREOF we the said Contractor have executed these presents according to our proper
rules and regulations




	 	 	 	 	 	 	 
	Dated this

	Day of	 	 	 	200	 





 




SIGNED for and on behalf of the Contractor by its duly constituted attorneys:



 




 





In the presence of:

 





Name of Witness:

 





Address of Witness:

 





 





 









 





APPROVED FORM OF BANK GUARANTEE




(To be typed on Bank Letterhead)



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 13
	WORK PACKAGE MOPU-0035	 	 
	AUTOCLAVE INTERNAL EQUIPMENT INSTALLATION	 	 






TABLE OF CONTENTS




This Section Not Used




 









 





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






TABLE OF CONTENTS




This Section Not Used




 









 





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






TABLE OF CONTENTS




A summary program is available upon request




 









 





OTHER DOCUMENTS FORMING PART OF THE AGREEMENT




Table of Contents




	1.	 	Koch’s Quality plans
	 
	2.	 	Koch’s Proposal
	 
	3.	 	Minutes of Meetings
	 
	4.	 	Contract Schedule
	 
	5.	 	Koch Drawing “Q-1270-C Rev 1 Revised”





 









 





Koch’s Quality Plans




Table of Contents


Koch Quality Plan — Project Quality Plan — Lihir Autoclave No. 4 dated 24th February, 2009



York
Forter Quality Plan — YFA-039 dated 16th June, 2008




 









 










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, Ohio	 	 
	DATE: 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

	 	 	 	2/24/2009
	 

	 	 	 	 
	NAME

	 	 	 	DATE
	 
	 	 	 	 
	VP Engineering and Construction
 

*TITLE

	 	 	 	 






	 	 	 	 	 
	 

	 	       President
	 	Date: 3/5/09
	 
	 	 	 	 
	 

	 	       Engineering Manager
	 	Date: MAR-5-09
	 
	 	 	 	 
	 

	 	      Project Manager
	 	Date: MAR-5-09
	 
	 	 	 	 





Revision
History;




A      Initial Submitted to Lihir



This Specification shall pertain to the Operation and Manufacturing process of at Koch
Knight LLC East Canton, Oh. Under no A to alter this specification in any way unless it
has been approved in writing the Quality
Technical Manager.




 









 







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, Ohio	 	 
	DATE: 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 quality
	 
	 	2.3.3	 	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 LLC

	 
	 	 	 	The President of Koch Knight is responsible for setting policy, goals and objectives
for the




This Specification shall pertain to the Operation and Manufacturing process of at Koch
Knight LLC East Canton, Oh. Under no circumstances in 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



385
Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 /
Phone: (330) 488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	Revision:
A

	 	East Canton, Ohio	 	 
	DATE: 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 Director
	 
	 	 	 	Business 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 Manager
	 
	 	 	 	The 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 Manager
	 
	 	 	 	The 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 Administrator
	 
	 	 	 	The Contract Administrator is responsible for contract and purchase order review and




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



385
Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone:
(330)488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	Recision:
A

	 	East Canton, Ohio	 	 
	DATE: 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 Manager
	 
	 	 	 	The 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 Manager
	 
	 	 	 	The 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 Manager
	 
	 	 	 	The 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 Buyer
	 
	 	 	 	Purchasing personnel are responsible for documenting and implementing a system to ensure the




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



385
Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone:
(330)488-1651 / Fax:(330)   488-1656




	 	 	 	 	 
	REVISION:
A

	 	East Canton, Ohio	 	 
	DATE: 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 Manager
	 
	 	 	 	The 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 Supervisor
	 
	 	 	 	The 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 Manager
	 
	 	 	 	The 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.




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




385
Orchardview Dr. / P.O. Box 30070 7 East Canton, Ohio 44730 / Phone:
(330) 488-1651 / Fax: (330) 488-1656





	 	 	 	 	 
	REVISION:
A

	 	East Canton, Ohio	 	 
	DATE: 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

	 	P0740-10 
	4.1.2 Control of Nonconforming Product

	 	P0830-10 
	4.1.3 Corrective Action Process

	 	P0850-10 
	4.1.4 Construction & Preparation of Steel Shell for Sheet Linings

	 	TL-111D 
	4.1.5 Application of PYROFLEX® Sheet Lining

	 	TL-117B 
	4.1.6 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-234 
	5.1.1.3 Moisture Determination of Clay Mixtures

	 	WI-980 
	5.1.1.4 Bend Test

	 	WI-211 
	5.1.1.5 Chemical Analysis of Soda Lime

	 	ASTM C-169 
	5.1.1.6 Sulfur in Ash from Coal

	 	ASTM D-5016 
	5.1.1.7 Apparent Porosity

	 	ASTM C-20 
	5.1.1.8 Liquid Absorption

	 	ASTM C-20 
	5.1.1.9 Bulk Density

	 	ASTM C-20 
	5.1.1.10 Modulus of Rupture

	 	ASTM C-133 
	5.1.1.11 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 





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



385 Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio  44730 /Phone: (330)488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	REVISION: A

	 	East Canton, Ohio	 	 
	DATE: 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-1113 
	5.1.1.14 Thermal Expansion Coefficient

	 	ASTM E-228 
	5.1.1.15 Crushing Strength

	 	ASTM C-133 







	 	5.1.2	 	Silicate and Litharge Mortars





	 	 	 
	5.1.2.1 Bond Strength

	 	ASTM C-321 
	5.1.2.2 Absorption

	 	ASTM C-20* 
	5.1.2.3 Working Life

	 	ASTM C-414 
	5.1.2.4 Shrinkage

	 	ASTM C-531 
	5.1.2.5 Compressive Strength

	 	ASTM C-579 
	5.1.2.6 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-228 
	5.1.2.8 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-960 
	5.1.3.3 Sheet Weights and Measurements

	 	WI-960 
	5.1.3.4 Bulk Density

	 	WI-960 
	5.1.3.5 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



385 Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone: (330)488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	REVISION: A

	 	East Canton, Ohio	 	 
	DATE: 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 membrane
	 
	 	7.1.2	 	Daily Quality Control Checklist for PYROFLEX and DUPLY membranes
	 
	 	7.1.3	 	Daily Quality Control Inspection Report for Acid-Proof Brick Installation
	 
	 	7.1.4	 	Site curing process






	 	7.2	 	Additional daily or periodic audits






	 	7.2.1	 	Project Daily Production Report
	 
	 	7.2.2	 	Vessel Lining Quality Assurance Inspection Report
	 
	 	7.2.3	 	Visual inspection of PYROFLEX for uniform thickness, smoothness and no air pockets
	 
	 	7.2.4	 	Visual inspection of DUPLY for uniform coverage and tap test for bonding
	 
	 	7.2.5	 	Mortar samples taken per batch to ensure adequate set-up and workability
	 
	 	7.2.6	 	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 joints
	 
	 	7.2.6.2	 	High-low between consecutive brick faces
	 
	 	7.2.6.3	 	Levelness of brick courses
	 
	 	7.2.6.4	 	Mortar joint thickness
	 
	 	7.2.6.5	 	Proper cut brick sizes
	 
	 	7.2.6.6	 	Properly culled brick with excessive chips or nicks






	2.0	 	Supplier 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



385 Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone: (330)488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	REVISION: A

	 	East Canton, Ohio	 	 
	DATE: 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 fabrication
	 
	 	 	 	9.1.2 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 inspection
	 
	 	9.2.2	 	Dimensional checks
	 
	 	9.2.3	 	Progress monitoring
	 
	 	9.2.4	 	Sub-contractor quality control records including dimensional, material
certification and
NDE

	 
	 	9.2.5	 	 






	 	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





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



385 Orchardview Dr. / P.O. Box 30070 / East Canton, Ohio 44730 / Phone: (330)488-1651 / Fax: (330) 488-1656




	 	 	 	 	 
	REVISION: A

	 	East Canton, Ohio	 	 
	DATE: 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.




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.




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Projecrt Quality Plan 

YFA-039

Rev. 1            16/06/08

S.Speers






Project Quality Plan




For



Page 1 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1            16/06/08

S.Speers






PROJECT QUALITY PLAN




	 	 	 	 	 
	TABLE OF	 	 
	CONTENTS	 	PAGE NUMBER
	 
	Project Quality Plan Summary
	 	 	3	 
	SECTION 1
	 	 	 	 
	Acceptance of Project Quality Plan
	 	 	4	 
	Scope
	 	 	5	 
	SECTION 2
	 	 	 	 
	Project Management Structure and Quality Assurance Responsibilities
	 	 	6	 
	2.1 Brief description of project
	 	 	6	 
	2.2 Quality Management
	 	 	6	 
	Company Quality Policy Statement
	 	 	7	 
	Site Organisational Chart
	 	 	8	 
	3.0 Responsibilities
	 	 	9	 
	3.1 Managing Director
	 	 	9	 
	3.2 Site Administration Officer
	 	 	9	 
	3.3 Site Manger
	 	 	9	 
	3.4 Site Supervisor
	 	 	9	 
	3.5 Direct Labour
	 	 	10	 
	3.6 Quality Inspectors
	 	 	10	 
	3.7 Suppliers and Subcontractors
	 	 	10	 
	SECTION 3
	 	 	 	 
	Quality Assurance Procedures
	 	 	11	 
	1. Project Document Control
	 	 	12	 
	2. Purchased Materials
	 	 	12	 
	3. Commencement of Work
	 	 	13	 
	4. Controlling Construction Processes
	 	 	13	 
	5. Identification and Traceability
	 	 	14	 
	6. Monitoring Subcontractors
	 	 	14	 
	7. Control of Nonconforming Product
	 	 	14	 
	8. Corrective and Preventitve Action
	 	 	16	 
	9. Quality Records
	 	 	16	 
	10. Variations
	 	 	17	 
	11. Project Quality Audits
	 	 	17	 
	12. Induction and Training
	 	 	17	 
	13. Health and Safety Management
	 	 	17	 
	14. Enviromental Management
	 	 	17	 
	SECTION 4
	 	 	 	 
	Examples of Standard Forms
	 	 	19	 






Page 2 of 19




 









 





	 	 	 	 	 
	
	 	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 YFA
	 	 	 	 	SUBCONT	 	 






	 	 	 
	CHECKLISTS
	 	QUALIFICATIONS 
	1. I.T.P
	 	 
	2. SITE ESTABLISHMENT
	 	TRADES CERTIFICATE
	3. MATERIALS RECIEPT
	 	CONFINED SPACE
	4. DEMOLITION
	 	FORK LIFT LICENCE
	5. PROTECTIVE LINING
	 	MATERIAL HOIST
	6. INSTALL INSULATION
	 	TRUCK / BUS LICENCE
	7. INSTALL BRICKWORK
	 	OTHER
	8. INSTALL CASTABLE
	 	SITE SPECIFIC INDUCTION
	9. INSTALL GUNNING MATERIAL 

10. DAILY INSPECTIONS
	 	ACCREDITATION OF NOZZLEMAN
	11. FINAL INSPECTION
	 	 
	12. TIME SHEETS
	 	 






	 	 	 	 	 
	 
	 	 	 	TESTING
	SITE SAFETY PLAN
	 	YES/NO	 	MORTAR SAMPLES
	ENVIROMENTAL CHECKLIST
	 	YES/NO	 	BRICK TESTING
	PROJECT QUALITY AUDIT
	 	YES/NO	 	 
	 
	 	 	 	 
	APPROVED BY:
	 	 	 	 
	 
	 	 	 	 
	DATE:
	 	 	 	 






ACCEPTANCE CRITERIA




Page 3 of 19






 









 








	 	 	 	 	 
		 	York Forter Australasia Pty Ltd	 	Project Quality Plan 

YFA-039

Rev. 1            16/06/08

S.Speers






PROJECT QUALITY PLAN




SECTION 1




ACCEPTANCE OF PROJECT QUALITY PLAN


	 	 	 	 	 
	COMPANY:
	 	 	 	 
	 
	 	 
	 	 
	ACCEPTED BY:
	 	 	 	 
	 
	 	 
	 	 
	PRINT NAME:
	 	 	 	 
	 
	 	 
	 	 
	POSITION:
	 	 
	 	 
	 
	 	 
	 	 
	DATE:
	 	 	 	 
	 
	 	 
	 	 






YORK FORTER AUSTRALASIA


ACCEPTED BY:



PRINT NAME:


DATE:


COMPLETION OF CONTRACT




	 	 	 	 	 	 	 
	COMPANY:
	 	 	 	POSITION:	 	 
	 
	 	 	 	 	 	 
	 
	NAME:
	 	 	 	DATE:	 	 
	 
	 	 	 	 	 	 
	 
	SIGNATURE:
	 	 	 	YFA REP:	 	 
	 
	 	 	 	 	 	 





Page 4 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1            16/06/08

S.Speers






	 
	SCOPE OF PROJECT QUALITY PLAN







THIS PROJECT QUALITY PLAN HAS BEEN DEVELOPED BY:



YORK FORTER AUSTRALASIA PTY LTD



TO DEFINE THE QUALITY ASSURANCE PROCEDURES WHICH APPLY TO THE PROJECT NAMED BELOW:



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.



THE FOLLOWING DOCUMENTS ARE INCLUDED IN THIS PROJECT QUALITY PLAN:




	 	 	 
	SECTION 1.

	 	TITLE, ACCEPTANCE, CONTENTS
	 
	 	 
	SECTION 2.

	 	PROJECT MANAGEMENT STRUCTURE AND QUALITY ASSURANCE RESPONSIBILITIES
	 
	 	 
	SECTION 3.

	 	PROJECT QUALITY ASSURANCE PROCEDURES
	 
	 	 
	SECTION 4.

	 	PROJECT QUALITY ASSURANCE DOCUMENTATION






Page 5 of 19





 









 








	 	 	 	 	 
	
	 	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





ALL ASPECTS OF QUALITY MANAGEMENT ON THIS PROJECT ARE UNDERTAKEN IN CONFORMANCE WITH THE
GUIDELINES LAID DOWN IN THE COMPANY’S QUALITY ASSURANCE MANUAL.




THE QUALITY ASSURANCE SYSTEM REQUIRED FOR THIS CONTRACT IS THAT OF:



ISO 9001




Page 6 of 19




 









 





	 	 	 	 	 
	
	 	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




Page 7 of 19








 









 








	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1            16/06/08

S.Speers






Site Organisational Chart




Page 8 of 19








 









 








	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers






3. RESPONSIBILITIES



The principal responsibilities of project staff are outlined below. Responsibilities and
authorities are defined in more detail in YORK FORTER AUSTRALASIA’S quality system
procedures, which are referred to below.




3.1 MANAGING DIRECTOR



The Managing Director is responsible for setting up and general co-ordination of
projects, including:





	*	 	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



The site safety officer is responsible for overseeing continual housekeeping at the work
face and preparing toolbox meeting agenda’s.



The safety officer (or nominated relief) shall work closely with the contracts administrator
refractory and mechanical personnel alike and shall be present every working day shift, To
attend safety/ environmental meetings when required.




3.3
PROJECT MANAGER



The project manager is responsible for overall management of the project and the
compliance with the contract including time, cost, quality, safety
and industrial matters. He
is responsible for:





	*	 	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



The site supervisor is responsible to the site manager for site control of direct labour
and plant, site liaison with subcontractors,
in-process inspection, co-ordinating testing and
receipt of incoming goods.




Page 9 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers






3.5
DIRECT LABOUR



Each Tradesman, Trades assistant, operator is responsible for the satisfactory performance
of his/ her assigned tasks under the direction of the site supervisor or the site manager.




3.6
QUALITY ASSURANCE/QUALITY CONTROL MANAGER



Quality Assurance/Quality Control manager is responsible to the site manager for final inspection
of constructed work in accordance with the inspection and test plan for the project, to verify
conformance with contract requirements of;





	*	 	Rubber linings;






	*	 	Epoxies;






	*	 	Brickwork;






	*	 	Insulation materials;






	*	 	Mortar mixing;






	*	 	Castables and gunning materials.




The QA Manager is independent of other productive project activities which may cause
conflict with the proper discharge of their responsibility for objective verification of
conformance.



The site manager for the project is responsible for preparing a vessel release certificate.




3.7 FIRST AID ATTENDANTS.



During the
execution of works at the
                                        
YORK FORTER
AUSTRALASIA will have a designated first aider available on every working shift. A first aid box
shall be supplied by YORK FORTER AUSTRALASIA and maintained at the work face. All accidents, first
aid treatments and near misses are to be reported immediately to the site supervisor.




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




Page 10 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers





Suppliers and subcontractors are required to meet purchasing / subcontract
quality requirements as specified by YORK FORTER AUSTRALASIA.




PROJECT QUALITY ASSURANCE PROCEDURES




SECTION
3


THE COMPANY PROCEDURES LISTED BELOW AND OUTLINED IN THE PROJECT QUALITY PLAN ARE FOLLOWED FOR THIS
PROJECT.




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




Page 11 of 19





 









 








	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers






1. PROJECT DOCUMENT CONTROL (see QP1)



All copies of the Project Quality Plan for each project shall be controlled and issued
by the Managing Director.



Where
subcontractors’ procedures and/or inspection/test plans are submitted to YORK FORTER
AUSTRALASIA, they shall be treated as controlled documents, as part of the Project Quality
Plan.



The Site Manager shall issue relevant extracts from the Project Quality Plan to the Site
Supervisor, Quality Inspectors and subcontractors as controlled copies.



The Site Supervisor shall issue relevant ITP Checklists and work instructions to direct
labour personnel as required and shall be responsible for updating such documents if revised
pages are issued to him by the Site Manager.



All documents shall be issued in protective binders.



The Site Manager shall issue design plans to the Site Supervisor, and relevant extracts to
subcontractors, as controlled copies.



The Site
Manager shall check that Standards held by YORK FORTER AUSTRALASIA AUSTRALASIA and
subcontractors engaged for this project are up to date by insertion of all amendments. He
shall also ensure that a copy of these Standards is available on the site during
construction.




2. PURCHASED MATERIALS (see QP 5)



The Site Supervisor is responsible for receipt of incoming goods. This involves checking
that supply orders are complete, identified and undamaged, and also that any required
documentation such as certificates of compliance and test results are submitted by the
supplier.



Any nonconforming products shall be clearly labeled by the Site Supervisor and kept separate
from conforming products pending a decision on their disposal. The
Site Supervisor shall keep
records of such actions.



If conformance certificates are to be supplied with any product but have not been received by
the time the product is to be installed, the Site Supervisor is to check with the Site
Manager if it




Page 12 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers





is OK to
use the product. If OK’d record exactly where the product is
located in the job, for future traceability on daily inspection sheet YFA-021.




3.
COMMENCEMENT OF WORK



As contractor, YORK FORTER AUSTRALASIA is responsible for the following activities
prior to commencement of work:



Arrange
with Site Manager any clearance certificate required



Arrange with Site Manager for access permits,
as required



Confirm
with Site Manager that RL control marks are clearly identified for setting out
the work.




4.
CONTROLLING CONSTRUCTION PROCESSES (see QP12)



Inspection/Test
Plans (ITPs) and Construction Checklists are provided to direct project
staff on the “right” way to carry out and check work so that the specified product
quality is

obtained. Items to be checked  may include receiving, in-process and
final inspections, Details for test methods, frequency and acceptance
criteria for final testing are referenced to YORK FORTER AUSTRALASIA
procedures in the Checklists. If a process is complex, unusual or
where safety is a major concern, a detailed Work Instruction is also prepared as a
guideline for the Site Supervisor (e.g. working in confined spaces).



ITPs and Construction Checklists for the project are listed on the PQP Summary form
and attached behind it. The Site Supervisor should fill out each Checklist as each
activity or check is completed. If a check does not pass, the Site Supervisor must
rectify the problem (treating it as a nonconformance if necessary) before proceeding
to the next construction activity.



Testing organisations are listed on the PQP Summary form.



After signing off all items on the Construction Checklist for each construction process, the
Site Supervisor makes a final check that all work required have been satisfactorily
completed and all testing has passed. Record
that this check has been
done and is OK by initialing the item in the YORK FORTER AUSTRALASIA
column on the ITP.



The Project Manager is responsible for signing off Hold and Witness Points in the
YORK FORTER AUSTRALASIA column on the ITP.



Project staff are encouraged to look out for and suggest opportunities for
construction processes. If and difficulty is experienced in following an ITP,
Construction Checklist or work instruction, notify the Site Manager.




Page 13 of 19




 









 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers






5. IDENTIFICATION AND TRACEABILITY (see QP6)



Under QA, we are required to provide written evidence that each part of the finished
construction work has passed all inspections and tests. This means that we have to break up
the project into discrete work areas or lots. The work area of lot number must be written on
each construction Checklist and Test Report so that any problems can be identified back to
their physical location.




6. MONITORING SUBCONTRACTORS (see QP4)



The Site Manager will advise what surveillance is needed for each subcontractor. This
generally comprises inspecting work then signing off either the subcontractor’s checklist or
our own checklists. Surveillance personnel are to maintain daily records of surveillance
activities and notify the Site Supervisor of Site Manager of any nonconformance.
Subcontracted activities which will require surveillance by YORK FORTER AUSTRALASIA are
indicated on the PQP Summary form.




7. CONTROL OF NONCONFORMING PRODUCT (see QP13)



Employees are required to carry out their work in such a manner as to prevent
nonconformance. However, the Company recognises that nonconformance may occur from time to
time within its own work and that of its subcontractors.



Site Supervisor Responsibility — evaluating nonconformance and deciding how to rectify them in
the absence of the Site Manager, but subject to review by the Site Manager. Responsible for
restricting further processing of nonconforming work until a rectification method has been
finalised. Detection and rectification of minor defects.



Minor Defects — work acceptable for Practical Completion but needing minor finishing off prior
to full acceptance.



Nonconformance — a deficiency in the work which makes the product unacceptable in terms of
YORK FORTER AUSTRALASIA design and construction requirements.




Minor Defects



Minor defects which are a normal part of construction and which get rectified in the
normal course of events need not be documented as nonconformance. The Site Supervisor shall
keep a




Page 14 of 19





 









 








	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers





minor defects list (e.g. In Defects Notebook or Daily Diary). Rule out, initial
and date each listed defect after that defect has been satisfactorily rectified.




Nonconformance in Construction



When nonconforming work is detected by Company personnel, the nonconformance shall be
notified promptly to the Site Supervisor. The Site Supervisor shall also be advised if the
Site Manager or YORK FORTER AUSTRALASIA identifies a nonconformance. Actions to be taken are:





	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.





Page 15 of 19




 









 





	 	 	 	 	 
	
	 	



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



For subcontractors working under YORK FORTER AUSTRALASIA quality system, subcontractor
nonconformance shall be resolved as described above.



Where a subcontractor is working under its own quality system, non conformances may be
recorded on the subcontractor’s Nonconformance Report forms. The subcontractor shall notify
YORK FORTER AUSTRALASIA Site Manager or Site Supervisor if the nonconformance rectification
involves a change from YORK FORTER AUSTRALASIA Standards. The subcontractor’s proposed
rectification shall be submitted to the Site Manager for acceptance by YORK FORTER
AUSTRALASIA.



File a copy of the subcontractor’s Nonconformance Report where YORK FORTER AUSTRALASIA has
been involved in resolving the nonconformance, but do not fill out a YORK FORTER AUSTRALASIA
Nonconformance Report.




8. CORRECTIVE AND PREVENTIVE ACTION (see QP13)



Where nonconforming work occurs or where the potential for nonconforming work becomes
apparent, a review will be carried out to investigate the cause and determine appropriate
actions, which will prevent future occurrence of the nonconformance. Any customer complaints
will be reviewed in the same way. Employees should be encouraged to suggest opportunities for
improving the quality system.



The Site Supervisor is to notify the Site Manager or Managing Director of any deficiencies
with procedures or suggestions for improvement.



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





Page 16 of 19




 









 





	 	 	 	 	 
	
	 	



York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers





Keep your lever arch files in a secure weatherproof location, Transfer records
to the Site Manager when sections of work are ready for final review.




10. VARIATIONS



Any variations necessary during construction must be referred back to the Designer to
amend the design and submission for client approval before work proceeds. The Site Manager
shall keep records of all such variations.




11. PROJECT QUALITY AUDITS (see QP11)



To ensure that our QA is operating effectively, quality audits are done on some jobs.
If Project Audit is marked YES on the PQP Summary form, the Quality Manager will arrange a
QA audit.




12. INDUCTION AND TRAINING (see QP16)



Employees are not to perform construction tasks unless competent for them. Certificates
required for the project are listed on the PQP Summary form.



The project / safety manager is responsible for briefing employees on their specific roles
and responsibilities at appropriate stages of each project and explaining how to follow the
ITPs and Checklists.




13. HEALTH AND SAFETY MANAGEMENT



The Company is committed to ensuring that the working environment and conditions are
conducive to safe, productive operations.



It is the responsibility of all Company personnel to prevent accidents, and to take proper
precautions such as wearing appropriate protective boots, safety helmets, clothing, etc, which
will be supplied by the Company. Faulty equipment, unsafe work practices or sites must be
reported promptly to site management.



A
Subcontractor Safety Pack (S Pack) has been prepared by YORK FORTER AUSTRALASIA,
to highlight specific safety measures to be implemented on the site by the Project / Safety
Manager.




14. ENVIRONMENTAL MANAGEMENT



The Company undertakes an environmental assessment when required, to determine
appropriate measures to minimise adverse environmental impacts from project activities.



Environmental issues that have been identified at the  __________ are as
follows;




SPILLS/LEAKAGE TO GROUND, DUST, NOISE, WASTE DISPOSAL.



Spills or leakage from equipment is to be cleaned up immediately and reported to the Site
Safety and Environmental officer.




Page 17 of 19




 









 





	 	 	 	 	 
	
	 	



York Forter Australasia Pty Ltd
	 	Project Quality Plan 

YFA-039

Rev. 1      |     16/06/08

S.Speers





Bricksaw’s are to be placed on water drip trays with water pumps fitted as part
of YORK FORTER AUSTRALASIA procedures to control water usage and contaminated water from
leaching into the soil.



Bricksaw’s will be enclosed in a cutting room and the use of silenced blades for wet cutting
will be required to reduce noise and dust from contaminating surrounding areas. Dry cutting
of refractory materials is also required to be carried out in an enclosed cutting room with
dust extraction systems used for dust collection.



Washing
down of Acid Proof refractory equipment and / or tools is to be carried out in the designated wash
down area as instructed by the Principal Contractor.



All refractory waste is to be disposed
of in YORK FORTER AUSTRALASIA’s designated
bins for removal from site by our nominated waste disposal provider.




Page 18 of 19





 











 





	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Project Quality Plan

YFA-039

Rev. 1     |     16/06/08

S. Speers






PROJECT QUALITY ASSURANCE DOCUMENTATION




SECTION 4


DOCUMENTATION SPECIFIC TO THIS PROJECT WILL BE PRODUCED AND COMPLETED ACCORDING
TO THE REQUIREMENTS OF THE CONTRACT.
STANDARD FORMS USED ON PROJECTS OF THIS TYPE ARE LISTED BELOW:




	 	 	 
	* 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

	 	þ
	 
	 	 
	ATTACHMENTS
	 	 










Page 19 of 19









 





     






	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	 






	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	LEGEND:	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	W=Witness R=Review H=Hold	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	STP No.	 	 	CONTRACT	 	 	CONTRACT	 	 	SU=Survellance I=In House	 
	 	 	 	 	 	 	 	 	 	 	CONTRACTOR CONTACT	 	 	CONTRACTOR	 	 	 	 	 	 	 	 	 	 	REV No.	 	 	No.	 	 	ITEM No.	 	 	S=Subcontractor	 
	 	 	 	 	 	 	LOCATION	 	 	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	 	 	 	 	 	 	SIGNATURES	 
	No.	 	DESCRIPTION	 	 	(1 or 5)	 	 	ACTIVITY	 	 	INSTRUCTION	 	 	CRITERIA	 	 	DOCUMENTS	 	 	CONTR (YFA)	 	 	INSPECT.	 	 	 	 	 	 	 	 	 	 	SUPT.	 	 	CONTRACTOR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(YFA)	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 






Page 1 of 1









 





	 	 	 	 	 
	

	 	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	 	WATER
	START	 	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:
	 	 	 	 
	 

	 	 

	 	 






Page 1 of 1




 









 








	 	 	 	 	 
	
	 	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:

	 	 	 	/
	 	 	 	/	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 	 	 

	 	 






	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	CERAMIC	 
	CHECK LIST	 	BRICKWORK	 	 	CASTING	 	 	GUNNING	 	 	RAMMING	 	 	FIBRE	 
	Manufacturer:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	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/A	 
	Mortar Batch
No:
	 	 	 	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 
	Formwork Condition:
	 	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	N/A	 
	Ambient Temperature:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	N/A	 
	Water Temperature:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	N/A	 
	Water Quality:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	N/A	 
	Final Inspection: (Initials).
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 






Page 1 of 1




 









 








	 	 	 	 	 
	

	 	York Forter Australasia Pty Ltd
	 	Document Register Form

YFA-022

Rev. 1     |     12/06/08

A. Richmond





  




DOCUMENT REGISTER



  






	 	 	 
	Job Description

	 	YLI No.






	 	 	 	 	 	 	 
	 	 	DOCUMENT	 	 	 	 
	DOCUMENT NAME	 	REF No.	 	STATUS
	 	 	 	 	C	 	U
	 
	 	 
	 	 
	 	 







 




			
	C = Controlled
	 
	U = Uncontrolled





Page 1 of 1




 









 








	 	 	 	 	 
	
	 	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:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 






Page 1 of 1





 










 





	 	 	 	 	 
	
	 	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 Resolve
	Non-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 Acceptance
	 
	 	 	 	 
	Action Required To Prevent Recurrence

	 	Completion Date :	 	 
	 
	 	 	 	 
	 

	 	Client rep :	 	 
	 
	 	 	 	 
	 

	 	Date :	 	 
	 

	 	YFA rep :	 	 
	 
	 	 	 	 
	 

	 	Date :	 	 
	 
	 	 	 	 
	Corrective Action Implemented :

	 	YES / NO	 	 
	 
	 	 	 	 
	Q.A Final Review NCR Closed :

	 	YES / NO
	 	Date :






Page 1 of 1




 









 








	 	 	 	 	 
	
	 	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 Installed
	Item	 	Description	 	(or % Done) for Shift
	1

	 	 
	 	 
	2
	 	 	 	 
	3
	 	 	 	 
	4
	 	 	 	 
	5
	 	 	 	 
	6
	 	 	 	 
	7
	 	 	 	 
	8
	 	 	 	 
	9
	 	 	 	 
	10
	 	 	 	 
	11
	 	 	 	 
	12
	 	 	 	 






Major
Issues — Manning/ Contractual /Site Conditions etc. (attach additional pages if necessary)




Special Remarks or Comments (attach additional pages if necessary)



	 	 	 	 	 	 	 
	SIGNATURE (YFA):

	 	 	 	 	 	DATE:___/ ___/ ___
	 

	 	 

	 	 	 	 






Page 1 of 1




 









 








	 	 	 	 	 
	
	 	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:
	 	 	 	 
	 

	 	 

	 	 





Please acknowledge the acceptance and approval that the above company has completed
the installation of refractories and associated materials to the satisfaction of the above
client as per the scope of works and material specifications deemed necessary to undertake
the above project.




	 	 	 	 	 	 	 	 	 
	CLIENT:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	APPROVED BY:

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Position:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Signature:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Date:	 	 	 	 	 	 
	 

	 	 	 	___/ ___/ ___	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	INSTALLED BY:

	 	 	 	YORK FORTER AUSTRALASIA. 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESSED BY:

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Position:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Signature:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Date:	 	 	 	 	 	 
	 

	 	 	 	___/ ___/ ___	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COMMENTS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 





Page 1 of 1




 









 








	 	 	 	 	 
	
	 	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:
	 	 	 	 
	 

	 	 

	 	 





Please acknowledge the acceptance and approval that YORK PORTER AUSTRALASIA has
taken possession of the above nominated section of plant, so
as to carry out the
Installation of Refractories to satisfy the requirements of the above
mentioned contract.




	 	 	 	 	 	 	 	 	 
	CLIENT:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	APPROVED BY:

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Position:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Signature:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Date:	 	 	 	 	 	 
	 

	 	 	 	___/ ___/ ___	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	INSTALLED BY:

	 	 	 	YORK FORTER AUSTRALASIA. 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESSED BY:

	 	Name:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Position:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Signature:	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 
	 

	 	Date:	 	 	 	 	 	 
	 

	 	 	 	___/ ___/ ___	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COMMENTS:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 





Page 1 of 1




 









 








	 	 	 	 	 
	
	 	York Forter Australasia Pty Ltd
	 	Work Method Statement 

YFA-1124 

Rev.1     |     23/02/09

S. Speers






WORK METHOD STATEMENT



TASK:



DESCRIPTION:



DATE:




	 	 	 	 	 
	Item	 	Work Procedure	 	Major Hazards
	1

	 	 
	 	 
	2
	 	 	 	 
	3
	 	 	 	 
	4
	 	 	 	 
	5
	 	 	 	 
	6
	 	 	 	 






Page 1 of 1





 









 













CERTIFICATE OF REGISTRATION



York Forter Australasia Pty Limited

ABN 11 280 836 918



Unit 303 1B George Street MAYFIELD EAST NSW 2304 AUSTRALIA



complies with the raquirements of



AS/NZS ISO 9001:2000

Quality management systems — Requirements



for the following capability


The registration covers the Quality Management System for the provision of services
including: contract demolition, supply installation and maintenance of refractory and acid lining
for manufacturing, raw material production and
waste destruction industries.




Registered by:




SAI
Global Certification Services Pty Ltd (ACN 108 718 669) 288 Sussex Street Sydney NSW 2000 Australasia with SAI Global Limited

(“SAl Global”) and subject to the SAI Global Terms and Conditions for Certification. While all due care and skill was exercised In carrying out

the assessment SAl Global accepts responsibility only for proven negligence. This certificate remains the property of SAI Global and must be


returned to SAI Global upon its request.




	 	 	 	 	 	 	 	 	 
	 

	 	Certificate No.:
	 	QEC21609
	 	Certified Date:
	 	14 March 2005
	 

	 	Issue Date:
	 	16 May 2008
	 	Expiry Date:
	 	13 March 2011






	 	 	 
	

Alex Ezrakhovich
 General Manager Certification 
for and on behalf of 
SAI Global Limited

	 	

Authorised Local Signatory, SAI Global






	 	 	 
	

	 	





that this certificate is current please refer to the SAI Global On-Line Certification Register: http://register.sai.global.com




 











 





Koch’s Proposal




 









 





LIHIR SERVICES AUSTRALIA PTY LTD




PROPOSAL FOR

MOPU-0035, MOPU-0063, AND MOPU-1010

AUTOCLAVE #4

Supply Autoclave Lining System & Installation Services

Revision 4.1



Koch Australia, Koch Knight Division

Proposal 692 08 5893 A4

16 June 2009



Koch Australia, Koch Knight Division

Perth, Western Australia Office



 









 





			
	 	 	 
	
	 	A Division of Koch Australia Pty Ltd.





16 June 2009




  , Contracts Engineer

Lihir Services Australia Pty Ltd

Lvl 9, 500 Queen Street, Brisbane, QLD, 4000

GPO Box 905, Brisbane, QLD, 4001. Australia

Phone

          +61 7 3318 3300 (Switch)

Fax:      +61 7 3318 9203

Email:

Web:      www.lglgold.com



Subject: MOPU-0035, MOPU-0063, and MOPU-1010, Knight ###-##-####, Autoclave Lining



Dear Mr.  ,



Thank you and for your communications concerning the #4
Autoclave Project. We are pleased to update our proposal for the PNG Work Package (0035), the
Malaysia Work Package (0063) and Internal Materials (1010) for the new #4 autoclave. Technical
details concerning these offers are brought forward as attachments, from earlier letters.



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



The lining system as covered by MOPU1010 is as shown on the attached autoclave proposal drawing.
Note that the cost of all membrane and brick lining materials is in the MOPU-1010 contract price.
Freight to Brisbane for bricks and to Malaysia Port for the membrane system is offered as an
optional item.




INSTALLATlON AND FIELD SERVICES




IN MALAYSIA, MOPU0063



PYROFLEX® 500 RESIBOND® DuPlyTM Membrane System will be installed and spark tested by
Koch Knight personnel and local labour working at the steel fabricator’s Malaysian shop. Tools and
equipment including scaffolding will be rented from local suppliers. PYROFLEX Tool kits and any
remaining materials at Malaysia will be shipped by LGL on to Lihir Island along with the autoclave
shell. At the completion of the membrane installation, the crew will leave the area for the 16
weeks
of transit and building erection time needed to complete the autoclave and its building.
LGL requested that living costs for this crew be added, since no LGL accommodations are available
in Malaysia. The costs of visas, work permits, accommodations and travel expense within Malaysia
are shown as line items in the pricing tabulations.




IN LIHIR ISLAND, MOPU0035



Koch Knight personnel will provide quality control and the full time Koch Knight presence at the
site. For the installation, Knight has included the services of York-Forter Australasia as our
brick




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





installation subcontractor. The installation price from York-Forter is firm for work complete
through 30 September 2011.



Note that the cost for 16 hours per worker of site safety training is now included in the York
price. Knight will absorb this cost for our supervisors.



The recently (April 2009) released “Information for Foreign Companies Operating in Papua New
Guinea” details commercial requirements for foreign company registration, visas and work permits,
professional registration and insurance specifics. These items have been covered during the
MOPU0035 Negotiation Table discussions with the resulting agreements covered in the meeting notes.
Per those discussions our bids are now in compliance with these requirements. These agreements are
also applicable for the MOPU0063 Malaysian work. These costs of meeting these requirements are
given as additional items in this proposal.



Limited nonworking time (for example, during the Easter holiday 2011) is included for the YFA crew
to remain continuously onsite during the course of the project. If the final schedule includes the
Christmas holiday or another event that requires a site shutdown for a longer (3 days or more)
time, a limited demob/remob (secure the site, travel out and back, open the site after the break)
will be needed. A cost for this demob/remob is offered, and may be used if required by the schedule
as updated by LGL from time to time.




	 	 	 	 	 
	PRICES	 	USD, AUD As Noted	 
	 
	MOPU-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 2010
	 	 	 	 
	MOPU-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
	 	$	 	 





All materials are offered FOB Cleveland and Brisbane. Optional extra charges for CIF Brisbane Port
and/or Malaysian Port (for PYROFLEX only) is also offered. Freight in effect at time of shipment
shall apply. All equipment items include delivery to FOB Brisbane.



The titanium material pricing is valid for an order placed by 30 June 2009. An order for raw
materials placed by that time will lock in the price of the parts for delivery in mid 2010. For
orders after 30 June, titanium parts prices will be adjusted when ordered.



Installation and Services prices are firm for work completed through 30 September, 2011 with a
single mob/demob to each site, and include travel to/from Brisbane (option to/from Cairns) offered
and Kuala Lumpur for the respective crews. Normal crew rotations are included in the prices given.




Standard Delivery, Manufacturing and Installation Program



The following activities are the major components of the program to manufacture and install these
systems. Delivery time for manufactured materials is subject to prior order. Lining installation is
based upon a single mobilization/demobilization at the site, working 12 hours per day, 13 days per
fortnight at the Lihir site.




	 	 	 	 	 
	Activity	 	Approximate Duration
	Lining Drawings and Calculations

	Approval by client

	Titanium component submittal drawings

	Autoclave brick, membrane manufacture

	Titanium component fabrication

	Shipping Time to Brisbane or Malaysia, All Materials

	Autoclave Membrane Installation at the Fabricator

	Shipping Time, Vessel Shell to LGL, and Erect Building

	Autoclave Brick, Compartment Walls Installation Onsite

	Total time to complete lining, Standard Delivery






Please see the attached schedule showing this information. Knight commits to adjusting the
shipping schedule of the lining materials in order to have the bricks begin to arrive at Lihir
Island after the autoclave has been set, in order to minimize onsite storage requirements.





 









 








			
	 	 	 
	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 others
	 
	 	2.	 	Brick installation into the vessel will begin after the vessel is set in the
permanent building at the site
	 
	 	3.	 	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



This proposal is based on the details discussed during the Terms and Conditions negotiations that
have taken place. Details from those discussions and notes are reviewed in this letter, the Knight
attachments here, and the Knight technical attachments. This offer is in effect for issue of a
Letter of Acceptance before 30 June 2009. Any orders placed for this work are to be constructed and
billed complete before 30 September 2011. An order resulting from this offer will be placed with
and administered by Koch Australia Pty. Ltd., ABN 70-080-357-366.



Applicable import taxes and duties, Australian GST if any is applicable, VAT including PNG VAT
charges if any apply, shall be the responsibility of the purchaser.



Payment terms offered are per agreement reached during commercial negotiations. Payments will be
invoiced in accordance with these milestones and per the Appendicies and instructions such as





 









 








			
	 	 	 
	LGL MOPU-0035, MOPU0063, MOPU-1010
	 	16 June 2009
	Knight ###-##-#### A4 Rev 4.1
	 	Page 6 of 7





MOPU-0035 and MOPU-0063 Appendix 5. Payments will be due within 30 days of each electronic invoice
submittal date, payable via EFT to the named Koch Australia bank account.




Payment Terms. MOPU-1010:




Payment Terms, MOPU-0035:




Payment Terms, MOPU-0063:



Prices are given in a mix of US Dollars and Australian Dollars to remove exchange risks. The
York-Forter subcontract labour and the additional equipment items should be ordered in Australian
Dollars.



Additional Items to Follow



These items will be provided by Knight as part of the order deliverables, at no charge to LGL.





	 	•	 	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.




Extra items that can be offered for the applicable additional cost:





	 	•	 	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 2009
	Knight ###-##-#### A4 Rev 4.1
	 	Page 7 of 7





Thank you for your continued interest in our products and services. For discussion of this offer or
questions and clarifications, please feel free to contact any of the following:



We appreciate the work and time LGL personnel have committed as this project has moved forward. We
hope this begins a long term, mutually beneficial relationship between our companies. We look
forward to working for LGL.




Very truly yours,

KOCH AUSTRALIA PTY

KOCH KNIGHT DIVISION




Business Director, Australian Operations




MWM/s

CC:

Attachments: Provided with previous Quote version Rev 4

Lihir Attachments: Revised Forms provided separately




 









 





Minutes of Post Tender Meetings




Table of Contents



Minutes of Meeting 19th February, 2009

Minutes of Meeting 1st April, 2009

Minutes of Meeting 3rd June, 2009

Minutes of Meeting 9th and 10th June, 2009



 









 





			
	 	 	 
	MINUTES OF POST TENDER MEETING #4
	 	PAGE 1
	WORK PACKAGE MOPU-1010 & MOPU-0035
	 	9th and 10th June, 2009






MINUTES OF MEETING




	 	 	 	 	 
	MEETING TYPE:
	 	POST TENDER MEETING #4

WORK PACKAGE

	 	

MOPU-1010 & MOPU-0035
	 
	TENDERER:
	 	Koch Australia Pty Limited
	 	 
	 
	DATE:
	 	9th June 2009 and 10th June 2009.
	 	 
	 
	VENUE:
	 	LSA Corporate Office, Brisbane
	 	 
	 
	ATTENDEES:
	 	LGL

	 	Contractor (Koch)






Meeting opened 1:00 pm on both days.




Unless otherwise stated, Koch Australia Pty Limited shall mean Koch.



MOPU-1010:


Clause 5



LGL accepts 30 days in lieu of 14 days to organise B/G’s.



Performance based B/G is to be one B/G covering all three contracts. This B/G is to be in place
prior to final payment under MOPU-1010. Three other separate B/G’s to be issued for the Delivery
obligations for each contract.



Koch advised 12 months of operation or 18 months from practical completion of MOPU-0035,
whichever comes first, for the Defects Liability period, for all contracts.



Koch agreed to add an extra 30 days to the expiry date of the B/G, to allow for notices
issued within 30 days of the proposed expiry date.



LGL agreed that the B/G’s be raised in NSW, in lieu of QLD.


Koch also discussed the opportunity to change delivery timing of the materials to better
match LGL’s on site installation requirements, and minimise storage issues.



Koch requested LGL to clarify / define the point in time for “operation”. LGL to propose a suitable
definition, for agreement between both parties.



LGL to approve layout of Autoclave as shown on Koch’s drawings. LGL will not approve lining design.
Delivery of drawings to be included in Deliverables of MOPU-1010, along with the materials. Final
deliverable for MOPU-0063 is completion of Pyroflex membrane. Final deliverable for MOPU-0035 is
completion of brick lining installation.




Clause 10



New Clause “Payment default” — LGL requested that it be modified such that Koch could only suspend
performance of the contract after 7 days of written notice of LGL’s default in payment. Koch
agreed.



New clause “Credit Terms” — LGL requested this be deleted. Koch agreed to retract this clause.




Clause 13



Koch and LGL agreed that the DLP is 12 months of operation or 18 months from practical completion
of MOPU-0035, whichever comes first, for all contracts.





 









 








			
	 	 	 
	MINUTES OF POST TENDER MEETING #4
	 	PAGE 2
	WORK PACKAGE MOPU-1010 & MOPU-0035
	 	9th and 10th June, 2009






Clause 15 and 16



LGL requested Koch to advise if the “Comprehensive General Liability Insurance” includes
product liability cover, Koch confirmed that it does.



Koch indicated that the PI Insurance is in place for a 12 month period, and will be renewed
annually for a period of 6 years. The value will be to the PO Value of MOPU-1010.



The value of the Comprehensive General Liability Insurance is to be the value of each of the
contracts.



Koch agreed to the reinstatement of the balance of clause 16.1. Koch to advise with respect to
clause 16.2 to provide evidence of insurances in effect. Koch agreed that they will provide a
letter from the insurance company evidencing payment of insurance premiums.




Clause 19



Agreed as per Koch response dated 5 June 09.




Clause 23



LGL agrees to 8 years time limit on the confidential information.




Clause 26



Agreed as per Koch’s response 5 June 09. LGL agrees to amend the LD’s requirement at per week,
capped a. Koch agrees to retract statement regarding certified drawings and delay events
(2nd sentence of 5 June 09 statement).




Clause 27



To be presented Wednesday 10th June, 09. Koch to provide wording. Koch provided hardcopy
note, for LGL acceptance by 12 noon, Thursday 11th June.




Clause 31



Agreed, however, LGL requests the addition of “which shall not be unreasonably withheld” to the
words. Koch accepted this addition.



Previously agreed that Service order terms and conditions not required, as this work is under
MOPU-0035 and MOPU-0063 packages.




Proforma Bank guarantee proposed by Koch on 1 June 09:



Koch to discuss and advise proposed path forward. Koch agree in principle, with wording to be
provided.




MOPU-0035 and MOPU-0063:



Clause 4.1.7.3—Agreed



Clause 4.1.7.5—Agreed



Clause 4.1.6.1 —Koch agree to the reinstatement of 2nd sentence. 3rd
sentence will be amended to reflect position agreed between both parties on B/G’s.



Clause 4.1.6.2 — LGL agrees to 30 days.



Clause 4.2.6.1 — Agree to the addition proposed by LGL on 3/4/09 (referenced in clause 4.2.6.7).



Clause 4.2.6.7 — Agreed to retain (i). Agreed to deletion of (ii). Agreed to deletion of (iii).
Agreed to retain (iv).



Clause 4.2.6.8 — Koch agrees to accept clause as originally written.


Clause 4.2.6.10 — Agreed.


Clause 4.2.7.7 — LGL agrees with Koch’s 5 June response.


Clause 4.2.10 — Agreed.




 









 








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





Clause 4.2.13 — Koch has suggested that an amendment to the Appendix 5/O Deed of release is
required. Koch handed over hard copy version. LGL marked up this copy with requested deletion. LGL
requested Koch to provide revised version, via email.



Clause 4.3.2.5 — Amend by adding after 5 days “(prior to issue of certificate of practical
completion), or within 30 days (within DLP)”. Deletion of last sentence is agreed.




Clause 4.3.2.6 — Agreed



Clause 4.3.6.4 — Reinstatement of preamble agreed by Koch. Agreed by both parties on the
deletion of the word “solely” from sub-clause g).



Clause 4.3.6.6 — Agreed


Clause 4.3.7.1 — Agreed


Clause 4.3.8.1 — Agreed with Koch’s statement dated 5 June, 09



Clause 4.3.8.2 — Agreed to amendments made in red on 3/4/09. Agreed to retract the
requirement to strikeout “materials”.



Clause 4.3.8.3 — Add new subclause (iv), except with deletion of proposed last sentence as noted by
LGL on 3/4/09. Koch agreed.




Clause 4.3.10.5 — Agreed



Clause 4.3.11.1 — Agreed to clause, with subclause 5 (C) as per LGL’s suggested clause dated
3/4/09.




Clause 4.4.1.3 — Agreed




Clause 4.4.1.4 — Agreed, timing as per 4.3.2.5 agreement.




Clause 4.4.1.5 — Refer to discussions held under clause 4.7 below




Clause 4.4.1.6 — Agreed




Clause 4.4.2.1 — Agreed



Clause 4.4.2.2 — Koch agree to the reinstatement of balance of proposed deleted words. Koch
retracted statement requesting mutual indemnity. Balance agreed. Insertion of words “without
prior agreement of the contractor” at the end of subclause (ii).




Clause 4.4.2.3 — Agreed




Clause 4.4.3 — Agreed




Clause 4.4.4 — Agreed




Clause 4.5.1.5 — Agreed to deletion of the words “whether” and “or otherwise”.




Clause 4.5.2.1 — Agreed




Clause 4.5.2.5 — Agreed




Clause 4.5.3.5 — Agreed




Clause 4.5.5.1 — Agreed




Clause 4.5.6.3 — Agreed



Clause 4.5.9.1 — Agreed with latest statement from Koch dated 5-Jun 09. Add part proposed by
Koch to end of definition of “standards”.




Clause 4.6 — Agreed



Clause 4.7 — Commencement of Autoclave Operation is defined as introduction of Oxygen into the
Autoclave, Whilst at Operating temperature and pressure. Koch handed over revised proposed clause
for review. Agreed to incorporate agreed addition from MOPU-1010 Clause 13, 5 June 09 comment,
“Should the Seller...”. Change 14 days to 30 days. LGL proposed that a “rolling DLP”





 









 








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





apply to areas that have undergone a “re-design”. Koch has in principle agreed to this, and will
respond to LGL’s proposed mark up on the hand written note.




Clause 4.8 — Agreed



Clause 4.10 — Limitation of Liability — Koch provided a revised clause by hard copy note. LGL
reviewed and advised that LGL will advise as to its position by 12 noon Thursday 11th
June.




Section 5 Appendices —



Form 5/B — Bank Guarantee — Koch provided a revised B/G by hard copy note. LGL marked up the
proposed form, and Koch advised that they will have to get advice from head office.



LGL requested Koch to advise which forms they take exception with?



Form 5/O — Deed of release — refer clause 4.2.13 as discussed above. Koch advised that the deletion
as requested by LGL remains.



Clause 6.5.1 — Include cost of travel of Brisbane to Cairns as previously requested. LGL noted that
travel time is to be included to Lihir, and must have been included in proposal to date. Koch
confirmed that travel time was included. LGL to cover costs of air fares to site only, over and
above lump sum prices offered by Koch.



Clause 6.7 — New special condition to be created in accordance with requirements outlined by Koch
on 5 June response.



Clause 6.8 — New special condition to be created in accordance with requirements outlined by Koch
on 5 June response.



Clause 6.9 — New special condition to be created in accordance with requirements outlined by Koch
on 5 June response. Koch to supply containers and to ensure that containers are filled with ice and
potable water prior to leaving the camp each day.



Clause 6.10 — New special condition to be created in accordance with requirements outlined by Koch
on 5 June response.



Clause 6.17.1.1 — Agree to delete



Clause 6.17.1.2 — Agreed to value of insurance to be equivalent to the value of each Contract.



Clause 6.17.1.3 — for MOPU-0063, change sub-clause (b) to reflect Malaysian base. LGL requested
Koch to confirm that all the requirements of the Workers Compensation clause are covered. Koch to
advise.



Clause 6.17.1.4 — Koch confirmed that they have allowed to insure their own plant.



Clause 6.17.1.5 — PI Insurance not applicable under contracts MOPU-0035 and MOPU-0063, but will be
applicable to MOPU-1010 as discussed earlier in this meeting.




Tender Forms



LGL handed over marked up copies of Koch’s MOPU-0035 and MOPU-0063 tender forms. LGL requested Koch
to reinstate “progress claims ...” statement on form 10/A. Milestone payment information can
remain. LGL requested Koch to remove the information currently on 10/B sheet 1, and insert the
option pricing as per their offer. LGL requested Koch to strikethrough supervisory statement on
10/B Sheet 2. LGL noted that most of the items listed should be classified as small tools, Koch to
review this form (10/B sheet 3). LGL requested Koch to align the 10/D form with scheduling, and
comment regarding other contracts to be removed. LGL requested clarification of roster/rotation.



LGL to clarify medical facilities at the workshop in Melaka facility.



Koch to complete Appendix 3 forms as marked up by LGL. Essentially same comments for
MOPU-0063 as notes handed over for MOPU-0035.



Commercial considerations as noted in 30th April proposal, and response to LGL’s
question 5 in email dated 24th May, 09. “Applicable taxes” to be clarified by
koch.




 









 








			
	 	 	 
	MINUTES OF POST TENDER MEETING #4
	 	PAGE 5
	WORK PACKAGE MOPU-1010 & MOPU-0035
	 	9th and 10th June, 2009






Closing



Submission of all information from Koch by Wednesday 5pm 17th June, 2009.



LGL can accept the provided Koch schedule as an interim schedule, until further advice from LGL,
for the purposes of the Contracts. Adjustments will be made based on LGL’s refined schedule taking
cognisance of Koch’s advice that the completed brick lining should not be left too long before the
autoclave is put into operation.



LGL advised Koch to submit final version of all forms, and final proposal.



LGL indicated that all should progress with award documentation, subject to receipt of all
outstanding correctly completed information, within 2 weeks.



The meeting closed at: 4:30PM on 9th June, and 4:00pm on 10th June.




			
	 	 	 
	Minutes Recorded
	 	Minutes accepted
	for and On Behalf of
	 	For and On Behalf of
	LGL
	 	Koch






			
	 	 	 
	 	 	 
	Date: 10/06/09
	 	Date:                     







 










 





			
	MINUTES OF POST TENDER MEETING #3
	 	PAGE 1
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	 	03/06/2009






MINUTES OF MEETING




	 	 	 	 	 
	MEETING TYPE:	 	POST TENDER MEETING #3
	 	 	WORK PACKAGE           MOPU-1010 & MOPU-0035
	 
	 	 	 	 
	TENDERER:	 	Koch Australia Pty Limited
	 
	 	 	 	 
	DATE:	 	3rdJune 2009
	 
	 	 	 	 
	VENUE:	 	LSA Corporate Office, Brisbane
	 
	 	 	 	 
	ATTENDEES:

	 	LGL
	 	Contractor (Koch)





Meeting opened 08:00 am.



Unless otherwise stated, Koch Australia Pty Limited shall mean Koch.




MOPU-1010:



3 — Agreed



5 — Agreed to 2 off B/G’s. LGL accepts 30 days in lieu of 14 days to organise B/G’s. Koch to advise
if they accept 12mths or 18mths, whichever is longer, for the Defects Liability period.



First B/G submitted at start of this contract for delivery, the second B/G (for DLP) to be
submitted prior to final payment for this contract. This will be applicable to the B/G’s required
for each of the contracts.



7 — Agreed



10 — Previously agreed, however, Koch added two new terms.



New Clause “Payment default” — LGL requested Koch to define clearly the words “properly due and
owing”. LGL requested that Koch strikeout the last sentence.



New clause “Credit Terms” — LGL also requested this be deleted. The words “in Contractor’s
judgement” are not acceptable to LGL.



11 — Agreed



12 — Agreed



13 — 12mths from startup, or 18 months from practical completion, whichever is the longer.
Koch suggests that it needs to be whichever comes first. Koch to ask the question. Also LGL to
consider and advise. Koch advised that they do not accept “...Seller accepts...” clause. LGL
requires this clause as the clause proposed by Koch does not have any stipulations on what occurs
if Koch does not attend within 30 days. LGL accepts that 14 days can be changed to 30 days.



14 — Agreed



15 and 16 — LGL requested Koch to advise if the “Comprehensive General Liability Insurance”
includes product liability cover. LGL suggested that the value of the Product and Public liability
insurance coverage be at least the value of the PO, and also with the PI Insurance. The period of
insurance cover for PI Insurance cover should be six years in line with the statute of limitation.
Please confirm LGL note with respect to clause 15.4, dated 13 May 09. LGL’s non acceptance of
clause 16.1 and 16.2 changes proposed by Koch was noted, with Koch to clarify. Clarifications from
Koch regarding MOPU-0035 and MOPU-0063 insurances are noted.




 









 





			
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	 	03/06/2009





19 — Koch’s insertion of the word “reasonable” is not acceptable to LGL. Koch to advise if
the deletion of this word is acceptable to them, as required by LGL. LGL requested the words “or in
any other country” be reinstated.



22 — Agreed



23 — LGL agrees to 8 years time limit on the confidential information.



26 — LGL accepts Koch’s statement in paragraph one of Koch’s 1 June 09 response. LGL accepts that
the certified drawings being tied to LD’s requirements can be waived, subject to the milestone
payment for drawings being on submission of final certified drawings, i.e. having been through the
review process. LGL will endeavour to return reviewed drawings to Koch within 14 days.



27 — The Koch / Baker Mckenzie meeting described by Koch as taking place on 2nd June
did not take place. Koch requested this be deferred, with response by Tuesday 9th June.



28 — Agreed



31 — Agreed, however, LGL requests the addition of “which shall not be unreasonably withheld” to
the words. Koch accepted this addition.



32 — Agreed



34 — Agreed



Previously agreed that Service order terms and conditions not required, as this work is under
MOPU-0035 and MOPU-0063 packages.




Proforma Bank guarantee proposed by Koch on 1 June 09:



The proposed amendments to the B/G are not acceptable to LGL. Koch to discuss and advise proposed
path forward.




MOPU-0035 and MOPU-0063:



LGL asked how things are progressing with respect of these items. It was acknowledged that these
two packages would be addressed by COB Friday 5th June, 2009.



Koch advised that the validity period on the offer has been extended. Date TBA. LGL queried the
price for the titanium components. Kock indicated that indications from its potential suppliers
was that the quoted prices would stand. LGL noted that it had heard that there had been a drop
in the metal supply cost.



The meeting closed at: 11:00am




			
	 	 	 
	Minutes Recorded
	 	Minutes accepted
	for and On Behalf of
	 	For and On Behalf of
	LGL
	 	Koch
	 	 	 
	 
	 	 
	 	 	 
	Date: 03/06/09
	 	Date:                     





Next meeting: Tuesday 9 June 2009 at 1:00 p.m. Kock advised that Ahmed Zamin, Vice President
Sales would be in attendance at this meeting and any required subsequent meetings next week
progress the negotiations.




 









 





			
	MINUTES OF POST TENDER MEETING #2
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	 	01/04/2009






MINUTES OF MEETING




	 	 	 	 	 
	MEETING TYPE:	 	POST TENDER MEETING #2
	 	 	WORK PACKAGE           MOPU-0035 & MOPU-1010
	 
	 	 	 	 
	TENDERER:	 	Koch Australia Pty Limited
	 
	 	 	 	 
	DATE:	 	1st April 2009
	 
	 	 	 	 
	VENUE:	 	LSA Corporate Office, Brisbane
	 
	 	 	 	 
	ATTENDEES:

	 	LGL
	 	Contractor (Koch)





Meeting opened 07:00 am.



Unless otherwise stated, Koch Australia Pty Limited shall mean Koch: Koch subcontractor,
York Forter, is referenced in these minutes by YF.





	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, 3.6
	 
	 	 	for 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)





 









 





			
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	 	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-0035
	 
	 	 	Koch 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
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	WORK 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 revised
	 
	 	8.	 	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
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	WORK PACKAGE MOPU-0035 & MOPU-1010
	 	01/04/2009






The meeting closed at: 09:05am




			
	 	 	 
	Minutes Recorded
	 	Minutes accepted
	for and On Behalf of
	 	For and On Behalf of
	LGL
	 	Koch
	 	 	 
	 
	 	 
	 	 	 
	Date: 01/04/09
	 	Date:                     






 









 





			
	MINUTES OF POST TENDER MEETING
	 	PAGE 1
	WORK PACKAGE MOPU-0035
	 	19/2/2009






MINUTES OF MEETING




	 	 	 	 	 
	MEETING TYPE:	 	POST TENDER MEETING
	 	 	WORK PACKAGE           MOPU-0035
	 
	 	 	 	 
	TENDERER:	 	Koch Australia Pty Limited
	 
	 	 	 	 
	DATE:	 	19th February 2009
	 
	 	 	 	 
	VENUE:	 	Lihir Island Operations
	 
	 	 	 	 
	ATTENDEES:

	 	LGL
	 	Contractor (Koch)





Meeting opened 10:20am.



Unless otherwise stated, Koch Australia Pty Limited shall mean Koch. Koch also had a major
sub-contractor in attendance, York Forter, referenced in these minutes by YF.



LGL confirmed that the post tender meeting would generally follow the draft agenda as outlined in
Appendix 3/M of Volume 3A of the Tender Documents.





	1.	 	Safety and Environment
	 
	 	 	Discuss 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 three Notices 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)






	 	 	Koch confirmed 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 2
	WORK PACKAGE MOPU-0035
	 	19/2/2009







	 	 	Koch confirmed 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 to
	 
	 	 	Koch confirmed that their Tender Price was based upon an Award date of
31st March, 2009 and a latest practical completion date of 30th
September, 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 Koch to
confirm that there were no other departures from Specifications and Tender Documents than as
detailed on this form.
	 
	 	 	Koch confirmed 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 — noted
	 
	 	o	 	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 — Agreed
	 
	 	o	 	Monitoring included by Koch — agreed
	 
	 	o	 	Weatherproof or roofed structure required to be
in place -Agreed
	 
	 	o	 	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 line
	 
	 	o	 	Crib room space for 20 personnel — air con, fridge
	 
	 	o	 	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 3
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	 	19/2/2009







	 	o	 	Owner shall maintain utilities, ablutions, etc -Agreed.
	 
	 	o	 	Water usage — equipment washdown (not potable),
drinking water (potable). Agreed
	 
	 	o	 	415 and 240V supplied by LGL — Agreed
	 
	 	o	 	Removal and replacement of covers — by others — Agreed
	 
	 	o	 	No piping to be connected to Autoclave — agreed
	 
	 	o	 	Access to Emergency crews 24 hrs per day to be
provided by LGL — agreed
	 
	 	o	 	Protection from process fumes — agreed
	 
	 	o	 	Disposal of lead mortar — by LGL — agreed
	 
	 	o	 	YF letter 22nd Nov — Page 2






	 	o	 	Additional line items costs — noted
	 
	 	o	 	Koch includes Ti wall installation
(although excluded by YF)
	 
	 	o	 	Installation of scaffold is included in both cases
	 
	 	o	 	Laundering facility -
decontamination area required by YF — noted
	 
	 	o	 	YF get workers compensation whilst in PNG
	 
	 	o	 	Koch also requires this PNG workers compensation
	 
	 	o	 	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”) — noted
	 
	 	o	 	Clause 38 — needs to be mutual
determination, not YF determination.






	8.	 	Tender Form 3/G — Key Personnel:
	 
	 	 	Koch confirmed 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.
	 
	 	 	Koch would 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 Koch had several current projects in progress, and asked how this
would affect this Work Package if awarded to Koch. Koch advised 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.





 









 





			
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	10.	 	Tender Form 3/I — Wages, Allowances and Employment Conditions:
	 
	 	 	LGL confirmed that the site working hours were 24 per day. Koch confirmed that its
price was based upon working 12 hrs / day, 13 days per fortnight.
	 
	 	 	Koch confirmed 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. Koch agreed to do this.
	 
	 	 	Koch confirmed 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.
	 
	 	 	Koch confirmed 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.
	 
	 	 	Koch confirmed 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 Koch to advise the meeting what items of plant it would mobilise to
site if awarded this work package.
	 
	 	 	Koch advised 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.
	 
	 	 	Koch confirmed 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 Koch to 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.





 









 





			
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	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’s price 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 Koch if 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:
	 
	 	 	Koch confirmed that their Tender Schedule was based upon an award date of
31st March, 2009 and with the latest practical completion of 30th
September 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. Koch confirmed 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 Koch would implement if
they were awarded this Work Package:
	 
	 	 	Koch advised: 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:
	 
	 	 	Koch confirmed that it had not inspected the site.
	 
	 	 	Koch to 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.





 









 





			
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	22.	 	Tender Letter:
	 
	 	 	The following items from Koch covering 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.
	 
	 	 	Koch confirmed that it understood and had allowed for all Work required by the
Tender Scope of Work, as amended today.
	 
	24.	 	Alternative Tender Submission:
	 
	 	 	Koch confirmed that it had not submitted any alternative tender
submissions other than discussed herein.
	 
	25.	 	Other
	 
	 	 	LGL sent an email to dated 12th February for action by 17th
February. 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. Koch advised 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.




The meeting closed at: 11.55am




			
	 	 	 
	Minutes Recorded
	 	Minutes accepted
	for and On Behalf of
	 	For and On Behalf of
	LGL
	 	Koch
	 	 	 
	 
	 	 
	 	 	 
	Date: 19/2/09
	 	Date:                     






 









 





Proposed Project Schedule




 









 





Koch’s Drawing




Q-1270-C REV1 Revised