Ref. No.:MHHE/ITB/SCM/11-REV0

Ref. No.:MHHE/ITB/SCM/11-REV0

CONTRACT

EXHIBIT 6

Page 1 of 11

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SUPPLIER DOCUMENT INSTRUCTIONS

TABLE OF CONTENT

ITEM / SUBJECT /

PAGE

1.0 / PURPOSE / 2
2.0 / REFERENCE DOCUMENTS / 2
3.0 / DEFINITIONS / 2
4.0 / COMMUNICATION ADDRESS AND FACSMILE / 2
5.0 / MEETINGS / 3
6.0 / REPORTING / 3
7.0 / DRAWING AND DOCUMENT SUBMISSION PROCEDURES / 4
8.0 / EQUIPMENT VENDOR MANUALS / 7
9.0 / PAYMENT AND INVOICING / 7
10.0 / WAREHOUSE OPERATING FOR RECEIVING / 8
11.0 / VARIATION ORDER / 9
12.0
13.0 / SUPPLIER DOCUMENT REQUIRED LIST (SDRL)
CONTRACT CLOSURE / 9
9
APPENDIX 5 / SAMPLE OF CUSTOMER PROGRESS REPORT
APPENDIX 6 / ONLINE CERTIFICATE PROGRESS CLAIM (CPC)
SUBMISSION MATERIAL PURCHASES (MILESTONE PAYMENT)
APPENDIX 7 / ONLINE INVOICE SUBMISSION
APPENDIX 8 / SPARE PARTS INTERCHANGEABLE RECORDS (SPIR)
APPENDIX 9 / VARIATION ORDER PROPOSAL FORMS (VOPF)
APPENDIX 10
APPENDIX 11
APPENDIX 12 / FORMAT FOR CONTRACT CLOSURE LETTER
FORMAT FOR CONTRACT CLOSURE CERTIFICATE
SUPPLIER DOCUMENT REQUIREMENTS LISTING (SDRL)

1.0PURPOSE

The purpose of this guideline is to describe the required method of CONTRACT implementation between MMHE and SUPPLIER with respect to documentation submissions specified in CONTRACT. All costs for the fulfilment of the requirements of this Exhibit 6: Supplier Document Instructions shall be included in Exhibit 5: Schedule of Compensation.

2.0REFERENCE DOCUMENTS

This section must be read together with the PURCHASE ORDER and Exhibit 4: Scope of Supply.

3.0DEFINITIONS

MMHE – Malaysia Marine and Heavy Engineering Sdn Bhd who will issue the CONTRACT.
SUPPLIER - any person or company to whom the CONTRACT/PURCHASE ORDER is issued for the supply of WORK.

4.0 COMMUNICATION ADDRESSES AND FACSIMILE

Any notices and communications required to be given under this CONTRACT shall be in writing. Such notices and communication shall be deemed to be duly given when they shall have been delivered by hand, E-mail, or facsimile, to the parties to which they are required to be given such party’s address as specified following:

4.1Malaysia Marine and Heavy Engineering Sdn. Bhd.

MMHE Representative: <Project Manager / Project Director>

Address:

Telephone:

Telefax:

E-mail Address:

SITE Representative: <Project Procurement Manager>

Address:

Telephone:

Telefax:

E-mail Address:

4.2SUPPLIER Name>

SUPPLIER Representative: <MD/CEO>

Address:

Telephone:

Telefax:

E-mail Address:

PROJECT Representative: <Project Manager

Address:

Telephone:

Telefax:

E-mail Address:

5.0 MEETINGS

1. The SUPPLIER shall hold meetings on the dates set by MMHE and in accordance with the CONTRACT, and additionally, as often as is necessary for keeping all parties fully informed with respect to the progress of the WORK and for discussing technical subjects and resolving such problems as may arise in the execution of the WORK. MMHE shall advise the scheduling of meetings in writing.

5.2.All meetings scheduled throughout the performance of the CONTRACT shall be minutedby MMHE and the minutes of each meeting shall be issued to the SUPPLIER within 2 working days.

5.3.When resolution of issues is not possible within the meeting, or where the matter requires some action on the part of the SUPPLIER or MMHE, then this shall be indicated in the minutes, and MMHE or the SUPPLIER shall subsequently respond in writing providing the necessary information and/or confirming the course of action, as appropriate.

1. The SUPPLIER shall advise MMHE by giving two (2) days written notice of all meetings of a technical nature to be held between the SUPPLIER and its SUBSUPPLIERS. MMHE reserves the right to attend all such meetings in order to ensure that the WORKis completed in accordance with the CONTRACT. Attendance by MMHE shall in no way relieve the SUPPLIER of any of its responsibilities as set forth in the CONTRACT.

5.5.In general, all meetings after the EFFECTIVE DATE shall be conducted at MMHE'S SITE Office. However, there may be a requirement for monthly management meetings between MMHE REPRESENTATIVE and the SUPPLIER REPRESENTATIVE, which may be held at MMHE'S office in Kuala Lumpur and/or Pasir Gudang Yard.

6.0REPORTING

1. General

The SUPPLIER shall keep MMHE fully informed on all aspects of the WORK that affect progress. The SUPPLIER shall provide the following reports as required by the CONTRACT:

6.1.1.Weekly Progress Report (Refer to Exhibit 6 – Appendix 5: Sample of Customer Progress Report).

6.1.2.Ad-hoc reports: any reports required due to unforeseen circumstances.

6.1.3.All reports shall be addressed to MMHE REPRESENTATIVE.

6.1.4.All reports shall be in standard ISO A4 size.

6.2.Weekly Progress Report

6.2.1.Throughout the performance of the WORK, the SUPPLIER shall prepare and submit a Weekly Progress Report to MMHE within two (2) days of the weekly cut-off date.

6.2.2.The Weekly Progress Report shall be in narrative, tabulation and graphical form and shall report on the following aspects of the WORK:

(a)Progress narrative covering all areas of operation.

(b)Areas of concern, including impact and proposed mitigation measures.

(c)Schedule bar chart including all activities within the logic network, showing planned and actual starts and finishes, sorted by WBS and scheduled start in a format agreed with MMHE.

(d)Progress S-curve showing planned, actual and forecast progress for each of the major elements of the WORK, down to Level 2.

(e)A summary procurement tabulation for requisitions and purchase orders detailing total identified and status of enquiry and award activities.

(f)Project photographs both in hard and soft copy.

1. Materials Report

The Materials Report section shall include, as a minimum, the following information:

(a)A material progress and tracking report for all materials to be supplied by the SUPPLIER and MMHE (separately) giving details of the requisition or order number, the description of the material, the quantities ordered, the quantities required to complete the WORK, the quantities ordered for spare, the date ordered, the supplier, the date due or actually delivered and the certificate or inspection report number.

(b)The Materials Report shall also include the planned and actual progress of manufacturing and the planned and forecast delivery dates.

6.4Final Report

6.4.1The Final Report as per SDRL in the Approved for Purchase Specification.

7.0DRAWING AND DOCUMENT SUBMISSION PROCEDURES

1. All drawings and required documents shall be submitted via uploading the file in MMHE online Vendor Data Management System (VDMS).

7.2.Drawings

7.2.1.The SUPPLIER shall submit for MMHE'S review all documents and drawings that the SUPPLIER is required to provide under the CONTRACT. If these deviate from the requirements of the CONTRACT, or when comments given earlier have not been observed to the satisfaction of MMHE, the SUPPLIER shall immediately undertake all required rectification actions at its own cost.

7.2.2.Pursuant to Exhibit 4: Scope of Supply, the SUPPLIER shall show clearly on SDRL,full details of planned issue dates of all drawings and other design documents. This shall includevendor drawings and documents to be provided by the SUPPLIER under the CONTRACT and shall ensure such details are comprehensive and up to date.

7.2.3.The SUPPLIER shall confirm in writing the dates at which he intends to issue drawings and documents to MMHE for review and for approval, at least fourteen (14) days prior to the actual issue date.

7.2.4.This (see 7.2.3) is required for MMHE to ensure the availability of all necessary personnel for expeditious processing of the documents. In all instances, the SUPPLIER shall allow MMHE at least 21 days for drawings review and/or approval.

7.2.5.The SUPPLIER shall use its best endeavors, at all times, to transmit drawings and documents in a timely fashion and in discrete packages by discipline.

7.2.6.MMHE reserves the right to extend the approval period specified above, should the SUPPLIER either fail to adhere to the planned/confirmed issue dates or where the SUPPLIER submits such large quantities of documents in a short period, thatMMHE is deprived of a reasonable period in which to review and/or approve each drawing or document. Notwithstanding the above, MMHE will work closely with the SUPPLIER to establish a document submission schedule agreeable to both parties and expeditious to the completion of the WORK.

7.2.7.A document register detailing drawing and/or document numbers, and showing the latest issue status, shall accompany each set of documents submitted to MMHE.

7.2.8.Drawings and documentation, including SUBSUPPLIER'S and vendors, drawings, shall be of sufficient quality and clarity to allow for microfilming and copying.

7.3.Status Indication of Drawings and Documents

7.3.1.All documents and drawings to be submitted by the SUPPLIER to MMHE(including those furnished by vendors) shall be clearly marked or stamped with one of the following indications:

(a)"For Approval" - see Sub-clause 7.4. These are drawings and documents that require the approval of MMHE.

(b)"Re-issued for Approval" - see Sub-clause 7.4. These are drawings and documents that were previously submitted for approval and require further revision before MMHE can grant approval.

(c)"For Review and Comment" - see Sub-clause 7.5. These are drawings and documents other than those required for approval that are produced by theSUPPLIER or any SUBSUPPLIER or MATERIAL supplier in connection with the CONTRACT.

(d)"Approved for Construction" - see Sub-clause 7.6. These are drawings and documents that have been approved by MMHE and are being issued for construction.

(e)"Issued for Construction" - see Sub-clause 7.7. These are drawings and documents issued to the WORKSITE that MMHE does not need to approve, but which are to be transmitted to MMHE for the information and/or record purposes only.

(f)"Final Dossier" - see Sub-clause 7.8. These are drawings and documents that represent the final "Final Dossier" condition of the WORK.

1. Submittal of Drawings and Documents "For Approval"

7.4.1The SUPPLIER shall submit copy in native file (pdf, dwg, etc) of all drawings and documents prepared by the SUPPLIER to MMHE "For Approval". The SUPPLIER shall not proceed with related work until such drawings and/or documents have been approved by MMHE. Approval of any document or drawing by MMHE does not relieve the SUPPLIER of its obligations under the CONTRACT and the SUPPLIER shall remain responsible for all details, dimensions, information, etc., on the documents and drawings.

7.4.2In cases where significant modifications/revisions are required on documents or drawings previously issued for MMHE approval or previously approved by MMHE then these shall then be re-issued for approval, clearly marked "Re-issued for Approval".

7.4.3Pursuant to Sub-clause 7.2, within twenty one (21) days from receipt by MMHE, MMHE will inform the SUPPLIER of the approval status of each submitted document and/or drawings in accordance with the following:

(a)Code 1: Approved

(b)Code2: Approved subject to incorporation of marked-up comments

(c)Code 3: Rejected - revise and resubmit

(d)Code 4: For information only

7.5Submittal of Drawings and Documents "For Review and Comment"

7.5.1All drawings and documents shall be submitted to MMHE for MMHE'S review, comment and information. Should these drawings or documents be revised subsequent to submittal to MMHE, the SUPPLIER shall resubmit such drawings or documents to ensure that MMHE is in possession of up-to-date drawings and documents at all times.

7.6Submittal of Drawings and Documents "Approved for Construction"

1. Upon Category 1 or 2 approvals by MMHE pursuant to Sub-clause the SUPPLIER shall issue these drawings clearly marked "Approved for Construction".

7.7Submittal of Drawings and Documents "Issued for Construction"

1. These shall comprise all other types of drawings and documents but which are required for the execution of the CONTRACT. At the end of each month, the SUPPLIER shall issue to MMHE a complete register of such drawings issued.

7.8Submittal of Drawings and Documents "Final Dossier"

1. The SUPPLIER shall submit one (1) set of CAD (electronic format) files and three (3) sets of paper prints of all final drawings to MMHE within fourteen (14) days the WORK being certified as complete. If any revisions have been made and approved by MMHE during the course of the WORK, such revisions shall be clearly dated and marked and a short description of the revision given.

8.0EQUIPMENT VENDOR MANUALS

1. The SUPPLIER shall prepare and submit for MMHE approval equipment operating and maintenance instruction manuals pursuant to Exhibit 4: Scope of Supply. These manuals hall be presented- in hard cover 4-ring rigid metal back binders and shall include procedures for start-up, shutdown, preventative maintenance, troubleshooting, testing, etc., and shall cater for both normal operation and emergences.

8.1The SUPPLIER shall prepare equipment vendor manuals for all procured proprietary equipment to include the following information as appropriate to each item:

8.1.1Purchase requisition (including supplementary data sheets, performance data, specifications, etc.)

8.1.2Fabrication reports

8.1.3Inspection/test-reports

8.1.4Manufacturer's installation instructions

8.1.5Manufacturer's recommended operational and maintenance instructions

8.1.6Parts lists

8.1.7Drawings - indicating part numbers where appropriate

8.1.8Recommended spare parts listings

8.1.9Operating and Maintenance Manual references

8.2Equipment vendor manuals shall facilitate updating to allow for the inclusion of site test reports, QA reports, commissioning reports, etc.

9PAYMENT AND INVOICING

9.1This section shall be accordance to Clause 4 of Exhibit 2: General Terms and Conditions of Purchase.

9.2Payment Method

1. Payment shall be made by Telegraphic Transfer remittance within 30 days after the MMHE’s receipt of SUPPLIER's duly signed undisputable invoice together with all the other required documents specified above.

9.2.2All amounts payable under the PURCHASE ORDER may be withheld pending final acceptance of the WORK and resolution of any default, claims or back charges filed against SUPLIER by MMHE.

9.2.3Should MMHE dispute any item or amount in any invoice submitted by SUPPLIER, MMHE shall so notify SUPPLIER within ten (10) calendar days following receipt of the invoice, specifying MMHE’s complaints. Payment of the disputed items or amounts shall be withheld until settlement of the dispute either by mutual agreement or in accordance with the provisions of Clause 4 of Exhibit 2: General Terms and Conditions of Purchase. Interest shall not be levied on any payments withheld by MMHE. All payments made by MMHE shall not preclude the right of MMHE from thereafter disputing any of the items or amounts paid.

9.3Invoicing

Invoices shall be submitted as follows:

9.4

9.3.1One (1) original with attachments to MMHE’s address as in the PURCHASE ORDER.

9.3.2Invoices for payment must be duly signed by SUPPLIER's representative and mailed to the addressee as mentioned above together with all required documents specified in "Payment Terms". The SUPPLIER is requested to state, "This invoice is for payment" on the invoices.

9.3.3Invoices shall clearly include at least the following information. COMPANY reserves the right to disregard invoices submitted with insufficient information.

9.3.3.1PURCHASE ORDER number

9.3.3.2Project name

9.3.3.3Applicable PURCHASE ORDER line item number

9.3.3.4Name of SUPPLIER’s bank

9.3.3.5Bank’s branch name

9.3.3.6Bank's full address

9.3.3.7Account number

9.4Submission of claim and invoices shall be directly through MMHE online system: e-Subcon/Vendor Claim System. Supplier must refer to manual guideline for the online submission as follows:-

1. Milestone Payment as per Exhibit 6 – Appendix 6: Online Certificate Progress Claim (CPC) Submission Material Purchases (Milestone Payment)

9.4.2Invoices as per Exhibit 6 – Appendix 7: Online Invoice Submission.

10WAREHOUSE OPERATION FOR RECEIVING

1. MMHE’s Warehouse Receiving Operation Time as follows;

Monday to Thursday: 8.30am – 12.00pm and 1.30pm – 4.15pm

Friday: 8.30am – 12.00pm & 2.30pm – 4.15pm

Saturday, Sunday & Public Holiday: OFF

10.2SUPPLIER is obligated to comply with MMHE’s Warehouse Receiving requirement as the following. Failure to comply will result in MMHE’s Warehouse or Receiving Site having rights to reject or quarantine the delivered WORK.

10.2.1SUPPLIER is obligated to provide the compulsory documents during Warehouse receiving process in MMHE. The compulsorydocuments consist of.

10.2.2Original copy of SUPPLIER’s Delivery Order complete with SUPPLIER’s signature and company stamp.

10.2.3Original Mill certificate to be provided together with the delivery of the WORK.

10.2.4Or, SUPPLIER shall submit Colour copy certificate complete with certified true copy Wet Stamped.

10.2.5Inspection Release Note (IRN) or test results. (If applicable)

10.2.6All required documents to be handedto Warehouse Receiving Personnel on duty during delivery to MMHE.

10.2.7SUPPLIER’s representative shall be fully equipped with Personal Protection Equipment (PPE) prior entering MMHE’s yard or Warehouse.

10.2.8Failure to comply with the entire Warehouse Receiving requirement may affect MMHE acceptance and payment approval.

11VARIATION ORDER

11.1General

This section shall be accordance to Clause 15of Exhibit 2: General Terms and Conditions of Purchase.

11.2Variation Order Proposal Forms

For any variation order proposal, SUPPLIER to submit Variation Order Proposal Forms (VOPF), as provided in Exhibit 6 – Appendix 9.

11.3The SUPPLIER shall not commence on any Variation Order WORK unless he has received an official instruction from MMHE and any claims made by the SUPPLIER for WORK commenced or completed without a PURCHASE ORDER shall not be entertained by MMHE.

12SUPPLIER DOCUMENT REQUIRED LIST (SDRL)

12.1SDRL Matrix

12.1.1SDRL Matrixis a part of required document in this CONTRACT and the format shall be as per inExhibit 6 – Appendix 12.

12.1.2The SDRL Matrix shall be finalize by SUPPLIER prior issuance of CONTRACT and according to the respective Technical Requisition Package (TRP) requirements.

12.1.3The final SDRL shall be review and endorse by MMHE QA/QC, Package Engineer and Expeditor.

13CONTRACT CLOSURE

13.1For bulk MATERIALS, MMHE shall send the SUPPLIER a CONTRACT Closure Letter in the form set out in Exhibit 6 – Appendix 10together with a CONTRACT Closure Certificate in duplicate in the form set out in Exhibit 6 – Appendix 11 after sixty (60) days from the issuance date ofMaterial Acceptance Certificate (MAC). The SUPPLIER shall complete and return to MMHE one copy of the CONTRACT Closure Certificate to confirm that no further monies are due to the SUPPLIER from MMHE under the CONTRACT.

13.2For tag MATERIALS, MMHE shall send the SUPPLIER a CONTRACT Closure Letter in the form set out in Exhibit 6 – Appendix 10 together with a CONTRACT Closure Certificate in duplicate in the form set out in Exhibit 6 – Appendix 11 on the expiry of the guarantee period. The SUPPLIER shall complete and return to MMHE one copy of the CONTRACT Closure Certificate to confirm that no further monies are due to the SUPPLIER from MMHE under the CONTRACT.

13.3Signing of the CONTRACT Closure Certificate does not relieve the SUPPLIER of any of its continuing obligations as set forth in the CONTRACT or which by their nature survive completion of the WORK including, without limitation, warranties, guarantees and indemnities.

END OF SECTION