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Saudi Electricity Company
51'npow.u-ing E.f't>ergy

SCHEPULE "Au
20.6

CONTRACT NO.

31121016/00

limitation of liability
20,6.1

Pamage to or Loss of COMPANY Prooerty

Unless caused by the willful misconduct or gross negligence of
CONTRACTOR or its personnel or its agents or SUBCONTRACTORS,
COMPANY shall release and hold CONTRACTOR harmless for losses,
expenses or damages resulting from any damage to COMPANY
property (other than the PROJECT or part thereof not yet taken
over) to the extent that such damage exceeds the scope or limits of
insurance policies required to be purchased by CONTRACTOR
pursuant to this CONTRACT or any other insurance coverage or
contractual indemnitIes available to CONTRACTOR.

20,6,2

Conseguential Damages
CONTRACTOR, its agents and SUBCONTRACTORS shall not be
liable to COMPANY, nor shall COMPANY be liable to CONTRACTOR,
Its agents and SUBCONTRACTOR, for any consequential damages,
loss of profit and claims for indirect and consequential losses,
whether such liability 15 based, or proved to be based upon any
breach of either Party's obligations under this CONTRACT, or
whether such liability 15 based, or proved to be based, upon any
negligent act or omission of a Party, Its personnel, agents,
appOinted representatives or subcontractors, or whether such
liability is based, or proved to be based, upon tort or operation of
law, provided that this exclusion shall not apply to any obligation
of CONTRACTOR to pay liquidated damages to COMPANY under
this CONTRACT (e.g, Liquidated Oamages for Oelay of PROJECT,
Paragraph 22 of this Schedule 'A") and shall not limit the
responsibility to the deliberate default or negligent misconduct by
the CONTRACTOR.

20.7

CONTRACTOR's Maximum Liability

20.7.1

20,1.2

Unless caused by the Willful misconduct or gross negligence of

CONTRACTOR or its personnel or its agents or SUBCONTRACTORS,
the total liability of CONTRACTOR and its SUBCONTRACTORS to
COMPANY on all claims, whether brought for breach of contract, in
tort, negligence, or any other operation of law, shall not exceed the
CONTRACT Price set forth in the Signature Document and
Paragraph 1.1 of Schedule 'C" of this CONTRACT as may be
modified from time to time, and shall cease at the end of the
warranty obligations of CONTRACTOR under this CONTRACT,
provided that this limitation shall not apply to:
c]

the cost of repairing or replaCing defective material or

eqUipment, and

d]

any obligation of CON7RACTOR to indemnify COMPANY with

respect to patent infringement,

CONT?ACTOR's maximum aggregate liability will not be limited in

the case of liability for third party Injury or death and property
damage or loss caused by acts or omissions of CONTRACTOR or its
personnel or its agents or SUBCONTRACTORS,

A-43
Qurayyah Combined Cycle POWtllT Plant, Extension r [Block 6]

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S"ydl Electricity Company

1Empowerir~

SCHEDUl.E "An

20.7.2

20.8

Energy

CONTRACT NO.

31121016/00

Should legal action be brought under the terms of this CONTRACT

or arise out of the performance of this CONTRACT, COMPANY shall
be entitled to claim against the CONTRACTOR its actual and
reasonable legal fees and costs incurred.

Exclusive Remedies
The remedies set forth in this CONTRACT shall be the sole and exclusive
remedies of CONTRACTOR and COMPANY for their liabilities arising out of
Or in connection with this CONTRACT, despite any remedy otherwise
available at law.

20.9

Mitigation of l.oU or Damage

In all cases, the Party claiming a right to be indemnified under this
CONTRACT shall take ali reasonable measures and endeavour to mitigate the
loss or damage which has occurred or may occur.

21.

Insurance
21.1

Carry and Maintain Insurance at all Tiroes

CONTRACTOR shall, at its own expense, carry and maintain in force at all
times during the performance of this CONTRACT the following insurance
policies:
21.1.1

Comprehensive General Liability Insurance (CGLl

a)

CQVt!rage
Comprehensive General liability Insurance coverage with
limits of no less than twenty million Saudi Riyals (SR
20,000,000) per occurrence for bodily injury, death or
property damage during the performance of the WORK.
CONTRACTOR represents and warrants that the aforesaid
insurance covers, without limitation, 1055 of or damage to
COMPANY's property for which CONTRACTOR is responsible
pursuant to Paragraphs 20.4 and 20.S.1 of this Schedule 'A".

b)

Imm
CONTRACTOR shall carry and maintain this insurance in full
force at all times from the Effective Date of the CONTRACT
through the Preliminary Acceptance of all the PROJECT
PORTIONS and thereafter during the warranty period, and
until CONTRACTOR has fully demobilized from the WORK SITE.

c)

pesignation of COMPANY as Additional Insured in CGL

Comprehensive General Liability Insurance shall deSignate
COMPANY as additional insured as regardsCOMPANY's
liabilities for WORK performed by CONTRACTOR pursuant to
the CONTRACT.
Such policy shall contain a cross-liability clause so that
COMPANY and CONTRACTOR are regarded as third parties to
each other.
A-44

Qurayyah Combined Cycle Power Plant, Extension 1 {Block 61

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..14~Electricity
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SCHEPULE "A"

21.1.2

CONTRACT NO.

31121016/00

CONTRACTOR's All Risk Insurance

a)

Coverage
CON7RACTOR's All Risk Insurance (CAR) coverage for the
entire PROJECT. The sum insured per occurrence shall be no
less than the total CONTRACT P-ice or replacement cost of the
PROJECT and tne cost of removing debris following an insured
loss.

b)

CAR - Policy to be extended to cover In-Land Transit with a

sub-limit of estimated value of items carried at anyone time.

c)

I.IJ:m
CONTRACTOR shall carry and maintain this Insurance in full force
at all times from the Effective Date of the CONTRACT through
the Preliminary Acceptance of all the PROJECT PORTIONS and
thereafter during the warranty period, and until CONTRACTOR
has fully demobilized from the WORK SITE.

d)

peslgnation of COMPANY as Additional Insured In CAR

CONTRACTOR's All Risk Insurance shall designate COMPANY as
additional insured as regards COMPANY's liabilities for WORK
performed by CONTRACTOR pursuant to the CONTRACT.
Such policy shall contain a cross-liability clause so that
COMPANY and CONTRACTOR are regarded as third parties to
each other.

21.1.3

prof. 5ional Indemnity Insurance

CONTRACTOR shall effect and maintain [a single project] Professional
Indemnity insurance from the Effective Date of this CONTRACT until
the date three (3) years from Rnal Acceptance of the WORK in the
names of the CONTRACTOR, its SUBCONTRACTORS and consultants
to indemnify them in respect of their legal liability for Claims made
against them during the period of insurance for any negligent act,
error or omission by the CONTRACTOR, its SUBCONTRACTORS and
conSUltants in the conduct and execution of their professional
activities and duties relating the design and/or supervision of
installation and/or testing and commissioning of the WORK. This
insurance shall be in the amount of SR: 2,000,000 In respect of
each daim and SR: 20,000,000 In the aggregate for all claims
during the period of insurance, and shall be subject to worldwide
jurisdiction. The deductible shall not exceed SR: 25,000 in respect of
each claim or such other amount, which the COMPANY, acting
reasonably, may approve in writing.

21.1.4

Completed Operations Third party liability Insurance

CONTRACTOR shall effect and maintain in the joint names of the
COMPANY, the CONTRACTOR, its SUBCONTRACmRS, and such
other persons or parties as the COMPANY may choose Completed
Operations Third Party Liability insurance from the Effective Date of
this CONTRACT until the date three (3) years from Final Acceptance
of the WORK covering the legal liability of the COMPANY,

A-45
Qurayyah Combined Cycle Power Plant, ExtensIon 1 [Block 6J