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1.

WARRANTIES AND REMEDY OF DEFECTS

1.1 CONTRACTOR warrants (1) that the FACILITIES shall be engineered and
designed in accordance with good and efficient engineering practices, and
fabricated in accordance with all applicable designs, drawings and
specifications and good and efficient fabrication and craft practices; (2) that
the Computer System shall operate in accordance with the performance
and other criteria contained in Schedule “B”; (3) that the FACILITIES as
engineered, designed or fabricated shall be free from defects in
workmanship and fit for the purposes intended; (4) that all
CONTRACTOR-supplied materials shall be merchantable, free from
defects in design, material and workmanship, and fit for the purposes
intended, and; (5) that the FACILITIES shall meet the design criteria and
conform to the standards and specifications contained in Schedule “B” and
any other criteria, standards and specifications agreed to by COMPANY
and CONTRACTOR. CONTRACTOR does not warrant the FACILITIES
against failures due to faulty operation by SAUDI ARAMCO, conditions of
service more severe than specified in Schedule “B”, unsuitability or defect
of COMPANY-supplied materials and equipment which have not been
modified, altered or refurbished by CONTRACTOR.

1.2 The CONTRACTOR acknowledges and agrees that, prior to the Contract
Date:

1.2.1 it has carefully examined the terms of this Contract, and has
examined, and relied solely upon its own assessment, skill,
expertise and inquiries in respect of, all information relevant to the
risks, contingencies and other circumstances having an effect on
its obligations under this Contract;

1.2.2 it has scrutinised all design documents and other material provided
to it by the COMPANY, and shall be solely and fully responsible for
all aspects of the design and planning of the FACILITY,
notwithstanding that aspects of that design and planning may have
been prepared by others engaged by the COMPANY;

1.2.3 it has not relied and will not rely on any information made available
by or on behalf of COMPANY to the CONTRACTOR.

1.3 COMPANY is not liable under the Contract, in tort or otherwise for any
damage, expense, loss or liability CONTRACTOR suffers or incurs (whether
due to the negligence of COMPANY or its employees, consultants or agents
or otherwise) in respect of:

1.3.1 the information referred to in Paragraph 11.1; or

1.3.2 any failure to provide any information to the CONTRACTOR.


1.4 Any reproducible or documentable recurring error which causes a computer
system not to operate in accordance with the requirements of Schedule “B”
shall constitute a breach of warranty hereunder. A reproducible error is
defined as a chain of events that can be executed upon request. A
documentable recurring error is an error that appears repetitively but cannot
be reproduced upon request. For purposes of this warranty, SAUDI
ARAMCO will maintain a log in which failures, descriptions of failures, time
and the observing person are recorded. When a given failure has occurred
three (3) times, it shall be deemed a documentable recurring error.

1.5 If at any time during a one (1) year period after the Construction Contractor
corrects or completes all the Exception Items, if any, relating to a SCAN or
partial SCAN issued pursuant to the Construction Contract between SAUDI
ARAMCO and Construction Contractor, it is discovered that the FACILITIES
covered by that SCAN or partial SCAN, any of their constituent parts or
units, or their incorporated CONTRACTOR-supplied materials do not meet
the foregoing warranties, CONTRACTOR shall, at no cost to COMPANY,
promptly remobilize and perform or arrange for the performance of any
remedial work required to make the FACILITIES conform to such
warranties, including the removal of non-conforming WORK, the purchase
of replacement materials originally supplied by CONTRACTOR, and
reinstallation as may be necessary. With respect to any Computer System,
CONTRACTOR’s remedial work shall not be considered prompt unless
CONTRACTOR provides a qualified service representative at the
installation site within twenty four (24) hours, after receipt of the necessary
travel authorizations and Saudi Arab Visa, plus reasonable travel time not
exceeding two (2) days if the service representative is not in Saudi Arabia,
of CONTRACTOR’s receipt of SAUDI ARAMCO’s written notice of warranty
claim.

1.6 If CONTRACTOR fails to start or arrange for the start of any remedial work
promptly after receipt of notice from COMPANY to do so, or fails to perform
or fails to cause the performance of such work continuously and with due
diligence to completion, COMPANY may, at its option and without prejudice
to any other rights or remedies which may be available to it, perform such
work either itself or through others at CONTRACTOR’s expense.

1.7 If CONTRACTOR performs remedial work, the provisions of Paragraph 1 of


Schedule “A” shall apply to such work for a period of one (1) year from the
date it is completed. However, the total warranty period shall in no case be
extended beyond five (5) years from the date of Contract Completion.

1.8 CONTRACTOR will warrant the civil and structural portion of the WORK for
a period of five (5) years from the date of Contract Completion against
partial or total collapse as a result of a latent defect, other defect or
deficiency affecting the integrity, stability and/or safety of the civil works
(structural concrete and structural steel).
1.9 CONTRACTOR, for SAUDI ARAMCO’s benefit, shall obtain a WARRANTY
pass through statement from its vendors stating substantially that:

“Seller and Buyer understand that Buyer is contracting with Seller for the
purchase of goods hereunder for ultimate transfer to and use by the Saudi
Arabian Oil Company (SAUDI ARAMCO) in Saudi Arabia. Therefore, Seller
agrees that, in any event, all rights of Buyer for any failure to meet
specifications or for any other breach of warranty provided for shall run to
the benefit of and be fully enforceable by SAUDI ARAMCO.”