INVITATION TO TENDER

Tenders are invited by the Tender Board, from suitably experienced construction firms registered with the Tender Board for: Construction of Asphalt Road from Dank to al Khubayb All as described in, and in accordance with the terms of the Tender Documents. The Tenders and all supporting documents including the Tender Bond should be submitted in an envelope along with the Tender Number, Project Name and sealed with red wax, endorsed only as follows: TENDER No. . Construction of Asphalt Road from Dank to al Khubayb The envelope should further contain two separate envelopes sealed with red wax, one for Tenderer's "Technical offer" and other for "Financial offer" endorsed as follows: i) TENDER No. ... "Technical offer" for the Construction of Asphalt Road from Dank to al Khubayb TENDER No. ... "Financial offer" for the Construction of Asphalt Road from Dank to al Khubayb

ii)

The sealed Financial offer shall include i) ii) Form of Tender, Appendix to Form of Tender, and any other document Reflecting the Tender value of the subject project. Priced Bill of Quantities.

The 'Technical offer' shall in no case, carry any reference to the 'Financial offer'. Tender Bond in the amount not less than 1 % of the Tender Value of his highest submitted Bid should be submitted in separate envelope clearly marked as "Tender Bond", along with the Project Name and sealed with red wax. The envelopes should be delivered on the date and time as specified in the advertised invitation of this Tender and should be addressed to: H.E. The Chairman, Tender Board, P.O. Box 787, AI Khuwair, Postal Code-133, SULTANATE OF OMAN. The exterior of the envelope should bear no indication or marking which may reveal identity of the Tenderer. All copies of the Tender Drawings, which shall not be defaced or mutilated in any way, must be stamped and parceled separately and labeled.

INSTRUCTIONS TO TENDERERS

1.

The Tenderer must visit the site and obtain, at his own expense, all information necessary for the preparation of the Tender. Notwithstanding the information provided in the Tender Documents, the Tenderer must, prior to submitting the Tender, make independent inquiry and familiarize themselves as to the Work forming the subject of this project as well as the prevailing site conditions including access to the site, supply of water and electricity, availability of labour and materials, laws and bylaws, insurance of persons and property and must investigate and obtain information on all matters necessary for the preparation of the Tender or may in anyway affect the Works, prices, risks or obligations of the Tenderer. The tenderer must consider all matters and possible contingencies, which may affect the entire Scope of Work. Any neglect or failure on the part of the tenderer to obtain reliable information at site or elsewhere or on any other matters affecting the execution and completion of the works of this contract shall not relieve the accepted tenderer from any risks or liabilities or from the responsibilities of completing and handing over the works. No claims whatsoever for any expenses, no matter how they may arise shall be considered or entertained by the employer under the plea of lack of information. Persons, firms or companies proposing to tender and any of their servants or agents will be granted permission by the employer to enter upon his premises and lands for the purpose of inspection in connection with the proposed tender, but only on condition that such persons, firms or companies will release and indemnify the employer and his servant and agents, from and against all liabilities in respect of, and will be responsible for, personal injury (whether fatal or otherwise),loss of or damage to property and any other loss, damage, costs and expenses however caused (whether by the act or neglect of the employer or his servants or agents or not), which but for the exercise of such permission would have not arisen.

2.

The Tender Documents forming part of this Tender are as follows: (i) Volume I/IV Prime Document Conditions of Contract Scope of Works Instruction to Tenderers Standard Specifications for road and bridge construction - June 2010 Form of Tender & Appendix to the form of Tender Form of Agreement and Appendices 'A' and 'B' to the Form of Agreement Form of Tender Bond Form of Performance Bond Form of Advance Payment Bond Special Specification Bill of Quantities Drawings Addenda, Circular Letters, Telexes and Faxes (if any) issued by the Tender Board.

(ii) (iii) (iv)

Volume II/IV Volume III/IV Volume IV/IV And

The tenderer shall ensure that all pages of the Tender Documents are complete. In the event that some parts or pages of the Tender Documents are missing, the tenderer should notify the Tender Board in writing immediately.

The Tender Documents including Addenda and Circular Letters (if any) and copies of these documents shall remain the property of the Employer and shall be returned to the Tender Board on the tender closing date. 3. All documents and drawings issued to the Tenderer shall be treated as strictly private and confidential, whether or not the recipient submits a Tender. During the tender period, the Tenderer shall not communicate with anyone related to or deemed to be related to the preparation of the Tender unless expressly so directed by the Tender Board or where such communication shall constitute an enquiry. 4. Discrepancies, Doubts and Obscurities Should there be any discrepancy, doubt or obscurity as to meaning of the Tender Documents or as to anything to be done under the Contract or concerning these instructions, or any other matter, the tenderer must set forth in writing such doubt or obscurity and deliver the same to the office of the Tender Board not later that twenty-one (21) days before the date fixed for the submission of Tenders. If considered appropriate a reply in the form of a Circular Letter for Addendum will be distributed to all tenderers who have purchased the Tender Documents. No additional payment shall be made in respect of works carried out in connection with discrepancies among the various parts of the tender documents due to failure of the tenderer to report the same prior to the submission of the tender as described in above paragraph. Addenda and Circular Letters Addenda and Circular Letters may be issued prior to the date of delivery of Tenders for the purpose of amending or clarifying the Tender Documents. Amendments to the Tender Documents subsequent to their issue by the Tender Board shall only be effected by Addenda. Addenda include amendments to the Tender Documents while Circular Letters include Employers responses to the queries, in the form of a Question and Answer sent by the Tenders during the tender period. Addenda and circular letters issued to all Tenderers by the Tender Board shall form part of the Contract and the Tendered shall take into consideration the contents of such Addenda and circular Letters in his Tender. The Tenderer shall acknowledge receipt of such Addenda and Circular Letter by recording them in the appropriate spaces in the Form of Tender 5. Preparation of Tenders Before submitting the Tender, the Tenderer shall read the Tender Documents carefully and satisfy himself of the tasks, risks, obligations, liabilities and responsibilities to be undertaken in the Contract. The tenderer shall acquaint himself with the Conditions of Contract, the laws of the Sultanate of Oman, the site work, and specification of the equipment specified in the Tender Documents. Neither the tender Board nor any of its employees, nor any agents or servants of the Employer, has any authority to make representation or explanation as to the meaning of the Tender Documents, or as to any other matter or thing concerning the Contract, so as to bind the Employer or to bind or fetter the judgment or discretion of the Engineer in the exercise of his powers and duties under the Contract, except in so far as the Tender Board may issue a Circular Letter or Addendum amending or explaining the Tender Documents.

The Tenderer shall complete the Bill of Quantities by inserting unit rates, prices or percentages both in words and figures in typescript or written/printed legibly in blank waterproof ink. All items in the Bill of Quantities shall be fully priced in Oman currency up to three decimal places. Each item where no price is entered must be marked NIL in the amount column and shall be deemed covered by other rates in the Bill of Quantities. The unit rates and prices quoted against the items in the bill of Quantities shall be fixed for the entire duration of the contract and shall be for the full inclusive value of the finishing work described, including import duties, taxes and all other levy, profit, obligation and liabilities of every kind arising under the contract. For pricing work under provisional sums and variations, the unit rates quoted by the tenderer in the Bill of Quantities shall be applied without any enhancement. Where such unit rates are not available, the rates payable shall be determined in accordance with the Condition of Contract. Items in the Bill of Quantities marked Provisional Quantity and Provisional Item shall only be executed if ordered in writing by the Engineer. The rates set out for such items shall be used for the valuation of works so ordered whether the quantities shown are used wholly or in part. If the amount of work ordered by the Engineer exceeds the quantity for the item, the valuation of the excess shall be in accordance with the Conditions of Contract and the rate for that item set out in the Contract shall be deemed applicable to such excess. The tenderer shall submit with his Tender a detailed breakdown of all lump sum items in the Bill of Quantities giving description, quantity, unit rates and amount. The total amount in the breakdown of each lump sum item shall be the amount inserted for each corresponding item in the Bill of Quantities. The attention of the Tenderer is drawn to the fact that this Contract does not include a variation of unit rates (labor, materials and constructional plant which may occur after the submission of the Tender and during the period of the contract except for increases that may be reimbursable under Clause 70 of the Conditions of Contract. The tenderer may be provided with an electronic copy of the Bill of Quantities as well. If provided, then in addition to entering the rates and prices as stipulated herein, the Tenderer is also required to enter rates and prices electronically and return the compact disc as part of his Tender. In the event of conflict or ambiguity between documents submitted in digital form and those submitted in hardcopy, the hardcopy shall take precedence in all cases. 6. Tenderers shall fill in the schedules of Day-works rates in the Bill of Quantities. In case of any additional or substituted works, the Contractor shall be paid for such work under the conditions set out in the Preamble to the Bill of Quantities and at the rates and prices affixed in his Tender. Currency of Contract The currency of Contract will be the Rial Omani. In the case of a tender submitted by an individual or companies abroad, it is permitted to write the prices in foreign currency provided the equivalent Oman currency must be mentioned. Tender in foreign currency without the equivalent Omani currency will be rejected.

7.

8.

Validity of Tenders The Tender shall be valid for ninety (90) days from the latest date for submission of Tenders. The Tender Board reserves the right to ask for extension of the validity of the Tender and Tender Bond without any change in the prices. The Tender board shall not entertain any variation due to any currency fluctuation for the submitted Tender during its Validity period. The correctness or otherwise of the quantities in the Bill of Quantities shall in no way effect the validity of the Tender.

9.

The tenderer shall disregard all manufacturers, trade names or brand names, model numbers and foreign certification marks that may appear in the Tender Documents. Kite mark and other foreign certification marks and certification for materials and equipment required from Original Equipment Manufacturers (OEM) are not permissible in this Contract even though mentioned in the specification. Tender Bond The tenderer shall furnish, as part of his Tender, a Tender Bond in the value of not less than one percent (1%) of the Tender value. If the tenderer submit an alternative tender, the one percent (1%) Tender Bond shall be circulated based on the highest Tender value. The wording of the Tender shall be as per the prescribed Form of the Tender Bond included in the Prime Document. The Tender Bond shall be denominated in Omani currency and shall be obtained from a bank located and registered in the Sultanate of Oman and valid for Ninety (90) days from the latest date fixed for the submission of Tenders. Any Tender not accompanied by a Tender Bond will be rejected. The Tender Bond of unsuccessful tenderers will be returned on its expiration or after the award of the Contract to the successful tenderer. The Tender Bond of the successful tenderer will be discharged after the tenderer had signed the Contract and furnished the Performance Bond. The Tender Bond will be forfeited: i) ii) If a tenderer withdraws his Tender during the period of tender validity specified in the Tender Documents; or In the case of a successful tenderer, if the tenderer fails: a) To sign the contract; and/or b) To furnish the Performance Bond

10.

11.

Completion of the Tender Documents The tenderer shall complete the Form of Tender, the Appendix to the Form of Tender, the Bill of Quantities, and Appendices, if any, but not in the Form of Agreement and its appendices, and standard forms of Bond, in typescript or written in black ink with the whole of information and prices called for thereon. Each place provided for the purpose shall be completed with the date and signature of the person or persons authorized to sign the Tender Documents and of the witness thereof. Every other Tender Documents and documents accompanying the Tender, except the Tender Bond, shall be dated, signed by the same person or persons, and stamped with company official stamp. Any in complete or improper tenderer may result in the rejection of the Tender.

12.

In addition to the Tender Documents issued for tendering, it is mandatory for the Tenderer to provide and properly bind, under the Tenderers Enclosures section of the Prime Document, the following documents. Any Tender not accompanied by all the required documents will be rejected. a) b) c) Name and address of the Tenderer's agent resident in Sultanate of Oman. Tender Bond in accordance with item 10 above. Details of Tenderer's proposed programme including a description of his method of working. (i) proposed

d)

The proposed site organization giving in details of the supervisory staff, with detailed Curriculum Vitae (C.Vs) of their qualifications, previous appointments and experience, together with the estimated labor force to be employed during the Contract. The proposed labour force must show the proportion of skilled labour, the proportion of labour to be imported into the Sultanate of Oman and the proportion of local Omani staff and labour. Tenderer must submit with his Tender a list of all Omani and Expatriate Employees who are employed in the company (Data Sheet), giving the name of the employee, job category, and unit rate per month (monthly salary) in the prescribed forms included in the Tenderers Enclosures. Tenderers engaging a high proportion of Omani employees shall be given preferential consideration. The statement giving a confirmation that the Tenderer shall employ a Minimum Percentage of 30% to be Omani employees in this project. All Tenderers must comply with the minimum percentages for employing Omanis in their Organization in accordance to the Regulations and Codes issued by Ministry of Manpower. Failing to adhere to such requirement shall lead to rejection of Tenderers Proposal. (Omanization Content in the Project and the Company is one of the essential items during the Evaluation Process).

(ii)

(iii)

(iv)

e)

Statement listing details and types of constructional plant proposed to be used showing separately plant owned and plant to be acquired or hired. Such list must be in accordance with the Work Schedule". Information shall be given in the form provided. The proposals for providing accommodation for the Contractor's staff and labor force, and for offices, workshops, etc., together with the layouts and areas of land for the provision of such facilities. List of sub-contractors and suppliers including local firms proposed to be employed and a description of the parts of the Works on which they are to be employed together with proof of their past experience. Preferential consideration shall be given to the Tenderer who is offering a high proportion of local specialized sub-Contractors, local materials and Omani labour obtained from the region where the project is to be executed.

f)

g)

h)

A list of all major Works of similar nature which the Tenderer has completed within the past five years and of all works which are presently under construction, giving the name of the Client, Consultant, location, value, duration, and date of completion. A statement of Tenderer's financial standing, including the name and address of his bank together with the authority to approach his banker for relevant information and comment.

i)

j)

A list of the sources from which it is proposed to obtain materials locally produced / overseas source. Tenderers are to note that they should, purchase all required materials, equipment, etc., from the Omani local products available, provided that their quality satisfies the requirements of the Contract Specifications and give priority to Omani products over similar foreign products providing the difference in price is not greater than 10%. Any breach of this Clause by the successful Tenderer or his sub-Contractors or suppliers will be considered as breach of the Conditions of Contract, and a penalty of not more than 20% of the purchased products will be applied. It is not permissible for any Contractor, executing Government Projects, whether he is a main or sub-contractor, to construct a production unit to meet his requirements for the project, and he should purchase all his requirements from the local production unless the Ministry of Commerce & Industry gives him permission to do otherwise due to non-availability of these products in the local products. Any breach of this obligation will subject the Contractor to the penalties stated in the Law of Organizing and Encouraging the Industry, 1978. The Contract may be terminated with any Supplier or Contractor and he may be prevented from working with the Government for at least one year in case of cheating by submitting false data concerning the products and that includes putting labels of local products on foreign products. The Tenderer shall disregard all references to manufacturers, trade names or brand names, model numbers and foreign certification marks that may appear in the Tender Documents. Kite mark and other foreign certification marks and certification for materials and equipment required from Original Equipment Manufacturers (OEM) are not permissible in this Contract even though mentioned in the specification. The successful Tenderer is required to ensure that the materials and goods to be used in the Works are insured with insurance companies registered in the Sultanate of Oman. Projects financed by foreign investors could be exempted from these regulations.

k)

A statement in writing certifying that the Tenderer has visited the Site and familiarized himself with all conditions which may affect his Tender and that he has no queries on any matter concerning the contract in compliance with Clause (11) of Standard Conditions of Contract. A statement giving the name(s) of the person(s) authorized to sign Agreements on behalf of the Company including his/their specimen signature(s). A statement of unresolved doubts regarding the meaning of anything contained within the Tender Documents and the interpretation relied upon by the Tenderer. A copy of each Circular Letter and Addendum, if any, issued by the Tender Board, appropriately endorsed by the Tenderer. A forecast of anticipated interim valuations related to the proposed Work Schedule, taking into account the annual cash-flow inserted by the Employer in item 19 of the Appendix to the Form of Tender.

l)

m)

n)

o)

p)

A copy of valid Tender Board registration and computer printout document issued by Ministry of Commerce and Industry containing the names of the owner(s) of the Company with specimen signatures (for all local tenderers). Full and valid registration documents issued by Ministry of Commerce and Industry and Tender Board in the specified category and grade for Omani Joint Venture Company and Sub-contractor. The Tender Documents shall be returned in the same form as issued and not rebound or rearranged in any way except as instructed herein. All requested documents, issued addenda and circular letters (if any) should be submitted with the Tender. Except as otherwise expressly provided for in the Tender Documents, the Tenderer shall insert the requested documents listed in Clause 12 of these instructions under the Tenderers Enclosures section of the Prime document; under no circumstances shall the Tender Documents be otherwise altered or other documents inserted.

q)

r)

The proposed construction Programmed and method statement showing in detail the order in which various sections of the works are to be constructed from the date of receipt of the Engineers order to commence the Works and the time, which the tenderer estimates, will be required to complete each section. A statement signifying that a Site Inspection has been made and that the tenderer has no doubts or queries regarding the Site, ground conditions, access, permits or permission required concerning the Contract. A statement giving the tenderers proposals for location and sizes of base camps, accommodation of contractors staff and labour force, offices, workshop and stores, etc, together with the layouts and areas of land for the provision of such facilities.

s)

t)

13.

The Tender Board is not bound to accept the lowest tender and reserves the right to accept or reject any Tender, to cancel the tendering process and to reject all the tenders at any time prior to award of Contract, without thereby incurring any liability to the affected tenderers or any obligation to inform the affected tenderers of the grounds for the Tender Boards action. The Tender Board also reserves the right to reject any tender submitted without additional copy of the completed Bill of Quantities and the additional documents listed in Clause 12 of the Instructions to Tenderers or the unit rates are not written both in words and figures. While the Employer may invite the Tenderer through Tender Board to discuss and/or clarify the Tender, no such invitation or discussion shall in any way be construed as a commitment on the part of the Employer to award a Contract.

14.

The Tenderer shall produce detailed analysis of the unit prices of various items of the Bill of Quantities when requested in writing by the Tender Board. No alterations to the text of the Tender Documents shall be made except for filling in the blanks intended for that purpose. Failure to fully comply with this instruction may result in the rejection of the Tender. To correct clerical errors or illegibility entered by him in the Bill of Quantities after:made by the Tenderers Any alteration to a unit rate or amount made by the Tenderer during the preparation of the Tender must be initialed by the Tenderer prior to submission.

15.

The Tenderer is not allowed to delete, modify or amend any of the terms or conditions of the Tender Documents. If he desires to state any condition or reservations, he should enumerate them in a letter appended to his Tender,and refer to this letter in the tender itself. 16. Tenders must be submitted solely on the basis of the Tender Documents and must be free of any qualifications. Evaluation of Tenders The tender board will examine the Tenders to determine whether they are complete, whether any computational errors have been made, whether required sureties have been furnished, whether the documents have been properly signed, and whether the Tenders are generally in order. The Bill of Quantities will be examined prior to the signing of the contract in order to ascertain that the items are correctly extended at the rates quoted. Should any arithmetical error found it will correct and the tender value will be amended accordingly. The Tenderer will be informed of any arithmetical adjustment made should the Tender Board wish to further consider his tender and he required to certify his acceptance. Arithmetical errors will be corrected as follows: a) Where there is a discrepancy between words and figures, the amount in word will govern. Where there is discrepancy between the unit rate and the total price that is obtained by multiplying the unit rate and quantity, the unit rate shall prevail and the total price shall be corrected, unless in the opinion of the Tender Board there is an obvious misplacement of decimal point in the unit rate, in which case the total price as quoted will govern and the unit price will be corrected.

17.

b)

The amount stated in the tender will be adjusted by the Tender Board in accordance with the above procedure for the correction of errors and, with the concurrence of the tenderer, shall be considered as binding upon the tenderer. If the tenderer, having been notified that his tender has been successful, does not accept the correct amount, the tender will be rejected, and the Tender Bond shall be forfeited. Prior to the detailed evaluation, the Tender Board will determine the substantial responsiveness of each Tender to the Tender Documents. For purposes of these Clauses substantially responsive Tender is one, which conforms to all the terms and conditions of the Tender Documents without material deviations. The Tender Boards determination of Tenders responsiveness is to be on the contents of the Tender itself without recourse to extrinsic evidence. A Tender determined as substantially non-responsive will be rejected by the Tender Board and cannot subsequently be made responsive by the Tenderer. The Tender Board may waive any minor informality or non-conformity or irregularity in a Tender which does not constitute a material deviation, provided such waiver does not prejudice or affect the relative ranking of any Tender. 18. References mentioned in the Specification, which are not relevant to the Works contained in this Contract are deemed to be not applicable.

19.

The Tender Board will not be responsible for any expenses or loss which may be incurred by any Tenderer in the preparation and submission of his Tender.

20 The determining of the unit price is to be made by the Tenderer at his own cost and responsibility and in no case will he be entitled to claim for reasons of ignorance. 21. The Tenderer must provide with the tender a list of all local and foreign products and materials to be used in the Work. The details of each product and material shall be given in the prescribed form; List of all Products and Materials to be used in the Project, included in the Prime Document. National Standards shall take precedence over international standards in the specification of materials, equipment and workmanship for the works. Reference numbers of national and international standards such as, AASHTO, OS, BS, ASTM etc., referred to in the tender documents shall mean the latest revision of such standards current at the time of tender. The Tenderer is reminded that it is of extreme importance that the additional documents, listed in Clause (12) of these Instructions, be bound into the Prime Document and submitted with the Tender. Any Tender not accompanied by the appropriate documents and information may be rejected. This Contract is to be a fixed unit price Contract and the Tenderer must include in his rates and prices an allowance for Superintendence and any possible increase in the cost of labor, material, and constructional instruments, equipments & plant, which may occur after the submission of the Tender and during the period of the Contract. The successful Tenderer will be required to provide a Performance Bond in the form prescribed as defined in Clause (10) of the Standard Conditions of Contract and as amended by the Royal Decree 56/89), to the value of five percent (5%) of the Contract Value named in the Letter of Acceptance, valid for the whole of the construction and maintenance Period. The Performance Bond will be retained by the Employer during the period of the Contract and will be returned after the satisfactory completion of the maintenance period. The wording of the Performance Bond shall be as per the prescribed Form of Performance Bond included in the Prime Document. Failure to execute the formal contract and to provide a Performance Bond or indemnity bond within this period will cause the Tender Bond to be forfeited. 26. The original set of Tender Documents and Technical Proposal shall be sealed in an inner envelope marked Original and the other two sets in an inner envelope marked Copy. Both of these enveloped shall be placed in an outer envelope marked Original and Copy of Technical Proposal sealed with red wax and shall bear the project name, tender number and address of the Tender Board. Similarly the original Financial Proposal shall be sealed in an inner envelope marked Original and the other two sets in an inner envelope marked Copy. Both of these enveloped shall be placed in an outer strong envelope marked Original and Copy of Financial Proposal sealed with red wax and shall bear the project name, tender number and address of the Tender Board. The exterior of the sealed envelope of the Technical Proposal and Financial Proposal must not reveal the identity of the tenderer.

22.

23.

24.

25.

10

 The sealed envelope of the Technical Proposal and Financial Proposal shall be delivered as specified in the letter of invitation to tender or such other time and date as many be notified in any circular or Addendum issued in accordance with Clause 5 of these instruction The attention of the tenderer is drawn to the fact the tenderer must be delivered sealed and tenderer is responsible for ensuring that any opening of parcels containing Tender Documents, Technical Proposal and Financial for security or custom purposes is made good before delivery to the Tender Board. The Tender Board may, at its discretion, extend the deadline for submission of Tenders by amending the Tender Documents. In such case all rights and obligations of the Tender Board and tenderer previously subjected to the deadline will thereafter be subject to the deadline as extended. Any Tender received by the Tender Board after the deadline for submission of Tenders prescribed by the Tender Documents will be rejected whatever caused the delay. 27. The tenderer must comply with the minimum percentages for employing Omani in their organization in accordance with the Regulations and codes issued by Ministry of Manpower. Failing to adhere to such requirement shall lead to rejection of tenderers proposal. Omanization content in the project and in the company is one of the essential items consider in the evaluation of tender All arrangements which affect the engagement transport, paying, feeding and housing of labor and other matters connected therewith shall be subject to the regulations and codes of the Sultanate of Oman now in force or which may be made from time to time during the period of the Contract. The successful Tenderer must employ minimum 30% Omanis of requisite skills for all staff categories, technical or otherwise, for the execution of works. The daily records of staff and labours deployed for the project shall be submitted to the Engineer. The Tenderer's attention is particularly drawn to the following Regulations, briefly summarized below in respect of accommodation and importation of labor, and the Tenderer is advised to examine these Regulations in detail before submitting his Tender: a) Royal Decree 13/77, which states that no foreign contracting company working in the Sultanate of Oman, with the exception of those granted special license by the Ministry of Commerce & Industry, may build or establish any housing scheme for the benefit of its employees and workmen. Housing accommodation should be rented. Ministry of Health Ministerial Decision 1/75, which imposes precise rules for labor imported from outside the Sultanate of Oman. The Laws governing Employment: The Contractor shall make every effort to employ Omanis of the requisite skills for the execution of the project. In the event of insufficient/non-availability of skilled labor of any category of labor, and if the Contractor wishes to employ nationalities other than Omanis, he must ascertain from concerned Ministry whether the necessary entry permits of these particular categories of labor could be obtained. No foreign labor shall be employed without the necessary approval by the concerned authority.

b)

c)

11

28.

The Contractor shall be required to obtain all necessary Government permits and pay all charges and fees in connection thereto. The Tenderer may modify or withdraw his Tender after Tender submission, provided that the modification or notice of withdrawal is received in writing by the Tender Board prior to the prescribed deadline for submission of Tenders. The Tenderer's modification or notice of withdrawal shall be prepared, sealed, marked and delivered in accordance with the provisions of Clause 26 of the Instructions to Tenderers for the submission of Tenders, with the envelope additionally marked "MODIFICATION: or "WITHDRAWAL" as appropriate. Withdrawal of a Tender during the interval between the deadline for submission of Tenders and the expiration of the period of Tender validity specified by the Tenderer in the Form of Tender, may result in the forfeiture of the Tender Bond. The Tenderers modification or notice of withdrawal shall be prepared sealed, marked and dispatched in accordance with the provisions of Clause 11 of these instructions. A withdrawal notice may also be sent by telex or cable but followed by signed confirmation copy, post marked not later than deadline for submission of Tenders. No Tender may be modified subsequent to the deadline for submission of Tenders. No Tender may be withdrawn in the interval between the deadline for submission of Tenders and the period of Tender validity specifies in the Tender Documents. Withdrawal of a Tender during this interval shall result forfeiture of Tenderers Tender Bond

29.

30.

Tenders will be opened by the Tender Board at the time and date specified in the Invitation to Tender. Tenders will be checked and evaluated by the concerned authorities in accordance with the procedures followed by the Tender Board. Tenders for which an acceptable notice of withdrawal has been submitted shall not be opened. Any effort by the Tenderer to influence the Employer and Tender Board in the process of examination, clarification, evaluation and comparison of Tenders, and in decisions concerning award of Contract, may result in the rejection of his Tender. To assist in the examination, evaluation and comparison of Tenders, the Tender Board may ask Tenderers individually for clarification of their Tenders, including breakdowns of unit rates. The request for clarification and the response shall be in writing, but no change in the price or substance of the Tender shall be sought, offered or permitted except as required to confirm the correction of arithmetic errors discovered by the Tender Board/Employer during the evaluation of the Tenders. Post Tender Clarifications do not constitute intent to award or award of the Contract. However, in the event that the Tender is accepted Post tender Clarifications and their related answers will form part of any subsequent contract as part of the applicable Contract Documents stated herein. Post Tender clarification does not constitute intent to award or award of contract. However, in the event that the Tender is accepted Post Tender Clarifications and their related answers will form part of any subsequent Contract as part of the applicable Contract documents stated herein. While the employer may invite the Tender through Tender Board to discuss and/or clarify the Tender, no such invitation or discussion shall in any way be construed as a commitment on the part of the Employer to award a Contract.

31.

32.

12

33

If the Tender is not substantially responsive to the requirements of the Tender Documents, it will be rejected by the Tender Board, and may not subsequently be made responsive by the Tenderer having corrected withdrawn the non-conforming deviation or reservation. Tenderer must comply with the provision of royal Decree No. 39/82. The successful Contractor should submit to Engineer, the breakdown for each item in the contract prior to the commencement of work. The Techno Financial and Bid Price Evaluation shall be carried out considering Contractor's experience in the relevant field, organization structure of construction team, percentage of Omani Nationals to be hired on the project, qualification & experience of the proposed technical & supervisory staff based on their (Curriculum Vitae) CV's submitted along with the Tender (present employment status of the proposed personnel with the Contractor must be clearly indicated), proposed construction methodology & work program, proposed construction plant & equipment and completeness and quality of overall Tender submission, contractors financial strength, and the Bid Price. The Evaluation criteria shall be as follows: Tender Evaluation Criteria

34 35.

36.

36.1

Tender Evaluation Criteria (Techno Financial and Bid Price) The Ministry of Transport and Communications propose to evaluate tenders for the Construction of Asphalt Roads from al Sunaynah al Fath and al Sunaynah al Rihani (hereinafter referred to as the 'Project'). The criteria for evaluation are split into two parts, Techno Financial and Bid Price. The following passages provide instructions to bidders on the information and/or data to be provided for evaluation. The bidders are advised to provide as much information as possible to aid the evaluators in completing the process of evaluation efficiently and effectively. It is the intention of the evaluators to assess the relative strengths of the bidders as objectively as possible. The Techno Financial Evaluation would carry 60 points and Bid Price Evaluation would carry 40 points. These points shall be distributed on each of the evaluation criteria detailed in the document. Techno Financial Evaluation is further divided into Technical Capability Evaluation and Financial Capability Evaluation. Techno Financial Evaluation is initially done for a maximum score of 100 points comprising 70 points for Technical Capability Evaluation and 30 points Financial Capability Evaluation. The combined score is weighted down to a maximum of 60 points by applying factor of 0.60. This score is then added to the Bid Price Evaluation score to get the final score.

36.2

Technical Capability Evaluation (70 Points): The scoring for the Technical Capability Evaluation is as follows:

13

36.2.1 Management and Construction Experience (25 Points):

Criterion Maximum Points 5 Scoring 10 years + 5 10 Years Less than 5 Years 10 years + 5 10 Years Less than 5 Years 10 years + 5 10 Years Less than 5 Years RO 50 million + RO 25 50 million RO 25 million & less 5 + Projects 3 + Projects Projects 2 or less 5 1 0.5 4 2 1 5 1 0.5 5 3 1 6 5 3

Experience in Oman

Experience in other GCC and Middle East Countries Other International Experience (Outside the home country) Execution of Single Projects valued at million and more RO 50

Execution of similar works during the last 10 years

36.2.2 Construction Plant and Equipment, Proposed Construction Methodology, Work Programme. (12 Points) Item Construction Plant and Equipment Proposed Construction Methodology, Work Program Points 7 5

The above is intended to give an indicative assessment of the size of Tenders' plant resources and the evaluation process will not apply the above criterion as a hard and fast rule. 36.2.3 Human Resources: Technical Experience & Qualifications of Candidates (13 Points): Requested Requirements Company Profile and Organisation Chart Employee experience for Infrastructure Projects Project Organisation Chart Experience of Project Manager and other key personnel for similar works Points 3 3 2 5

36.2.4 Omanisation level and Use of local products (10 Points): Requested Requirements Omanisation Level Use of Local Products and Materials Points 5 5

14

36.2.5 Health and safety (10 points): Requested Requirements HSE Management, Leadership and Commitment to HSE Policy and Strategic Objectives, Organization, Responsibilities, Standards and Documentation Hazards and Effects Management, Planning and Procedures Implementation and Performance Monitoring Auditing and Review Points 2.5 2.5 2.5 1.25 1.25

36.3

Financial Capability Evaluation (30 points): The evaluation criteria would contain the following aspects:

36.3.1 Ability of the bidders to provide bank guarantees! bid bonds and any other type of financial guarantees The bidders have to state their willingness to provide financial guarantees, which would be sought in line with the prevalent practices in submitting bids/ tenders and on being awarded the contracts. The bidders have to state clearly whether they propose to submit bids in their proposal for pre qualification. In the event of any bidders do not propose to submit guarantees sought, the bid evaluation would not proceed to the next stage- the bid would be rejected. 36.3.2 Submission of annual reports The bidders should submit audited annual reports for a period of 5 years i.e., from FY 2005 onwards. The last audited annual report shall not be prior to December 31, 2010. In the event a bidder submits audited annual report(s) upto December 31, 2010 and/or does not submit an audited annual report for a period after December 31,2010, then the bidder should submit management certified financial statements, in a format similar to an annual report (prepared according to International Accounting Standards) for the period after December 31, 2010. The last audited annual report and/or management certified financial statements should not be prior to six months from the date of submission of the bid. Annual reports and/or financial statements should be in English. If there is more than one entity submitting the bid (i.e., submitting a bid as a consortium) the above-mentioned requirements will apply to all the bidders. If the bidders do not submit the audited annual reports incorrect/insufficient part information, the bid will be rejected. and /or submit

The evaluator reserves the right to make such corrections as required to the audited annual reports and/or financial statements referred to above, in the evaluation process.

15

36.3.3 Value of Current Contracts The value of contracts shall be provided in Riyal Omani. If information is provided in any other currency, the evaluator may reject the bid. The bid should contain a list of the contracts obtained in the following format:
Sl. No. Description of project/contract being executed Value in Rial Omani Expected date of completion Name of consortium partner, if applicable Self certified copies of contracts attached

The list of contracts shall not be prior to three months from the date of submission of the bid. Self certified copies of the contracts-letters of intent, communications from the owners, etc evidencing the receipt of the contract have to be attached to the bids (and mention 'YES' in the table above). Non-submission of correct information and/or evidence, in the format provided, would result in the bid being rejected. 36.3.4 Size of Contracts executed and completed over the past 10 years The value of contracts shall be provided in Riyal Omani. If information is provided in any other currency, the evaluator may reject the bid. The bid should contain a list of the contracts obtained in the following format:
Sl. No. Years in which execution completed Description of project/contract being executed Value in Rial Omani Expected date of completion Name of consortium partner, if applicable

The list of contracts shall not be prior to three months from the date of submission of the bid. Self certified copies of the contracts-letters of intent, communications from the owners, etc evidencing the receipt of the contract have to be attached to the bids (and a mention 'YES' in the table above). Non-submission of correct information and/or evidence, in the format provided, would result in the bid being rejected. 36.4 Financial Capability Evaluation The financial capability evaluation would capture the bidder(s) ability to meet the financial needs while executing the project, in the event of being awarded the contract. Specific focus areas would be:

16

The short-term capability of the bidder(s) assessed on the basis of current liabilities, assets and short-term bank borrowings, especially for meeting the fund requirements while executing the project. General financial robustness in terms of ability to raise finances, providing margins for working capital finance from long term sources of finance. A more detail financial evaluation criteria is shown in the table below.
Sl. No. 1 Requested Requirements Value of Current Contracts More than 3 times the value of engineering estimate Between 3 to 2.5 times the value of engineering estimate Between 2.5 to 2 times the value of engineering estimate 2 times the value of engineering estimate Less than 2 times the value of engineering estimate Size of contracts over 10 years (excluding the contracts under 'Value of Current contracts' above) More than 3 times the Contract value Between 3 to 2.5 times the Contract value Between 2.5 to 2 times the Contract value 2 times the Contract value Less than 2 times the Contract value Performance Bonds and Bank Guarantees Can provide as per tender requirements Cannot provide as per tender norms 4 Audited balance sheets as on 31/12/09 and non audited balance sheet as of 31/12/1 0 Provided Not provided 5 5a Financial Ratio's Current Ratio 2 or more than 2 Less than 2 but more than 1.75 Less than 1.75 but more than 1.5 Equal to 1.5 Less than 1.5 Quick Ratio 1.33 or more than 1.33 Less than 1.33 but more than 1.25 Less than 1.25 but more than 1.00 Equal to 1.00 Less than 1.00 Long Term Debt to Net Worth Debt of 1 to 1 net worth Debt of 1.5 to 1 net worth Debt of 1.75 to 1 net worth Debt of 2.00 to 1 net worth Total DISQUALIFICATION 6 6.00 4.25 3.50 2.50 0 6 6.00 4.25 3.50 2.50 0 6 6.00 4.25 3.50 2.50 30 Points 6 6.00 4.25 3.50 2.50 0 6 6.00 4.25 3.50 2.50 0 Weights

DISQUALIFICATION

5b

5c

17

36.5

The scores obtained by the tenderers for the technical capability and financial capability evaluation will be combined and multiplied by a factor of 0.6 to constitute a maximum of 60% scoring. Bid Price Evaluation The maximum score of 40% will be provided to the lowest bidder and the rest of the bidders will be assigned scores in the inverse proportion to their respective bid prices in comparison with the lowest bid price, as stated below: Marks obtained = 40 x (Lowest offer / the Tenderer's offer)

37.

38.

Final Evaluation The final score will be sum of the "Technical and Financial Capability Evaluation (60% Max.)" and "Bid Price Evaluation (40% Max.)". The Maximum possible score will be 100%.

39.

Governing Laws The Tenderer shall conform to the Laws of Sultanate of Oman. The Laws in the Sultanate of Oman now in force or which may be made from time to time during the period of the Contract shall be the governing laws.

40.

Addenda and Circular Letters may be issued prior to the date of delivery of Tenders for the purpose of amending or clarifying the Tender Documents. Amendments to the Tender Documents subsequent to their issue by the Tender Board shall only be effected by Addenda. Addenda include amendment to the Tender Documents while Circular Letters includes Employer responses to the queries, in the form of Question and Answer, sent by the Tenderers during the tender period. Addenda Circular letters issued to all Tenderers by the Tender Board shall form part of the Contract and the Tenderer shall take into consideration the contents of such Addenda and Circular letters in his Tender. The Tenderer shall acknowledge receipt of such Addenda and Circular Letters by recording them in the appropriate spaces in the Form of Tender.

41.

All correspondence with the Employer or the Engineer shall be in the English Language. Original documents or copies submitted by Tenderer, which are not in Arabic or English, should be accompanied by English translation. The successful tenderer will be required to obtain all the insurances stipulated in the Conditions of Contract and to lodge them with the Employer or to furnish an indemnity bond from a bank registered and located in the Sultanate of Oman, indemnifying and saving harmless the Employer from loss which may be caused to him by his defaults to obtain insurance accordingly, within seven (7) days of receipt of Engineers order to commence the Works.

42.

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MATERIAL APPROVAL SHEET

Project : ........... Tender : ........ ____________________________________________________________________________ CONTRACTOR MAS No. MAS Name Spec. Ref. BOQ Ref. Drg. Ref. : : : : : : ........... . Manufacturer (Local only) .... . Supplier (GCC or Foreign)**...... . B. S. Ref. : ...... . Time Required at Site ... . Sample Attached : Yes No Certificate Attached : Yes No Assurance for Delivery on time: Yes No

Remarks

.......... . Date :

Signature :

_________________________________________________________________________ ENGINEER : ....... Above information given by Contractor is correct Yes No Required information : 1) . 2) .. 3) . Material recommended / Rejected

Material Recommended with comments: .......... ..... CASE PRODUCT RECOMMENDED IS NON-OMANI) give reason

(IN

We confirm that there is no local manufacturer available for the proposed product, and no alternate local product can meet the requirement for the duty conditions in Oman. Signature : Date : ...

Stamp : ____________________________________________________________________________ EMPLOYER : ...... Material Approved / Rejected Material Approved with additional comments : Comments: 1) . 2) . 3) . : : Date : ....

Signature Stamp **

this will only be considered if local manufacturer for the specified or alternate product is not available

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SCOPE OF WORKS

The project is located in Dhahirah region. The length of road is (20km) starting from the existing asphalt road at Dank and ending at Al Khubayb village. The project comprises the construction of single carriageway including vented flood ways, wadi bridge, many box culverts and (4)km service roads. The pavement layers and the typical cross-sections are to be as per the tender drawings Volume IV / IV. The Works include but not limited to the following activities: Earthworks/dykes Crushed aggregate base-course Asphalt wearing course Road marking and signs Safety barriers Other road furniture Embankment/dykes protection. Relocation/protection of utilities including falajs, water line, electrical overhead & underground lines and telephone lines etc. Removal of existing asphalt wherever required. Removal of obstruction. Other activities such as ducts for future services. Parking in front of mosques, schools which are located on both sides of the road (within a distance of 2km from the road).

The contractor is responsible for the design of the following elements by the qualified, registered and approved consultant firm, and obtaining the approval from concern authorities. Topographic survey, if required. Design of bridge. Design of service road (4)km. Design of parking for mosques and schools within the project area (if required).

No separate payment for design works and it is deemed to be subsidiary covered under other items in the Bills of Quantities. Commemorative plaque and opening ceremony with all related cost and as per the Client requirement should be arranged by the Contractor at his own expense.

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CONDITIONS OF CONTRACT

The Conditions of Contract shall be those contained within the Sultanate of Oman Standard Documents for Building & Civil Engineering Works (Fourth Edition) September 1999 as prepared by the Ministry of Finance, Muscat, Sultanate of Oman. Tenderers are deemed to be in possession of their own copy of this document at tender stage and to be fully aware of and to have understood the contents therein. The Arabic version of this document shall be signed between the Employer and the Contractor.

TERMS OF AGREEMENT

1.

The agreement and terms executed between the Government of the Sultanate of Oman and the Contractor shall be in accordance with the following: a. Standard Documents for Building & Civil Engineering Works (Fourth Edition) September 1999 b. Tender Document c. Any amendments negotiated and mutually agreed upon.

2.

In case of any conflict between this Tender Documents and the Standard Document, the requirements as called for in the Tender Documents shall prevail.

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DEFINITIONS AND INTERPRETATIONS

Definitions

1. (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. (a) "Employer" means the government of the Sultanate of Oman and the legal successors in title to the Employer who will employ the Contractor, the address of the employer shall, for the purpose of the Contract, be deemed to be Ministry of Transport & Communications, P.O. Box 684 (Code 100), Muscat, Sultanate of Oman. "Contractor" means the person or persons, firm or company whose tender has been accepted by the Employer and includes the Contractor's representatives, successors and permitted assigns. (i) Name and full address in the Sultanate of Oman (including Company Registration Particulars).

(b)

(ii)

Registered address of Head Office (if different from above).

(c)

"Engineer" means The Directorate General of Roads & Land Transport or other person, persons or firm appointed from time to time by the Employer and notified in writing to the Contractor to act as the engineer for the purposes of the contract in place of the said Engineer. (i) Full address in the Registration Particulars) Sultanate of Oman (including

P. O. Box # 27, Muttrah, Postal Code 114, Sultanate of Oman (ii) Registered address of Head Office (if different from above)

22

MEASUREMENT OF WORKS

The Bill of Quantities contains estimated quantities only, therefore Clause 55 of the Standard Conditions of Contract will be applicable and Clause 56 will not apply.

23

SPECIFICATION

The Specification referred to in this Tender Document shall be Standard Specifications for Road & Bridge Construction, Volume-3, Sultanate of Oman June 2010" and Highway Design Standards Volume-1 & Volume-2, June 2010, Sultanate of Oman" and these additional Special Specification Volume-II/IV of the Tender Documents. The Tenderers are deemed to be in possession of their own copies of Standard Specifications for Road and Bridge Construction - June 2010, Sultanate of Oman" and Highway Design Standards Volume-1 & Volume-2, June 2010, Sultanate of Oman" and to have understood their contents.

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Construction of Asphalt Road from Dank to al Khubayb LIST OF PERSONNEL

The Contractor shall give below the details of the personnel he proposes to engage on the Contract, together with the planned organizational structure: POSITION Site Agent Engineer Supervisor Foreman Land Surveyor Quantity Surveyor Draughtsman Accountant Technician Clerk Equipment Heavy Operator OMANI NATIONAL EXPATRIATE TOTAL

Equipment Operator - Light Mechanic Carpenter Electrician Steel-Fixer Skilled-Labor Unskilled-Labor Cooks Guard Others TOTAL The Contractor shall submit to the Engineer for approval his entire superintendent staffs C.V. along with their academic and experience certificates.

25

Construction of Asphalt Road from Dank to al Khubayb

Description

Manufacturer's Name

Year of Manufacture

Model

Quantity

Size Capacity

Now Owned Check Yes No

Present Location

We, the undersigned hereby declare that the above information forms part of the Tender, and guarantee that we will provide additional equipment to that which is listed above by type and in number as necessary to ensure proper execution of the works within the contract period.

26

FORM OF TENDER

SHORT DESCRIPTION OF WORKS :-

Construction of Asphalt Road from Dank to al Khubayb

(Notes : The Appendix Forms part of the Tender. Tenderers are required to fill up all the blank spaces in this Form of Tender and Appendix). To : H.E. THE CHAIRMAN, TENDER BOARD. P. O. Box 787, Al Khuwair, Postal Code 133, Sultanate of Oman. Gentlemen, 1. Having examined the Instructions to Tenderers, Drawings, Standard Conditions of Contract, Specification, Scope of Works and Bill of Quantities for the execution of the abovenamed Works, we, the undersigned, offer to execute, complete and maintain the whole of the said Works in conformity with the said Instructions, Drawings, Standard Conditions of Contract, Specification, Scope of Works and Bill of Quantities for the Sum of Rials Omani ..(R.O. . ) or such other sum as may be ascertained in accordance with the said Conditions. 2. We undertake if our Tender is accepted to commence the Works within 60 (sixty) days of receipt of the Engineer's order to commence, and to complete and deliver the whole of the works comprised in the Contract within 730 (seven hundred and thirty) days calculated from the last day of the aforesaid period in which the Works are to be commenced. 3. If our Tender is accepted we will obtain the guarantee of a locally registered Insurance Company or Bank (as required in the Sultanate of Oman Standard Conditions of Contract for Building and Civil Engineering Works, September 1999 4th Edition) to be jointly and severally bound with us in the sum of 5 percent of the Contract Value for the due performance of the Contract under the terms of a Performance Bond to be approved by you. 4. We agree to abide by this Tender for a period of 90 days from the date fixed for receiving the same and it shall remain binding upon us and may be accepted at any time before the expiration of that period. 5. In the event of our Tender being accepted and until a formal Agreement is prepared and executed this Tender, together with your written acceptance thereof, shall constitute a binding obligation upon us. 6. We understand that you are not bound to accept the lowest or any Tender you may receive. 7. We acknowledge receipt of the following addenda and circular letters:Reference Number ............................................... ............................................... ............................................... Date ....................................... ....................................... .......................................

and confirm we have taken account thereof in our Tender.

27

APPENDIX TO THE FORM OF TENDER

Construction of Asphalt Road from Dank to al Khubayb

CLAUSE

1. 2. 3.

Ruling Language Amount of Performance Bond or Bank Guarantee Minimum Amount of Third Party Insurance Period of Commencement from Engineer's order to commence Period for completion Amount of Penalties for Delay

5(1)(a) The language in which the contract documents have been drafted 10 5 % of the Contract Value

: :

23 (2) R.O. 200,000/(Rials Omani Two Hundred Thousand) 41 43 47(1) (60) Sixty days

4. 5. 6.

: : :

730 (seven hundred and thirty) days

R.O. 5,000/- (Rials Omani five thousand) per day and to the limit of10% maximum of the Contract value 365 days Estimated Quantities

7. 8. 9.

Period of Maintenance Quantities Percentage for Adjustment of P.C. sums contained within provisional sums

: :

49(1) 55

: : : : : :

59(4) (c) 60(2) 60(2)

15%

10. Advance Payment 11. 12. 13. 14. 15. 16. 17. Recovery of Advance Payment for Materials at site Minimum Amount of Monthly Interim Certificate Time within which payment is to be made after Certificate

10% of the Contract Value excluding Sums for Contingencies. 10% of Total Interim Certificate Value up to the amount of Advance. 80% of the net value delivered to site.

60(4) (b) 60(4)

R.O. 300,000/60 days

60(5) (a) 60(7) 60(7) 60(8)

Percentage of Retention Money : Limit of Retention Money Payment of Retention Money : :

10% of Gross Interim Certificate 5% of Contract Value 50% upon issue of the Certificate of Completion 50% after the Period of Maintenance

18. 19.

Interest for delay of Payment Cash Flow Yearly Cash Flow Percentage of Contract Value

: : : :

60(9) 60 (13) 2011 30%

7% per annum

2012 50%

2013 17.5%

2014 2.5%

28

APPENDIX TO THE FORM OF TENDER (Contd.)

Construction of Asphalt Road from Dank to al Khubayb

Dated this .............................................. day of .............................................2011................ Signature .............................................. in capacity of ...................................................

Duly authorized to sign Tenders for and on behalf of ................................................................. ................................................................................................................................................. (IN BLOCK CAPITALS)

Address ........................................... .................................................. ...................................................... ......................................................

Witness ................................................. ............................................................... ............................................................... Occupation ............................................

29

FORM OF AGREEMENT Construction of Asphalt Road from Dank to al Khubayb

THIS AGREEMENT made the .................. day of .......................2011....... between the Ministry of Transport & Communications, P.O. Box # 684, Muscat, Code 100, Sultanate of Oman (herein after called "the Employer") of the one part and ................ of .............................................. (hereinafter called "the Contractor) of the other part. WHEREAS the Employer is desirous that certain works should be executed viz: Construction of Asphalt Road from Dank to al Khubayb

and has accepted a Tender by the Contractor as summarized at Appendix B "Summary of Contract Value" for the execution, completion and maintenance of such works NOW THIS AGREEMENT WITNESSETH as follows:1. In this Agreement words and expressions shall have the same meanings as are respectively assigned to them in the Standard Conditions of Contract hereinafter referred to. 2. The following documents shall be deemed to form and be read and construed as part of this Agreement, viz : The said Tender The Standard Conditions of Contract The Drawings The Specification The Bill of Quantities Instructions to Tenderers** The Letter of Acceptance ........................................ ........................................ Other additional documents as required

3. In consideration of the payments to be made by the Employer to the Contractor as hereinafter mentioned the Contractor hereby covenants with the Employer to execute, complete and maintain, the Works in conformity in all respects with the provisions of the Contract. 4. The Employer hereby covenants to pay the Contractor in consideration of the execution, completion and maintenance of the Works the Contract Price at the times and in the manner prescribed by the Contract as stated in the Cash Flow contained in the Appendix to the Form of Tender. ** Other additional documents as required

30

IN WITNESS whereof the parties hereto have hereunder set their respective hands and seals on the day and year first above written.

Signed by a duly authorized Signatory for and on behalf of the Government of the Sultanate of Oman .....................................................................

Witness ...........................................

Witness ...........................................

Signed by a duly authorized Signatory for and on behalf of the Contractor ..................................................................................

Witness ............................................

Ratified in accordance with the Sultani Decree No. 48/76 as amended

Minister of National Economy Supervisor of Ministry of Finance

31

APPENDIX "A" TO FORM OF AGREEMENT Construction of Asphalt Road from Dank to al Khubayb

CONSTITUTION OF COMPANY

1.

International Companies : The Contractor shall prior to the signature of the Form of Agreement submit notarially authenticated copies of the original documents defining the constitution of the Company, powers of attorney and other relevant documents. In case of a Partnership or Firm these documents shall be duly authenticated extracts from the partnership deed or other documents. These documents shall also show by what persons and what manner contracts may be entered into and what persons are directly responsible for the due execution of such contracts and can give valid receipts together with specimens of their signatures. An overseas power of attorney of a foreign signatory to the Tender shall have been endorsed by an approved Omani authority (such as an Embassy). A Contractor intending to undertake the Contract jointly with or in association with another firm or firms including firms or persons acting in an advisory or consultative capacity shall submit a statement showing how the contract commitment will be undertaken and the exact relationship between each of the parties. The name and address of the Contractor's agent resident in Oman (if applicable).

2.

Omani Companies : The Contractor shall prior to the signature of the Form of Agreement submit details of the nature of the Company, i.e. partnership, limited liability, joint venture, joint stock, together with the commercial registration number. These documents shall also show by what persons and in what manner contracts may be entered into and what persons are directly responsible for the due execution of such contracts and can give valid receipts together with specimens of their signatures.

32

APPENDIX "B" TO FORM OF AGREEMENT Construction of Asphalt Road from Dank to al Khubayb GRAND SUMMARY OF CONTRACT VALUE Bill No. Bill No. I Bill No. II Bill No. III Description Preliminaries Earthworks Granular Sub-base, Aggregate Base-course & Stabilized Base-courses Amount (R.O.)

Bill No. IV Bituminous Pavement Bill No. V Concrete & Concrete Structures

Bill No. VI Incidental Construction Bill No. VII Road Lighting and Electrical Installation Bill No. VIII Landscaping and Irrigation Bill No. IX Pumping Stations and Utilities Bill No. X Day works N.A. N.A.

Contingencies (10% of sub-total excluding provisional sum and Bills # (I & X) Total Contract Value (R.O.) Value of preliminaries Value of preliminaries Value of measured works Value of provisional sums Value of day-works Value of contingencies 100,00.000

Total Contact Value (R.O.)

33

FORM OF TENDER BOND Construction of Asphalt Road from Dank to al Khubayb

H.E. The Chairman Tender Board P.O. Box # 787, Al Khuwair, Postal Code 133, Sultanate of Oman.

Tender Bond No................................. By this bond we ........................................................................................................ whose address is ..................................................................................................... hereby guarantee Messrs. ....................................................................................... of ................................................................................................................ and hold at your disposal the sum of R.O. .............................................................. being ........1 % of the Tender Value from .................................. until ...................... a total period of ninety (90) calendar days.

This bond shall be free of interest and payable in cash on your first written demand in the event of the Tenderer either withdrawing his Tender within a period of (90) calendar days from the date for the receipt of Tenders or failing to provide a Performance Bond within ten (10) calendar days of acceptance of the Tender whichever date is earlier without any reference to or contestation on behalf of the Contractor.

This bond should be returned to us upon its expiry or upon fulfillment of our undertaking whichever is the earlier.

Authorized Signatories

(To be issued by a locally registered Bank)

34

FORM OF ADVANCE PAYMENT BOND Construction of Asphalt Road from Dank to al Khubayb

Ministry of Finance, P.O. Box # 506, Muscat, Postal Code 113, Sultanate of Oman.

Advance Payment Bond No..........................

Where ........................................................................................................ (hereinafter called "the Contractor") has been awarded a Contract dated ........................................ for construction, completion and maintenance of .......................................................................................or the value of R.O. ............... (Rials Omani.......................................................................................) and in consideration of your making an advance payment of R.O. ................... to the Contractor being ...................10 % of the Contract Value, by this bond, we .. ............................................................................. whose address is ................................................................... guarantee to pay you a sum not exceeding R.O. ......................... on guarantee to pay you a sum not exceeding R.O. ............................ on your first written demand without reference to or contestation on behalf of the Contractor. It is understood that our liability towards you will be progressively reduced by the amount repaid to you by the Contractor as contained in the Certificates and Payments against the said advance payment. This bond will be effective from ................................................... and shall be valid until ..................................................., or until the amount of the advance payment is fully recovered, whichever is later. This bond should be returned to us upon its expiry or upon fulfillment of our undertaking whichever is the earlier.

Authorized Signatories

(to be issued by a locally registered bank)

35

FORM OF PERFORMANCE BOND Construction of Asphalt Road from Dank to al Khubayb

Ministry of Finance, P.O. Box # 506, Muscat, Postal Code 113, Sultanate of Oman.

Performance Bond No......................

Whereas ................................................................................................... (hereinafter called the Contractor has been awarded a contract dated ............... for construction and maintenance of ............................................................................ for the value of R.O. ........................... (Rials Omani .................................................................... by this bond we ....................................................... whose address is ................................................................................... are held and firmly bound unto the Government of the Sultanate of Oman represented by the Ministry of Finance, Muscat in the sum of R.O. ................................. being ......5% of the contract value. We agree to make unconditional payment under this bond on your first written demand without any reference to or contestation on behalf of the Contractor provided the claim is received by us on or before ................................................ The Guarantee will be effective from .................. and shall be valid up to .................. after which date our liability shall automatically cease. The Guarantee should be returned to us upon its expiry or upon fulfillment of our undertaking whichever is the earlier.

Authorized Signatories

(To be issued by a locally registered bank)

36

NOTE TO THE CONTRACTOR

Whilst the performance Bond is an "On First Written Demand" Bond, the Employer may, but is not bound to adhere to the following procedure. If the Employer considers that the Contractor is in default of the due performance of his duties under the Contract, then the Employer will give fourteen days written notice to the Contractor of this occurrence during which time the Contractor shall rectify such performance to the satisfaction of the Engineer. If in the opinion of the Engineer such performance is not rectified the Engineer shall inform the Employer accordingly in writing. The aforementioned shall not, in any manner whatsoever, alter the nature of the "On First Written Demand" Bond.

37

ListofDrawings
General:
GeneralLocationPlan KeyPlan OM1030/TD/DK/GL001 OM1030/TD/DK/KP002

TypicalDetails:
TypicalCrosssections TypicalDrainageDetails TypicalRetainingWallDetail MiscellaneousTables OM1030/TD/DK/TP001 OM1030/TD/DK/TP002 OM1030/TD/DK/TP003 OM1030/TD/DK/TP004

Plan&Profile:
PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile PlanandProfile Plan Profile Plan Profile PlanandProfile fromch.0+000to1+500 fromch.1+500to3+000 fromch.3+000to4+500 fromch.4+500to6+000 fromch.6+000to7+500 fromch.7+500to9+000 fromch.9+000to10+500 fromch.10+500to12+000 fromch.12+000to13+500 fromch.13+500to15+000 fromch.15+000to16+500 fromch.15+000to16+500 fromch.16+500to18+000 fromch.16+500to18+000 fromch.18+000to18+996.554 OM1030/TD/DK/HW101 OM1030/TD/DK/HW102 OM1030/TD/DK/HW103 OM1030/TD/DK/HW104 OM1030/TD/DK/HW105 OM1030/TD/DK/HW106 OM1030/TD/DK/HW107 OM1030/TD/DK/HW108 OM1030/TD/DK/HW109 OM1030/TD/DK/HW110 OM1030/TD/DK/HW111 OM1030/TD/DK/HW112 OM1030/TD/DK/HW113 OM1030/TD/DK/HW114 OM1030/TD/DK/HW115

SettingOutPlan:
Settingoutplan Settingoutplan Settingoutplan JunctionatStation0+000 JunctionatStation3+920 JunctionatStation15+500 OM1030/TD/DK/SO101 OM1030/TD/DK/SO102 OM1030/TD/DK/SO103

GeometricCoordinates:
GeometricCoordinates OM1030/TD/DK/GC101

Structural:
ProposedWadiBridge OM1030/TD/DK/ST100

38

TENDERER'S ENCLOSURES

The Tenderer shall properly bind in after this page the supporting documents required by the Instructions to Tenderers. All documentations shall be endorsed with Tenderer's official company stamp. Where any Tenderer does not comply with this instruction, or if any supporting documents are not submitted, the Tender will be rejected.

39