Standard Terms & Conditions of Sale

Pre-Engineered Buildings
 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

Pre-Engineered Buildings Standard Terms & Conditions of Sale

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 SJ
Swift Code: NCBKSASARi
Account No. 05610001040107
IBAN No. SA4610000005610001040107
Saudi Hollandi Bank
P.O. Box 70
Dammam 31411, Saudi Arabia
Phone (9663) 894 8001,
Fax (9663) 894 8001 x 190
Telex 871085 BSHC SJ
Swift Code: AAALSARi
Account No. 013-139-029-119 (SAR)
IBAN No. SA46 5000000001313902 9119
Account No. 013-139-029-020 (USD)
IBAN No. SA0350000000013139029020
Account No. 013-139-029-170 (BHD)
IBAN No. SA2750000000013139029170
Account No. 013-139-029-500 (EUR)
IBAN No. SA4150000000013139029500
Banque Saudi Fransi
P.O. Box 2792
Dammam 31411, Saudi Arabia
Phone (9663) 825 1588,
Fax (9663) 898 5508
Telex 801164 SAFDAM SJ
Swift Code: BSFSARIxxx
Account No. 21173800103 (SAR)
IBAN No. SA565500000002117380 0103
Account No. 21173800297 (USD)
IBAN No. SA5655000000021173800297
Account No. 21173813974 (EUR)
IBAN No. SA5655000000021173813974
Saudi British Bank
P.O. Box 1618
Dammam 31411, Saudi Arabia
Phone (9663) 833 1553,
Fax (9663) 832 1916
Telex 801314 SABB SJ
Swift Code: SABBSARi

Standard Terms & Conditions of Sale Pre-Engineered Buildings 1

Account No. 044-054443-001 (SAR)
IBAN No. SA4945000000044054443001
Account No. 044-054443-080 (USD)
IBAN No. SA5045000000044054443080
Account No. 044-054443-081 (EUR)
IBAN No. SA2345000000044054443081
Account No. 044-054443-082 (GBP)
Saudi American Bank
P.O. Box 842
Al-Khobar 31952, Saudi Arabia
Phone (9663) 865 8271,
Fax (9663) 865 8277
Telex 870411 SAMBA SJ
Swift Code: SAMBSARI
Account No. 106202278
IBAN No. SA3440000000000106202278
Arab National Bank
P.O. Box 18
Dammam 31411, Saudi Arabia
Phone (9663) 832 3440,
Fax (9663) 834 7309
Telex 801032
Swift Code: ANBSARI
Account No. 01160000204900 (SAR)
IBAN No. SA0230400107000020490012
Account No. 67008000204900 (USD)
IBAN No. SA0430406708000020490017
Al Rajhi Banking & Investment
Corporation
Al-Khobar Main Br. No. 139
P.O. Box 1362
Al-Khobar 31952, Saudi Arabia
Phone (9663) 864 3525,
Fax (9663) 864 3525 x 225
Telex 871100 SJ
Swift Code: RJHISARi
Account No. 139608010000556
IBAN No. SA7180000139608010000556
Riyadh Bank
P.O Box 274
Dammam 31411, Saudi Arabia
Phone (9663) 833 5733,
Fax (9663) 832 1056
Telex 801127 RYDX SJ
Swift 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.
2 Pre-Engineered Buildings Standard Terms & Conditions of Sale
• 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
 opening / issuing bank’s charges c) The negotiating bank must
will be applied to the account of the add its confirmation.
party opening the L/C.
d) The original documents (the
c) The negotiating bank must most common of which are the
add its confirmation. commercial invoice and certificate
of origin) are to be hand carried by
d) The original documents (the the truck driver for border customs
most common of which are the clearance. Copies of the same shall
commercial invoice and certificate be acceptable for negotiation.
of origin) are to be hand carried by
the truck driver for border customs e) Documents to be issued in English
clearance. Copies of the same shall AND / OR Arabic.
be acceptable for negotiation.
3.6 Supply Ex-Works Factory in Dammam
3.5 Supply CPT Job Site, Overland
Shipment (Arab countries other The value of the L/C will be payable
than GCC) according to the following terms: Down
payment of 25% of the value of the L/C
The full value of the L/C will be payable will be paid upon the receipt of the
according to the following terms: L/C and against presentation of the
beneficiary’s (Zamil Steel Industries)
Down payment of 25% of the L/C sight draft & commercial invoice to the
value will be paid upon the receipt of negotiating bank. The balance of the
the L/C, and against presentation of the value of the L/C will be paid against
beneficiary’s (Zamil Steel Industries) sight presentation of the:
draft & commercial invoice to the nego-
tiating bank. The balance of the value of • Sight draft drawn on the negotiating
the L/C will be paid against bank.
presentation of the:
• Commercial invoice.
• Sight draft drawn on the confirming
bank. • Packing list.

• Commercial invoice. • Material dispatch note issued by the

• 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 trucks to collect the material. Material
opening / issuing bank’s charges
will be applied to the account of the to be transfered to the L/C openers on the
party opening the L/C.
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
will remain in the beneficiary’s custody
future date”.

Standard Terms & Conditions of Sale Pre-Engineered Buildings 3

 Additional Terms: c) The negotiating / advising bank’s
charges will be applied to the ben
a) Partial shipment must be permitted. eficiary’s account, while the
opening / issuing bank’s charges
b) The negotiating / advising bank’s will be applied to the account of
charges will be applied to the the party opening the L/C.
beneficiary’s account, while the
opening / issuing bank’s charges d) The negotiating bank must
will be ap plied to the account of the add its confirmation.
party opening the L/C
3.8 Supply FOB Dammam Port, Sea
c) The negotiating bank must add its Shipment (All Destinations)
confirmation.
The value of the L/C will be payable
d) Original documents (the most according to the following terms:
common of which are the
commercial invoice, packing list, Down payment of 25% of the L/C value
and material dispatch note) are to will be paid upon the receipt of the L/C
be hand carried by the truck driver and against presentation of the
and duplicate copies of the same beneficiary’s (Zamil Steel Industries) sight
shall be acceptable for negotiation. draft & commercial invoice to the nego-
tiating bank.
3.7 Supply CFR Destination Port,
Sea Shipment (All Destinations) The balance of the value of the L/C will be
paid against presentation of:
The full value of the L/C will be pay-
able according to the following terms: • Sight draft drawn on th negotiating
bank.
Down payment of 25% of the L/C value
will be paid upon the receipt of the L/C • Commercial invoice.
and against presentation of the
beneficiary’s (Zamil Steel Industries) • Packing list.
sight draft & commercial invoice to the
negotiating bank. • Bill of lading specifying “freight
collect”.
The balance of the value of the L/C will
be paid against presentation of the: • Certificate of origin, in either English
or Arabic, issued by the Saudi Arabian
• Sight draft drawn on negotiating Ministry of Commerce.
bank.
• Trade terms must read as FOB to any
• Commercial invoice. Saudi Port.

• Packing list. Additional Terms:

• Bill of lading. a) Partial shipments must be

• 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.
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.

4 Pre-Engineered Buildings Standard Terms & Conditions of Sale

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 pared by a certified surveyor is sent to
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 or “Approved As Noted”. The second set
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 will not be accepted by Zamil Steel.
charges will be applied to the
beneficiary’s account, while the 4.6 Sets of drawings that are signed and
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
Standard Terms & Conditions of Sale Pre-Engineered Buildings
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-
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”
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
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
5
 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 such a job according to the price rates
assumptions.
b) Design of the primary & secondary
structural framing.
c) Wind bracing design.
d) Column reactions.
6 Pre-Engineered Buildings Standard Terms & Conditions of Sale
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
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
 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 & Material Substitution
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 will recommend to substitute it with an
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.
Standard Terms & Conditions of Sale Pre-Engineered Buildings
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
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
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.
7
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 erection process to proceed smoothly.
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
8 Pre-Engineered Buildings Standard Terms & Conditions of Sale
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
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.
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 Builders, Zamil Steel is not responsible
Contacts) for the quality of erection provided by
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
Standard Terms & Conditions of Sale Pre-Engineered Buildings
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
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
9
 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
10 Pre-Engineered Buildings Standard Terms & Conditions of Sale
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.
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.
Standard Terms & Conditions of Sale Pre-Engineered Buildings
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.
11
 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.

12 Pre-Engineered Buildings Standard Terms & Conditions of Sale

 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 INDUSTRIES
P.O. Box 877, Dammam 31421, Saudi Arabia
Phone (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

Standard Terms & Conditions of Sale Pre-Engineered Buildings 13

HEAD OFFICE AREA OFFICES
Saudi Arabia (Dammam, Riyadh & Jeddah) Kuwait (Kuwait City) Bahrain (Manama) Qatar (Doha)
PO Box 877
UAE (Dubai & Abu Dhabi) Oman (Muscat) Yemen (Sanaa) Jordan (Amman) Syria (Damascus) Iraq (Basra)
Dammam 31421 Bangladesh (Dhaka) Pakistan (Lahore) Sri Lanka (Colombo) India (Chennai & Bangalore) Greece (Athens)
Romania (Bucharest) Hungary (Budapest) Poland (Warsaw) Czech Rep. (Prague) Spain (Madrid) Luxembourg
Saudi Arabia
Egypt (Cairo) Sudan (Khartoum) Libya (Tripoli) Algeria (Algiers) Senagal (Dakar) Ethiopia (Addis Ababa)
Phone (966 3) 847 1840 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)
Fax (966 3) 847 1291
Myanmar (Yangon, Mandalay & Pyinmana) Indonesia (Jakarta & Batam) Philippines (Manila) Laos (Vientiane)
E-Mail pebmarketing@zamilsteel.com Cambodia (Phnompenh) China (Shanghai, Qingdao & Dalian) Japan (Tokyo)

Pre-Engineered Buildings Standard Terms & Conditions of Sale

www.zamilsteel.com January 2010