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Dammam 31411, Saudi Arabia

Phone
(9663) 825 1588, Fax (9663) 898 5508
Telex
801164 SAFDAM SJ
Account No. 21173800103(Saudi Riyals)
21173800297 (US Dollars)

The following Terms and Conditions of Sale are established by


Zamil Steel Industries, Saudi Arabia, hereinafter referred to in this
document as Zamil Steel, to govern the sale of Pre-Engineered
Buildings that are processed through Zamil Steel Industries, Saudi
Arabia.

Saudi British Bank


P.O. Box 1618
Dammam 31411, Saudi Arabia
Phone
(9663) 833 1553, Fax (9663) 832 1916
Telex
801314 SABB SJ
Account No. 044-054443-001 (Saudi Riyals)
044-054443-080 (US Dollars)

1. PLACING ORDERS
Orders are normally placed after Zamil Steel submits a written
proposal (also known as quotation or offer) to its customer.
Quotations may be revised until all technical and commercial
matters are agreed upon by both the customer and Zamil
Steel.

Saudi American Bank


P.O. Box 842
Al-Khobar 31952, Saudi Arabia
Phone
(9663) 865 8271, Fax (9663) 865 8277
Telex
870411 SAMBA SJ
Account No. 106202278

Once all matters are agreed upon and are included in a


final revised Zamil Steel proposal, the client's authorized
representative and Zamil Steel's authorized representative must
sign a standard contract. A blank form of this contract is
attached to all Zamil Steel proposals.

Arab National Bank


P.O. Box 18
Dammam 31411, Saudi Arabia
Phone
(9663) 832 3440, Fax (9663) 834 7309
Telex
801032
Account No. 0116000204900

2. ACCEPTANCE OF ORDERS
Only signed and dated contracts are accepted at Zamil Steel.
Accepted orders are entered in a sales register maintained
by the Order Management Department.

Al Rajhi Banking & Investment Corporation


Al-Khobar Main Br. No. 139
P.O. Box 1362
Al-Khobar 31952, Saudi Arabia
Phone
(9663) 864 3525, Fax (9663) 864 3525 x 225
Telex
871100 SJ
Account No. 55/6

The Order Management Department will put orders that are


incomplete on hold until corrective action is taken. Customers
are informed of "On Hold" status through the Zamil Steel's
responsible Area Offices.

3. STANDARD PAYMENT TERMS

Riyadh Bank
P.O Box 274
Dammam 31411, Saudi Arabia
Phone
(9663) 833 5733, Fax (9663) 832 1056
Telex
801127 RYDX SJ

3.1 Letter of Credit


Payment of the full contract price shall be by an irrevocable
letter of credit (L/C) confirmed by the negotiating bank in
Saudi Arabia. The validity period for the L/C is to be
established at the time of signing the contract. The minimum
validity period of the L/C shall be 90 days for shipment and
111 days for negotiation. For example, if the latest date for
shipment is the 1st of January then the L/C expiry date should
be the 22nd of January.

The Saudi Investment Bank


P.O. Box 1581
Al-Khobar 31952, Saudi Arabia
Phone (9663) 894 4777, Fax (9663) 895 2268
United Saudi Bank
P.O. Box 43
Al-Khobar 31952, Saudi Arabia
Phone (9663) 833 0515, Fax (9663) 832 9528

3.2 Correspondent Banks


Following is a list of Saudi correspondent banks, their addresses
and Zamil Steel account numbers. L/C openers are free to
choose any of these banks.

Saudi banks, other than those mentioned above, can be used,


provided they add their confirmation. Nevertheless, all L/C's
opened by banks outside Saudi Arabia must be confirmed
by a Saudi bank.

National Commercial Bank


P.O. Box 5558
Dammam 31432, Saudi Arabia.
Phone
(9663) 834 0088, Fax (9663) 834 1124
Telex
801116 NWAFAD SJ
Swift No. NCBKSA 333
Account No. 05610001040107

3.3 Supply C&F Job Site, Overland Shipment


(Saudi Arabian Destinations)
The L/C value should be payable according to, and against
presentation of, the documents specified hereinafter:

Saudi Hollandi Bank


P.O. Box 170
Dhahran Airport 31932, Saudi Arabia
Phone
(9663) 894 8001, Fax (9663) 864 5644
Telex
871085 BSHC SJ
Account No. 013-139-029-119

Down payment of 25% of the L/C value is to be paid upon


the receipt of the L/C and against presentation of the
beneficiary's (Zamil Steel Industries) sight draft & commercial
invoice to the negotiating bank.
Balance of the L/C to be paid against presentation of:

AlBank AlSaudi AlFransi


P.O. Box 2792

Sight draft.

and requesting the bank to make arrangements for


customer pickup.

Commercial invoice.
Packing list.
Trucking consignment note issued by the TRUCKING
COMPANY confirming the receipt of material for further
delivery to the job site.

In the event that trucks are not made available on the


due shipping date, beneficiary is allowed to submit
copies of invoice, certificate of origin (if applicable), and
packing list to the negotiating bank for negotiation, adding
a letter stating that:

Other Terms:
a) Partial shipment must be allowed.
b) Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.

"Openers have not provided trucks to collect the material.


Material will remain in the beneficiary's custody for further
handing over to L/C openers".
Other Terms:

3.4 Supply C&F Job Site, Overland Shipment


(Other Middle East destinations)

a) Partial shipment must be allowed.


b Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.
c) Negotiating bank must add its confirmation.
d) Original documents (the most common of which are the
commercial invoice, packing list, and material dispatch
note) are to be hand carried by the truck driver and
duplicate copies of the same shall be acceptable for
negotiation.

The L/C value should be payable according to and against


presentation of the documents specified hereinafter:
Down payment of 25% of the L/C value is to be paid upon
the receipt of the L/C and against presentation of the
beneficiary's (Zamil Steel Industries) sight draft & commercial
invoice to the negotiating bank.
Balance of the L/C to be paid against presentation of:

3.6 Supply C&F Destination Port, Sea Shipment

Sight draft drawn on confirming bank.


Commercial invoice.
Packing list.
Trucking consignment note issued by the TRUCKING
COMPANY confirming the receipt of material for further
delivery to the job site.
Certificate of origin (in Arabic) issued by the Ministry of
Commerce (Saudi Arabia).

(All Destinations)
The L/C value should be payable according to and against
presentation of the documents specified hereinafter:
Down payment of 25% of the L/C value is to be paid upon
the receipt of the L/C and against presentation of the
beneficiary's (Zamil Steel Industries) sight draft & commercial
invoice to the negotiating bank.

Other Terms:

Balance of the L/C to be paid against presentation of:

a) Partial shipment must be allowed.


b) Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.
c) Negotiating bank must add its confirmation.
d) The original documents (the most common of which are
the commercial invoice, packing list, trucking consignment
note and certificate of origin) are to be hand carried by
the truck driver for border customs clearance. Duplicate
copies of the same shall be acceptable for negotiation.

Other Terms:
a) Partial shipment must be allowed.
b) Transshipment must be allowed.
c) Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.
d) Negotiating bank must add its confirmation.

3.5 Supply Ex-Works Factory in Dammam


The L/C value should be payable according to and against
presentation of the documents specified hereinafter:
Down payment of 25% of the L/C value is to be paid upon
the receipt of the L/C and against presentation of the
beneficiary's (Zamil Steel Industries) sight draft & commercial
invoice to the negotiating bank.

3.7 Supply FOB Dammam Port, Sea Shipment


(All Destinations)

Balance of the L/C to be paid against presentation of:

Sight draft drawn on negotiating bank.


Commercial invoice.
Packing list.
Bill of lading.
Certificate of origin, in either English or Arabic, issued by
the Ministry of Commerce (Saudi Arabia).

The L/C value should be payable according to and against


presentation of the documents specified hereinafter:

Sight draft drawn on negotiating bank.


Commercial invoice.
Packing list.
Material dispatch note issued by the beneficiary and
countersigned by the truck driver confirming receipt of
materials. OR,

Down payment of 25% of the L/C value is to be paid upon


the receipt of the L/C and against presentation of the
beneficiary's (Zamil Steel Industries) sight draft & commercial
invoice to the negotiating bank.
Balance of the L/C to be paid against presentation of:

Telex sent by beneficiary to openers through the


negotiating bank, 7 to 10 days prior to shipment date,
informing the bank that the material is ready for shipment

Sight draft drawn on negotiating bank.


Commercial invoice.

Packing list.
Bill of lading showing "freight collect".
Certificate of origin, in either English or Arabic, issued by
the Ministry of Commerce (Saudi Arabia).
Trade terms to read as FOB any Saudi Port.

Department.
4.3

When approval is required, two (2) sets of drawings are


provided free of charge to the customer of which one set
must be signed by the customer and returned to Zamil Steel's
responsible Area Office "Approved As Is" or "Approved As
Noted". Additional sets are available for a fee of SR 300 (US$
80) per set.

4.4

The information presented in the approval drawings is


preliminary in nature and is not to be used for the purpose
of setting anchor bolts, design of foundations and other
construction activities.

4.5

The approval of these drawings shall be accepted by Zamil


Steel only in the form of the customer's (or his authorized
representative's) signature within the "Approval" stamp placed
by Zamil Steel on its approval drawings. Approval by any
other means shall not be accepted by Zamil Steel.

Minimum validity of L/C shall be 180 days.

4.6

Signed approval drawings shall be final and binding.

The L/C value should be for the total amount of the supply
and erection prices.

4.7

Jobs that have been "Out For Approval" for more than 60
days will be subject to the pricing schedule that is in effect
at the time the approval drawings are returned to Zamil Steel
Order Management Department. Zamil Steel reserves the right
to cancel orders that have been "Out For Approval" for more
than 90 days (the customer shall be responsible for ordinary
cancellation and engineering costs).

4.8

Comments on returned approval drawings, which change the


previously agreed upon scope of work, must be in RED INK
and covered by a change order that is duly signed and
accepted by the customer.

4.9

Approval drawings for standard buildings are normally


submitted within 2 weeks. More complex buildings require
longer submittal time for approval drawings.

Other Terms:
a) Partial shipment must be allowed.
b) Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.
c) Negotiating bank must add its confirmation.
d Openers to arrange with the shipping lines to issue Bill of
Lading showing "freight collect".

3.8 Supply & Erection Contracts


(Saudi Arabian Contracts only)

Payment for Supply:


The supply C&F job site value should be payable as follows:
Down payment of 25% of the supply C&F job site value is to
be paid upon the receipt of the L/C and against presentation
of the beneficiary's (Zamil Steel Industries) sight draft &
commercial invoice to the negotiating bank.
Balance of supply price C&F job site to be paid against
presentation of documents specified hereinafter:

Sight draft drawn on negotiating bank.


Commercial invoice.
Packing list.
Truck consignment note issued by the TRUCKING
COMPANY confirming receipt of material for further
delivery to job site.

4.10 Approval drawings should be returned to Zamil Steel's Area


Office / Head Office within 2 weeks after receipt by the
customer. Delay in returning approval drawings may affect
the overall project cycle including delivery of the steel to the
job site (or port of entry).

Other Terms:

5. DESIGN CALCULATIONS (Optional)

a) Partial shipment must be allowed.


b) Transshipment must be allowed.
c) Negotiating / Advising bank's charges are to the
beneficiary's account while the Opening / Issuing bank's
charges are to the opener's account.
d) Negotiating bank must add its confirmation.

5.1

For jobs requiring approval, the structural design calculations


may be included with the approval drawings, if requested.

5.2

Two (2) sets of structural design calculations are provided


free of charge. Additional sets are available for a fee of SR
150 (US$ 40) per set.

5.3

Standard structural design calculations include:

Payment for Erection


Erection value to be paid against time drafts (dates to be
determined according to the erection period) all of which
are payable with respect to the shipment date.

a)
b)
c)
d)

4. APPROVAL OF ZAMIL STEEL


DRAWINGS
4.1

When requested by the customer or considered necessary


by Zamil Steel, approval drawings shall be prepared to ensure
that the Zamil Steel interpretation of all the customer's
requirements is accurate.

4.2

If the building is tied up to an existing building, Zamil Steel


will not issue approval drawings until a report from a certified
surveyor is received at Zamil Steel Order Management

5.4

Material specifications & design assumptions.


Design of the primary & secondary structural framing.
Wind bracing design.
Column reactions.

Additional engineering fees may be levied for design


calculations, which require more analysis than what is included
in the standard calculations.

6. DESIGN CERTIFICATES
A design certificate attesting to the structural design integrity
of a Zamil Steel building, signed and stamped by a U.S. (United

10.3 Additional sets of erection drawings may be supplied on


request for SR 300 (US$ 80) per set.

States) registered professional engineer, may be furnished (at


no cost) in lieu of the design calculations.

10.4 If specifically requested, one set of "As Built" drawings will


be supplied to the customer (free of charge) after erection is
completed. "As Built" drawings shall incorporate changes made
during erection (if any) provided that such changes are notified
in writing to Zamil Steel after completion of erection.

7. CHANGE ORDERS
7.1

7.2

Changes in the requirements, after a contract is signed and


accepted, requires the client to sign a change order letter,
prepared by Zamil Steel, which describes the change(s) and
the impact the changes may have on price and/or delivery.
No further action will be taken by Zamil Steel until a change
order has been signed as accepted by the customer.

11. SPECIFICATION CHANGES & MATERIAL


SUBSTITUTION

The price of fabricated components, made obsolete due to a


change order that is initiated after the start of fabrication,
will be charged to the customer's account.

When a standard inventory item is out of stock or when product


development improvements necessitate it, Zamil Steel reserves
the right to substitute material equivalent to that originally
specified.

8. JOB ON HOLD
8.1

8.2

12. DESIGN AND SUPPLY EXCLUSIONS

All costs incurred when a job is placed "On Hold" by the


customer, after the start of manufacturing, will be to the
customer's account.

12.1 Zamil Steel's supply includes only materials, which are clearly
described in its proposal under "Building Description" and
"Standard Supplied Material" or covered by written, accepted
and signed change orders.

A job that is not released for production within 90 days from


the date of its entry in the sales register, for whatever reason
(including lack of technical clarification), will be put "On Hold".
Zamil Steel reserves the right to re-price such a job according
to the price rates that are valid at the time of release from its
"On Hold" status.

12.2 Zamil Steel does not supply, nor does it accept responsibility
for the design or construction of column footings, ground
slabs, tie beams, masonry walls and other concrete works.
12.3 Zamil Steel does not supply, nor does it accept responsibility
for plumbing services, electrical services, air conditioning
services, or any other material or service not specified in the
final accepted proposal, contract or change order.

9. MATERIAL DISPATCH
9.1

The material dispatch commitment is measured, in weeks, from


the date of the latest receipt and acceptance, at Zamil Steel
offices of all the following job related documents:

9.2

Signed contract.
Acceptable letter of credit / final accepted amended L/C.
Final change order including any amendments to L/C price.
Approval drawings signed as "Approved As Is" or "Approved
As Noted", where applicable.

13.1 It is the customer's responsibility to obtain and pay for all


building permits, licenses, public assessment, prorated utilities,
utility connections, occupancy fees and any other fees
required by any government authority in connection with
the work provided for in the contract.

Production and dispatch schedules shall be determined when


all of the following is fulfilled:

9.3

13. PERMITS AND FEES

13.2 The customer shall provide, at his expense, all plans and
specifications required to obtain the building permit, except
those plans to be furnished by Zamil Steel.

Receipt of the final "Approved As Is" or "Approved As


Noted" approval drawings at Zamil Steel offices, where
applicable (see item 4).
Receipt and acceptance of the final change order, where
applicable (see item 7).
Release to production by Zamil Steel Finance Department,
i.e. financial clearance.

13.3 It is the customer's responsibility to ensure that all the plans


and specifications, including those produced by Zamil Steel,
comply with the applicable requirements of all the governing
building authorities.
13.4 If erection is to be by Zamil Steel erection team, a copy of
the building permit must be provided to Zamil Steel, by the
customer, prior to the commencement of work. If erection work
has to be deferred due to building permit problems, the cost
of such stoppages, standing time or demobilization shall be
charged to the customer.

Zamil Steel Order Management Department regularly notifies


Zamil Steel Area Offices of all production and dispatch
schedules for jobs entered by their offices.

10. ERECTION DRAWINGS


14. INSPECTION OF FABRICATED
MATERIALS

10.1 The standard erection drawings package shall consist of one


(1) set sent to the customer, via the Zamil Steel responsible
Area Office, and one (1) set dispatched with the materials.

14.1 Zamil Steel, an ISO 9001 certified company, has a standard


Quality Plan, which outlines the quality control procedures
that are followed during the production and shipment of its
products. This plan describes the sampling techniques, types
of tests conducted, control procedures and reporting format
used in the production of all manufactured components.

10.2 When erection is by Zamil Steel the package shall consist of


one (1) set sent to the customer via the Zamil Steel responsible
Area Office and one (1) set provided to Zamil Steel erection
team.

must be provided by the customer.

The approved procedures described in this Quality Plan are


maintained within Zamil Steel Quality Control Department.

18.2 The customer is solely responsible for the condition of the


job site as far as the safety of the trucking company driver
and Zamil Steel material is concerned.

14.2 Inspection of Zamil Steel's products at Zamil Steel plant by a


customer, or by his authorized representative, (if required by
a specific supply contract) may be arranged. Such inspection
will be scheduled after receipt of a written request for such
inspection by the customer. Inspections will be arranged in
such a manner so as not to delay production and / or shipment.
In the event that the customer or his representative fails to
conduct inspections as scheduled, the goods shall be
considered "Released By Concession".

18.3 The customer is responsible for accurately checking the


materials upon arrival and unloading. Any discrepancies must
be noted on the material dispatch note.
18.4 A receiving representative of the customer cannot refuse to
accept an entire shipment because some portion of that
shipment is damaged or missing.

15. MATERIAL DISPATCH ADVICE

Damaged materials must be noted on the material dispatch


note and reported to the responsible Zamil Steel Area Office
immediately.

15.1 Upon dispatch, Zamil Steel Shipping Department advises Zamil


Steel responsible Area Office of the actual dispatch date.

19. ERECTION OF BUILDINGS

15.2 The customer will be notified of the actual dispatch by Zamil


Steel responsible Area Office immediately upon the dispatch
of material from Zamil Steel factory.

(Supply Only Contracts)


19.1 The customer shall be fully responsible for the quality of
erection of Zamil Steel buildings when the erection is not
carried out by Zamil Steel.

16. PARTIAL SHIPMENTS

Zamil Steel assumes no liability for, and the customer shall


hold Zamil Steel harmless on account of, any defects in the
erection of buildings or such defects as loose connections,
missing parts, roof leaks, damaged sheets, omission of sealer,
scratched surfaces, poor alignment, inadequate drainage and
defects caused by others. The customer shall permit Zamil
Steel's personnel to inspect the erection work at any time
during the erection process.

16.1 On large jobs, it is Zamil Steel standard practice to make


partial shipments.
16.2 When partial shipments are made, Zamil Steel shall endeavor
to ship erectable steel to enable erection to proceed smoothly.
16.3 When partial shipments are requested and accepted by Zamil
Steel, each shipment will be assigned a prorated value of the
dispatched materials that is claimed according to the accepted
terms of payment covering the total job value.

19.2 Although Zamil Steel appoints only competent contractors as


Certified Builders, Zamil Steel is not responsible for the quality
of erection made by these builders. Zamil Steel Certified
Builders are independent contractors who are certified by
Zamil Steel due to their knowledge and experience in preengineered steel buildings' erection and contracting practices.

17. CUSTOMER PICK-UP SHIPMENTS


17.1 Zamil Steel does not accept Customer Pick-Up shipment for
sea shipments.

20. ERECTION BY ZAMIL STEEL

17.2 Zamil Steel prefers to make all overland shipments by contract


carrier; the customer may pick-up the material provided that
the procedures noted in section 17.3 to 17.5 are observed.

20.1 Zamil Steel erection team shall undertake building erection


only on a clear, levelled and unobstructed concrete slab, with
suitable access for trucks and erection equipment. A 6 m
wide access shall be provided around each building for
storage, setting out and erection of the building. The ground
of all working areas shall be suitably compacted, for the use
of forklifts or cranes.

17.3 The customer must obtain an assigned loading date and time
from Zamil Steel Order Management Department.
17.4 The customer must provide suitable trailers for loading by
Zamil Steel. Zamil Steel cannot load closed van trailers and
trailers with sidings.

20.2 Prior to the arrival of Zamil Steel erection team on site, the
anchor bolts are to be accurately set by others. Anchor bolts,
set in place shall have appropriate nuts and washers installed
on cleaned threads.

17.5 The customer's driver must check and sign a receipt for the
Zamil Steel materials.
17.6 Customers who are not familiar with Zamil Steel's customer
pick-up procedures should request this information from the
responsible Zamil Steel Area Office.

20.3 Zamil Steel erection team may check the position and level
of the anchor bolts prior to the pouring of the concrete
foundations. This does not absolve the contractor from his
responsibility for accuracy. Any rework required due to
misplacement of anchor bolts or faulty concrete shall be the
responsibility of the customer.

18. UNLOADING OF MATERIAL AT JOB


SITE FOR OVERLAND SHIPMENTS
(Supply Only Contracts)

20.4 If erection is delayed due to the non-completion of civil works,


or other causes, Zamil Steel shall not be responsible for the
deterioration of the primer paint, or the cleaning of the
manufactured steel after delivery to site.

18.1 Unloading of trucks at job site is the responsibility of the


customer. The customer is expected to provide suitable
equipment for unloading the material. If a site is inaccessible
or not ready to accept the material, another site for unloading

20.5 If, at the sole discretion of Zamil Steel erection team, erection

takes place on footings and beams prior to pouring of the


concrete slab, Zamil Steel shall not be responsible for any
cleaning of the steel columns or cladding after pouring of
the concrete slab.

or all the materials, for a contract, for a period not exceeding


10 days from the scheduled dispatch date.
24.2 Should a customer delay dispatch of goods for a period
exceeding 10 days after the originally scheduled dispatch
date, STORAGE CHARGES shall be levied by Zamil Steel, at
the rate of 0.1% of the ex-works selling price (of the unshipped
material) per day up to a maximum of 5%.

20.6 Zamil Steel shall not be responsible for the repair of damage
to building components caused by others.
20.7 Any repairs necessary shall be undertaken only after the
receipt by Zamil Steel erection team of written acceptance of
the charges, in the form of a change order, from the customer.

24.3 Zamil Steel shall not be held responsible for damage caused
to the exposed steel after it has been stored longer than 10
days. Such damage may include deterioration of the paint
coating.

20.8 Any deviation from these standard erection conditions shall


be subject to price review.
20.9 Zamil Steel reserves the right to subcontract part or all of its
erection contract to qualified contractors who will execute
the job professionally and in accordance with Zamil Steel's
strict erection requirements.

25. WARRANTY
25.1 Zamil Steel warrants materials for one year from the date of
material dispatch. This warranty extends only to materials
manufactured by Zamil Steel in that such material shall not
fail due to defective materials or workmanship, when utilized
in the intended manner.

21. SHORTAGE OF MATERIALS


21.1 On contracts where a material consignment is received on
site by anyone other than Zamil Steel erection team, the
customer's (or his representative's) dated signature constitutes
a formal acknowledgment of the correct receipt of the
consignment for both quality and quantity.

25.2 Zamil Steel warrants that the structure shall support the loads
described in Zamil Steel's drawings and contract, if properly
erected, as part of a complete structural system designed by
Zamil Steel and comprising only of parts made by Zamil Steel,
and the structure is used in the manner and the purpose for
which it was designed.

21.2 It is the customer's (or his representative's) responsibility to


check the materials before signing and dating acceptance
on Zamil Steel's material dispatch note.

25.3 No warranties are expressed or implied other than those


described in these Terms and Conditions of Sale.

21.3 Claims of shortages shall only be accepted by Zamil Steel if


received in writing within seven (7) days of the date of the
acceptance signature.

25.4 In the event of breach of warranty, the limit of any claim shall
be the correction or replacement of defective materials and
correction of defective workmanship.

21.4 If, after receipt of such claims, Zamil Steel's bills of materials
and shipping lists are found to be correct, replacement material
shall be supplied only after receipt of the customer's (or his
representative's) written acceptance of the additional ex-works
costs and delivery costs for such replacement material.

Under no circumstances shall Zamil Steel be responsible for


consequential damages that are alleged to arise from any
such claim of breach of warranty.

26. FORCE MAJEURE

21.5 Zamil Steel shall not accept any consequential claims or


liabilities alleged to arise from losses or shortages.

Zamil Steel shall not be held accountable for delays in material


d i s p at c h o r de l ive r y ( a f te r d i s p at c h ) re s u l t i n g f ro m
circumstances outside its control, such as strikes, acts of war,
revolution, riot or civil disturbance, trade sanctions or
restrictions, occurrences of meteorological or geophysical
nature, etc., to the extent that these affect transport,
communications, manufacturing and/or erection by Zamil Steel,
its suppliers and its subcontractors.

22. FIELD MODIFICATIONS


22.1 Minor field modifications and adjustments, in any preengineered building, are to be anticipated. Minor field work
does not constitute grounds for backcharges. This field work
should be provided for within the contingency element of
any construction estimate.

27. CANCELLATION OF ORDERS

22.2 Only repairs due to major fabrication errors may be cause for
filing a claim. Such repairs shall only be undertaken after
consultation and consent of Zamil Steel.

27.1 In the event a signed contract is cancelled by a customer,


the higher of the following cancellation charges will apply:

23. COMBINED SHIPMENTS


Zamil Steel is occasionally obliged to include a small quantity
of material (back-order or urgent material request) consigned
to a customer within a shipment destined to another customer
in the same metropolitan area or territory. All customers benefit
from this mutual cooperation.

10% of the total contract amount.

All actual charges incurred by Zamil Steel (and its


subcontractors / suppliers) up to the time of receipt of the
notice of cancellation.

27.2 Cancellation charges are due immediately upon the receipt


by Zamil Steel of the customer's notice of cancellation.

24. STORAGE

No changes in these terms and conditions shall be allowed unless agreed to, in
writing, by the Vice President of the Pre-Engineered Buildings Division at Zamil
Steel Head Office in Dammam, Saudi Arabia.

24.1 Zamil Steel shall store, free of charge in their open yards, any

INDEX
1.

PLACING ORDERS

2.

ACCEPTANCE OF ORDERS

3.

STANDARD PAYMENT TERMS

4.

APPROVAL OF ZAMIL STEEL DRAWINGS

5.

DESIGN CALCULATIONS (Optional)

6.

DESIGN CERTIFICATION

7.

CHANGE ORDERS

8.

JOBS ON HOLD

9.

MATERIAL DISPATCH

10.

ERECTION DRAWINGS

11.

SPECIFICATION CHANGES & MATERIAL


SUBSTITUTION

12.

DESIGN AND SUPPLY EXCLUSIONS

13.

PERMITS AND FEES

14.

INSPECTION OF FABRICATED MATERIALS

15.

MATERIAL DISPATCH ADVICE

16.

PARTIAL SHIPMENTS

17.

CUSTOMER PICK-UP SHIPMENTS

18.

UNLOADING OF MATERIAL AT JOB SITE


FOR OVERLAND SHIPMENTS
(Supply Only Contracts)

19.

ERECTION OF BUILDINGS
(Supply Only Contracts)

20.

ERECTION BY ZAMIL STEEL

21.

SHORTAGE OF MATERIALS

22.

FIELD MODIFICATIONS

23.

COMBINED SHIPMENTS

24.

STORAGE

25.

WARRANTY

26.

FORCE MAJEURE

27.

CANCELLATION OF ORDERS

As

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Accredited by
the Dutch Council
for Certification

ISO 9001
Certificate Number: 32481

HEAD O FFICE
PO Box 877 Dammam 31421
Saudi Arabia
Phone (966 3) 847 1840
Fax
(966 3) 847 1291
Telex 801414 ZSBLDG SJ
E-Mail pebmarketing@zamilsteel.com
Web
www.zamilsteel.com

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