Common use of Preferred subcontractors Clause in Contracts

Preferred subcontractors. The principle Contractor must ensure that his proposed subcontractor has the following documentation on record (for access by the Employer) before the appointment.  Valid accreditations, authorization and/or Registration necessary to perform the scope  Signed 37.2 agreement between Principle Contractor and Subcontractor  Approved H&S plan for the subcontractor’s portion of the works.  Principle contractor to ensure his subcontractor complies with the construction regulations. Eg. Where security services are subcontracted the Contract is to ensure that Eskom Protective Services department has vetted and approve the security subcontractor before they can be mobilized OR in the case of ▇▇▇▇ clearing, that this appointment is done via relevant Eskom department (Land Development/Environmental)  A signed written contract that clearly outlines the roles and responsibilities of each party - must exist between the principal contractor and sub-contractor/s preferably in the NEC contract.  Subcontractor should submit a valid Tax clearance certificate to the principle contractor.  Subcontractors should comply with relevant requirements of the Skills Levies Act, Unemployment Insurance Fund Act and the Compensation of Occupational Injuries and Diseases Act.  Have the required CIDB grading in place to execute the scope.  Compliance to approved Safety, Health, Environmental and Quality plans The contractor to indicate the percentage of subcontracting, the proposed subcontractors together with their BBBEE statuses, and the sources of assets, goods or services when local content and production criteria are applicable. The NEC system is compulsory for all subcontract documentation. Specify any constraints on how the Contractor is to prepare subcontract documentation, whether use of the NEC system is compulsory or not (compulsory is recommended) and how subcontract tenders are to be issued, received, assessed (using a joint report?) and awarded.

Preferred subcontractors. The principle NEC Engineering & Construction Short Contract refers: Contractors are requested to submit names of proposed “Subcontractors” to be utilized on this project. Contractors are advised that only Eskom Approved Consultants and Contractors who have completed the necessary Eskom Contractor Training & Accreditation may be used. Subcontractor Section of Work to be Subcontracted Vendor No. As per Terms and Conditions of NEC Term Services Contract Tenderers are not allowed to sub-contract more than 25% of the contract value to another enterprise that does not have equal or higher BBBEE status level, unless the intended sub-contractor is an EME that has the capability and ability to execute the sub-contract. None As per Task Order. Defects to be corrected within 1 Week. Material to be procured Locally, from Eskom approved Supplier. As per Task Order. The Contractor must ensure that his proposed subcontractor has adhere the following documentation on record (for access OHSA Act As per Task Order. As per Task Order. As per Task Order. This sub-paragraph may not be required in a service contract or if these matters are dealt with in the general environmental requirements referred to in section 3 above. None Site services and facilities Provided by the Employer) before Employer Security and Site As per Task Order. The Contractor to adhere to Environment Management Act The Contractor to adhere to Eskom life saving rules Site Inspection to be done at the appointmentend of each Task Order.  Valid accreditations, authorization and/or Registration necessary to perform Materials facilities and samples for tests and inspections the scope  Signed 37.2 agreement between Principle Contractor and Subcontractor  Approved H&S plan for the subcontractor’s portion of the worksEmployer are to provide, per core clause 40.2.  Principle contractor to ensure his subcontractor complies with the construction regulations. Eg. Where security services are subcontracted the Contract is to ensure Drawing number Revision Title N/A All contractors must make sure that Eskom Protective Services department has vetted and approve the security subcontractor before they can access Eskom Web page at any given time to get the latest drawings and specifications before commencement of any task. Web Access applications can be mobilized OR in done through the case assistance of ▇▇▇▇▇▇ clearing▇▇▇▇▇▇▇▇ @ 011 629 5266 or ▇▇▇▇▇▇▇▇@▇▇▇▇▇.▇▇.▇▇ I …....………….……do hereby acknowledge having/applied for access to the Eskom Distribution Website with all Distribution Procedures, Standards and Drawings as they will be listed in the index of the Task Order documents. I undertake to study and abide by these requirements at all times. If for any reason I cannot access or open any of the files on the web, I will contact the Employer immediately. Contractors Signature: ……………………………..…………………. Signed at: ................................................ on the …….. day of .......................................... (Hereinafter referred to as Eskom) I, [(name)representing ……………………….............................................................. [insert name of contractor/supplier], do hereby acknowledge that this appointment [insert name of contractor/supplier] is done via relevant Eskom department an employer in his/her own right, with duties as prescribed in the Occupational Health and Safety Act No. 85 of 1993 (Land Development“the Act”), as amended, and agree to ensure that all work will be performed and/or machinery or plant used in accordance with the provisions of the Act. I undertake that [insert name of contractor/Environmentalsupplier] shall strictly adhere to, and ensure that his/her employees adhere to, the provisions of the Occupational Health and Safety Act, 1993 (Act 85 of 1993). I have been provided with SHE specifications for project/service [insert brief and will comply with the requirements set out in these. I accept and agree that the SHE specifications constitute arrangements and procedures between ………………………………………………………….. [insert name of contractor/supplier] and Eskom, which will ensure compliance by [insert name of contractor/supplier] with the provisions of the Act, as contemplated in section 37(2)  A signed written contract that clearly outlines of the roles and responsibilities of each party - must exist Act. This agreement constitutes the sole agreement between the principal contractor parties, and sub-contractor/s preferably no variation, modification, or waiver of any of the provisions of this agreement or consent to any departure from these shall, in any manner, be of any force or effect, unless confirmed in writing and signed by parties, and such variation, modification, waiver, or consent shall be effective only in the NEC contract.  Subcontractor should submit a valid Tax clearance certificate specific instance and for the specific purpose and to the principle contractorextent for which it was made or given.  Subcontractors should comply with relevant requirements This agreement is signed on behalf of the Skills Levies Actparties, Unemployment Insurance Fund Act and each signatory to this warranting that he/she has the Compensation requisite authority to do so. Signed this …………………….. day of Occupational Injuries and Diseases Act……..…………………….... 20 at ………………………………………..…….  Have (Place) (Full name)……………………………………………… (Signature) on behalf of (Supplier/contractor) Contractor Responsible Manager (responsible for signing the required CIDB grading in place to execute the scope.  Compliance to approved Safety, Health, Environmental and Quality plans The contractor to indicate the percentage of subcontracting, the proposed subcontractors together with their BBBEE statuses, and the sources of assets, goods or services when local content and production criteria are applicable. The NEC system is compulsory for all subcontract documentation. Specify any constraints Eskom contract on how the Contractor is to prepare subcontract documentation, whether use behalf of the NEC system is compulsory or not (compulsory is recommendedcontractor) and how subcontract tenders are to be issued, received, assessed (using a joint report?) and awarded.Witnesses

Preferred subcontractors. The principle Contractor must ensure that his proposed subcontractor has the following documentation on record (for access by the Employer) before the appointment.  Valid accreditations, authorization and/or Registration necessary to perform the scope  Signed 37.2 agreement between Principle Contractor and Subcontractor  Approved H&S plan for the subcontractor’s portion of the works.  Principle contractor to ensure his subcontractor complies with the construction regulations. Eg. Where security services are subcontracted the Contract is to ensure that Eskom Protective Services department has vetted and approve the security subcontractor before they can be mobilized OR in the case of ▇▇▇▇ clearing, that this appointment is done via relevant Eskom department (Land Development/Environmental)  A signed written contract that clearly outlines the roles and responsibilities of each party - must exist between the principal contractor and sub-contractor/s preferably in the NEC contractEngineering and Construction Subcontract or Short Subcontract form.  Subcontractor should submit a valid Tax clearance certificate to the principle contractor.  Subcontractors should comply with relevant requirements of the Skills Levies Act, Unemployment Insurance Fund Act and the Compensation of Occupational Injuries and Diseases Act.  Have the required CIDB grading in place to execute the scope.  Compliance to approved Safety, Health, Environmental and Quality plans The contractor to indicate the percentage of subcontracting, the proposed subcontractors together with their BBBEE statuses, and the sources of assets, goods or services when local content and production criteria are applicable. The NEC system is compulsory for all subcontract documentation. Specify any constraints on how the Contractor is to prepare subcontract documentation, whether The use of the NEC system is compulsory or The Contractor shall not (compulsory is recommended) and how subcontract tenders more 30% than a specified proportion of the whole of the contract. Plant & Materials provided “free issue” by the Employer Not applicable Tenderers are to note that some of the works are to be issuedcarried out in existing occupied facilities and work need to planned properly. Eskom Sites have strict entrance requirements which tendering contractors need to comply with. State Restrictions and hours of work may apply on some sites. It is very important that the Contractor keeps records of his people working on the Affected Property, received, assessed (using a joint report?) and awardedincluding those of his Subcontractors. State that the Service Manager shall have access to them at any time. These records may be needed when assessing compensation events.