PREAMBLES TO COST PROPOSAL

PRM-i

PREAMBLES TO COST PROPOSAL

CONTENTS

PAGE PRM-

1. GENERAL 1

2. PART 1 - FEES FOR SUPERVISING QUALIFIED PERSON 1

3. PART 2 - FEES FOR QUALIFIED SITE SUPERVISOR 2

4. RATES FOR VARIATION WORKS 2

5. PAYMENT SCHEDULE 3

6. BACK-CHARGES 4

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PREAMBLES TO COST PROPOSAL

1. General

1.1 The Cost Proposal comprises 2 parts; Part 1 - Fees for Supervising Qualified
Person and Part 2 - Fees for Qualified Site Supervisor.

1.2 The Consultant shall be fully responsible for ensuring that the prices stated by
him in the Cost Proposal are accurate, complete, adequate and compatible
with the requirements for the successful execution of the Services. The Cost
Proposal does not describe the Services completely in all respects and
reference shall be made to the Conditions of Contract for Consultancy
Services and the Terms of Reference. No claim shall be considered in respect
of any omission or alleged omission in the Cost Proposal required to bring the
Services to completion.

1.3 All prices shall be deemed to be inclusive of salaries, overtime, wages, paid
leave, sick leave, bonuses, CPF contributions by the Consultant, taxes,
travelling, and all related staff costs and allowances (including the costs for
relocation, allowances, accommodation and living expenses, medical
payment, insurance of whatever nature, levy, ancillary expenditures, courier /
communication, all stationery such as documents & drawings required for
working, and work outside normal working hours, night work and on Sundays
and Public Holidays, and all other direct or indirect overhead costs and profits).
The prices shall allow for contingency and other expenditures necessary to
fulfill the full extent of the scope of the Services required by the Authority.

1.4 The Consultant is deemed to have allowed for additional manpower whenever
required during the Contract to fulfill the full extent of the Services. Except as
otherwise expressly stated in the Contract, the provision of additional
manpower for this purpose shall not constitute a variation.

1.5 All prices offered shall be exclusive of Goods and Services Tax (GST),
regardless of the GST status of the Consultant.

2. Part 1 - Fees for Supervising Qualified Person

2.1 Prices entered are fixed price lump sum and not subject to remeasurement,
adjustment, escalation or variations of any nature whatsoever, except as
expressly provided for under the Contract.

2.2 The pricing for Supervising Qualified Person shall be deemed to include:

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i. all risks, necessary direct costs and indirect costs and expenses (such as
manpower costs, air travel / other transportation costs, machines /
equipment costs, courier / communication, plans and report printing,
drawings and documents printing, overhead, fees and profits and any
other incidental or ancillary costs) that may arise or be associated with the
Services;

ii. any repeat reports and follow-up or rectifications;

iii. contingencies and other expenditures necessary to fulfil the full extent of
the Services;

iv. to work beyond normal working hours / schedules, night work, Sundays
and Public Holidays and any stand-in personnel as required in the
absence of any approved staff;

v. stand-in personnel in the event of leave or resignation of the approved

staff.

3. Part 2 - Fees for Qualified Site Supervisor

3.1 The provisional quantities shall be subject to re-measurement upon completion of

the Services and the Officer-in-charge shall ascertain and determine the value of
the Services provided according to the monthly rate entered by the Consultant in
the Cost Proposal multiply by the actual quantities as instructed to be provided.
The monthly rate entered shall be applied to the actual quantity provided whether
that quantity be more or less than the provisional quantity stated in the Cost
Proposal. The Consultant shall not be entitled to any claim for errors in the
provisional quantity or for alleged loss of overheads or profit or for revision or
adjustment in the monthly rates due to any difference between the actual quantity
provided and the provisional quantity, or if the provisional quantity is not used at
all.

4. Rates for Variation Works

4.1 The Consultant shall enter the manday rates in the Schedule of Rates for
Supervising Qualified Person for the purpose of valuing variations for Part 1 of
the Cost Proposal. The man-month rates in Part 2 of the Cost Proposal shall be
used for the valuation of variation.

4.2 Where applicable, the man-day rates shall be taken as 1 man working for a
minimum of 8.5 hours. Where the period of work is less than 8.5 hours, payment
shall be based on the actual time spent, rounded up to the nearest hour,
multiplied by the hourly rate based on the formula below:

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Monthly Rate x 12 months

52 weeks x 47 hours*
Where:

Monthly Rate means the Monthly Rate entered in the Cost Proposal.

* 47 hours is based on 5.5 day work week.

4.3 The man-day rates shall be for suitably qualified personnel and shall meet the
requirements as specified in the Terms of Reference.

5. Payment Schedule

5.1 Payments to the Consultant shall only be made upon delivery and acceptance
of contract deliverables, in stages as specified in the table below.

Stages and Milestones % of Payment Frequency

Part 1
70% of Part 1 of
Provision of Supervising Qualified Monthly
the Cost Proposal
Person

Submission of Reports (monthly

reports, weekly reports etc) to the 15% of Part 1 of Monthly
acceptance of the Authority the Cost Proposal

Upon issuance of the Temporary

Occupation Permit (TOP) 10% of Part 1 of
Stage
the Cost Proposal

Upon issuance of the Certificate of

Statutory Completion (CSC) by the
relevant authorities or the handing 5% of Part 1 of
over of Permanent Works to the the Cost Proposal Stage
maintenance agencies, whichever is
later.

Part 2
Provision of Qualified Site Supervisor Monthly

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6. Back-charges

6.1 All back-charges for recovery of costs incurred by the Authority for defaults, acts
or omissions by the Consultant in the performance of the Contract or where
recovery is permitted under the terms of the Contract shall comprise:

(a) Costs incurred by the Authority on the Consultant's behalf or based on the
Authority's valuation of the cost of the Services; plus

(b) Insurance costs; plus

(c) 20% Administrative charge levied by the Authority on the Total of (a) + (b);
plus

(d) Goods and Services Tax on the Total of (a) + (b) + (c).

CONTRACT RD276