terms
TRANSCRIPT
Standard Terms & Conditions of Sale Pre-Engineered Buildings
Pre-Engineered Buildings Standard Terms & Conditions of Sale
Standard Terms & Conditions of Sale
Index
1. Placing Orders
2. Acceptance of Orders
3. Standard Payment Terms
4. Approval of Zamil Steel Drawings
5. Design Calculations (Optional)
6. Design Certificates
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 the 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
28. Governing Law & Dispute Resolution
Standard Terms & Conditions of Sale Pre-Engineered Buildings
The following Terms and Conditions of Sale are established by Zamil Steel Indus-tries, Saudi Arabia, hereinafter referred to in this document as Zamil Steel, to govern the sale and shipment of Pre-Engineered Buildings that are designed, manufactured and processed by Zamil Steel Industries, Saudi Arabia.
1. Placing Orders
Orders are normally placed after Zamil Steel submits a written proposal (also known as quotation or offer) to its customers. Quota-tions may be revised until all technical and commercial matters are agreed upon by both the customer and Zamil Steel.
Once all matters are agreed upon and are included in a final, revised Zamil Steel proposal, both the customer’s authorized representative and Zamil Steel’s authorized representative must sign a standard contract. This standard document is provided with and attached to all Zamil Steel proposals.
2. Acceptance of Orders
Only orders accompanied by signed and dated contracts are accepted by Zamil Steel. Orders are reviewed and determined to be complete with all required information. Accepted orders are entered in a sales register maintained by the Order Management Department while orders that are incomplete are placed on hold until the appropriate corrective action is taken. Customers are informed of the “On Hold” status of their orders by the responsible Zamil Steel Area Office.
3. Standard Payment Terms
3.1 Letter of Credit
Payment of the full contract price will be made by an irrevocable letter of credit (L/C), confirmed by the negotiating bank in Saudi Arabia. The period of validity for the L/C is established at the time of contract signing. The minimum period of validity of the L/C is 90 days for shipment and 111 days for negotiation. For example, if the deadline for ship-ment is the 1st of January then the L/C will expire on the 22nd of January. (L/Cs
issued by Saudi Banks - confirmation not required.)
3.2 Correspondent Banks
Customers opening a letter of credit may choose from the following Saudi correspondent banks. Addresses and Zamil Steel account numbers are also provided for customer convenience.
National Commercial Bank P.O. Box 5558 Dammam 31432, Saudi Arabia. Phone (9663) 834 0088, Fax (9663) 834 7251 Telex 801116 NWAFAD SJSwift Code: NCBKSASARi Account No. 05610001040107 IBAN No. SA4610000005610001040107
Saudi Hollandi BankP.O. Box 70 Dammam 31411, Saudi ArabiaPhone (9663) 894 8001, Fax (9663) 894 8001 x 190 Telex 871085 BSHC SJSwift Code: AAALSARiAccount No. 013-139-029-119 (SAR)IBAN No. SA46 5000000001313902 9119Account No. 013-139-029-020 (USD)IBAN No. SA0350000000013139029020Account No. 013-139-029-170 (BHD)IBAN No. SA2750000000013139029170Account No. 013-139-029-500 (EUR)IBAN No. SA4150000000013139029500
Banque Saudi Fransi P.O. Box 2792 Dammam 31411, Saudi ArabiaPhone (9663) 825 1588, Fax (9663) 898 5508 Telex 801164 SAFDAM SJSwift Code: BSFSARIxxxAccount No. 21173800103 (SAR)IBAN No. SA565500000002117380 0103 Account No. 21173800297 (USD)IBAN No. SA5655000000021173800297Account No. 21173813974 (EUR)IBAN No. SA5655000000021173813974
Saudi British Bank P.O. Box 1618Dammam 31411, Saudi ArabiaPhone (9663) 833 1553, Fax (9663) 832 1916 Telex 801314 SABB SJ Swift Code: SABBSARi
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
Account No. 044-054443-001 (SAR)IBAN No. SA4945000000044054443001Account No. 044-054443-080 (USD)IBAN No. SA5045000000044054443080Account No. 044-054443-081 (EUR)IBAN No. SA2345000000044054443081Account No. 044-054443-082 (GBP)
Saudi American BankP.O. Box 842 Al-Khobar 31952, Saudi ArabiaPhone (9663) 865 8271, Fax (9663) 865 8277 Telex 870411 SAMBA SJSwift Code: SAMBSARIAccount No. 106202278IBAN No. SA3440000000000106202278
Arab National BankP.O. Box 18 Dammam 31411, Saudi ArabiaPhone (9663) 832 3440, Fax (9663) 834 7309Telex 801032Swift Code: ANBSARIAccount No. 01160000204900 (SAR)IBAN No. SA0230400107000020490012Account No. 67008000204900 (USD)IBAN No. SA0430406708000020490017
Al Rajhi Banking & Investment CorporationAl-Khobar Main Br. No. 139P.O. Box 1362Al-Khobar 31952, Saudi ArabiaPhone (9663) 864 3525, Fax (9663) 864 3525 x 225 Telex 871100 SJSwift Code: RJHISARiAccount No. 139608010000556IBAN No. SA7180000139608010000556
Riyadh BankP.O Box 274Dammam 31411, Saudi ArabiaPhone (9663) 833 5733, Fax (9663) 832 1056 Telex 801127 RYDX SJSwift Code: RIBLSARi
All L/C’s opened by banks located outside Saudi Arabia must be confirmed by a Saudi bank.
3.3 Supply CPT Job Site, Overland Shipment (Saudi Arabian Destinations)
Sight draft.•
Commercial invoice.•Packing list.•
Truck Consignment Note issued by the TRUCKING COMPANY confirming the receipt of material for further delivery to the job site.
Additional Terms:
a) Partial shipments must be permitted.
b) The negotiating / advising bank’s charges will be applied to the
beneficiary’s account, while the opening / issuing bank’s charges
will be applied to the account of the party opening the L/C.
3.4 Supply CPT Job Site, Overland Shipment (GCC)
The full value of the L/C will be payable according to the following terms:
Down payment of 25% of the L/C value will 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. The balance of the value of the L/C will be paid against presentation of the:
Sight draft drawn on the confirming •bank.
Commercial invoice.•
Packing list.•
Truck Consignment Note issued by the •TRUCKING COMPANY, confirming the receipt of material for further delivery to the job site.
GCC Certificate of origin (in Arabic) •issued by Saudi Arabian Ministry of Commerce and Industry (required for Kuwait and Qatar only).
Additional Terms:
a) Partial shipments must be permitted.
b) The negotiating / advising bank’s charges will be applied to the beneficiary’s account, while the
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Standard Terms & Conditions of Sale Pre-Engineered Buildings
opening / issuing bank’s charges will be applied to the account of the party opening the L/C.
c) The negotiating bank must add its confirmation.
d) The original documents (the most common of which are the commercial invoice and certificate of origin) are to be hand carried by the truck driver for border customs clearance. Copies of the same shall be acceptable for negotiation.
3.5 Supply CPT Job Site, Overland Shipment (Arab countries other than GCC)
The full value of the L/C will be payable according to the following terms:
Down payment of 25% of the L/C value will 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 nego-tiating bank. The balance of the value of the L/C will be paid against presentation of the:
Sight draft drawn on the confirming •bank.
Commercial invoice.•
Packing list.•
Truck Consignment Note issued by the •TRUCKING COMPANY, confirming the receipt of material for further delivery to the job site.
Certificate of origin issued by Saudi •Arabian Ministry of Commerce and Industry (As per Arab league for-mat).
Additional Terms:
a) Partial shipments must be permitted.
b) The negotiating / advising bank’s charges will be applied to the beneficiary’s account, while the opening / issuing bank’s charges will be applied to the account of the party opening the L/C.
c) The negotiating bank must add its confirmation.
d) The original documents (the most common of which are the commercial invoice and certificate of origin) are to be hand carried by the truck driver for border customs clearance. Copies of the same shall be acceptable for negotiation.
e) Documents to be issued in English AND / OR Arabic.
3.6 Supply Ex-Works Factory in Dammam
The value of the L/C will be payable according to the following terms: Down payment of 25% of the value of the L/C will 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. The balance of the value of the L/C will be paid against presentation of the:
Sight draft drawn on the negotiating •bank.
Commercial invoice.•
Packing list.•
Material dispatch note issued by the •beneficiary and countersigned by the truck driver confirming receipt of materials. OR,
Telex sent by beneficiary to openers of the L/C through the negotiating bank, 7 to 10 days prior to the shipment date, informing the bank that the material is ready for shipment and requesting the bank to make arrangements for custom-er pickup.
In the event that trucks do not arrive on the specified shipping date, the beneficiary may submit copies of invoice, certificate of origin (if applicable), and packing list to the negotiating bank for processing, along with a letter stating that:
“The L/C openers have not provided trucks to collect the material. Material will remain in the beneficiary’s custody to be transfered to the L/C openers on the future date”.
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
Additional Terms:
a) Partial shipment must be permitted.
b) The negotiating / advising bank’s charges will be applied to the beneficiary’s account, while the opening / issuing bank’s charges will be ap plied to the account of the party opening the L/C
c) The 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.
3.7 Supply CFR Destination Port, Sea Shipment (All Destinations)
The full value of the L/C will be pay-able according to the following terms:
Down payment of 25% of the L/C value will 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. The balance of the value of the L/C will be paid against presentation of the:
Sight draft drawn on negotiating •bank.
Commercial invoice.•
Packing list.•
Bill of lading.•
Certificate of origin, in either English •or Arabic, issued by the Saudi Arabian Ministry of Commerce and Industry.
Additional Terms:
a) Partial shipments must be permitted.
b) Trans shipment must be allowed.
c) The negotiating / advising bank’s charges will be applied to the ben eficiary’s account, while the opening / issuing bank’s charges will be applied to the account of the party opening the L/C.
d) The negotiating bank must add its confirmation.
3.8 Supply FOB Dammam Port, Sea Shipment (All Destinations)
The value of the L/C will be payable according to the following terms:
Down payment of 25% of the L/C value will 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 nego-tiating bank.
The balance of the value of the L/C will be paid against presentation of:
Sight draft drawn on th negotiating •bank.
Commercial invoice.•
Packing list.•
Bill of lading specifying “freight •collect”.
Certificate of origin, in either English •or Arabic, issued by the Saudi Arabian Ministry of Commerce.
Trade terms must read as FOB to any •Saudi Port.
Additional Terms:
a) Partial shipments must be permitted.
b) The negotiating / advising bank’s charges will be applied to the ben eficiary’s account, while the opening /
issuing bank’s charges will be applied to the account of the party opening the L/C.
c) Negotiating bank must add its confirma-tion.
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Standard Terms & Conditions of Sale Pre-Engineered Buildings
d) Openers to arrange with the shipping lines to issue bill of lading
showing “freight collect”.
3.9 Supply & Erection Contracts (Saudi Arabian Contracts only)
The L/C will remain valid for a minimum of 180 days.
The L/C value will cover the total amount of the supply and erection prices.
Payment for Supply:
The supply CPT job site amount is payable as follows:
Down payment of 25% of the supply CPT job site amount 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. The balance of the supply price CPT job site will be paid upon presentation of the following documents:
Sight draft drawn on the negotiating •bank.
Commercial invoice.•
Packing list.•
Truck consignment note issued by the •TRUCKING COMPANY confirming receipt of material for fur ther delivery to job site.
Additional Terms:
a) Partial shipments must be permitted.
b) Trans shipment must be allowed.
c) The negotiating / advising bank’s charges will be applied to the
beneficiary’s account, while the opening / issuing bank’s charges
will be applied to the account of the party opening the L/C.
Payment for Erection
The erection price will be paid against
time drafts (dates to be determined according to the erection period) all of which are calculated based upon the shipment date.
4. Approval of Zamil Steel Drawings
4.1 When requested by the customer or considered necessary by Zamil Steel,
approval drawings will be prepared to ensure that Zamil Steel accurately
interprets the requirements and specifications of the customer.
4.2 If the building is attached to an existing building, Zamil Steel will not issue approval drawings until a report pre-
pared by a certified surveyor is sent to the Zamil Steel Order Management De-partment.
4.3 When approval is required, two (2) sets of drawings are provided to the cus-tomer, free of charge. One set must be signed by the customer and returned to the responsible Zamil Steel Area Office bearing the notation - “Approved As Is” or “Approved As Noted”. The second set may be retained by the customer for fu-ture reference.Additional sets are avail-able 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 intended for uses
such as setting anchor bolts, designing foundations and other construction activities.
4.5 The approval of these drawings by Zamil Steel will be accepted only in the form of the customer’s (or his
authorized representative’s) signature, appearing within the “Approval” stamp
placed by Zamil Steel on its approval drawings. Approval by any other means
will not be accepted by Zamil Steel.
4.6 Sets of drawings that are signed and approved in the designated manner will be considered final and binding.
4.7 Jobs that have been designated as “Out For Approval” for a period of more than 60 days will be subject to the pricing schedule that is in effect at the time the
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
approval drawings are returned to Zamil Steel Order Management Department. Zamil Steel reserves the right to cancel orders that have been designated as “Out For Approval” for more than 90 days (The customer will be responsible for
ordinary cancellation and engineering costs) incurred up to that point in the process.
4.8 Comments noted on returned approval drawings, that change the previously agreed upon scope of work, must
appear in RED INK and be accompa-nied by a change order that is duly signed and accepted by the customer.
4.9 Approval drawings for standard build-ings are normally submitted within two weeks of request. Approval drawings for more complex buildings require a longer period of preparation time.
4.10 Approval drawings should be returned to Zamil Steel’s Area Office / Head
Office within two weeks of the customer’s date of recipt. A delay in the return of approval drawings may affect the overall project cycle, includ-
ing delivery of the steel to the job site (or port of entry).
5. Design Calculations (Optional)
5.1 For projects that require approval, the structural design calculations may be included with the approval drawings, if requested.
5.2 Two (2) sets of structural design calcula-tions are provided to the customer, free of charge. Additional sets are available for a fee of SR 150 (US$ 40) per set.
5.3 Standard structural design calculations include:
a) Material specifications & design assumptions.
b) Design of the primary & secondary structural framing.
c) Wind bracing design.
d) Column reactions.
5.4 Additional engineering fees may be levied for the preparation of design calculations, they require a greater level
of analysis than the standard alculations.
6. Design Certificates
A certificate attesting to the structural design integrity of a particular Zamil
Steel building, signed and stamped by a registered professional engineer, is available (at no extra cost) in lieu of the design calculations.
7. Change Orders
7.1 Once a contract is signed and accepted, any subsequent changes to
the order require a change order letter, prepared by Zamil Steel and signed by the customer. This letter will, describes the specific change(s) and indicate the impact these changes may have on price and/or delivery of the project. No further action will be taken by Zamil Steel until the change order has been signed as accepted by the customer.
7.2 The cost of any fabricated components that are rendered useless by a change
order initiated after the start of fabrication, will be charged to the customer’s account.
8. Jobs on Hold
8.1 All costs that are incurred by Zamil Steel when a job is placed “On Hold” by the customer, after the start of manufacturing, will be charged to the customer’s account.
8.2 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 adjust the price of such a job according to the price rates that are valid at the time of release from its “On Hold” status.
9. Material Dispatch
9.1 The material dispatch commitment period is measured, in weeks, from the
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Standard Terms & Conditions of Sale Pre-Engineered Buildings
latest date of receipt and acceptance by Zamil Steel offices of all of the following job related documents:
Signed contract.•
Acceptable letter of credit / final •accepted amended L/C.
Final change order including any •amendments to L/C price.
Approval drawings, signed and •marked as “Approved As Is”or “Ap proved As Noted”, where applicable.
9.2 Production and dispatch schedules shall be determined when all of the following are fulfilled:
Receipt of the final “Approved As Is” or •“Approved As Noted” approval draw-ings at Zamil Steel offices, where appli-cable (see item 4).
Receipt and acceptance of the final •change order, where applicable (see item 7).
Release to production by the Zamil •Steel Finance Department, i.e. finan-cial clearance.
9.3 The Zamil Steel Order Management De-partment regularly notifies all Zamil Steel Area Offices of production and
dispatch schedules for the jobs entered by each individual office.
10. Erection Drawings
10.1 The standard erection drawings package consists of one (1) set sent
to the customer, via the responsible Zamil Steel Area Office, and one (1) set
dispatched with the materials.
10.2 When erection is completed by Zamil Steel, the package will consist of one (1) set of drawings sent to the customer, via the responsible Zamil Steel Area Office, and one (1) set provided to the Zamil Steel erection team.
10.3 Additional sets of erection drawings are available upon request for SR 300 (US$ 80) per set.
10.4 By specific request only, one set of “As Built” drawings will be supplied to the customer (free of charge) after
erection is completed. “As Built” drawings will incorporate changes made during
erection (if any), assuming that those changes have been communicated in writing to Zamil Steel after completion of erection.
11. Specification Changes & Material Substitution
11.1 Zamil Steel reserves the right to substitute meterial equivalent to that
originally specified when a standard inventory item is out of stock or when
product development improvements make substitution necessary.
11.2 When special paint supplier is specified by the consultant / client, and paint is found to have application problems and (or) extended drying times, Zamil Steel will recommend to substitute it with an equivalent and suitable supplier, subject to final approval by the consultant /
client.
12. Design and Supply Exclusions
12.1 Zamil Steel supplies only materials that are clearly described in its proposal
under “Building Description” and “Standard Supplied Items” or covered
by written, accepted and signed Change Orders.
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.
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
13. Permits and Fees
13.1 It is the customer’s sole responsibility to obtain and pay for all building permits, licenses, public assessment, prorated utilities, utility connections, occupancy fees as well as any other fees required by any government authority in connection with the work provided for in the contract.
13.2 The customer will provide, at his ex-pense, all plans and specifications re-quired to obtain the building permit, except those plans to be furnished by Zamil Steel.
13.3 It is the customer’s responsibility to ensure that all the plans and speci-
fications, including those produced by Zamil Steel, comply with the ap-plicable requirements of all the governing building authorities.
13.4 If erection is to be completed by the 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 must be deferred due to building permit problems, the cost of such stoppages, standing time or demobilization will be charged to the customer’s account.
14. Inspection of Fabricated Materials
14.1 Zamil Steel, an ISO 9001 certified company, operates in accordance with
its standard Quality Plan, which specifi-cally outlines the quality control proce-dures that must be followed during the production and shipment of its prod-ucts. This plan describes the sampling techniques, types of tests conducted, control procedures and reporting for-mat used in the production of all man-ufactured components. The approved procedures described in this Quality Plan are maintained within the Zamil Steel Quality Control Department.
14.2 Inspection of Zamil Steel products at the 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 upon receipt of a written
request for such inspection by the customer. Inspections will be arranged in
such a manner so as not to delay produc-tion and/or shipment. In the event that the
customer or his representative fails to conduct inspections as scheduled, the applicable goods will be considered
“Released By Concession”.
15. Material Dispatch Advice
15.1 Upon dispatch, Zamil Steel Shipping Department will advise the responsible
Zamil Steel Area Office of the actual dispatch date.
15.2 The customer will be notified of the actual dispatch date by the responsible
Zamil Steel Area Office, immediately upon the dispatch of material from Zamil Steel factory.
16. Partial Shipments
16.1 On large jobs, it is the standard policy of Zamil Steel standard practice to make partial shipments.
16.2 When partial shipments are made, Zamil Steel will endeavor to ship erect-able steel on a schedule that enables the erection process 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 based upon the accepted terms of payment covering the total job value.
17. Customer Pick-Up Shipments
17.1 Zamil Steel does not permit customer for overseas shipments.
17.2 Zamil Steel prefers to make all overland shipments by contract carrier; however, the customer may pick-up the material
provided that the procedures noted in section 17.3 to 17.5 are observed.
17.3 The customer must obtain an assigned loading date and time from the Zamil Steel Order Management Department.
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Standard Terms & Conditions of Sale Pre-Engineered Buildings
17.4 The customer must provide suitable trailers for loading by Zamil Steel. Zamil Steel cannot load closed van trailers and trailers with sidings.
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 complete information from the responsible Zamil Steel Area Office.
18. Unloading of Material at Job Site for Overland Shipments (Supply Only Contacts)
18.1 Unloading of trucks at the job site is the sole 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 must be provided by the customer.
18.2 The customer is solely responsible for the condition of the job site in terms of as the safety of the trucking company driver and the Zamil Steel material.
18.3 The customer is responsible for accurately checking the materials upon
arrival and unloading. Any discrepan-cies must be indicated 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. Damaged materials must be indicated on the material dispatch note and reported to the responsible Zamil Steel Area Office immediately.
19. Erection of Buildings (Supply Only Contracts)
19.1 The customer will be solely responsible for the quality of a erection of Zamil Steel building when the erection is not
carried out by the Zamil Steel erection team. Zamil Steel assumes no liability for, and the customer will hold Zamil Steel harmless in connection with 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, or inadequate drainage that are the result of the
erection process.
19.2 The customer will permit Zamil Steel’s personnel to inspect the erection work at any time during the erection process.
19.3 Although Zamil Steel appoints only competent contractors as Certified Builders, Zamil Steel is not responsible for the quality of erection provided by these builders. Zamil Steel Certified Builders are independent contractors who are certified by Zamil Steel on the basis of knowledge and experience in pre-engineered steel building erection and contracting practices.
20. Erection by Zamil Steel
20.1 The Zamil Steel erection team will undertake building erection only on a clear, leveled, compacted and
unobstructed building foot print, with suitable uninterrupted access for
unloading trucks and erection equipment. A 10 meter wide access
must be provided around each building for cladding & accessories storage. The ground surface of all working areas must be suitably compacted to accommodate
the use of forklifts or cranes.
20.2 Prior to the arrival of the Zamil Steel erection team on site, the anchor bolts must be accurately set by other
personnels. All anchor bolts set in place must have the appropriate nuts and washers installed on cleaned threads.
20.3 The 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 addional work or rework required
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
due to misplacement of anchor bolts or faulty concrete will be the responsibility of the customer.
20.4 If erection is delayed due to the non-completion of civil works, or
other causes, Zamil Steel will not be responsible for the deterioration of the
primer paint, or the cleaning of the manufactured steel after delivery to site.
20.5 Zamil Steel will not be responsible for any cleaning of the steel columns or cladding after pouring of the concrete slab.
20.6 Zamil Steel will not be responsible for grouting under base plates after steel erection and alignment. The customer will be responsible for finalizing the grouting prior to applying the design loads including cladding.
20.7 Zamil Steel shall not be responsible for the repair of any damage to building components caused by others.
20.8 Any necessary repairs will be performed only upon receipt by the Zamil Steel
erection team of written notification of acceptance of the charges, by the
customer in the form of a Change Order.
20.9 Any deviation from these standard erection conditions will become subject
to price review.
20.10 Zamil Steel reserves the right to subcontract part or all of its erec-tion contract to qualified contrac-tors who will execute the job pro-fessionally and in accordance with Zamil Steel’s strict erection requirements.
21. Shortage of Materials
21.1 Whenever a material consignment is received on site by anyone other than
the Zamil Steel erection team, the dated signature of the customer or his designated representative constitutes a
formal acknowledgment of the correct receipt of the consignment as related to both quality and quantity.
21.2 It is the sole responsibility of the customer or his representative
responsibility to check the materials before signing and dating Zamil Steel’s material dispatch note to indicate acceptance.
21.3 Claims of shortages are only accepted by Zamil Steel if received in writing within seven (7) days of the date of the acceptance signature.
21.4 If, after receipt of such claims, Zamil Steel bills of materials and shipping lists are found to be correct, replacement
material will be supplied only upon receipt written acceptance of the additional ex-works costs and deliv-
ery costs from the customer or his representative.
21.5 Zamil Steel is not responsible for any consequential claims or liabilities
alleged to arise from losses or shortages.
22. Field Modifications
22.1 Minor field modifications and adjustments, in any pre-engineered
building, are to be anticipated. Minor field work does not constitute grounds for chargebacks or refunds. This field work should be provided for within the contingency element of any
construction estimate.
22.2 Only repairs due to major fabrication errors may be cause for filing a claim. Such repairs will only be undertaken with the consultation and consent of Zamil Steel.
23. Combined Shipments
Zamil Steel is occasionally obliged to include a small quantity of material (perhaps a back-order or urgent material request) within a shipment destined for another customer in the
same metropolitan area or territory. All customers stand to benefit from this mutual cooperation.
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Standard Terms & Conditions of Sale Pre-Engineered Buildings
24. Storage
24.1 Zamil Steel shall store, free of charge in their open yards, any 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 will 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%.
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.
25. Warranty
25.1 Zamil Steel warrants the materials it manufactures for a period of one year from the date of material dispatch. This warranty extends only to failure due to defective materials or workmanship, and covers only products that are
utilized in the intended manner.
25.2 Zamil Steel warrants that the structure will support the loads described in
Zamil Steel’s drawings and contract when properly erected, as part of a complete structural system designed by Zamil Steel and made up only of parts made by Zamil Steel, provided that the structure is used in the manner and purpose for which it was designed.
25.3 No warranties are expressed or implied other than those described in these Terms and Conditions of Sale.
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.Under no circumstances will Zamil Steel be responsible for
consequential damages that are alleged to arise from any such claim of
breach of warranty.
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25.5 In the event of erection by Zamil Steel, the building maintenance is
warranted for 12 months from the date of provisional acceptance by the customer.
26. Force Majeure
Zamil Steel shall not be held account-able for delays in material dispatch or delivery (after dispatch) resulting from circumstancesoutside its control, such as strikes, acts of war, revolution, riot or civil disturbance, trade sanctions or
restrictions, occurrences of meteoro-logical or geophysical nature, etc., to the extent that these affect transport, communications, manufacturing and/or erection by Zamil Steel, its suppliers and its subcontractors.
27. Cancellation of Orders
27.1 In the event that a signed contract is cancelled by a customer, the greater of the following cancellation charges will apply:
10% of the total contract amount.•
All actual charges incurred by Zamil •Steel (and its sub contrac tors / s u p -pliers) 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.
28. Governing Law & Dispute Resolution 28.1 This Agreement shall be governed by,
and construed in accordance with the Laws of the Kingdom of Saudi Arabia.
28.2 Any dispute arising hereunder or
from or in connection herewith shall be resolved amicably by discussion between the parties hereto, failing which the parties shall submit the matter in dispute to be finally settled pursuant to the Saudi Arbitration Regulations. The arbitration shall take place in Dammam, Saudi Arabia.
Pre-Engineered Buildings Standard Terms & Conditions of Sale12
No changes in these terms and conditions shall be allowed unless agreed to, in writing, by the General Manager of the Pre-Engineered Buildings Division at Zamil Steel Head Office in Dammam, Saudi Arabia.
Standard Terms & Conditions of Sale Pre-Engineered Buildings
RECOMMENDED LETTER OF CREDIT (L/C) OPENING PROCEDURE
Thank you for choosing Zamil Steel as your building supplier. The purpose of this document is to provide you with our recommended procedure for opening a letter of credit (L/C) for Zamil Steel.
Most letters of credit (L/C) received by Zamil Steel head office require amendments which delay the processing of jobs. For your convenience, we have drafted a letter for you to use as a guide, when requesting your bank to open a letter of credit for Zamil Steel.
QUOTE
Dear Sirs,
Kindly open an irrevocable and confirmed Letter of Credit (L/C) favoring:ZAMIL STEEL INDUSTRIESP.O. Box 877, Dammam 31421, Saudi ArabiaPhone (966 3) 847 1840 Fax (966 3) 847 1291 For the sum of SR/USD/Euro ___________ (Saudi Riyals/ US Dollars/ Euros __________ only) being _________% of the value of Zamil Steel’s contract proposal no. __________, rev. no. _____________, dated ___________. and advise Zamil Steel, Dammam, through any prime Saudi Bank with the clear instructions to add their confirmation to the said L/C.
Confirmation charges will be borne by openers. L/C should be payable against presentation of the following documents (Please check applicable boxes)
1. Sight Draft drawn on negotiating bank.2. Invoice in one original and two copies.3. Packing List.4. Certificate of Origin in [] English [] Arabic issued by the Saudi Arabian Ministry of Commerce.5. Consignment Note issued by the trucking company (confirming receipt of material for delivery to opener’s job site) marked freight pre-paid (if shipment is on CIF/C&F basis) and made out to the order of the opening bank and notify openers. Truck Consignment note must not call for showing the carrier’s local agent name, address, etc. Bill of lading.6. Insurance Certificate covering all road transport risk for 110% of shipment value Marine Insurance Certificate for 110% of shipment value.
Other Terms:
a. WAR RISK is not covered.b. Partial shipment is allowed.c. Stale documents are acceptable.d. L/C must be valid for shipment for ninety (90) days from opening date.e. L/C expiry date shall be twenty one (21) days after L/C shipping date.f. All L/C opening, amendment and confirmation charges are for opener’s account.
Please arrange to transmit the full text of the L/C by telex, being the operative instrument, to enable the beneficiary to ship our material at an early date and advise the beneficiary through telephone to collect the L/C from the advising bank.
UN-QUOTE
Any other documents called for may delay the fabrication of materials. If the letter of credit is opened according to the above points, it will speed up our delivery to your jobsite by avoiding delays that may result from the necessity of making further amendments to the letter of credit.
We assure you the best of our attention and remain.
Sincerely,
Zamil Steel
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Pre-Engineered Buildings Standard Terms & Conditions of Sale
A REA O FF ICES Saudi Arabia (Dammam, Riyadh & Jeddah) Kuwait (Kuwait City) Bahrain (Manama) Qatar (Doha) UAE (Dubai & Abu Dhabi) Oman (Muscat) Yemen (Sanaa) Jordan (Amman) Syria (Damascus) Iraq (Basra) Bangladesh (Dhaka) Pakistan (Lahore) Sri Lanka (Colombo) India (Chennai & Bangalore) Greece (Athens) Romania (Bucharest) Hungary (Budapest) Poland (Warsaw) Czech Rep. (Prague) Spain (Madrid) Luxembourg Egypt (Cairo) Sudan (Khartoum) Libya (Tripoli) Algeria (Algiers) Senagal (Dakar) Ethiopia (Addis Ababa) Tanzania (Dar-es-Salaam) Nigeria (Lagos) Vietnam (Ho Chi Minh City, Hanoi, Haiphong & Da Nang) Thailand (Bangkok) Malaysia (Kuala Lumpur, Johor & Kota Kinabalu) Singapore Philippines (Manila) Myanmar (Yangon, Mandalay & Pyinmana) Indonesia (Jakarta & Batam) Philippines (Manila) Laos (Vientiane) Cambodia (Phnompenh) China (Shanghai, Qingdao & Dalian) Japan (T okyo)
H EAD O FF ICE
PO Box 877
Dammam 31421
Saudi Arabia
Phone (966 3) 847 1840
Fax (966 3) 847 1291
E-Mail [email protected]
www.zamilsteel.com January 2010