(Owner’s letterhead)
29 October, 2015
PT.SHIMIZU BANGUN CIPTA KONTRAKTOR
6F, Setiabudi Atrium Building,Suite601
Jl.HR Rasuna Said Kav62, Kuningan
Jakarta Selatan 12920, Indonesia
RE: Letter of Award for
PT. HANYA KARYA BAHANA NEW FACTORY PROJECT
Dear Sirs,
Based upon your Price Proposals dated 14th and 22nd September, 2015 we hereby award you the contract for the whole of the design, construction, completion and maintenance package of the said Project at
Greenland International Industrial Center, Cikarang Barat, Bekasi 17520, West Java, Indonesia (hereinafter referred to as the “Works”). in accordance with the following terms and conditions:
1. Contract Amount
The Contract Amount for the Works shall be Rp. 50,800,000,000 exclusive of the Value Added Tax (VAT).
2. Time for Completion
Commencement of the Works shall be February 15th, 2016. The Time for Completion of the Works shall be Nine (9) months from the Commencement Date of the Works, that is to say, the Completion Date shall be November 15th, 2016. The Commencement Date of the Works shall be subject to the achievement of all of the following conditions:
a. Free and uninterrupted possession of the whole site by the Contractor by August 31st, 2015
b. Receipt of the Letter of Award by the Contractor by October 31st, 2015
c. Basic Design is approved by the Owner by November 31st, 2015
d. Obtaining of all necessary permissions for the execution of the Works by the Owner
by January 15th,2016
You shall hand over the Works to us upon substantial completion.
3. Payment Terms
The Owner shall pay to the Contractor the Contract Sum, within fourteen (14) days from the Contractor’s invoice received by the Owner.
(1) 30% of the Contract Amount: Upon receipt of this Letter of Award
(2) 20% of the Contract Amount: After 3 months from commencement date of construction works
(3) 20% of the Contract Amount: After 5 months from commencement date of construction works
(4) 20% of the Contract Amount: After 7 months from commencement date of construction works
(5) 10% of the Contract Amount: Upon substantial completion of the Works
4. Terms and Conditions
The Terms and Conditions of the Contract for the Project shall be in the form of General Conditions of Construction Contract (“Minkan Rengo May 2011 edition”) as approved jointly by Architectural Institute of Japan and other 6 Japanese associations/parties as amended to reflect your Price Proposal Conditions dated 14th and 22nd September 2015 other terms agreed by both parties.
5. Other Conditions
(1) This Letter of Award shall constitute a binding contract between you and us until the formal Contract is finalized and executed by both parties.
(2) Notwithstanding the foregoing, the Contract Amount and other terms herein shall be subject to further discussions between both parties upon completion of the detailed design.
Should you agree to the above conditions, please indicate your acceptance thereof by returning one countersigned copy of this LOA to us.