B runei Shell P etroleum Com pany Sendirian Berhad

Ampa Fairley Rationalisation Project Document No.

Onshore Compression Plant
EPICOM (Contract #980085/EAF)

o g Nuovo Pignone

OGP and Nuovo Pignone Consortium

Attachment 6
Cost Allocation & Definitions

Revision Record

Revision Revision Description Date of Issue

No.

Rev. Review Approval

No. Originator Process Mech. Elect. Inst. Civil Eng. Project BSP Asset
Manager Manager Custodian

Initial
0

Date

Initial

Date

Initial

Date
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 2 of 20

TABLE OF CONTENTS

1.0 GENERAL........................................................................................................................ 3

2.0 CONCEPT OF COST ALLOCATION..............................................................................3

3.0 DEFINITIONS OF COST ITEMS......................................................................................6

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 3 of 20

1.0 GENERAL

This “COST ALLOCATION AND DEFINITIONS” is prepared for both the INQUIRY and
CONTRACT purposes, and is intended provide the BIDDER with the firm interpretation of the
ACCOUNT CODE cost structure as designed for adaptation to project accounting system, by
classifying various costs charges, expenses, taxes and similar impositions, fees so forth for
various works, services and liabilities involved in construction works into respective cost and
work categories.

This “COST ALLOCATION AND DEFINITIONS” shall be used:

- in the INQUIRY DOCUMENTS –

as the directives to the BIDDER as to how the breakdown of their offer prices should be
made, in order to ascertain that the prices quoted by the respective BIDDERs are properly
categorized in the same manner and broken down as intended and required by BIDDER,
and that, the prices and the breakdown thereof are adequately filled to CONTRACTOR-
furnished “Forms of Proposal” which are attached to the Instruction to Bidders, and

- in the CONTRACT DOCUMENTS –

as an aid to the BIDDER for the invoicing offices in order to ascertain that such offices to
be undertaken the by BIDDER are made properly in accordance CONTRACTOR’s
Invoicing Procedure governing the payments to BIDDER under the CONTRACT, which
Invoicing Procedure is established for individual projects.

This “COST ALLOCATION AND DEFINITIONS” shall constitute part of the INQUIRY
DOCUMENTS in the bidding stage, shall eventually form an integral part of the CONTRACT
DOCUMENTS.

The terms and phases defined in the GENERAL TERMS CONDITIONS and in such other
documents as the SPECIAL CONDITIONS are also used in this document and, unless specific
remark is made herein, it shall be interpreted and construed that they have the respective
meanings assigned them in such documents referred to above.

2.0 CONCEPT OF COST ALLOCATION

The concept of ‘COST ALLOCATION” is as such that is given Fig.- 1: “CONCEPT OF COST
ALLOCATION” which outlines the structure of the CONTRACT PRICE.

As shown in the Figure mentioned above, the CONTRACT PRICE consists of:

- The price for Direct Work and the price for Indirect Work and Expenses

The price for Direct Work is composed of three (3) cost items and the price for Indirect Work and
Expenses consists of nine (9) cost items.

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Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 4 of 20

Fig. - 1 : CONCEPT OF COST ALLOCATION

1.1 Materials
1. Direct a) Materials
Work Price b) Transportation and Insurance, Etc.

1.2 Direct Labour

1.3 Construction Equipment

2.1 Bidder’s Temporary Facilities

a) Construction Facilities
Contract
Price 2.2 Transportation and Insurance
a) Construction Equipment
b) Common Temporary Facilities

2.3 Material Handling and Storing

2.4 Supervision and Administrative Staff

and Labourers
a) Staff
b) Labourers
2. Indirect
Work Price 2.5 Travelling Expenses
and Expenses

2.6 Field Office Expenses

2.7 Home Office Expenses

2.8 Insurance and Taxes

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 5 of 20

3.0 DEFINITIONS OF COST ITEMS

In order to define the respective cost items, the following terms and phrases, mean respectively
as defined below:

1) “Prime cost” means the price, at which the equipment, materials, supplies, commodities,
consumables, utilities or others of the sort are estimated to be sold or supplied to the
BIDDER or are to be sold or supplied to the BIDDER (as Contractor), or the works or
services are estimated to be rendered to the BIDDER, or are to be rendered to the BIDDER
(as Contractor), and in which price, no expenses on the part of the BIDDER (as
Contractor), in respect of purchase or taking out thereof are included.

2) “Overseas purchase” means the purchase of products available in the market in such
countries or areas other than the COUNTRY and includes the activities therefor.

3) “Local purchase” means the purchase of products available in the market in the
COUNTRY and includes the activities therefor.

4) “Staff” means the personnel of management level such as Field Manager, Construction
Manager and Administration Manager plus supervisory staff and other key clerical
personnel who assist such managers as aforementioned.

5) “Labourer” or “Worker” means foreman and skilled, semi-skilled or non-skilled worker of

respective classes up to Foreman, who are engaged in physical, clerical or non-clerical
works or services other than site-management, administrative or supervisory services
undertaken by such staff as referred to in Item 4) above.

6) “Domestic packing” means such types of packing which are intended only for domestic
transportations of cargoes within the country or area of origin or purchase, and does not
means and include any such seaworthy packing suitable for export purposes.

7) “Domestic transportation” means such transportation within the country or area of origin or
purchase, up the port of exit or, in the event of local purchase, from the place of purchase
up to the storage area or warehouse in the SITE.

8) “Export Packing” means such types of packing which are intended for international
transportations of cargoes, whether by land, sea and air, from the port of exit in the country
origin or purchase, to the port of import in other country, and includes containers, whether
owned, non-owned or leased, transportations of cargoes by land, sea or air from country to
another as aforementioned.

The respective cost items in this document represent the categories of the materials, works
services or liabilities and against which, the cost involved therein is respectively set forth. The
summary of the structure of each cost item and the cost involved therein are specifically
described the Attachment “Table of Cost Items” hereto.

The materials, works, services or liabilities enumerate each of the categories are to be taken as
typical examples and are not to be considered to be limited to only those stated therein.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 6 of 20

3.1 Direct Work Cost

“Direct Work Cost” is composed of such costs, expenses charges, taxes and other similar
impositions, fees and so on which are respectively categorized into the following cost items, and
they are:

Cost Item 1.1 - Materials

a) Materials
b) Transportation and Insurance, Etc.

1.2 - Direct Labour, and

1.3 - Construction Equipment,
and, the summary of the structure of each cost and the cost involved therein are specifically
described in the Attachment “Table of Cost Items” hereto.

3.2 Indirect Work Cost and Expenses

“Indirect Work Cost and Expenses” is composed of such costs, expenses, charges, taxes and other
similar impositions, fees and so on which are respectively categorised into the following cost
items, and they are:

Cost Item 2.1 - Common Temporary Facilities

a) Construction Facilities

2.2 - Transportation and Insurance, Etc.

a) Construction Equipment
b) Common Temporary Facilities

2.3 - Material Handling and Storing

2.4 - Supervisory and Administrative

Staff and Labourers
a) Staff
b) Labourers

2.5 - Travelling Expenses

2.6 - Field Office Expenses

2.7 - Home Office Expenses

2.8 - Insurances, Taxes and Duties

and, the summary of the of each cost item and the cost involved therein are specifically described
in the Attachment “Table of Cost Items” hereto.

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Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 7 of 20

CLARIFICATION AND INTERPRETATION

CONTRACTOR reserves the right for making interpretation and/or clarification of this document
or any part hereof. Should there be any ambiguity in this document or any contradiction or
discrepancy between the respective sections of this document or between this document and other
documents forming the INQUIRY DOCUMENTS or the CONTRACT DOCUMENTS as
appropriate, the BIDDER shall be required to notify CONTRACTOR thereof in order to seek
CONTRACTOR’s interpretation and/or clarification. In this connection, the BIDDER shall
observe the relevant provisions of the INQUIRY DOCUMENTS or the CONTRACT
DOCUMENTS as appropriate.

If any BIDDER fails to bring to due attention of CONTRACTOR any of such ambiguities,
contradictions or discrepancies as aforementioned, and if such failure on the part of the BIDDER
eventually results in misinterpretation or non-clarification thereof, and in such a case, although
any necessity for adjustment or correction of the offer price or of the CONTRACT PRICE arises,
CONTRACTOR may require of such BIDDER, to adjust or correct the offer price or the
CONTRACT PRICE and/or the unit rates therefor, and in such an instance, the BIDDER in
question will comply therewith.

Notwithstanding the foregoing, unless such adjustment or correction is to be made in the manner
favourable to the interest of CONTRACTOR, no adjustment or correction shall permitted.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page 8 of 20

Cost Item Sub-Item Category Cost Involved

1.0 DIRECT WORK

PRICE

1.1 Materials a) Materials 1) Major Equipment and Materials - Goods of Overseas Purchase
All major equipment and materials for - Prime cost of goods with domestic
incorporation into the PERMANENT WORKS: packing, if necessary, on ex-works or ex-
warehouse basis.
- For Civil and Building Works
Such equipment as air-conditioning units, - Goods of Local Purchase
ventilation machinery, boilers and such materials as Prime cost of goods with domestic packing, if
cement, gravel, sand, piles re-bars, other steel and necessary, on ex-works or ex-warehouses basis
wooden materials, bricks, tiles, glasses, window plus all costs, charges and expenses required
frames, doors and like others for delivery to the SITE e.g., for domestic
transportation, insurance and so forth.

- For Erection Works

Such equipment as columns, drums, heat-

exchangers, tanks, vessels, pumps, compressors,
blowers, transformers, panels and such materials for
piping, electrical, instrument, insulation and
painting works.

2) Sub-Materials

Sub-materials for incorporation into the

PERMANENT WORKS, such as welding rods,
liners, shim plates, bolts and nuts, gaskets and like
others.
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

1.1 Materials (Cont’d) 3) Direct Temporary Facilities

Direct temporary materials not for incorporation

into the PERMANENT WORKS but necessary for
construction and maintenance of the PERMANENT
WORKS. Such as shuttering materials, scaffolding
and temporary staging materials, jigs, temporary
supports such other materials and tools as required
for workers’ qualification, and like others.

4) Consumable Materials

All such materials of a consumable nature necessary

for construction and maintenance of the
PERMANENT WORKS, such as oxygen,
acetylene, argon, nitrogen and other technical gases,
wire-brushes, vinyl-hose, binding-wire, spacers,
waste cotton cloth, steel and wooden materials for
temporary covering, and like others.

b) Transportation and 1) Transportation - Goods of Overseas Purchase

Insurance Etc.
All transportation of equipment and materials in All costs, charges, expenses, taxes and other
Category 1) of Local Purchase, by sea, land or air, similar impositions, fees and the like incurred
from the place(s) of production or purchase up to from such services and liabilities as referred to
the storage area or warehouse in the SITE, in Categories 1) thru 7) in the left Column,
including loading and unloading works and, if which are required for provision at the SITE of
necessary, lighter services. the materials of Categories 1) thru 4), Sub-Item
a) of Cost Item 1.1 hereof, including such
contingencies as demurrage.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

1.1 Materials (Cont’d) b) Transportation and 2) Export Packing - Goods of Local Purchases
Insurance Etc. (Cont’d)
Export packing, lease or purchase or containers, All costs, etc. of transportation, insurances and
vanning and preparation of packing lists, packing so forth for locally procured materials of
inspection and other relevant miscellaneous works categories 1) thru 4), Sub-Item a) of Cost Item
and services 1.1 hereof, to be included in the prime cost of
such locally purchased goods.

3) Temporary Storage

Te
m
po
rar
y
St
or
ag
e
Temporary storage at bonded areas and other
storage areas such as warehouse and container-yard

4) Insurances
FOB Insurance and All Risks Marine Cargo
Insurance including, if necessary, such special
clauses as Deferred Unpacking Clause required to
cover the damage to or loss of cargoes in transit.

5) Customs Clearance Insurance, Etc.

Ex-im declarations or licenses, cargo inspections,
customs clearance and so forth.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

6) Taxes and Duties

Ex-in custom duties and such other associate taxes
as Import Sales Tax.

7) Others
Any and all other services related to the above

1.2 Direct Labour Direct labour - Salaries and wages such as basic salary
Foremen; skilled, semi-skilled and non-skilled and wage, overtime payment, bonus, other
workers and common workers; machinery regular remuneration and discharge
operators; vehicle drivers; workers of other types or payment
disciplines, excluding supervisors and such other
non-direct work personnel engaged in management - Allowances such as site allowance, or
and administration, for such works as mentioned living expense, commuting charge, leave
below: allowance and other fringe benefits.

1) Direct Works - Expenses for worker recruitment, for

qualification and training of workers,
Works of a direct nature required for or associated including safety training, for acquisition of
with construction and maintenance of the work permits; residence permits and other
PERMANENT WORKS. permits necessary for workers to stay and
work in the COUNTRY and such other
associated services.

2) Direct Temporary Works - Taxes such as personal income tax

regional tax and such other similar levies
Temporary works of a direct nature required for or individually imposed on staff and workers.
associated with set-up, dismantling and removal of
scaffolding and temporary staging, safety net, fire - Insurance applied to staff and workers,
protection screen, soundproofing or anti-spray wall, such as social insurance, medical
temporary supports and foundations and so forth. insurance, and unemployment insurance.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

3) In-Site and Inter-Site Transportation - Expenses for such services as

transportation of staff and workers to and
In-site transportation and, in case of more than one from accommodation, between work-sites,
site at separate locations, inter-site transportation of first-aid and other medical services,
personnel and workers, of the EQUIPMENT and recreation and other welfare scheme and so
MATERIALS, and of equipment and materials on.
supplied by the BIDDER, from storage area
1.1 Direct Labour to the worksite, including provision of temporary - Food allowance
(Cont’d) protection, if necessary during such in-site or inter-
site transportation
4) Machinery Operation
Operation of the CONSTRUCTION EQUIPMENT,
including in-site and domestic transportation from
depot to work-site and vice versa and, in case of
more than one site at separate locations, inter-site
transportation

1.3 Construction 1) Construction Equipment - Construction Equipment

Equipment

- For Civil Works and Building Works Cost for depreciation or rental of such
equipment and cost of unpacking and
Such equipment as bulldozers, cranes, back-hoes, assemblage, fuels and lubricants, maintenance
power shovels, dump trucks, scrapers, pickups, pile and repairs, spare parts and consumables,
drivers, concrete batching plant, pile cutters, disassembling, taxes other than import duties if
concrete mixers, belt conveyors, concrete pump applied, insurance other than transportation
cars, vibrations, rammers, concrete breakers, transit insurance, and all other costs, etc. for having
and other such measuring instruments, testing construction equipment available at the SITE,
equipment and like others. but excluding the cost, etc. for transportation as
per Sub-Item (a) of Cost Item 2.2. hereof.

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

- For Erection Works

Such equipment as cranes, winches, forklifts, gin-

poles, hoists, welding machines, shot blasting
machines, levels, welding machines, radiographic
equipment, shims and packing, transit and other
such measuring instruments, testing equipment and
like others.

1.3 Construction 2) Tools and Machinery

Equipment (Cont’d)
Such tools as chain-blocks, gas torches, electric - Tools and Machinery
portable drills, hammers, torque wrenches,
hydraulic bolt tensioners, bolt thread cutters, Prime cost of tools and machinery, and
scoops, carts, sleepers and other hand tools cost of unpacking and, as needed of repairs
including such personal safety equipment as and, if applicable, of insurances other than
helmets, protective clothes, goggles, masks, safety required for transportations.
shoes, life belts and like others and such machinery
as portable submergible drain pumps, chain-saws,
expanders ad like others including accessories.
2 INDIRECT WORK PRICE
& EXPENSES
2.1 Bidder’s Temporary a) Construction Facilities 1) Buildings - For Building
Facilities
Such temporary buildings as field office, Cost of depreciation or rental of such
prefabrication and other workshops, warehouses, temporary buildings, and cost of such works as
guard huts, workers rest houses, parking sheds, excavation, ground levelling, of unpacking and
sanitary pipework and sewage treatment, latrines at set-up, of maintenance and repairs, of removal
work-site, first aid quarters, canteens and so forth. and reinstating the area after removal, and cost
of such equipment as air-conditioners, water
boilers, sanitary facilities, and other auxiliary

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

equipment and facilities.

2) Other Facilities - For Other Facilities

Such facilities as storage area including lighting and Prime cost of materials, cost of such works as
fencing, and such other facilities as temporary excavation, ground levelling, back-filling an
roads, bridges and jetties, utility receiving and other earthwork, cost for piping and wiring,
distribution facilities, parking lots and like others. cost for provision of lighting facilities and
fences, cost of removal and cost of reinstating
the area after removal, and so forth.

2.1 Common Temporary 3) Installations - For Installations

Facilities (Cont’d)
Such installations as safety nets, fire screens, dust Prime cost of materials, cost of fabrication and
screens, barricades, safety and traffic signboards, set-up, including earthwork. If necessary, and
warning signboards and lights, and so forth cost for removal and disposal after use, and like
others.

Note:
All costs, etc. of the necessary insurances other
than related to transportations of construction
facilities, are to be respectively included in
each of the above costs.

2.2 Transportation and a) Construction Equipment 1) Transportation - Good of Overseas Purchase

Insurance, Etc. All costs, charges, expenses, taxes and other
All transportation of construction equipment, other similar impositions, fees and the like incurred
than ones locally purchased, as per Categories 1) from such services and liabilities as referred to
and 2) of Cost Item 1.3 hereof, by sea land or air, in Categories 1) thru 7) in the left Column,

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

from place(s) of manufacture, storage or purchase which are required for provision at the SITE of
up to depot in the SITE, including lighter services the construction brought from outside the
as necessary. COUNTRY, composed of those in Categories
1) and 2) of Cost 1.3 hereof, including such
contingencies as those of demurrage.

2) Export Packing

Same as in Category 2), Sub-Item b) of Cost Item - Goods of Local Purchase

1.1 hereof
All costs, etc. of transportation insurance’s and
3) Temporary Storage so forth for the locally purchased construction
equipment composed of those in Categories 1)
Same as in Category 2), Sub-Item b) of Cost Item and 2) o Cost Item 1.3 hereof, are to the
1.1 hereof included in the prime cost of such goods.
2.2 Transportation and a) Construction Equipment 4) Insurance
Insurance, Etc. (cont’d)
Same as in Category 4), Sub-Item b) of Cost Item
1.1 hereof

5) Custom Clearance

Same as in Category 5), Sub-Item b) of Cost Item

1.1 hereof

6) Taxes and Duties

Bond charges concerning items to be re-exported

and ex-im customs duties for items not to be re-
exported, including such other associated Tax as
Sales Tax and Import Sales Tax.

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

7 Others -

Same as in Category 7), Sub Item b) of Cost Item

1,1 hereof

b) Common Temporary 1) Transportation - Goods of Overseas Purchase

Facilities
All transportation of common temporary facilities, All costs, charges, expenses, taxes and other
other than ones locally purchased, as per Sub-Items similar impositions, fees and the like incurred
a) and b) of Cost Item 2.2 hereof, by sea, land or from such services and liabilities as referred to
air, from place(s) of manufacture, storage or in Categories 1) thru 7) in the left Column,
purchase up to depot in the SITE, including lighter which are required for provision at the SITE of
services as necessary the common temporary facilities composed of
those in Categories 1) thru 3) of Sub-Item a)
and in Categories 1) thru 3) of Sub-Item b) of
Cost Item 2.1 hereof, including such
contingencies as those for demurrage.
2.2 Transportation and b) Common Temporary 2) Export Packing
Insurance, Etc. Facilities (Cont’d) - Goods of Local Purchase
(Cont’d) Same as in Category 2), Sub-Item b) of Cost Item
1.1 hereof

3) Temporary Storage All costs, etc. of transportations, insurances and

so forth for the locally purchased common
Same as in Category 3), Sub-Item b) of Cost Item temporary facilities composed of those in
1.1 hereof Categories 1) thru 4) of Sub-Item a) and in
Categories 1) thru 3) of Sub-Item b) of cost
Item 2.1 hereof, are to be included in the prime
cost of such goods.
4) Insurance

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

Same as in Category 4), Sub-Item b) of Cost Item

1.1 hereof
5) Customs Clearance
Same as in Category 5), Sub-Item b) of Cost Item
1.1. hereof

6) Taxes and Duties

Bond charges for items to be reexported and ex-im
customs duties for items not to b reexported,
including such other associated taxes as Import
Sales Tax

7) Others
Same as in Category 7), Sub-Item b) of Cost Item
1.1 hereof
2.3 Material Handling and 1) Manpower - Manpower
Storing All manpower directly involved in Material
Handling and Storing services, including All such salary and wage, allowance, tax,
supervisory and other administrative staff and such insurance and other expenses as itemised in
workers as machinery operators, vehicle drivers and Cost Item 1.2 hereof.
other physical workers.
2) Equipment - Equipment

Such equipment as mobile cranes, forklifts, trucks, All such costs, etc. incurred from making
pickups an other machinery for lifting works necessary equipment and machinery available
necessary for Material Handling and Storing for Material Handling and Storing services, as
services, including provision of non-consumable itemised in Cost Item 1.3 hereof.
materials such as pallets and wooden saddles.

3) Consumables - Consumables

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 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

Such consumables as fuels and lubricants for the Prime cost of necessary of goods and tool of a
equipment and machinery used for Material consumable nature, including costs, etc. for
Handling and Storing services, and other goods, transportations up to the SITE.
tools or materials whatsoever of a consumable
nature.

4) Others - Others

All supporting services such as unpacking All costs, etc. required for such works and
inspections, making reports or claims to the services as referred to in the left Column.
insurer(s), all miscellaneous works such as return of
containers or disposal of discarded packing
materials and so forth.
2.4 Supervisory and 1) Staff - Staff
Administrative Staff All such staff personnel for site management and
and Labourers administration, subcontractor coordination, safety All such salary and wage allowance; tax,
control, schedule control, quality control, worker insurance and other expenses itemised in Cost
training, accounting, purchasing and other Item 1.2 hereof
managerical works and services including senior
personnel of management level other than Home
Office personnel, and for supervision of direct
construction works excluding works involved in
setting up of Common Temporary Facilities in Cost
Item 2.1 hereof and in Material Handling and
Storing services in Cost Item 2.3 hereof.
2) Labourer - Labourer

All such office workers as clerks, accountants, Same as “Staff” indicated above
typists, interpreters and like others and all such non-
clerical workers or indirect labourers as car-drivers,
guardsmen, office boy or maid if any, and so forth.

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

2.5 Travelling Expenses a) Staff 1) Domestic Travel - Domestic Travel

Travel by sea, land or air, from point of departure All such expenses for domestic travel as fares,
up to international seaport, railway station or airport travel allowances, hotel charges, meal charges
designated for embarkation and vice versa, and like others, including Prepare-for-Travel.
including stopover at point(s) of connection. Allowance and any other allowances etc.
payable to employees

2.5 Travelling Expenses a) Staff 2) International Travel - International Travel

(Cont’d)
Travel by sea, land or air, from international All such expenses for international travels as
seaport, railway station or airport of embarkation up fares, excess baggage charges, travel
to international seaport, railway station or airport allowances, hotel charges, airport tax and like
designated as disembarkation point nearest to the others
SITE and vice versa, including stopover at point(s)
of connection.

3) Local Travel Local Travel

Travel by sea, land or air, from international All such expenses for local travel as fares,
seaport, railway station or airport designated for travel allowances, hotel charges, meal charges,
disembarkation up to the SITE and vice versa. excess baggage charges, airport tax and like
others
Travel Documents Travel Documents
4)
Provision or acquisition of passports, embarkation All such expenses necessary for acquisition of
permits, if necessary, any visas good for entry into passports, embarkation permits, entry visas and
the COUNTRY. like others

Others Others

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

5)
All necessary applications or declarations in respect All such expenses necessary for making
of travel from home country to the COUNTRY and applications or declarations in respect of travel
of long term stay therein, compliance with medical from home country to the COUNTRY, for
requirements such as vaccination and acquisition of vaccination and its certificate, for travel
vaccination certificates, if necessary, and all other insurance and for like others
services or procedures required to travel to the SITE
and such other liabilities as travel insurance
2.5 Travelling Expenses b) Labourer 1) Domestic Travel - Domestic Travel
(cont’d)
Same as in Category 1), Sub-Item a) of Cost Item Same as in Sub-Item 1) of Cost Item 2.5 hereof
2.5 hereof

2) International Travel - International Travel

Same as in Category 2), Sub-Item a) of Cost Item Same as in Sub-Item a) of Cost Item 2.5 hereof
2.5 hereof

3) Local Travel - Local Travel

Same as in Category 3), Sub-Item a) of Cost Item Same as in Sub-Item a) of Cost Item 2.5 hereof
2.5 hereof

4) Travel Documents - Travel Documents

Same as in Category 4), Sub-Item a) of Cost Item Same as in Sub-Item a) of Cost Item 2.5 hereof
2.5 hereof
5) Others - Others

Same as in Category 5), Sub-Item a) of Cost Item Same as in Sub-Item a) of Cost Item 2.5 hereof
2.5 hereof

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

2.7 Field Expenses 1) Field Office Operation - Travelling Expenses

Such expenses for business trip of staff and
Any and all costs, etc, associated with operation of workers in the COUNTRY or to the
field office and liaison office, if any country (ies) in its neighbourhood.

- Social Expenses
All such expenses required for ceremonies
and such entertainment as receptions and
other social gatherings and events,
including donations to local organisations,
and like others.

- Communications Expenses
Such charges and expenses required for
such local and international
communications as mail, telex, telephone
and cable, including such cost for
installation of telex and telephone
facilities.

2.6 Field Expenses - Printing and Copying Expenses

(Cont’d) Such expenses required for printing, copying or
reproduction of drawings, specifications and
other documents, including costs for
typewriting and word-processing services by
others, and for photocopying and cost of books,
office supplies an stationery, and subscription
of magazines and newspapers.
Public Relations Expense associated with
advertisement and public relations, excluding
advertisement, etc. for recruitment of labourers.
- Bond Charges

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

Such charges and fees for provision of bonds

and securities required for the WORKS.

- Commuting Expenses
Fares of taxi, bus, railway and other public
transportation services for commuting of field
office personnel and indirect workers to and
from SITE

- Welfare and Well-being Expenses

Such expenses associated with labour relations,
provision of amusement facilities and events,
and with health keeping medical services.

2.7 Field Expenses 1) - Utilities Charges

(Cont’d)
Such charges for supply of fuels and utilities

- Cost of Office Furniture and Equipment

Cost and/or rent of such office furniture and

equipment as desks chairs, file cabinets,
lockers, copy machines, calculation typewriters
computers, portable heaters, fans and like
others.

- Depreciation Cost

Cost of depreciation of fixed assets used for

operation of field office and liaison offices, if
any, including land rents.

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

- Miscellaneous Expenses and Charges

Cost of fuels and lubricants for vehicles for

office use, repair and maintenance, and charges
or fees for services by lawyers, public
accountants, interpreters, translators and for
remittance and other monetary transactions and
any other costs, charges, etc. for miscellaneous
works and services in connection with
operation of field office and liaison office, if
any.
2.7 Field Expenses 2) Taxes, Insurances, Etc. - Taxes and Other Impositions
(Cont’d)
Any all taxes, duties and other impositions required Such taxes and impositions as stamp duty
for or in connection with, and such cost for taking associated with subcontract service contracts,
out and maintenance of necessary insurances related purchase orders, rental agreements and like
to operation of field office and liaison office, if any others entered into by field office, and such
other taxes imposed on vehicles not categorised
as the CONTRUCTION EQUIPMENT.

- Insurances

Such insurances as fire insurance, burglary

insurance, automobile and automobile liability
insurances for use of such vehicles not
categorized as the CONSTRUCTION
EQUIPMENT, fidelity guarantee insurance and
other insurances not covered under other cost
items.

- Others

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

Any other costs, etc. required for or in

connection with operation of field services and
facilities.
2.8 Home Office 1) Home Office Operation - Travelling Expenses
Expenses Same as in Cost Item 2.7 hereof.
Any and all costs, etc. associated with operation of
Project Home Office. - Social
Same as in Cost Item 2.7 hereof.

- Communications Expenses
Same as in Cost Item 2.7 hereof.

- Printing and Copying Expenses

Same as in Cost Item 2.7 hereof.

- Public Relations Expenses

Same as in Cost Item 2.7 hereof.

- Bond Charges
Same as in Cost Item 2.7 hereof.

- Office Man-Hour Cost

All man-hour cost required for or in connection
with project coordination works at Home
Office.

- Commuting Expenses
To be included in Office Man-Hour Cost
mentioned above.

/conversion/tmp/activity_task_scratch/656279641.doc
 Ampa/Fairley Rationalisation Project Originator: Document No
Onshore Compression Plant Revision No
EPICOM (Contract #980085/EAF) Colin Boggon
Attachment 6 Approved by: Date 25 August 2000
Cost Allocation & Definitions Gerry Vogt Page of 20

Cost Item Sub-Item Category Cost Involved

- Welfare and Well-being Expenses

To be included in Office Man-Hour Cost
mentioned above.

2.8 Home Office - Depreciation Cost

Expenses (Cont’d) To be included in Office Man-Hour Cost
mentioned above.
- Miscellaneous Expenses and Charges
Same as in Cost Item 2.7 hereof, but limited to
only such expenses incurred from the project
coordination works at Home Office, including
license fee, royalty and agent fee directly
associated with the CONTRACT.

2) Taxes, Insurances, Etc. - Taxes and Other Impositions

Any and all taxes, duties and other impositions Such taxes and impositions as stamp duty
required for or in connection with, and such cost for associated with the CONTRACT, subcontracts,
taking out and maintenance of necessary insurances service contracts, purchase orders, rental
related to project coordination works at Home agreement and like others entered into by
Office. Home Office with regard to implementation of
the CONTRACT.

/conversion/tmp/activity_task_scratch/656279641.doc