SUMED CONTRACT DEP

ARAB PETROLEUM PIPELINES CO.“SUMED”

Contracts Department
431 ElGeish Ave – Loran – Alexandria
Tel: 5842308 – 5821716
Fax: 5849671

Tender For
Implementation of SUMED ERP
System
No. (21/2023).

Cont.N
INSTRUCTIONS TO TENDERERS SUMED

TABLE OF CONTENTS

VOLUME I
4B

INSTRUCTIONS TO TENDERERS
0B

VOLUME II
5B

TENDER CONDITIONS
6B

EXHIBIT “A”
1B TECHNICAL CONDITIONS AND SCOPE OF WORK

EXHIBIT “B” GENERAL CONDITIONS

2B

EXHIBIT “C” FINANCIAL CONDITIONS

3B

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INSTRUCTIONS TO TENDERERS SUMED

VOLUME I

INSTRUCTIONS TO TENDERERS

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INSTRUCTIONS TO TENDERERS SUMED

TABLE OF CONTENTS

ITEM

1 CORRESPONDENCE DURING TENDER PERIOD

2 SUBMISSION OF TENDERS

3 TENDERING DATE

4 PRE-TENDER CLARIFICATION

5 ADDENDA TO TENDER DOCUMENTS

6 EXAMINATION OF TENDER DOCUMENTS

7 BID BOND

8 PERIOD OF TENDER VALIDITY

9 CLARIFICATION OR ALTERNATION OF TENDER

10 TENDERER PREQUALIFICATION

11 TENDER CANCELLATION AND SUMED’S RIGHT OF

REJECTION

12 INFORMATION AND DOCUMENTS TO BE SUBMITTED

BY TENDERER IN THE TENDER.

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INSTRUCTIONS TO TENDERERS SUMED

INSTRUCTIONS TO TENDERERS

1 CORRESPONDENCE DURING TENDER PERIOD

9B

Tenderer must direct all questions and correspondence from the date of issuance of the
tender documents until the signature of the Contract as follows:
ARAB PETROLEUM PIPELINES COMPANY “SUMED’
431AL-GEISH AVENUE, LOURAN,
BOX 158 AL-SARAY
ALEXANDRIA, EGYPT.
Attention: CONTRACTS & PURCHASING GENERAL MANAGER
Tel. (203) 5821717 - 5821716
Fax. (203) 5849671

2 SUBMISSION OF TENDER

Tenderer must submit a sealed tender to the ARAB PETROLEUM PIPELINES

COMPANY “SUMED” referred herein as “SUMED” no later than the date and the
hour specified in the Article (3) “Tendering Date” of these instructions.

The tender shall be in original and three copies and in two sealed envelopes titled as
follows:
A “Technical Part”
B “Price and Financial Part”

The technical part should include a complete signed and unpriced copy of the tender
documents and the Bid Bond plus all technical information required in the tender
documents.
The technical part should not, in any way, include any prices and/or quotations or
reference to any of them.

The financial part should include only the prices & financial conditions.
The financial part should not in any way contain any clarification or discrepancy of
whatsoever kind which is not mentioned in the technical part.
The financial part shall be considered as an integral part of the technical part.
The tender should be addressed to SUMED & below the address the following must be
written in bold letters “Implementation of SUMED ERP System” No. (21/2023).

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INSTRUCTIONS TO TENDERERS SUMED

The following offers will not be considered:

2-1 Unsealed, partial or incomplete offers.
2-2 And/or offers not accompanied with the bid bond.
2-3 And/or offers not accompanied with a copy of all SUMED’s tender documents
duly signed by the tenderers.
2-4 And/or offers received after the due date and or/time.
2-5 And/or offers not in two sealed envelopes titled and distributed as mentioned
hereinbefore.
2-6 And/or offers their financial part are not based on their technical part without any
deviation.
2-7 And/or offers not including all information requested In the tender documents.

3 TENDERING DATE
7B

Tenders shall reach SUMED no later than Sunday 1/10 /2023 AT 12:00 PM by the date
and time stated above. Tenders received after the expiration of the tendering date will be
discarded.

4 PRE-TENDER CLARIFICATION
8B

4-1 If the Tenderer may have any clarification to the tender documents.
It should be submitted to SUMED before the tendering date with a
reasonable time (5 working days at least).

4-2 In case the tenderer, during its visit to the work site, intends to raise any
clarification or questionnaires to SUMED, the tenderer should submit to SUMED
the name of its authorized representative and its proposed schedule for visits and
its clarification 5 working days before the date of visit.

4-3 Modification to the Tender Document which may result from questionnaires and
clarifications of the Tenders or modification done by SUMED will be provided to
all TENDERERS by means of an addendum.

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INSTRUCTIONS TO TENDERERS SUMED

5 ADDENDA TO TENDER DOCUMENTS

At any time prior to the Tendering date, SUMED may issue an addendum in writing
to all Tenderers to whom the Tender Documents has been issued. The addendum may
delete, vary or add to any part of the Tender Documents or, if necessary, postpone
tendering date.
Should there be any doubt or discrepancy or inconsistency between the different
sections of the Tender Documents, or to any work to be done or to any other matter
or thing, Tenderer must set forth such doubt or obscurity or inconsistency in writing
and submit the same to SUMED. Unless the modification to the Tender Documents
is in the formal manner described above, no representation or explanation to
Tenderers shall be considered valid or binding on SUMED as to the meaning of
anything connected with the Tender Documents or the works.

6 EXAMINATION OF TENDER DOCUMENTS

Any Tenderer planning to submit a Tender is responsible for examining with

appropriate care the complete Tender Documents and all addenda and is also
responsible for satisfying itself with respect to all conditions which might in any way
affect the cost or the performance of the works.

Failure to do so will be at the sole risk and responsibility of Tenderer and will not in
any way relieve the Tenderer from his obligations and/or commitments in the Tender.

7 BID BOND
Every Tender must be accompanied by a BID BOND equal to 22000 USD
(Only twenty two thousand US Dollars). The BID BOND will be in the form of a
bank letter of guarantee or accepted banker’s cheque. Letter of Guarantee to be issued
from a first Class Bank in Egypt or Endorsed Thereof. The expiration date of the bid
bond shall be 1/ 2 /2024. The Tender will not be considered unless accompanied by
the BID BOND in the technical part.
If Tenderer withdraws the Tender, in whole or in part, before the expiration of the
Period of Tender Validity, the BID BOND shall be forfeited without any notice or
legal process. In the event SUMED requests Tenderer to extend the validity of its
Tender beyond the Period of Tender Validity, Tenderer may refuse to extend the
Period of Tender Validity and may recover the BID BOND in which case its Tender
shall become null and void.
But if Tenderer agrees to extend the Period of Tender Validity without modifying its
Tender, Tenderer shall be deemed to have also agreed to the validity of the BID BOND
until such period as specified in the request.
Notwithstanding the provisions of the preceding paragraph, BID BOND pertaining to
the rejected Tenders will be returned to the respective Tenderers after the expiration
of period of Tender Validity without need for any request on Tenderer’s part.
The BID BOND may also be returned prior to the expiration of the Period of Tender
Validity, in case the successful bidder is chosen.

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INSTRUCTIONS TO TENDERERS SUMED

The successful Tenderer shall extend the validity of the BID BOND till it submit the
contractual performance bond.
In case of the BID BOND will be in the form of a bank letter of guarantee it should
be as the specimen attached in financial conditions.

8 PERIOD OF TENDER VALIDITY

Tender shall be irrevocable, binding and remain in full force for acceptance for 120
consecutive days from the date fixed for Tendering described in the article titled
“Tendering Date” of these instructions.
It is SUMED’s intent to award the Contract to successful Tenderer within the above
specified period of Tender Validity.

However, should any extension of the period of Tender Validity be required,

SUMED will request such extension from all Tenderers. Tenderer will have the right
to refuse to grant such an extension without forfeiting its BID BOND. The tenderer
willing to extend the period of validity of its tender will not be permitted to modify
its Tender.

9 CLARIFICATION OR ALTERNATION OF TENDER

Any non-responsive Tender will be rejected by SUMED.

No Tenderer shall be permitted to modify non responsive Tender after the Tender has
been submitted to SUMED. However, SUMED may request Tenderer to clarify its
Tender as long as no material modification is made.

10 TENDERER PREQUALIFICATIONS

The Tenderer should submit with his tender his prequalification documents which
should include:

10-1 Official copy of the act for establishing the tenderer organization, statues and
registration and all other identification documents and information about tenderer.

10-2 Present qualifications and past experiences for similar projects completed within the
last 5 (five) years in details.

10-3 Copy of the tenderer tax card and copy of the registration documents of the tenderer
in Egypt (if any).

10-4 Copy of the Contractor’s VAT registration Certificate.

10-5 Copy of the Contractor’s registration in the Electronic tax invoice system.

10-6 Tenderer address in Egypt for correspondence (if any).

10-7 The tender must be accompanied by duly authenticated copies of the documents
defining the constitution of the Tenderer, Power of attorney and other relevant

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INSTRUCTIONS TO TENDERERS SUMED

documents, so as to show by what persons and in what manner contracts may be

entered into by/or on behalf of the Tenderer, signatures of the persons allowed to
sign on behalf of the Tenderer must put on the same authenticated extract of the
constitution and power of attorney.

11 TENDER CANCELLATION AND SUMED’S RIGHT OF REJECTION

SUMED has the right to cancel the tender completely and/or to reject any offer
without need to give any justification.

12 INFORMATION AND DOCUMENTS TO BE SUBMITTED BY

TENDERER IN THE TENDER

12-1 In the technical envelope

12-1-1 Acceptance of tenderer for all contract documents and tenderer compliance
without any deviation or exclusion to them. Tenderer shall submit with the
offer all pages of the bid invitation signed for acceptance by him.

12-1-2 Details of the proposed site organization including supervisory staff and
brief past histories of key personnel.

12-1-3 Preliminary execution plan procedure and schedule for each activity
showing their scheduled sequence of occurrence.

12-1-4 Details and particulars of proposed sub-contractors for those parts of the
work that tenderer intends to Subcontract complete with their reference list
for similar projects.

12-1-5 Copy of Contractor’s tax card and Commercial Registration.

12-1-6 Copy of Contractor’s VAT registration Certificate.

12-1-7 Copy of Contractor’s registration in the Electronic Tax Invoice System.

12-1-8 Project procedure manual, daily report form to be presented.

12-1-9 The Bid Bond.

12-1-10 Tenderer prequalification and references.

12-1-11 Tenderer Bank details.

12-2 In the financial envelope

12-2-1 The contract price and financial conditions.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

VOLUME II
EXHIBIT “A”
TECHNICAL CONDITIONS
AND
SCOPE OF WORK
TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
TABLE OF CONTENTS

1. Introduction
1.1. Current Legacy Systems
1.2. Custom Modules
2. General Requirements
2.1. Software Installation
2.2. Database Administration
2.3. Operating System
2.4. Hardware
2.5. WRICEF
2.6. Data Migration Scope
2.6.1. Master Data
2.6.2. Open Transaction Data
2.6.3. Exclusion Data Migration
2.7. Hyper Care
2.8. Support & Training
2.9. Approvals
2.9.1. Initial Approval
2.9.2. Final Approval
2.9.3. Initial Receipt
2.9.4. Final Receipt
3. Project Duration
4. Project Warranty Period
5. Insurance Policy and Performance Bond
6. Clarification Meetings
7. Finance & Controlling “FICO”
7.1. Accounts’ Payables AP
7.1.1. Introduction
7.1.2. Current Process
7.2. Accounts’ Receivable AR
7.2.1. Introduction
7.2.2. Work Flow
7.2.3. Requirements
7.2.4. Reports Required
7.3. Trade Finance Work Flow & Process
7.3.1. Introduction
7.3.2. Work Flow
7.3.3. Requirements
7.3.4. Reports Required
7.4. Fixed Assets
7.4.1. Introduction
7.4.2. High level Design
7.4.3. Future Process Model
7.4.3.1. Process Step Catalogue For Manual Asset Addition
7.4.3.2. Process Step Catalogue For Capitalize CIP
7.4.3.3. Process Step Catalogue For Asset Retirement
7.4.3.4. Process Step Catalogue For Asset Transfers
7.4.3.5. Process Step Catalogue For Asset Financial Adjustment
7.4.3.6. Process Step Catalogue For Asset Reclassification
7.4.3.7. Process Step Catalogue For Physical Count (REQ: Best Practice)
7.4.3.8. Process Step Catalogue For Period End Closing
7.5. Cash Management / Treasury CM
7.5.1. Introduction
7.5.2. Work Flow
7.5.3. Requirements
7.5.4. Reports Required
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
7.6. General Ledger
7.6.1. Introduction
7.6.2. GL Design
7.6.3. GL Process Model
7.6.4. GL Design Details
7.6.5. Calendar
7.6.6. Currencies
7.6.7. Ledgers
7.6.8. Journal Sources
7.6.9. Journal Entries Balance Types
7.6.10. Journal Transactions
7.6.11. Period End/Year End Close
7.6.12. Budget
7.6.13. Process Descriptions For General Ledger
7.6.13.1. Maintain Chart of Accounts
7.6.13.2. Create and Post Sub Ledgers Journals
7.6.13.3. Create and Post Manual Journals
7.6.13.4. Create and Post Recurring Journal
7.6.13.5. Period End Closing
7.6.14. GL Future Process and Expected Features
7.6.15. Requirements
7.7. Budgeting & Funds Management
7.7.1. Introduction
7.7.2. Work Flow
7.7.3. Requirements
7.7.4. Examples For Reports Required
7.8. SUMED Pension System (Custom Module)
7.8.1. Process
7.8.2. Requirements
8. Human Capital Management
8.1. Personnel Administration
8.2. Organizational Management
8.3. Time Management
8.4. Insurance Policy Calculations (Custom Module)
8.4.1. Process
8.4.2. Requirements
8.5. Medical System (Custom Module)
8.5.1. Process
8.5.2. Requirements
8.6. Self Service
8.7. Payroll
9. Sourcing & Procurement
9.1. Particular Scope of Work / Obligations
9.2. Contracts Management
9.2.1. Service Request
9.2.2. Invitation to Bid
9.2.3. Contract Execution
9.3. Purchasing Management
9.3.1. Purchase Requests
9.3.2. Request For Quotation
9.3.3. Purchase Orders
9.3.4. Expedite Process
9.3.5. Receiving and Claims Management
9.3.6. Supplier Management
9.3.7. Invoice Management
9.4. Inventory Management
9.4.1. Inventory Transactions (Receipts, Issue, Transfer and Return)

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
9.4.2. Periodic Inventory Count Committees
9.5. Logistics Management (Custom Module)
9.5.1. Process
9.5.1.1.Shipments Under the Name of SUMED
9.5.1.2.Ex-works Shipments
9.5.1.3.Usage/Transfer Material Between SUMED Sites
9.5.1.4.Re-export of Materials
9.5.1.5.Ban Removal Process
9.5.1.6.SUMED Airport Account in Customs
9.5.1.7.Logistics Contractor Invoices and Other Financial Claims
10. Enterprise Asset Management
10.1. Plant Maintenance
10.1.1. Environment, Health and Safety (EHS)
10.1.2. Risk Assessment
10.1.3. Occupational Health
10.1.4. Audit Management
10.2. Management of Change
10.2.1. Environment Management
10.2.2. Health & Safety
10.2.3. Incident Management
10.2.4. Isolation Certificate / LOTO
10.2.5. Mechanical Isolation / LOTO
10.2.6. Impairment
10.2.7. Defeat / Override
10.2.8. KPI
11. Project & Portfolio Management
11.1. Portfolio System – Enterprise Projects
11.2. Portfolio & Project Management PPM
11.3. Commercial Project Management CPM

Appendix A: Licenses Bill of Material

Appendix B: SAPs
Appendix C: Temporary HW Configuration

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

1. Introduction

SUMED wants to implement a complete ERP, thus migrating all its current systems into one
Single SAP platform and pursuing with the automation of the rest of business processes.
Current systems all function well still like separated islands, interface between the systems takes
place to overcome this issue.

1.1. Current Legacy systems

• HR personnel data & Payroll  Mainframe.
• Time Management  Fingerprint Machines connected to our Business Management
System (Shall interface with SAP Time Management).
• Financial system  Smart stream.
• Asset management solution including; purchasing, inventory, management of locations,
service desk, and work planning Maximo.
• Core business Application  SBPAS (SUMED Business Process Application System)
Web Application (Java based) and Oracle database (Shall interface with SAP Accounts’
Receivable).

1.2. Custom Modules

SUMED has some business processes out of SAP ERP that needs to be implemented; their
technical scope is included below:
• SUMED Pension
• SUMED Medical System
• SUMED Insurance policy
• SUMED Logistics system
If any of purchased licenses can serve in the above custom modules that should be specified
in presented scope.
All implementation of the above modules and integration with SAP ERP are not considered
part of WRICEF count mentioned below.
Contractor shall grant that custom modules (ABAP based) shall not hinder the upgrade of
SAP systems at any time (hard coding is not recommended).

2. General Requirements
All Documents are based on current process & non-integrated systems, accordingly
change to the documents/processes are accepted in case of fulfilling request by best
practice or through ERP integration.
This Project is based on a 4-system landscape: Sandbox, development (DEV), quality assurance
(QAS), and production (PRD) system(s).
The overall landscape will require the installation and maintenance of several applications to
support the implementation life cycle.
SUMED will ensure that it has secured all appropriate licenses, before the start of the Project,
for all software required and all other applications that are necessary for the execution of this
Project.
The SAP system is a 4-tier client server system. For SAP to support Customer’s project and
associated business processes it is essential that an adequate technical infrastructure exists.
The technical scope for the project includes:
• Installing SAP S/4HANA software in Sandbox, Development (DEV), Quality
Assurance (QA) and Production (PRD) environments.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• The Activate methodology shall be used for all the project Installation of Solution
Manager, SAP Solution Manager will be installed during the Prepare phase. Solution
Manager will be used as the tool to manage documentation of business scenarios,
processes, Project controls and configuration through the entire lifecycle of the
implementation as well as ongoing operations.
• SAP roadmap viewer SAP Activate Methodology for Business Suite and On-Premise-
Agile and Waterfall shall be used and installed on solution Manager to handle all
project activities.
• Basis/Solution Manager Support during Testing(s) – IT, UAT, Unit Testing & Live
• Scheduled application of SAP notes / Corrections during project execution.
• Configuration of SAP Web dispatcher
• Schedule & Monitor standard SAP system batch jobs
• Maintain SAP operation modes
• Optimize SAP technical system parameters (system tuning)
• Applying SAP kernel and support packages and subsequent BASIS configuration
• Identify & configure SAP Marketplace technical settings
• Document and maintain project transport request & execution procedures
• Perform & troubleshoot transport errors related to the technical/architecture failures
• Printer configuration and testing for up to 8 printers
• Monitor and troubleshoot SAP spool system for technical / infrastructure errors
• Basis Support during Cut-over and Post Go-live
• Performance tuning/optimization based on recommendations by SAP Support
• Technical Documentation is required in all project phases, dynamic documentation
(Business Process Intelligence) is good to have.

2.1. Software Installation

Required Environment based on Activate methodology:
1. Sandbox
2. Development (DEV)
3. Quality Assurance (QA)
4. Production (PRD
Installing/ maintaining/ tuning SAP S/4HANA software is contractor’s responsibility for all
required environment & till Go Live.
Solution Manager installation and maintenance is Contractor’s responsibility
Installing SAP License keys is Contractor’s responsibility for all required environment.

2.2. Database Administration

All DBA activities are Contractor’s responsibility for all required environment and till GO
Live.

2.3. Operating System

Contractor shall specify required Operating System & VM system required.
OS installation, patching and all related activities are Contractor’s responsibility for all
required environment & till GO Live.

2.4. Hardware
Implementer is required to provide the detailed hardware sizing for the proposed
environments as per the business and technical requirements in the prepare phase. The
recommendations for the sizing should consider the following:
• The recommended sizing should support the requirements for a minimum
period of 5 years post the Live of the solution.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• SAP certified software configuration for HANA implementation are required
to be presented.
• SUMED is using DELL Data domain as a backup solution, implementer shall
confirm its compatibility with SAP ERP.

A temporary HW is available till the procurement of the new HW configuration in

Appendix C

• Implementer shall confirm that this temporary HW is valid to start with or

propose another option.

2.5. WRICEF
Total 45 WRICEFs are required for the project 20 of Medium complexity & 25 of High
complexity.

2.6. Data Migration Scope

Following are the objects in Scope:
2.6.1. Master Data
Module Object
Finance & Controlling General ledger
Bank accounts
Profit center
Cost center
Fixed assets
Activities types
Procure to Pay Vendor master
Service master
Material master
Info records
Condition master data
Plant Maintenance Functional locations
Equipment
Task lists
Bill of materials (BOMs)
Classes / characteristics
Maintenance plans
Work centers
Human Capital Management Employee data “Current/Retired”
Organization structure
Custom Module: Medical Required data shall be provided as per template
System
Custom Module: Pension Required data shall be provided as per template
System
Custom Module: Insurance Required data shall be provided as per template
Policy System
Custom Module: Logistics Required data shall be provided as per template

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

2.6.2. Open Transaction Data

Module Object
Finance & Controlling Opening balances
Banks accounts
Assets
Vendor open items
Customer open items
Procure to Pay Open purchase orders
Inventory opening balance
Open outline agreements
Human Capital Management Leaves balances
Loan balance
Project Systems Projects
Custom Module: Medical Opening balances for (parents, teeth, glasses….)
System
Custom Module: Logistics Shipments for open POs
2.6.3. Exclusion Data Migration
Historical data migration is excluded from this Scope Document.

2.7. Hyper Care

Hyper care for 3 months after go-live.

2.8. Support & Training

Contractor shall provide a training scheme as explained below:
• On job Training for SUMED IT Staff.
• Technical training is required (Administration, Business Process, Reporting)
• Training for Functional Key users & IT Staff for configuration.
• Business end user training.
• The training will be held at SUMED premises.
• The contractor will suggest the training duration.
• The test environment required for training has to be set up by the contractor as
a copy of SUMED system before the training starts.
• Training should be provided on all aspects of proposed solution this should
include end users, technical and administrative procedures.
• The contractor should specify whether training is provided directly by the
Implementer or provided through a partner.
• Contractor should deliver a complete technical know-how to SUMED
technical team that enables team to maintain the system after project
completion, through a counterpart implementation activities and hands-on
learning model.
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

2.9. Approvals
2.9.1. Initial Approval
Initial approval is obtained for the submitted works after implementing the following on
the Test environment:
1. Delivery of all elements of the system (software, applications, hardware
configuration to work on the system, system documents, user manuals, preliminary
and detailed documents from the date of the project start until the date of the initial
approval of business acceptance .... etc.).
2. Install and commission the entire system
3. Testing the operation of the entire system according to the approved BLUE PRINT
document without leaving any notes or other requirements mentioned in the
specifications and conditions booklet.
4. Completion of training at all levels and the readiness of the SUMED team to
manage the entire system.
5. Completion of all tasks and equipment necessary to start working on the
production environment mentioned in the brochure, without any notes.
The date of the initial approval of the business shall be after the completion of all
observations on the test environment and the approval of the concerned departments of the
company with the acceptance tests and their standards and tests of the basic functions in
the system and the approval of the acceptance of appropriate solutions for all the
observations (Punch List) and the start of work on the Go-Live productive work
environment.

2.9.2. Final Approval

The final approval of the business is obtained after implementing the following on the
Production Environment / Go Live.
1. Closing and reviewing an accounting period (quarterly).
2. All applications and programs that have been implemented, operated, improved,
developed, or created, and are mentioned in the brochure, work efficiently and
effectively, and have been reviewed and accepted by the concerned departments of
the company.
3. Testing and performing all functions to manage the working environment (Backup,
recovery procedures, etc.)
4. Resolving all observations made in all sub-systems and applications during the
closing and reviewing of the quarterly accounting period after GO Live.

2.9.3. Initial Receipt

It is the date on which the system and applications operate on the Go-Live production
environment for a period of three months, the completion of the quarterly financial closing,
its testing, and the resolution of all observations that were monitored during the closing
phase within a maximum period of one month from the date of the quarterly closing.
In addition to the successful complete end year closing cycle.
And the completion of the contractor to deliver all the components of the project without
any notes on all the postulates, works and requirements contained in the details of this
brochure.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

2.9.4. Final Receipt

It takes place 12 months after the date of the initial handover of the system.
The final letter of guarantee will be returned after the final receipt.

3. Project Duration
The project duration is 12 months starting from the date of award until the final completion
of the works, successful tests, Go-live & Handover and issuance of the Provisional
Acceptance Certificate (PAC).
4. Project warranty Period
Contractor shall guarantee all Documents, Designs, Deliverables, methodology and works
performed under this Contract, against defective design or non-accordance related to best
practices & design as well as all implementation works against defective design,
specifications and workmanship for a period of one (1) year from the final completion of the
works, successful tests, Go-live & Handover and issuance of the provisional acceptance
certificate (PAC) regardless of whether the same were, furnished or performed by
Contractor or by any of its Sub-Contractors.
5. Insurance Policy and Performance Bond
Before commencement of work and within 1 week after contract signature, the Contractor
shall present to SUMED the insurance policy as per article "48" of the General Conditions.
In all cases, if the Contractor failed to present the required insurance policy, SUMED has
the right to affect such insurance on Contractor’s cost and risk and cost +15% to be
deducted from any payment due to the Contractor.
Within 1 week from the contract signature, the Contractor shall present to SUMED the
performance bond (10%) of the total lump sum value of the contract in form acceptable to
SUMED or otherwise SUMED shall apply the contract conditions in this respect.
The performance bond shall be valid till the end of the warranty period of the project i.e
after one year from final completion of all implementation works, successful tests, Go-live
& handover.
6. Clarification Meetings
• Technical discussion and clarification sessions shall be scheduled with SUMED after
receiving technical offer.
• Technical review session shall be held after the clarification session as a feedback.
• Technical presentation shall be requested from each contractor after offer submission.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

7. Finance & Controlling “FICO”

SUMED is willing to implement SAP S4/Hana Finance & controlling module, in terms of
enterprise structure SUMED has the following:
Company Code * 1
Currency USD – EGP
* Company Code: Organizational unit in accounting that represents a business organization
Financial Module shall cover the following submodules:
1- Account Payables
2- Account Receivables
3- Fixed Assets
4- Cash Management/ Treasury
5- General Ledger
Localization related governmental reports shall be extracted from System like ( ٤۱ ‫)ﻧﻤﻮﺫﺝ‬
Personal Asset tracking shall be handled in cooperation with HR module
7.1. Accounts’ Payables AP
7.1.1. Introduction
SUMED uses Smart Stream in order to process payments for Contractors, Suppliers,
Service Providers, Hospitals, Doctors, Employees and/or others.
This document consists of two sections:

7.1.2. Current Process

SECTION ONE: General Definitions:

10B

- Invoice: Payables department uses only standard invoice in order to process

payments to various contractors, suppliers, service providers & consultation
services.
- Username & Password: Each Accounts payable accountant is assigned with his
own username & password in order to process invoices due.
- Levels of Approval: Accounts payable Chief, Accounts Payable Manager and
Deputy Accounts General Manager each is assigned with a username and
password each one with different level of approval that match the policies &
procedures approved by SUMED’s Board Of Directors.
- Vendor: Each contractor, supplier, service provider & consulting agency is
assigned with a code (Vendor ID).
- Currency: SUMED uses multiple currencies in order to pay its obligations to
various contractors, suppliers, services providers & consultation services.
- Description: A General Description of the invoice being processed.
- Date: The day the payment is being processed.
- HO: Stands for Head Office – Louran Site.
- SK: Stands for Sidi Kerir site.
- SU: Stands for Ain Sukhna site.
- DH: Stands for Dahshour site.
- Main: Represents the type of invoice being processed is it a General &
Administrative Expense, Operational Expense, Balance Sheet (Asset or
Inventory Purchase), In Advance Payment (Prepaid Expenses), and Projects
under construction.

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- Sub: Used to determine the type of Expense examples include but not limited to:
Doctor Fees, Hospital Fees, Administration building maintenance fees and/or
others.
- Center: Is used to determine the department requesting the Purchase, Service,
Consultation Service and/or Asset Purchase.
- Alias: Is used to define the taxation agency (Used only when the invoice being
processed demands deduction of withholding taxes from the Supplier, Service
Provider and/or others).
- Payment Method: SUMED pays its obligations via various banks depending on
cash flow availability each payment method is assigned with a code each code
depends on the bank & the type of currency.

SECTION TWO:
1B

- Accounts Payable Process

- Approval Process
- Issuance Of Checks & Payments Orders

Case I:
Hospital XYZ provided services for SUMED with an amount of 100,000 EGP the
invoice was presented to the payables department after the necessary approvals
according to the policies & procedures approved by the board of directors in order to
process the payment.

Accounting Entry (Manually Entered):

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Hospital Expenses 100,000
Withholding 3,000
Taxes(3%)
Creditors 97,000
After the above entry is manually submitted you click save and choose a payment
method in this case (HNSC2) a voucher number is automatically generated by the
system.

HNSC2: Type: Check/Currency: EGP/Bank: National Bank Of Egypt.

After this the invoice is to be approved by the relevant level of approval, after approval
the following accounting entry is automatically generated:

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 97,000
Cash 97,000

After this process the check is printed and signed by the appropriate levels of
approval, after the signature the check is ready to be handed over to the hospital
so they can claim their money.

Case II:
SUMED issued a purchase order in favor of Vendor XYZ with an amount of 100,000
EGP in order to purchase an asset, payment terms are check against delivery and there
is a final bond of 10% from the total value of the purchase order, the vendor mailed
SUMED’s purchasing department that the goods are ready for delivery and they await
the check so the goods can be handed over to SUMED, the purchasing department
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issues a payment request after attaining the necessary approvals in accordance with the
policies and procedures approved by the board of directors the payment documents are
handed over to the payables department in order to process the payment.

Accounting Entry (Manually Entered):

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Asset 100,000
Withholding 1,000
Taxes(1%)
Final Bond 10,000
(10%)
Creditors 89,000

After the above entry is manually submitted you click save and choose a payment
method in this case (HNSP2) a voucher number is automatically generated by the
system.
HNSP2: Type: Payment Order/ Currency: EGP/Bank: National Bank Of Egypt.
After this the invoice is to be approved by the relevant level of approval, after approval
the following accounting entry is automatically generated:

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 89,000
Cash 89,000
After this process the Payment Order is printed and signed by the appropriate levels of
approval necessary after the signature the Payment Order is handed over to the bank in
order to process the payment.
Case III:
Sumed has signed a services contract with Contractor XYZ, the contractor submitted a
progress claim with an amount of 100,000 USD, payment terms are (90%) to be paid
against actual work performed ,(10%) to be deducted and paid against the issuance of
PAC , (10%) to be deducted as a final bond from contract total yearly
value(100,000USD) to be released after FAC and a (5%) delay penalty from total
contract value due to failure of the contractor to fulfill his contract obligations on due
time, after necessary approvals are attained the contracting department issues a payment
request to the payables department in order to process the payment.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Accounting Entry (Manually Entered):

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Contractor XYZ 100,000
Withholding 3,000
taxes (3%)
Retention (10%) 10,000
Final Bond 10,000
(10%)
Delay Penalty 5,000
(5%)
Creditors 72,000

After the above entry is manually submitted you click save and choose a payment
method in this case (HNSC1) a voucher number is automatically generated by the
system.
HNSC1: Type: Check/Currency: USD/Bank: National Bank Of Egypt.
After this the invoice is to be approved by the relevant level of approval, after approval
the following accounting entry is automatically generated:

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 72,000
Cash 72,000
After this process the check is printed and signed by the appropriate levels of approval,
after the signature the check is ready to be handed over to the Contractor so they can
claim their money.

Case IV: (Petty Cash)

An Employee submitted to the Payables department in order to process the payment a
Petty Cash issuance request with an amount of 20,000 EGP after necessary approvals
and getting the petty cash request Insured by our Insurance department in accordance
with our Policies & Procedures this Petty cash is to be used to buy supplies for building
maintenance.

Accounting Entry (Manually Entered):

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Petty Cash 20,000
Creditors 20,000
After the above entry is manually submitted you click save and choose a payment
method in this case (HNSC2) a voucher number is automatically generated by the
system.
HNSC2: Type: Check/Currency: EGP/Bank: National Bank Of Egypt.
After this the invoice is to be approved by the relevant level of approval, after approval
the following accounting entry is automatically generated.

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 10,000
Cash 10,000

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After this process the check is printed and signed by the appropriate levels of approval,
after the signature the check is ready to be handed over to the Employee so he/she can
claim the money.

After the employee is done with purchasing the necessary materials he fills out a form
“Temporary Petty Cash Settlement” and the invoices are attached to it and the necessary
approvals are attained and then handed over to the payable department in order to settle
the Petty Cash.
Description Alias Main Sub Center Detail 1 Site Dr. Cr.
Consumables 20,000
Withholding 200
taxes
Bank Deposit 200
Petty Cash 20,000
Closure

The Above entry is manually entered by the Accounts Payable accountants through the
standard invoice process and the taxation details are manually inserted within the
document itself manually by right clicking custom fields where you put the Taxation
Card number, Vendor Name, total amount & the taxation agency of the Vendor such
info is used quarterly by the Accounts department.

After the above entry is manually submitted you click save and choose a payment
method, no checks or payment orders are issued in the case above because this is a zero
accounting entry if there is a case where the employee has paid more than the petty cash
value a check with the difference is issued.

Case V: (Prepaid Expenses)

The Operations Sector submitted a prepayment request to the payables department after
attaining the necessary approvals with an amount of 10,000 USD, for a foreign
consultant & is subject to 10% VAT borne by SUMED & withholding taxes of 20%
borne by the Consultant to be deducted from his invoice.

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Prepayment 11,000
Withholding 2,000
taxes (20%)
VAT (10%) 1,000
Creditors 8,000
After the above entry is manually submitted you click save and choose a payment
method in this case (HNSP1) a voucher number is automatically generated by the
system.

HNSP1: Type: Payment Order/Currency: USD/Bank: National Bank Of Egypt.

After this the invoice is to be approved by the relevant level of approval, after approval
the following accounting entry is automatically generated.

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 8,000
Cash 8,000
After this process the Payment Order is printed and signed by the appropriate levels of
approval, after the signature the Payment order is handed over to the bank in order to
process the payment.
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After the consultant completes the necessary works a final invoice is issued and
approved by the necessary levels of approval and handed to over to the payables
department in order to settle the prepayment.

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Consultancy Serv. 11,000
Prepayment Settle. 11,000

Case VI: (Employee Claims)

Our Employee Claims such as Medical expenses reimbursement , HAG & Omra
support and/or others such transfers are manually entered through our (Focus Employee
personal transfers system) and a printout is issued that has the name of the employee
that is reimbursing his personal expenses and the amount needed to be transferred .After
that the invoice is saved a voucher number is automatically generated then it is
approved by the necessary levels of approval and a payment order is printed and signed
by the necessary levels of approval and handed over to the bank in order to process such
claims.

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Employee I 3,000
Employee II 2,000
Employee III 5,000
Creditors 10,000

Description Alias Main Sub Center Detail 1 Site Dr. Cr.

Creditors 10,000
Cash 10,000

General Notes:
Each location (SK, SU& DH) have their own levels of approval, print out their own
cheques & payment orders & have their own separate payment methods.

SECTION THREE: levels of approval

12B

The below level of approvals are in accordance with the policies & procedures approved by the
board of directors.

General Manager/More than 1,000,000 USD

Deputy General Manager/Up to1,000,000 USD

Payables Manager/Up to 300,000 USD

Payables Chief/Up to 30,000 USD

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SECTION FOUR:
13B

- Account Balance Process

- Vendor Master Process
- Vendor Creation Process

Account Balance Process:

14B

This process is often used by the payables department in order to check the available balance for
some accrual expenses

Vendor Master Process:

15B

This process is often used by the payables department in order to search for a specific vendor in
case that the accountant doesn’t know the Vendor ID.

Vendor Creation Process:

16B

This process is used in order to create a new process by adding the legal name, TAX ID,
Taxation File, Taxation agency and Bank Details of a specific organization this process comes
before issuance of payments and is a mandatory step.

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7.2. Accounts’ Receivable AR

7.2.1. Introduction
Accounts receivable is the process where as the unearned revenue is being collected and
credited to the invoice issuer bank account and its listed as current Asset in the company’s
balance sheet.

7.2.2. Work Flow

A/R accountant tasks:

• Collect all A/R collection notices for specific period of time

• Collect all kind of receivables such as (Performance bonds, bid bonds) in form of cash,
moreover all bidding deposits in cash, in general all cash in that will be credited to the
company bank accounts.
• Book all unearned revenue as an A/R for specific period of time.
• Follow up collection all the unearned revenue with the collector bank and notify the
invoice issuer department by collection or delay for the nominated collections
• Book the collection when funds credited to the collector bank
• Reconcile the revenues with the marketing department every specific period of time and
ensure there no deviation between the financial department and marketing department
figures.
• Report all revenues by user and by type of revenue in the company financials by end of
period.

7.2.3. Requirements
• A platform that enables the A/R specialist to trace and gather the collection notices and
invoices that is issued by the invoice issuer department
• A platform that enables the A/R specialist to notify the invoice issuer department by the
collected invoices
• A platform that books the required journals on the company general ledger either
recording the entry of revenue or the entry collection of the revenue
• A platform that enables the A/R specialist to print out the following reports
• A Platform that shows and reconcile all cash in operations that had been credited to the
company bank accounts ,also that supports bank cash acceptance note.

7.2.4. Reports Required

• Report shows total revenue for a specific period that segregates the revenue type per
customer
• Reports show the outstanding balance per customer for balance confirmation purposes.
• Report shows projected revenue in accordance with projected payment or settlement
those results in balance confirmation report.
• All cash in transactions that had been settled during certain period moreover the
outstanding balance of the unsettled.

7.3. Trade Finance Work Flow & Process

7.3.1. Introduction
A Letter of Credit is a contractual commitment by the foreign buyer's bank to pay once the
exporter ships the goods and presents the required documentation to the exporter's bank as
proof. As a trade finance tool, Letters of Credit are designed to protect both exporters and
importers.

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7.3.2. Work Flow

LC accountant tasks:

• Receipt of the instruction sent by procurement for opening LC to proceed with the
purchase process.
• Review and check the purchase order terms and conditions and ensure matching it with
the company’s internal purchasing and financial policy.
• Fill up and send the LC application to the issuing bank & awaits the LC draft for review
and end it to final stage after getting confirmation from the supplier through the
procurement team.
• Open the LC
• Follow up the goods shipping dates for funds allocation.
• Exercise the payment to the supplier upon receipt of endorsed documents
• Hand over the shipping documents for custom clearance
• Awaiting the Custom clearance declaration to close the case with the bank.

7.3.3. Requirements
• A platform that enables showing outstanding (LCs, LCs drafts, all trade finance
payment tools) in all opened currencies.
• A Platform that allows opening extending & amending the LC and determine its
collaterals and all conditions to be shown on its data also generates the required journals
on the company books.

7.3.4. Reports Required

• LCs, CAD, LGs position that shows all details as amount, currencies ,open close amend
dates..etc.
• PRE-EXPIRY report which shows the up-coming expiry dates within specific period.

7.4. Fixed Assets FA

7.4.1. Introduction
This document presents Future Process Model constructed for the FA system; this document
includes a high-level description of the procedures, functionalities and application features that
supports SUMED requirements.
This document consists of two sections:
1- High Level Design:
FA Design section will describe system design features:
o General design information
o Asset Categories field
o Asset Location field
o Asset Key field

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2- Future Process Model:
FA Future Process Model Section will describe standard cycle Asset to Depreciate and Asset
Retirement Process.

List of Abbreviations/Definitions:

Serial Abbreviation Description

1 FA System Fixed Asset System

2 Asset Describe Asset category, depreciation

Categories method, depreciation rate.

3 Asset Describe Asset Location by dividing

Location into segments in order to track the
asset physical location.

4 Asset Key Additional information can be used

in future to describe more information
needs to be added and not defined in
Asset Category or Asset Location

5 PROPERTY REAL OR PERSONAL FOR

TYPE Physical count END OF THE YEAR

7.4.2. High Level Design

Fixed Assets Design Details
17B

Asset Addition:
18B

• Assets module will be used in SUMED to automate the Assets record, depreciation
calculation, Assets transactions (Addition, Assignments, Transfer, Reclassification,
Retirements and Disposal).
• There will be One Corporate Asset Book.
• Asset numbering will be automatic serial starting from 100 and increment with 100, to
give a space (from 101 to 199 for example) for adding any future components for the
asset or retiring any part of it.
• Depreciation rule will be Flat Rate Method.
• The asset numbers will be defined automatically.
• The Serial Number field in the application will be used to track the serial numbers for
assets.
• The Oldest date of an asset placed in service is 01-Jan-1970
• Asset might be assigned to employee.

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Depreciation:
• Depreciation is calculated monthly for all fixed assets.
• Depreciation will be calculated for all new assets in the system at next month.
• After the end of the Asset's estimated useful life the Net Book Value will be the salvage
value of the asset or Zero Amount.

Asset Retirement:
• In case of Asset Disposal, Depreciation will be calculated till the month of disposal.
• Retirement may take place for an asset during its useful life and Retirement Gain/Loss
will be recorded with be with authorized person.
• There will be two accounts for Capital Gain & Loss in COA as follows:
A. Realized Gain on Disposal of Fixed Assets
B. Realized Loss on Disposal of Fixed Assets.
• There will be Physical count for assets in scrap store.
• Adjustments, Cost Adjustment, Life Time Adjustment For assets will be performed.
• Amortize Adjustment function will be used for Cost Adjustment and Life Adjustment
for assets.

Asset Category
• All assets are required to have an asset category.
• Asset categories group assets that share financial accounts and usually depreciate using
the same rules. Assets use this information to provide default values at the time an asset
is entered into the system.

Asset Locations
The Assets Location is used to group and track assets by physical location.
SUMED will use an Asset Location that consists of 5 segments which is recommended
solution as follows:
Segment. # Segment Name Size Type Value Validation
1 Location 6 Char Independent
2 Department 6 Char Independent
3 Sub Location 6 Char Dependent
4 Room Number 6 Char Independent
5 Personal or real 6 Independent

Asset Key
The Assets Key used to group and track assets by non-financial information.
Until now, SUMED will not use an Asset Key as there are no business requirement to use it
currently, moreover it can be used in the future to track assets with any additional information
not covered in the asset details form E.g. Insurance Details. ( REQ : Best Practice).

7.4.3. Future Process Model

7.4.3.1. Process Step Catalogue for Manual Asset Addition
• This process covers the requirements of adding assets manually without reference to
invoices.
• Adding any reference will be entered manually ex. Invoice details, PO details, issue
from store.
• Adding asset manually/ automatically.

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7.4.3.2. Process Step Catalogue for Capitalize CIP

• This process covers Construction-In-Process (CIP) capitalization.
• A Construction-In-Process (CIP) asset is an asset constructed over a period of time.
• Depreciation on the CIP Assets will be taken only after its Capitalization.

Policies

• Construction in Progress (CIP) should be transferred to the relevant category of fixed

assets at the date of final acceptance or the date where the asset is technically capable of
operating and providing the service for which it is intended whichever is earlier.
• Construction in Progress account is an asset (control account) used to record all the
costs incurred, paid or not, related to a specific project. Once the project is completed/
delivered the balance of the CIP account shall be credited and the relevant Fixed Assets
accounts shall be debited.

Process Steps
Description Responsibility

Need to capitalize a CIP asset and place it in FA Initiator

service.

Capitalize the Assets after reviewing the FA Initiator

CIP data.

Review capitalized asset data. FA Initiator

7.4.3.3. Process Step Catalogue for Asset Retirement

• This process covers asset retirement.
• The Process start with transferring the Asset from its Current Location to Scrap Store.
(Retirement Process from SUMED Business View).
• When we dispose the asset and transfer it to scrap store, we stop its depreciation.
• The retired asset will be kept at the scrap store until selling or donation.
• Assets provides users with the flexibility of retiring an asset either partially or fully.
Retirement can be in the form of units or amounts.
• After selling the retired asset has been processed, we should run the program of '
Calculate gains and losses Program' which automatically calculates the amount of Gain
or loss upon retirement to be posted to the General Ledger
• The Cost of Removal is to be recognized as amount payable to the supplier in the
Accounts Payable module, and paid off accordingly if the asset is to be sold.
• Miscellaneous Receipts will be recorded in Receivable for the sales proceeds.
• A Retirement can be made to a single asset or to a group of assets.

Policies

• Asset reaches end of useful economic life.

• Consideration as to whether asset can continue to be used, if not asset is
retired/disposed.

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Process Steps
Description Responsibility

Asset transfers from Current Location to Scrap Store. FA initiator

Runs report to identify assets at the end of useful economic life or receives FA initiator
request to disposal of asset

Prepare assets to be disposed to Finance Director. FA initiator

Approve to retire the asset Finance Director

If the asset will be sold, enter a miscellaneous receipt in Receivables. FA Initiator

Determine the asset cost of removal which is the necessary cost that must be FA Initiator
incurred by the company to deliver or disassemble the asset to the buying
party. – if any

For single asset retirement, query the asset in the Asset Workbench and enter FA Initiator
the retirement details.

For group of assets retirement, select them by Retirement Criteria from Mass FA Initiator
Transactions

Run “ Calculate Gains and Losses” Program FA Initiator

Run the “Asset Retirements Report” for the period the asset was retired in. FA Initiator

7.4.3.4. Process Step Catalogue for Asset Transfers

• This process covers asset transfers.
• The Transfer of assets can be processed between employees, depreciation expense
accounts and the locations of the asset and Asset Groups and Scrap Stores.
• A Transfer can be made to a single asset or to a group of assets.( REQ : Best Practice)

Policies

• Changing the location of fixed assets requires the approval of the concerned department
head and the new custodian of the asset. The location will be changed by the FA
Initiator after the transfer takes effect.

Process Steps
Description Responsibility

Need to transfer an Asset ‘s expense account, location and or/employee FA Initiator

from one to another

Review, analyze and give approval Finance Director

For the Transfer of a single asset’s expense account, location and/or FA Initiator
employee name, select the required asset from the Asset Workbench

For the transfer of group of assets’ expense account, location and/or FA Initiator
employee name, select the required assets from the Mass Transactions

Run the “Asset Transfers Report” FA Initiator

Review and approve the changes Finance Director

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7.4.3.5. Process Step Catalogue for Asset Financial

Adjustment
• This process will be used to record any changes like, asset cost, depreciation methods,
asset life etc. required to be made to an existing fixed asset.
• The effects of these changes on depreciation calculations can be amortized to the future
periods.
• All the accounting effects arising out of these changes shall be generated by Assets.
• Adjustment can be done to a single asset or for a range of assets through Mass Change

Process Steps

Description Responsibility

Need to edit an Asset Cost, Asset Depreciation Method, Asset Life and/or FA Initiator
Asset Prorate Convention for an existing asset

Print Asset Register Report to view asset details in order to update the FA Initiator
required information

Review, analyze and give approval Finance Director

For a single asset, adjust the Cost, Depreciation Method, Life and/or the FA Initiator
Prorate Convention of the asset that needs to be changed from Assets
Workbench

For group of assets, adjust the Cost, Depreciation Method, Life and/or FA Initiator
Prorate Convention for the group of assets that needs to be changed from
Mass Changes

Run the Mass Changes program to execute the Mass Change as required FA Initiator

Run the “Financial Adjustment Report” FA Initiator

Review and approve the changes Finance Director

7.4.3.6. Process Step Catalogue for Asset Reclassification

• This process covers assets reclassification.
• There may be situations where an asset on capitalization had been assigned to a
category and at a later stage needs to be assigned to a different category, which results
reclassification or assets are required to be reclassified from existing Asset Category to
a new Asset Category.
• System will generate accounting entries arising out of such reclassification and shall be
posted to General Ledger.(REQ : Best Practice).

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Process Steps
Description Responsibility

Need to reclassify an Asset from one major and minor categories to another FA Initiator

Review, analyze and give approval Finance Director

For a single asset, reclassify the asset from the existing Major and Minor FA Initiator
category to the new Major and Minor category in the Asset Workbench

For a group of assets, reclassify the asset from the existing Major and Minor FA Initiator
category to the new Major and Minor category in the Mass Transactions

Run the Mass Changes program to execute the Mass classification as required FA Initiator

Run the “Asset Reclassification Report” FA Initiator

Review and approve the changes Finance Director

7.4.3.7. Process Step Catalogue for Physical Count (REQ:

Best Practice)
• This process covers assets physical count operations.
• It should be ensured that the Physical Inventory Check box is checked for all the assets
that need Physical Verification.
• For the purpose of carrying out physical verification, a label/sticker mentioning one of
the unique identifiers (asset number, tag number, or Serial number) will have to be
affixed on every asset.

Policies

• Periodic counts of fixed assets are performed and reconciled to the fixed asset register
and/or master file.
• Periodic physical count and reconciliation with recorded amounts should be performed
a minimum of once a year. Physical count results should be compared with the fixed
assets register for any discrepancies in order to investigate.
• Fixed assets items maintained by each department are physically counted and reconciled
at least year-end.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
Process Steps
Description Responsibility

Perform Fixed Assets Physical Count FA Initiator

Upload data into system FA Initiator

Print and analyze the Fixed Assets Physical Count Comparison Report FA Initiator

Review the report and approve adjustments Finance Director

Do the necessary adjustment(s) in the System to: FA Initiator

• Transfer the assets incorrectly located in the System to the

actual physical location

• Transfer the physical location of some assets if they were

misplaced so that it matches the Fixed Assets Register location

• Adjust the number of units in the Fixed Assets Register so that it

matches with the physical number of units

7.4.3.8. Process Step Catalogue for Period End Closing

• This process is standard process.
• This process covers period end closing process
• This process will be applicable for Depreciation Run and Period End Closing of the
Fixed Asset Book.
• On running the final depreciation program, user must select the “Close Period” option to
automatically close the current depreciation period and open the next period, thus
ensuring that any capitalization to take place henceforth will happen only in the next
open period.
• Depreciation cannot be re-run for a “Closed Period”.
• Fixed Assets will create all the Journal Entries for all the asset related transactions
having financial effects like Asset Additions, Asset Retirements and Reclassification etc
that will be then posted to the General Ledger.

Policies

• Asset-related transactions at the end of an accounting period are scrutinized and/or

reconciled to ensure complete and consistent recording in the appropriate accounting
period.
• All fixed assets, except land and memo assets, are subject to depreciation.
• Depreciation should be computed monthly and charged to the depreciation expense
account until the net book value of the asset reaches salvage value.
• Depreciation should be computed using the straight line method over the estimated
useful life (number of years in use) of the assets
• System will allow changing Balances and /or depreciation methods if desired at a later
date after asset addition.

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Process Steps
Description Responsibility

Ascertain that the new Fixed Assets that are in the “Prepare Mass Additions” FA Initiator
screen have been prepared and posted into the Fixed Assets Module

Ascertain that the new Fixed Assets that are to be added in the Fixed Assets FA Initiator
Module manually, have all been entered

Ascertain that the Fixed Assets that were sold or disposed of in the current FA Initiator
period have all been retired in the Fixed Assets Module

Ascertain that the Fixed Assets that were physically transferred from one FA Initiator
employee to another or from one location to another have all been entered into
the Fixed Assets Module

Ascertain that the Fixed Assets that were entered in incorrect asset Categories FA Initiator
have all been reclassified to their correct asset categories

Run depreciation program to calculate the depreciation hit for each asset for the FA Initiator
period.

Run the “Create Journal Entries” program to generate the accounting (debit & FA Initiator
credit) entries for all the Fixed Assets Module activities during the current
period and interface them to the General Ledger Module

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7.5. Cash Management / Treasury CM

7.5.1. Introduction
Cash flow is the most vital process for company usage and resources, it reflects how liquidity
affects the company ability to cover its dues with the most efficient use of it recourses gearing
up and the matching principle are the golden rules for the successful cash manager .

7.5.2. Work Flow

Front office tasks:

• Snap shot all the company cash available at banks early morning every day.
• Follow up and make sure the cash needs obligations met (cash outflow) for the
company.
• Follow up all the cash inflow expected with its good value to place it for investment.
• Ensure all payables are done before end of day and all receivables are received as well.
• Contact the account receivables team to contact the clients who have delinquent
amounts.
• Contact the banks to start bidding for new cash placing investment tools or financing
trade finance such as covering LCs, CAD, etc
• Close and sign all deals with banks
• Ensure paying all the company financial cash needs (MTLs) and ensure crediting our
Dsr accounts with the required.
• Ensure the company meeting all financial covenants for all signed loan contracts and
consider it as top priority to avoid any contract violations.

Back office tasks:

• Run bank statement for a specific period and review it very well to ensure that the bank
had executed the company instruction correctly.
• Review the interest revenue credited to the company accounts and reconciles it with the
company review tool and modules.
• Post and book the required entries for specific period after ensuring the calculations of
the interest revenue credited.
• Claim any differentials in calculations and report it to the front office to contact the
banks.
• Post and book the loan installment payment and interest due after ensuring the
calculations and reconcile it with the company loan module that reflects the loan
contract.
• At end of period ( balance sheet input) , back office is to ensure that the bank’s balance
certificates is matching the company books then to start plotting the balance sheet on
asset side for all cash balances available at the end of that period.
• Ensure posting all accruals either credit or debit side as interest.
• Ensure posting and segregating the short term and long term all loan payment portions
prorated to the period closure.
• Review all external and internal financial audit and do corrections if any.

7.5.3. Requirements
• Cash position system that gathers and consolidate all the company bank accounts ( ex
MT940).
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• Time deposit module that enables ( open, close , liquidate , break), and calculate the
current and accrued interest and post it on the books
• Mutual funds module that enables (buy, sell, evaluate day by day) all type of mutual
funds and post it on the books.
• Loan calculation module that enables (create, close, amend) all loan data as per the
signed contracts and to create the required ledger journal for posting it on the company
books.

7.5.4. Reports Required

• Cash position shows all currencies available at banks on the report date and shows the
total in USD based on the books Fx rates.
• Time deposit position as of date that shows (Amount, from date, to date, interest rate,
currency).
• Time deposit maturing reports in specific coming period.
• Time deposit history report that shows all movements and amendments done on each
Time deposit.
• Time deposit journals posted report on the company books.
• Mutual funds report that shows all movement done (buy, sell, evaluation).
• Loan report that shows (loan start date and end date and interest rate applied) also
shows all interest expense paid and projected for a specific period.

7.6. General Ledger

7.6.1. Introduction
This document presents standard Module constructed for the GL system; this document includes
a high level description of the procedures, functionalities and application features used by
SUMED.
This document consists of three sections:
7.6.2. GL Design:
GL Design section will describe system design features:
• Organizational Structure
• Accounting field
• Calendar
• Currency
• Ledger
• Journal Sources

7.6.3. GL Process Model:

GL Process Model Section will describe the GL business processes as follows:
• Maintain Chart of Accounts Cycle
• Sub ledgers Journals Post Cycle
• Manual Journals To Post Cycle
• Recurring Journals Cycle
• Period End Closing Cycle
• GL Future Process and Expected Features

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7.6.4. GL Design Details

Organizational Structure

• The Organizational Structure will consist of One Ledger with One Operating Unit; there
are security levels used to secure each Location with its Transactions except specific
users on Head Office Location will get access for other Locations as well.
• SUMED is the only legal entity which will utilize sub ledger features and functionalities
the rest will be maintained in GL as manual Journal entries, either in a transaction by
transaction basis or balances.

Accounting field

• The Accounting field represents the different segments of the Chart of Accounts
including the values that correspond to each segment and the different validation
information.
• The chart of accounts structure consist of the following:

Segment. # Segment Name Size Default Value Type Qualifier

1 Entity 3 T01 Char Balancing

2 Division 2 01 Char
3 Main 3 N/A Char Account Type
4 Sub 3 N/A Char Cost Center
5 Center 3 N/A Char Department
6 Detail 1 6 000000 Char
7 Site 6 000000 Char

Entity Segment (3 Characters)

This segment represents the company. This will be the Balancing Segment of the COA and will
default a value of T01. This segment is 3 characters.

Division Segment (2 Characters)

19B

This segment represents the Division used for differentiating between major divisions such
as pipelines, refining, etc. This will be the default a value of 01 as currently now there are
one Division only and in future if the need for new divisions will be added here. This
segment is 2 characters.

Main Segment (3 Characters)

20B

This segment represents the classification of account type (Assets, Liabilities, Income and
Expenses). This segment is 3 characters.

Sub Segment (3 Characters)

21B

This segment represents detailed account code associated with the main account, for
example cost element for expenses. This segment is 3 characters.

Center Segment (3 CHARACTERS)

2B

This segment represents the different company’s departments (cost centres) such as finance,
direct investments and Human Capital. This segment is 3 characters.

Detail 1 (6 Characters)
23B

This segment represents SUMED Projects, Customer revenue, Employee Number and Misc.
Expenses. This segment is 6 characters.

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Site (6 Characters)
24B

This segment represents previous year expenses, petty cash and for future usage. This
segment is 6 characters.

7.6.5. Calendar
• SUMED uses an accounting calendar with 14 periods of which 12 are calendar periods
and the 13th and the 14th period are defined as adjusting period to record adjusting
entries at the end of the year as follows:

1. 13th Period: First Adjustment Period from 25 December to 30 December.

2. 14th Period: Second Adjustment Period from 31 December to 31 December.
• The Fiscal year starts on 1st of January and end on the 31th of December.
• SUMED can open unlimited number of accounting periods in the future.

7.6.6. Currencies
• The US Dollar (USD) will be used as the functional currency for the Ledger.
• Most currencies are defined in system and can be enabled whenever it is required.
• The following currencies will currently be ready to be used in any sub ledger transaction
(AP Invoice, AP payment …etc.):

 Egyptian Pound (EGP)

 Euro (EUR)
 Great Britain Pound (GBP)
 UAE Dirham (AED)
 CHF
 SAR
 GBP
 CAD
 NOK
 DKK

7.6.7. Ledger
• A Ledger determines the chart of accounts, accounting calendar, base currency, sub
ledger accounting method, for each company, legal entity, or group of companies and
legal entities. Accounting setup requires a primary ledger that acts as the main record-
keeping ledger for legal entity that uses SUMED’s main chart of accounts, accounting
calendar, sub ledger accounting method, and currency to record and report on all of your
financial transactions.
• A Ledger holds all accounting transactions, whether entered directly in General Ledger
or in any of sub-ledgers.
• The ledger name is SUMED Ledger with USD Base Currency.
• There is Reporting Currency with USD Currency to represent all Journal entries in
General Ledger from multi currencies.

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7.6.8. Journal Sources

• Journal entry source indicates where your journal entries originate.
• With Journal Source SUMED’s financial key user can:

 Run auto post program for specific source

 Freeze journals imported from sub ledgers to prevent users from making
changes.
 Use journal source to enforce management approval of journal before they are
posted.
• The pre-seeded sources that are defined for General Ledger will be used as follows as
an example and seeded Sources already defined:
1. Manual: to capture journal entries manually entered in General Ledger.
2. Payables: to capture journal entries imported from Payables.
3. Receivables: to capture journal entries imported from Receivables.
4. Assets: to capture journal entries imported from Fixed Assets.
5. Budget Journals: to capture journal entries related to entering amounts to
budget.
6. Transfer: to capture journal entries related to Budget Transfer.
7. Integration Systems: as per the integration that will be build, there will be
predefined Sources will be defined.
7.6.9. Journal Entries Balance Types
• In GL, there are two journal entries balance types:

1. Budget: It means allocation of budget for a specific cost center for a period.
2. Actual: means how much spent for that Cost Center during Financial year.

7.6.10. Journal Transactions

Multi-Currency Transactions:

• Multi-currency is used in the system to allow any foreign transactions entry (i.e. EGP,
EUR …).
• The currency exchange rate type is used Corporate type for Transactions.
• The currency exchange rate type Corporate is used for reporting Currency.
• User Exchange Rate type will be available to be used if needed.
• Currency Rates definitions will be entered by authorized person.
• Revaluation for transaction entered with foreign currency can be done at the end of
reporting periods or whenever it is required for particular accounts such as Assets and
Liabilities and whenever is required.

Journals:

• Journal Entry process pass by Journal Entry and Journal Posting

• Posting journals in the General Ledger done on daily basis and whenever it is required,
and will be a centralized process by authorized person and it can be scheduled Process
by authorized Person.
• Journal approval used as per limited Amounts and as per SUMED Authority Matrix for
Manual Journals Entry.
• We have two ways of entering Journals as follows:

 Journal batch.
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
 Single Journal entry.
SUMED can use both ways at the same time.
• Journals generated from any other module will NOT be modified in the GL module and
any adjustments will be executed in the sub ledger and transferred to the General
Ledger.
• Document Sequence Number for journal entry will be as follows:

 Automatic and it will be working on Yearly basis for all journal categories
from sub modules per category (e.g. the sequence number for journals
imported on January at year 2017 will start from (170000001) where the
first 2 digits act as the year.
 Journals that created manually from GL module will be automatic.
 Journals from Integration Systems will be Automatic and it will be
working on Yearly bases (e.g. the sequence number for journals created
manually on January at year 2017 will start from (170000001) where the
first 2 digits act as the year.
• The concept of “Suspense Account “for posting out of balanced journals in the system
will NOT be allowed.
• Recurring journals are to be maintained in the system to handle different types of
journals. the recurring journals types are as follows:

a) Standard Recurring journal type can be used to record journals

recur each month with fixed amounts for its ledger accounts such
as:
- Company monthly contract accrual expense
- Employee’s accommodation expense
b) Formula Recurring journals can be used in several cases.

• Some financial statement generator (FSG) reports should be defined in order to make
Cash Flow, Income Statement, and Balance Sheet.
• Account aliases will be defined to simplify journal data entry.
• Security rules can be defined to prevent journal transactions against specific segment
values.
• Cross Validation Rules will be defined to establish the relationship between different
segment values. For example, you can enforce users to choose cost center when the
transaction is for expense account and to choose profit center when the transaction is for
sales account.

7.6.11. Period End / Year End Close

• The period end close performed “Closed” and not permanent close for the stability of
General Ledger implementation.
• Open / Close period centralized process by GL authorized person.
• Adjusting Periods used for Adjustment Journal entry from all modules.

7.6.12. Budget
• Budgetary Control type will be Advisory or Absolute based on SUMED decision in
future.
• Budget is defined for Income Statement accounts.
• All budgets will be prepared in functional Currency.
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• Financial Statement Generator will be used to generate reports to compare Actual VS
Budget.

7.6.13. Process Descriptions for General Ledger

7.6.13.1. Maintain Chart of Accounts
This process covers COA amendments in terms of defining new values, deactivation of existing
value, change in the parent-child relationship and grouping etc.

Policies

• The Chart of Accounts shall be designed to be able to undertake the following

functions:

 Rolling up the accounts to produce balance sheet, profit and loss statement
and other financial reports.
 Reporting on the costs and revenues. This facility will assist in comparing
actual to budget.
• The Chart of Accounts shall be flexible and can be modified according to management
future needs.
• The opening, deactivation, addition, and modification of accounts in the chart of
accounts should be the responsibility of ‘Finance Administrator’.
7.6.13.2. Create and Post Sub Ledgers Journal
This process covers automatically created sub ledger journals review and post to GL.
Policies
• Sub ledger transactions to be accounted and transferred to General Ledger on daily basis
by scheduling ‘Create Accounting’ program to auto run as per SUMED business
requirements.
• Posting in General Ledger will be performed only after initial and final approval to
ensure that all transactions posted have been reviewed for validity, accuracy and
completeness.
• Sub ledger journals cannot be deleted or modified from the GL. If a correction is
required, it should be done through its source sub ledger transaction and resubmit create
accounting with transfer to GL.

7.6.13.3. Create and Post Manual Journals

• This process covers manual creation and posting for accruals, provisions and reserves
journals.
• Journals are transferred from sub ledgers but they can be created directly from the
General Ledger.
• All the Journals in the General Ledger would have certain key components such as the
Name, Description, GL Period to which the transaction belongs, Source of the
transaction, Category to which the transaction belongs, currency and exchange rate and
the account lines and amounts.

Policies

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• Manual Journal is used to record transactions that don’t have supported documents
related to supplier or customers.
• Examples are to post monthly accrual transactions such as accrued utilities, accrued
rentals, accrued insurance, and accrued fees and accrued income.

7.6.13.4. Create and Post Recurring Journal

This process covers recurring journal formulas for transactions that you repeat every accounting
period, such as accruals, etc.
Policies
• Recurring Journal will be used to perform periodical journals transactions procedures.
• Template can be used multiple times till specific effective dates.

7.6.13.5. Period End Closing

• This process is a standard Process.
• This process covers period end routines and closing.
• Overall closing would be achieved when all the sub-modules are closed and the Period
status in General Ledger is also changed to close so confirm that sub-ledger modules
have closed their respective periods.

Policies
• Financial records should be closed on monthly basis.
• It is the responsibility of the Finance Administrator to close the accounting records on a
timely basis
• All transactions related to the closing month, should be recorded, validated, and posted
into the financial application prior to commencing the closing process.
• The Year-end closing process follows the same periodic closing procedures except that
it involves closing temporary or nominal account balances and transferring them to the
owner’s equity.

GL year end process is a part of open/close period process. When first period of next year is
opened, it transfers all Revenue and Expense account balances to retained earning accounts. The
beginning balances for these accounts are then set to zero for the first period of the New Year.
(Note that this process directly updates account balances and does not generate Journal Entries).

7.6.14. GL Future Process and Expected Features

All the above is the standard process currently used by SUMED GL with its related reports
(COA. Trail Balance, Balance Sheet, Income Statement ….etc.) Seeking for the best practice
provided by SAP GL module as an added value.

7.6.15. Requirements as follows (Not limited to):

• Automated evaluation for balances can be done at the end of reporting periods or
whenever it is required for particular accounts such as Assets and Liabilities and
whenever is required.
• Skeleton Recurring journals type can be used to record journals recur each month with
the same ledger accounts and variable amounts from month to month.
• Capture journal entries imported from spreadsheets.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• GL Accounts related to sub ledger will be restricted in use in General Ledger by Control
Flag.
• Reversal method used in the journal category definition will be the “Switch Debit
Credit”.
• Budget defined for Balance Sheet accounts except CAPEX accounts.
• Budget can be uploaded using Excel format or through ERP integration
• As SUMED will use encumbrance key feature of Applications to avoid overspending a
budget and predict cash outflow and as a general planning tool and also accounting
method is accrual, SUMED and its Subsidiary/Parent companies will use one primary
Ledger with sub ledger accounting method ‘Encumbrance Accrual.’

7.7. Budgeting & Funds Management

Controlling
7.7.1. Introduction
Creating a budget is a necessity process to ensure SUMED can meet its existing financial
commitments and achieve the optimum profit. It keeps the company on track with its expenses
and revenues.
Budgets' reports help in understanding the company's performance as well as comparing its
actual expenses to the budget amounts.

7.7.2. Work Flow

• Planning can be top-down or bottom-up. The standard planning application that you can
use as a template for budget planning in your organization assumes that the budgets are
entered locally in the departments and then processed further at a higher level and the
changes requested are made by the budget department. The budget values of the current
year and the commitment/actual data of the previous 5 years are used as guide. The
default values from the copy of this data can be adjusted by revaluating the expectations
(for example, general budget increase of 5%).
• Since the budget is planned in a number of steps (department, budget department, head
of administration) and the status of the data should be documented in the system, the
planned budget data is saved in different versions. The administrator copies the plan
data between the versions from the lower to the higher aggregation level and then from
top to bottom again.
• Presenting the budget in the annual November BOD meeting for approval.
• Inserting the approved budget as a final template in SUMED budgeting software.
• Entering the monthly budget account (all in USD) on the software.
• Creating excel sheets for analyzing every sub account details.
• Following up is done monthly through:
- Sending monthly reports to all sectors\departments with their actual amounts for
revising and providing with the reason behind any increase above budget.
- Analyzing data for correcting errors in entry if available

7.7.3. Requirements
• A platform that enables the specialist to enter the main budget template.
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• A platform that enables the specialist to enter the monthly budget account.

7.7.4. Examples for Reports Required

• A best practice report for tracking actual versus budget monthly expenses sorted by
different criteria (sub, center, etc).
• A best practice report for tracking actual versus budget data for a specific historical or
current period.
• A best practice report for tracking the closed /exceeding accounts above budgets.

7.8. SUMED Pension System (Custom Module)

7.8.1. Process
• Upon employee retirement a monthly pension is paid for a period of 15 years within the
limits of his personal account balance, and the pension category disbursed to him is
determined on his basic salary at the time of retirement, according to the categories that
have been identified and approved, and the pension is increased by a fixed percentage
annually.
• In case of death of the member, the remainder of his personal account balance is
disbursed to the legal heirs according to the inheritance notification after deducting the
value of the pension he received before his death, or disbursing the entire balance of his
personal account in case of the member passed away before retirement.
• As for the retirees before 2019, they have different payment bases and a different fixed
annual increase, and the pension is paid for a period of 20 years
• In case of death of the member, a monthly pension is paid to the beneficiaries according
to the social insurance and at the same rates of disbursement, provided that the pension
value is paid for a period complementing 20 years from the date of obtaining the
pension.
• Retiree can still benefit from SUMED Medical, car insurance or SUMED committee
options and can pay his debts on instalments to be deducted from Monthly payment.

7.8.2. Requirements
• An application that would handle the above process, integrating with ERP.
• 5 medium complex Reports
• All related WRICEFs to this custom module are not counted of the main ones of ERP.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

8. Human Capital Management

8.1. Personnel Administration
• Create new record / maintain Employee Master data:
- Personal Data (Employee Number, Name, Birth date, Birth Government, ID
number & Data, Marital status, Military status, Hiring Date, Address, Tel...etc).
- Limited Period Contract employees (Contract start date, Contract end date).
- Employment data (Employee Number, Contract type, Job title, Job date, Employee
Level, Location, Government Insurance No., Insurance Policy No.)
- Qualifications (University, Faculty, Specialty, Graduation year, Degree , Rank)
- Previous Employment Service periods data (Organization name, Start date, End
date).
- Dependents data (Dependents Name, Dependents Number, Relationship, Birth
date, dependent type).
• Training:
- Training course data (Course Provider, Course name, Start Date, End date, County,
Training Type, Course category, Training location...etc).
- Training budget data (total budget, Course cost, Air Tickets Cost, Transportation
Allowance, Hotel Cost...etc).
- Calculating training cost and compare to budget.
- Training questioner workflow & statistics.
• Performance Management data:
- Quarter appraisal (Degree / Rank / date).
- Annual appraisal (Degree / Rank / date / annual raise percentage).
• Basic salary administration: - (Basic Salary, Salary change date, Salary change reason,
Employee Grade, Special allowance).
• Allowances & Benefits (Transportation allowance, Representation Allowance, Medical
Care, Business Travel allowance ...etc) based on Employee level (Matrix between Job
level & Employee Grade).
• Current & Retired employee’s historical data.

 All employee details shall be updated on a regular basis to ensure that

all information is reflected in a timely manner.
 All the information gathered from the employee will be entered and
maintained with the respective dates HR module.
 Extra Employee Information (Company Asset Tracking, Disciplinary
Actions, Probation Period Assessment, Re-summon for Army Services
and Exit interview...etc).
• Main Reports (not limited to) :-
- Employee detailed CV.
- Summary report by department, Qualifications, date of birth, Position level,
Training provider, Course title, Course category...etc.
- Summary statistical reports Number of employees (by department, by qualification,
by grade, by position level.....etc).
- HR Letter (Bank, Embassy..., etc).

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

8.2. Organizational Management

• Create / modify / delete Organization structure data (Sector, Department, Section,

Position title, Position count, location, Position hierarchy relations, Position level).
• Employee mapped to organization structure based on (Acting as / Assigned / Occupies).
• Main Reports:
- Position list by department and position / employee total count.
- Vacant position list.

8.3. Time Management

System shall cover all related leaves and whether they have a financial impact and get the
check-in check-out system from our internal BMS system.

Time Management module shall cover the following:

• Work schedules (including flexible, shift based and fixed work schedules)
• Create public holiday calendar for Egypt
• Evaluation of time data
• Clock-in & Clock-out (from BMS system)
• Different overtime scenarios
• Absences & Attendances.
• Various absence types and their quota types.
• 4 different types of Sick leaves with different payroll effect.
• Some leaves have different deduction counting rules for their quota.
• Annual transferred quota with settlement after 3 years.
• Leave quotas are prorated based on hiring and leaving dates.
• Historical data.
• Governmental Social insurance calculations Employee & Company premium.
• Overtime calculations according to Clock-in & Clock-out (from BMS system).
• Shift based compensations (Night hours, Vacations allowance ...etc).
• Various loans deductions (Car loan, Housing loan ...etc).
• Main Reports:
- Leaves by type, by employee, by department.
- Governmental Social insurance periodical report.
- Loans / Overtime by employee, by department.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

8.4. Insurance Policy Calculations (Custom Module)

8.4.1. Process
SUMED has its own Insurance Policy, and following are the policies:
• Base amount depending on basic salary and increases with salary increase.
• History of amount / salary increase needed for settlement.
• Policy settled Calculations at (Retirement, Early Retirement, and Resignation).
8.4.2. Requirements
• An application that would handle the above process and calculations, integrating with
ERP.
• 5 medium complex Reports
• All related WRICEFs to this custom module are not counted of the main ones of ERP.

8.5. Medical System (Custom Module)

8.5.1. Process
SUMED has its own Medical system, and following are the policies:

• Employee is fully covered (Medicine, Medical Examination, Operations...etc).

• Employee has budget (Dental, Ophthalmology...etc).
• Employee’s dependents are covered 75% in terms of everything but in operations 100
%.
8.5.2. Requirements (not limited to):
• An application that would handle the above process and calculations, integrating with
ERP.
• 5 medium complex Reports
• Each dependent should have a unique number and to be validated (Active / Inactive)
according to Medical policy terms.
• Retired employees and their dependents get the same benefits as Current employees.
• Medical Profile for each employee.
• Medical service providers shall be defined on system.
• Monthly medical claims are received from Medical Service providers and shall be
recorded on system for each employee and dependents.
• Claim report and supported documents shall be presented to Finance in order to issue
Payment.
• Reports based on employee/ Medical service provider/ finance shall be extracted from
the system.
• Employee can pay for Medical service and reimburse based on approval of Medical
department.
• Deductions / additions to Payroll can take place based on Medical claims and subject to
approval of Medical department/ doctors & Payroll department.
• All related WRICEFs to this custom module are not counted of the main ones of ERP.

8.6. Self Service

Self Service to manage leaves, Business & Training Travel allowance:
• Employee maintains his or her data (Address / Tel / Dependents).
• Employee can view his or her monthly payroll data.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

• Employee applies for his or her own (leaves, Business & Training Travel allowance).
• Manager can apply to leaves on behalf of subordinates.
• Approval workflow with multiple approval levels which depends on employee’s
department in org structure.
• Record & Update leaves balance.
• Travel management and business trips planning.
• Calculations of Business & Training Travel allowance.
• Benefits and payments.
• Organizational management (can view organizational structure, team details, reporting
hierarchy) as per Management organizational level.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

8.7. Payroll
Payroll shall cover the following but not limited to:
• Payroll Elements & monthly calculations
• Overtime and time deductions.
• Payments/deductions wage types.
• Off-cycle payroll Pay scale data with several types, grades, and levels.
• Bank Transfers and Integration to Finance Month end accruals
• Loans with conditions - Loan settlement & Loan closure
• Monthly Reports / Annual Reports
• Payroll Personnel Scheme and custom Calculation Rules
• HCM Egyptian Localization (Taxes, Social insurance,…etc)
• Adding Social Insurance Service Periods
• Additions / deductions to payroll (Medical System, loans)
• Calculation of Cash equivalent of leave balance
• Calculation of insurance Policy monthly payment

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

9. Sourcing & Procurement

The purpose and core requirement of the application implementation is to automate and track
the natural progression of the Purchasing and Service request processes following the flow of an
order/contract from its initial request point (the Purchase Requisition / service requisition),
submission for bid (the Request for Quotation), integrating with a standalone SAP based
automated tendering/clarification exchange, technical and financial evaluation, comparing and
awarding throughout study and decision committees process, construction and submission of a
formal purchase order /service contract to the vendor/contractor , expediting, Integrating with
standalone SAP based automated Logistics Management system and receipt of Materials /
completion of contractual work from the Vendor / contractor () and finally payment processing
for receipts / service milestones (Invoices). Also managing of the Auction process (Selling
Scrap)
SUMED Material Management (PR, RFQ, PO, and INVENTORY) is currently partially
automated on IBM Maximo asset management. Contract Management, Tendering processes and
Logistics Management, Auction process are currently not automated.
Tendering Process including all its activities for both Purchasing and contracting is out of
Scope.
Illustrated below highlighting of the Main requirements to be considered in the newly SAP ERP
system. (not limited to). SAP best practice application to be considered.

9.1. Particular Scope of Work/Obligations (including but not limited

to):
• All Modules shall be integrated within workflow that support and facilitate the process,
meaning the integration between Sourcing and Procurement Modules and all other SAP
modules
• System Generated reports, to be predefined or Real time dynamic reports
• System generates Forms , and all documents related to one job to be filled and retrieved
through the system
• Integration with standalone EDMS system through a permission matrix, to be defined
during implementation. (out of scope)
• Individual Task assignments, and KPI functionality per individual and per task (out of
scope)
• Tendering process and Auction process will be implemented on an on premises solution
(ARIBA alike solution) that integrates with SAP ERP in order to fully automate the
process. (out of scope)
• Logistics process will be implemented on an on premises solution that integrates with
SAP ERP in order to fully automate the process.
• Best Practice is requested throughout all Modules to optimize our process.
9.2. Contracts Management
9.2.1. Service Request
• Service request system accessed by all company departments (requestors) allowing for
budgeting, full technical specifications, Breakdown list of services/ materials required,
special requirements, location, execution duration, payment method/milestones,
Contractors, Request type (Single Contractor, Open bid, Tender, Reverse Auction) etc.
• Approval levels (TBD) for Service request (according to type and budget estimates) in
addition to budget approval by financial dpt.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• Final approved Service Request to be received by Contracts Department to initiate ITB
procedures.
9.2.2. Invitation to Bid (ITB)
• Issuance of the draft ITB.
• Assignment of predetermined criteria for bid evaluation (prices, specifications, delivery
schedule, point system, etc).
• ITB document to include full technical specifications, Breakdown list of services/
materials required, special requirements, document requirements, location, execution
duration, payment method/milestones (all automated from Service Request).
• ITB document to include Terms and Conditions: Template based, Interactive and
dynamic.
• Release of final approved ITB document to designated Contractors with deadline for
submission of bids.
• ITB Structured Management: Pre-bid clarifications, Site Visits, clarification meetings,
Task assignments, Approval levels, Bidder Communications (email), history logs, event
management etc.
• Bid submission before deadline specified in ITB documents.
• Bid opening according to type (Single, open, tender or Reverse auction).
• Bid Evaluation according to type (single, open, tender, reverse auction), predetermined
criteria, technical specifications, prices, etc
• Contract Awarding after evaluation and budget approval.

9.2.3. Contract Execution

• Contract creation: Template based, Interactive and dynamic.
• Contract Structured Management: Approval Levels, Contractor Communications,
Contract Negotiations, Task Assignments, Completion time, Project development,
contract variations, Invoicing & payment, Logistics requirements, etc.

9.3. Purchasing Management

9.3.1. Purchase Request
• Purchase request system accessed by all company departments (requestors) allowing for
budgeting, full technical specifications, Bill of Material, special requirements, location,
required by, payment method/milestones, Suppliers, Request type (Single, Open bid,
Tender, Reverse Auction), Market (Local or Foreign), Priority, etc.
• Real time Inventory visibility, study and approval.
• Approval levels (TBD) for Purchase request (according to type and budget estimates) in
addition to budget approval by financial dpt.
• Final approved Purchase Request to be received by Purchasing Department to initiate
RFQ procedures.

9.3.2. Request for Quotation (RFQ)

• Issuance of the draft RFQ according to Type (Single, Open, Tender, Reverse Auction)
and market (Local or Foreign).
• Assignment of predetermined criteria for bid evaluation (prices, specifications, delivery
schedule, point system, etc)

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• RFQ document to include full technical specifications, Breakdown list of materials
required, special requirements, document requirements, location, required by (all
automated from Service Request), payment method, etc
• RFQ document to include Terms and Conditions: Template based, Interactive and
dynamic.
• Release of final approved RFQ document to designated Suppliers with deadline for
submission of bids.
• RFQ Structured Management: Pre-bid clarifications, Site Visits, clarification meetings,
Task assignments, Approval levels, Bidder Communications (email), history logs, event
management etc
• Bid submission before deadline specified in RFQ documents
• Bid opening according to type (Single, open, tender or Reverse auction)
• Bid Evaluation according to type (single, open, tender, reverse auction), predetermined
criteria, technical specifications, prices, method of Shipment, etc
• Bid bonds management
• Purchase Order Awarding after evaluation and budget approval.

9.3.3. Purchase Orders

• Purchase Order creation: Template based, Interactive and dynamic.
• Purchase Order to allow for prorated service lines in addition to procured items (Freight,
Inspection, FAT, documentation, handling, etc)
• Purchase Order Structured Management: Approval Levels, Budget allocation Supplier
Communications, PO Negotiations, document transmittals and approvals, Task
Assignments, Invoicing & payment, expected delivery dates, penalty dates, Guarantees
(final letters/deposits, against payment,…ect), Shipping method and Logistics
requirements (in case of Foreign PO), Tax requirements (in case of Local PO) etc.
• System shall allow issuance of Variation order.

9.3.4. Expedite Process

This process starts after the Purchase order is issued and sent to Vendor till the Shipping Advice
is received.
• System sets shipments/ Purchase order including shipping dates and penalty dates based
on certain criteria and promised delivery period.
• Receiving process shall be linked to the shipment ( In case of several shipments per
order)
• System shall allow generation of new shipment/ purchase order when needed in case of
claim. Including re-exporting of goods for replacement/repair.
• Best practice for follow up, with interactive reports and alarms.
• ACID (Advanced Cargo Identification) requested by the Egyptian authorities to be
generated prior shipment per shipment. Shall be imbedded in the system allowing to be
logged by the shipment requester initiator or the logistics dept. based on the shipment
parent type)
• Allow interactive tasks between expedite process, procurement and logistics dept.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

9.3.5. Receiving and Claims Management

Receiving Process Starts from the arrival of the shipment to SUMED site, including visual
inspection of the shipment upon arrival followed by preparing the shipment to be technically
inspected, till the items are technically approved and warehouse receipt docs are issued.
• System shall allow partial receipt per shipment and between several warehouses/sites
per item.
• System shall allow generation of discrepancy notes per item (per shipment) (Over note,
Short Note, Subnote, Damage note) and claim handling in these cases according to best
practice.
• System shall allow generation of new shipment/ purchase order when needed in case of
claim. Including re-exporting of goods for replacement/repair.

9.3.6. Supplier Management

• SUMED has its own Suppliers’ portal on which Suppliers can register and add their
supportive documents, interface with this portal is required.
• Supplier evaluation and performance monitoring will be done in S/4HANA as per best
practices.
• Sub-contracting, service and other types of procurements are assumed to be as per best
practices.
• Supplier Classification and Segmentation is required.

9.3.7. Invoice Management

Best practice shall take place.

9.4. Inventory Management

• The Arab Petroleum Pipelines Company "SUMED" owns warehouses at its work sites
in Ain Sukhna sector, Dahshur station, and the Sidi Kerir sector.
• Warehouses include spare parts, tools, devices, items, and other supplies for use in site
works.
• Stock trading monitored through the system.
• Inventory management function is split between three different departments within
SUMED system as follows:
- Operation Division.
- Purchasing Follow UP.
- Financial Control.
• The transactions (receipt/issue /transfer/return)
• SUMED has 3 physical store rooms IN 3 locations AS (AIN SUKNA),SK (sidi-kreir),
DH (dahshour) Named as the main store room & obsolete store room.
• SUMED has virtual store rooms on the current Asset management system for projects in
each site named by the project number.
• Items Costing method is average cost of item for the MAIN store room across the 3
locations, and average cost of item for each virtual project storeroom across the 3
locations.
• Inventory Count, Adjustment, Store Balances and transactional data operated for all
storerooms currently on IBM Maximo Asset Management.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
• Material and Equipment Standards and Code. M.E.S.C. SHELL is the company's
current items classification system.
• SUMED uses Discrimination by coding with letters and numbers, colors, or symbols
(marks) specific to the company, for identifying the required materials, determining
their exact storage locations, and following up the balance of the materials inside the
warehouses.

9.4.1. Inventory Transactions (Receipt, Issue, Transfer &

Return)
• Store Receipt from outside the company (incoming missions)
• Virtual inspection and receiving, starting from receiving from the shipping company
until closing the process file
• Technical inspection
• Store issue
• Store return
• Store Transfer
• The warehouse transfer is divided into:
- Transfer within the site between different stores.
- Transfer to another site.

9.4.2. Periodic Inventory Count Committees

Requirements of the SAP System for Inventory Management (not limited to). SAP best practice
application shall be considered.
• Best Practice shall take place without altering the main headlines mentioned above.
• Historical inventory transactions and store balances shall be available in the newly
implemented S4HANA in order to review inventory item cards.
• System shall allow the revision and coding (SUMED uses M.S.E.C SHELL system) of
new stock items upon issuance and approval of purchase orders and before the items are
fully received at the warehouse.
• System shall generate a separate coding technique for nonstock items for tractability
• Automation of Scrap Warehouse management process including categorization with
relevant activities (Scrap, Asset Disposal, Refurbish, Return, Sell…act).
• Best Practice for Virtual Warehouse at HQ, where no Physical Warehouse is present
• System shall allow handling of items remained from contracts projects and its entrance
to SUMED warehouse.

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Current Purchase Requisition Work Flow Sample

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Current Purchase Order Work Flow Sample

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9.5. Logistics Management (Custom Module)

9.5.1. Process
SUMED has a logistics contractor for handling the customs clearance work with customs
through an annual contractual agreement issued through the Contract department.
Logistics department handles the following tasks:

• All shipments shipped under the name of SUMED (i.e. consignee is SUMED)
• Ex-works shipments.
• Usage/Transfer of Material between SUMED sites
• Re-export of Materials (example: for repair, replacement , over quantity)
• Ban Removal process (specially for items before auction process)
• SUMED airport account in customs, and its settlement with the financial dept.
• Logistics contractor invoices per shipment (or usage: transfer) as per current contract
and its settlement with contract dept. and financial dept.

Each of the above tasks has its own workflow based on subtypes and sub tasks if any, which
will be explained in this document. Logistics Process Management Solution shall cover all of
that.
9.5.1.1. Shipments Under the name of SUMED
• Shipments can be received through one of the following (Parent of the Shipment), and
each has its own workflow as shown in below diagrams:
- Purchase Order
- Contract
- Misc.
• Logistics Department process starts upon receiving a “Shipment Request” through
several departments based on the parent of the shipment (Purchase order, Contract,
Misc.)
• For Approved Shipment Request, a Workflow process should manage Shipment
Request and its transaction between SUMED Departments (Finance, Procurement,
operation,... etc) and Logistic Department.
• Shipment Transactions including Insurance, Transportation, Custom Declaration,
logistics contractor invoices, Duties…etc.
• The system shall identify the shipment upon accepting the Shipment Request by the
Logistics dept. user with serials related to their Parent Type, this Field is called
“Logistics Reference No.” in our current process.
(Example: 123/2021F-2, means 2nd shipment for foreign purchase order no 123/2021F)
• The system shall generate unique serial no called “Customs Declaration No (D/C)” for
all Shipments per year. This represents the reference no. for the main document
identifying the shipments at customs authorities. This Number to be generated once a
certain field<docs date>is not Null.
(Example: 001/2023, means first D/C in year 2023).
• ACID (Advanced Cargo Identification) requested by the Egyptian authorities to be
generated prior shipment per shipment. Shall be imbedded in the system allowing to be
logged by the shipment requester initiator or the logistics dept. based on the shipment
parent type)
• SUMED Logistics Department currently has an internal developed application for
Shipment registration and Management; all parties shall stand on this Application
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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
configuration for shipment business Process Understanding. Screens found below in this
document.

9.5.1.2. Ex-Works Shipments

In case the purchase order delivery terms is EX Works. The request for shipment send to the
Logistics dept. will be upon readiness of material notice from the supplier.
logistics department handles the awarding of freight forwarder and booking process. Part of
shipment management block diagram process listed later in this document.

9.5.1.3. Usage/Transfer Material between SUMED Sites

Logistics department receives Transfer requests (based on Usage type transfer) to transport
Materials between SUMED sites/Warehouses with certain approval levels and fulfilling relevant
actions needed to fulfil the job including transportation Insurance, transportation invoices. This
is illustrated more in block diagrams and system screens listed later in this document.

9.5.1.4. Re-export of Materials

Logistics department receive Re-export Requests for repair, replacement, or final return with
certain approval levels. This request could be from Procurement dept. related to a Purchase
order. Or from other Departments. This is illustrated more in block diagrams and system screens
listed later in this document.

9.5.1.5. Ban Removal Process

(specially for items before auction process) Associated with data in shipment table and auction
module.

9.5.1.6. SUMED Airport Account in Customs

SUMED has a debit account at the airport customs authority. This account is managed by the
logistics dept. by taking loans from the SUMED financial department to Put it as a credit in the
airport account (Deposit), and settle it with each airfreight shipment (Withdrawal). System
screens listed below for logging and settlement for this process.

9.5.1.7. Logistics Contractor Invoices and Other Financial Claims

As mentioned above SUMED has a logistics contractor for handling the customs clearance work
with customs through an annual contractual agreement issued through the Contract department.
Contractor invoices could be related to several services, related to shipments, re-export,
transportation. This means it is related to and order shipment request. or to other service
requests fulfilled by the logistics dept. through the contractual agreement.
OR
Any other invoices related to external contractor (Forwarder , shipping line agent ..etc.)
Logistics department handles the settlement of the contractor invoices (system screens found
below)
Notes:
• Sys. Shall Generate the following:
- Penalty claim document or another claim.
- Re-export inv. (For customs purpose).

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Block Diagrams
Purchase Order Shipment Request Work Process

Contract Shipment Request Work Process

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Misc. Shipment Request Work Process

Re-Export Shipment Request Work Process

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Transportation (Usage: Transfer)

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

SUMED Logistics department internal developed application

for shipment registration and management screens
(Explanatory screens from current system)

Logistics Management Screen

Shipment Button

Shipment Tab

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Continue Shipment Tab

Event Log Tab Showing Domains for Field <TYPE>

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Ex-Work Log Tab

Outstanding Log Tab

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Penalties Log Tab

Claims Log Tab

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Airport Account Button

Airport Transaction Log Tab

All Transaction Tab (Type: Report)

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Re-Export Button

Re-export Log Tab

Ban Removal Button

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Contractor Invoices Button

Transportation Log Tab

Usage Button

Transportation Log Tab

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.Enterprise Asset Management

SUMED current automated system for enterprise asset management is IBM Maximo asset
management, and we are considering to go for SAP best practicing.
Maintenance plants are considered in scope and all plants are assumed to have identical business
processes.

• SAP Best Practices based processes are considered for Plant Maintenance
• Decentralized planning is assumed within this scope.
• Resource scheduling will be limited to Plant Maintenance Orders
• WCM Standard process will be only covered without enhancement to the standard
functionality as follows:
- Create maintenance order with work clearance management requirement
- Create work approval
- Create work clearance application
- Create operational work clearance document
- Perform permit approval process
- Define operational cycle of lockout/tagout
- Generate work clearance management objects for a planned maintenance
- Add Work instructions (Job Plan) to Work order associated with permit.
- Attach HSE risk to work order associated with work order.
- Toolbox is attached to Work order & permit.

10.1. Plant Maintenance

Requirements:
• Plant Maintenance Master Data
• Corrective Maintenance
• Emergency Maintenance
• Preventive Maintenance
• Refurbishment Management
• Refurbishment with Subcontracting
• Overhaul Management
• Proactive Maintenance
• Reactive maintenance
• Maintenance Resource Scheduling
• Inspection Rounds (Without QM integration)
• Work Clearance Management (WCM)
• Work Instructions associated with work order(Job Plan)
• Overall Department Procedure
• Tool Box Talk associated with work order
• HSE Hazard identification & risk assessment associated with Work Order
• KPI for each department

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.1.1. Environment, Health & Safety (EHS)

SUMED performs a set of tasks to execute and maintain effective HSE for example….
• Monitor and drawing all type of incident (Incident investigation, Near miss, safety
observations).
• Performing asset and Risk management (hazard identification and risk assessment –
environmental impact and aspect
• Extracting safety trends related data and analysis report to implement change in HSE
(Monthly safety report)
• Assessing employee health risk (list of hazardous exposure in site for employee –
periodic medical examination (yearly)
• Monitoring safety outside the organization (contractor evaluation).
• Detecting chemical hazards (list of SDS –Risk assessment)
• Compliance with emission level standard (monitoring quality of Air / Noise and check
on the regular basin to ensure environmental compliance (monthly report –third party
report every 6 months)
• Waste Management (Dangerous waste transfer note)
• HSE AUDIT MANAGEMENT (AUDIT SUMMERAY REPORT -
Corrective/Preventive action request (CPAR)), issues, interested party, objective,
opportunities forms.
• Management of change (MOC)
• Permit to work
• Isolation certificate / LOTO
- Electrical isolation
- Mechanical isolation
- Override, DEFEAT, DISCCONECT OF safety devices ISOLATION
- Impairment Form
• KPI processes safety management

SAP Best Practices based processes are considered for the EHS module

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.1.2. Risk Assessment

• Hazard Identification
• Risk analysis
• Risk evaluation
• Risk mitigation

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.1.3. Occupational Health

• Medical service initiation
• Medical service processing
• Medical service outputs

10.1.4. Audit Management

• Audit planning
• Audit processing
• Audit output

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
QHSE Issues Register:

QHSE Issues Risk Assessment:

QHSE Interested parties needs & Expectations Register:

QHSE Interested parties Risk Assessment:

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

QHSE Opportunity Register:

QHSE Objectives form:

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.2. Management of Change

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.2.1. Environment management

10.2.2. Health & Safety
3B

Best practice for this module shall be implemented

10.2.3. Incident Management
4B

• Incident recording
• Incident processing
• Incident outputs
• Environmental Aspect &Impact:

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

10.2.4. Isolation certificate / LOTO

5B

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
10.2.5. Mechanical Isolation /LOTO:
6B

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
10.2.6. Impairment:
7B

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
10.2.7. Defeat/Override:
8B

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED
10.2.8. KPI
9B

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

11.Project & Portfolio Management

SAP Best practice shall be used for these modules

11.1. Portfolio System – Enterprise Projects

• Capital Investment Project Management
• Operational projects (OPEX)
• Overhead / Internal / statistical Projects
• Period End Closing
• Overhaul Management (Shutdown and maintenance projects)
• Project Financial control
• Project logistics control

11.2. Portfolio & Project Management PPM

11.3. Commercial Project Management CPM

• Commercial Project Management Workspace
• Commercial Project Management Cost planning
• Commercial Project Management Issue and change management

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Appendix A: Licenses Bill of Material

0B

Product Licensed Qty Blocks / units unit

SAP S/4HANA Enterprise Management

for Professional use 65 1 user
SAP S/4HANA Enterprise Management
for Functional use 135 1 user
SAP S/4HANA Enterprise Management
for Productivity use 8 1 user
SAP S/4HANA, Developer access 1 1 user
SAP S/4HANA Finance for treasury and 1M USD
risk management 2 Revenue user
SAP S/4HANA Finance for cash 1M USD
management 2 Revenue user
SAP Business Planning and
Consolidation, version for SAP
BW/4HANA (planning only),
professional edition 3 1 user
SAP Business Planning and
Consolidation, version for SAP
BW/4HANA (planning only), standard
edition 20 1 user
SAP Single Sign-On 50 1 user
SAP Core HCM Component 600 1 user
SAP Payroll Processing 600 1 user
SAP S/4HANA Time tracking 600 1 user
SAP Work Clearance Management for
SAP S/4HANA 1 8000 resources
SAP S/4HANA Asset Management for
EHS environment management 1 1000 records
SAP S/4HANA Asset Management
Workplace safety 1 1000 records
SAP S/4HANA Enterprise Portfolio and
Project Management, professional 30 1 user
SAP S/4HANA Enterprise Portfolio and
Project Management, standard (steering
committee) 10 1 user
SAP Enable Now author option 2 1 user
SAP Enable Now consumption option 207 1 user
SAP Doc and Reporting Compliance for
S4Hana 1 1 Entities
SAP Business Objects Enterprise (user) 5 50 user
SAP Business Objects Enterprise (CS) 2 10 user

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Appendix B: SAPs
1B

Landscape CPU RAM Storage Database

(in SAPS) (in GB) (in GB)

PRODUCTION

SAP S/4HANA (emb. Fiori) 32000 /16 Cores 128 600 HANA
- App Server

SAP HANA DB Server 512 GB

SAP NW JAVA (ADS) + 16000 / 8 Cores 48 400 SAP ASE

SAP Single Sign-On

SAP Solution Manager 16000 / 8 Cores 48 800 SAP ASE

SAP Business Objects 16000 / 8 Cores 64 300 SAP ASE

Process Orchestration 16000 / 8 Cores 64 1000 SAP ASE

SAP Enable Now 32000 /16 Cores 128 500 SAP ASE

SAP Web Dispatcher 8000 / 4 Cores 16 100 -

SAP Router 4000 / 2 Cores 8 100 -

QUALITY

For the App Servers, assume 40-50% of Production resources.

One 512 GB HANA appliance for Quality + Development landscape

DEVELOPMENT

For the App Servers, assume 20-30% of Production resources

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TECHNICAL CONDITIONS & SCOPE OF WORK SUMED

Appendix C: Temporary HW configuration

2B

P.N Description QTY

HPE ProLiant DL380
868703-B21 HPE ProLiant DL380 Gen10 8SFF Configure-to-order Server 4
868703-B21 B19 HPE DL380 Gen10 8SFF CTO Server 4
Intel Xeon-Gold 6252 (2.1GHz/24-core/150W) FIO Processor Kit for
P02516-L21 4
HPE ProLiant DL380 Gen10
HPE 32GB (1x32GB) Dual Rank x4 DDR4-2933 CAS-21-21-21
P00924-B21 8
Registered Smart Memory Kit
P05924-B21 HPE 240GB SATA 6G Read Intensive SFF SC S4510 SSD 8
P9D94A HPE SN1100Q 16Gb Dual Port Fibre Channel Host Bus Adapter 4
P01366-B21 HPE 96W Smart Storage Lithium-ion Battery with 145mm Cable Kit 4
HPE Smart Array P408i-a SR Gen10 (8 Internal Lanes/2GB Cache)
804331-B21 4
12G SAS Modular Controller
727054-B21 HPE Ethernet 10Gb 2-port FLR-SFP+ X710-DA2 Adapter 4
453151-B21 HPE BladeSystem c-Class Virtual Connect 1G SFP SX Transceiver 8
455883-B21 HPE BladeSystem c-Class 10Gb SFP+ SR Transceiver 8
HPE 800W Flex Slot Platinum Hot Plug Low Halogen Power Supply
865414-B21 8
Kit
P8B24A HPE OneView w/o iLO including 3yr 24x7 Support 1-server LTU 4
HPE iLO Advanced 1-server License with 3yr Support on iLO
BD505A 4
Licensed Features
733660-B21 HPE 2U Small Form Factor Easy Install Rail Kit 4
H7J32A3 HPE 3Y Foundation Care NBD SVC 1
H7J32A3
HPE DL38x Gen10 Support 4
WAH
HPE Nimble Storage
HPE Nimble Storage HF20 Adaptive Dual Controller 10GBASE-T 2-
Q8H72A 1
port Configure-to-order Base Array
HPE Nimble Storage HF20/20C Adaptive Array 21TB (21x1TB) FIO
Q8B68B 1
HDD Bundle
Q8B90B HPE Nimble Storage 2x16Gb Fibre Channel 2-port FIO Adapter Kit 1
Q8G27B HPE Nimble Storage NOS Default FIO Software 1
HPE Nimble Storage C13 to C14 250V 10Amp 1.8m Universal FIO
Q8J27A 2
Power Cord
HPE Nimble Storage HF20 Adaptive Array 1.44TB (6x240GB) FIO
Q8J28A 1
Cache Bundle
R3P91A HPE Nimble Storage AF/HF Array Standard Tracking 1
HT6Z0A3 HPE NS 3Y 4H Parts Exchange Support 1
HT6Z0A3 ZED HPE NS HF20/20C Hybrid 21TBHDD Bndl Supp 1
HT6Z0A3 ZE5 HPE NS HF20 1.44TB Cache Supp 1
HT6Z0A3 ZEB HPE NS HF20 Hybrid Base Array Supp 1
HT6Z0A3 ZG1 HPE NS 2x16Gb FC 2p Adptr Supp 1
Total Capacity 10 TB
3.47
Free Space
TB

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GENERAL CONDITIONS SUMED

VOLUME II
EXHIBIT B

GENERAL CONDITIONS

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GENERAL CONDITIONS SUMED

GENERAL CONDITIONS

TABLE OF CONTENTS

1 ENTIRE AGREEMENT

2 CONTRACTUAL RELATIONSHIP

3 AUTHORIZED REPRESENTATIVES & NOTICE

4 LAW AND REGULATIONS PERMITS

5 CONTRACTOR’S PERSONNEL

6 WORDS AND PHRASES

7 STANDARDS AND CODES

8 SITE CONDITIONS

9 INDEPENDENT CONTRACTOR
AND SUB CONTRACTORS

10 TITLE TO MATERIALS FOUND (Not Applicable)

11 WARRANTY

12 PATENT INDEMNITY

13 INDEMNITY

14 NON-ASSIGNMENT

15 DAMAGES FOR CONTRACTOR’S BREACH OF CONTRACT

16 CONTRACT WORK AREA

17 CONTRACTOR’S EQUIPMENT & FACILITIES

18 USE OF SUMED’S FIRST AID FACILITIES

19 USE OF SUMED’S EQUIPMENT AND FACILITIES

20 DELIVERY, UNLOADING AND STORAGE (Not Applicable)

21 LINES, GRADES AND SURVEY WORK

22 PERFORMANCE REQUIREMENTS

23 RESPONSIBILITY FOR WORK, PRECAUTION

24 INSPECTION, REJECTION OF MATERIALS AND WORK

25 SHOP TESTS

26 FIRE PREVENTION

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GENERAL CONDITIONS SUMED

27 ENVIRONMENTAL POLLUTION (Not Applicable)

28 EXPLOSIVES (Not Applicable)

29 ORDER OF PERFORMANCE OF WORK

30 EXPEDITING

31 PROGRESS

32 CHANGES AND EXTRA WORK

33 CLEANING UP (Not Applicable)

34 DELAYS AND EXTENSION OF TIME

35 SUSPENSION

36 TERMINATION FOR DEFAULT

37 INSPECTION AFTER COMPLETION AND

ISSUANCE OF PROVISIONAL
ACCEPTANCE CERTIFICATE

38 TAXES, CONTRIBUTIONS, ASSESSMENTS

AND EMPLOYMENT INSURANCE

39 CONTRACTOR’S FOREIGN PERSONNEL

40 CONFIDENTIALITY

41 CONTRACT LANGUAGE

42 CONTRACT LAW

43 LABOUR AND PERSONNEL

44 EXAMINATION OF CONTRACT’S RECORDS

45 SETTLEMENT OF DISPUTES

46 FORCE MAJOR

47 PERFORMANCE BOND

48 INSURANCE

49 CUSTOM DUTIES (Not Applicable)

50 PACKING, MARKING AND SHIPPING (Not Applicable)

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1 ENTIRE AGREEMENT
2B

This Contract embodies the entire agreement between SUMED and Contractor.
The parties shall not be bound by or be liable for any statement, representation,
promise, inducement or understanding of any kind or nature not set forth
herein. No changes, amendments or modifications of any of the terms and
concessions hereof shall be valid unless agreed in writing and signed by both
parties.

2 CONTRACTUAL RELATIONSHIP
2-1 Contractor represents that it is fully experienced and properly qualified to
perform the class of work and services provided for herein and that it is
properly licensed, equipped, organized and financed to perform such work.

2-2 The Contractor shall act as independent Contractor and not as agent of
SUMED, he shall have full and sole contractual and legal responsibility of
and for its subcontractor, labors and personnel. No responsibilities or
obligations of whatsoever kind shall be on SUMED towards such
subcontractor, person or labours.

3 AUTHORIZED REPRESENTATIVES & NOTICES

Contractor shall designate a competent representative to represent and act for
the Contractor who shall be present at the job site at all times when work under
this Contract is being performed. This representative shall have authority to
make binding and enforceable decisions in the name of Contractor and to
accept service of all notices which SUMED desires to serve, or which are
required by this Contract to be served by Contractor. Contractor shall, upon
commencement of performance of this Contract, advise SUMED in writing of
the name, address, telex, fax and telephone number (day and night) of such
designated representative and of any change in such designation.
When work is being performed under the Contract there shall be a competent
representative who shall have authority to act for SUMED.
SUMED shall notify the Contractor in writing of the name of such
representative and of any subsequent changes. All claims of Contractor, all
questions concerning interpretation or clarification of this Contract or the
acceptable fulfillment of this Contract on the part of the Contractor and all
questions as to compensation and to extension of time shall be submitted in
writing to SUMED representative for determination. Without prejudice to
article 2.2 hereinabove, all determination, instructions and clarifications of
SUMED representative shall be final. At all times, Contractor shall proceed
with the work in accordance with the determinations, instructions and
clarifications of SUMED representative. Contractor shall be solely responsible
for requesting instructions or interpretations and shall be solely liable for any
cost and expenses arising from its failure to do so.
Any notice provided for thereunder may be served personally on the
representative of either party or by registered mail to the address of each party
shown on the face of the Contract agreement form.

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4 LAWS AND REGULATIONS PERMITS

Contractor, its employees and representatives, shall at all times comply with all
A.R.E. applicable laws, ordinances, statues, rules or regulations.
Contractor shall procure (with SUMED’s assistance, if necessary requested) all
permits required by it as Contractor for the performance of this Contract.
SUMED shall procure all permits required by it as SUMED for the
performance of this Contract.
If any discrepancy or inconsistency should be discovered between the Contract
and any law, ordinance, regulations, order or decree.
Contractor shall immediately report the same in writing to SUMED who will
issue further instructions as may be necessary.

5 CONTRACTOR’S PERSONNEL
The Contractor shall make its own arrangements and bear all costs incurred in the
engagement of all its personnel and the provision of transport, housing feeding,
medical services, insurance and other facilities necessary for the performance of
their work according to A.R.E. laws.
Contractor shall comply with and shall cooperate with SUMED in enforcing job
site conditions which directly affect the performance of the work,
including, but not limited to, starting and quitting time, smoking regulations,
check-in and check-out procedures, job site safety regulations and daily clean-up.
For works to be executed inside SUMED FENCES ONLY. A daily work permit
shall be raised by the Contractor, approved and authorized by the relevant
SUMED representative. This permit shall include the following:
a. Safety requirement
b. Technical safety requirements
c. Description of the job to be done
d. Contractor’s supervisor
Permits shall be applied for by Contractor in the day before the job to be
done in order to prevent any delay in starting the job.
Contractor shall designate a competent safety officer to raise the work
permit and who shall be present at the job site at all times when work
under this permit is being performed.

6 WORDS AND PHRASES

Where the words “as shown”, “ as indicated” or words of like importance are
used in this Contract, reference is to the drawings unless the context clearly
indicated a different meaning. Where the words “required”, “approved”,
“satisfactory”, Determined”, or words of like importance are used in this
Contract, action by SUMED is indicated unless the context clearly indicates
otherwise, and all work shall be in accordance therewith.
Such action, or failure to act, shall not relieve Contractor of its contractual
responsibilities for performance of this Contract. Wherever in this Contract it is
provided that Contractor shall perform certain work “at its expense” or “without
charges”, or that certain work” will not be paid for separately”, such quoted
words mean that Contractor shall not be entitled to any additional compensation

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from SUMED for such work, and the cost therefore shall, unless otherwise
specified, be considered as included in the payment for other items of work.
7 STANDARDS AND CODES
Wherever reference are made in the Contract to standards or codes in
accordance with which work is to be performed or tested, it is to be understood
that the edition or revision of the standards or codes current on the date of this
Contract shall apply, unless otherwise expressly set forth.
All weights, dimensions and measures shall be in the metric system. In case of
conflict among any referenced standards and codes or between any references,
standards and codes and “Technical Specifications”, SUMED will determine
which shall govern.

8 SITE CONDITIONS
The Contractor shall have the sole responsibility of satisfying itself concerning
the nature and location of work and the general and local conditions, and
particularly, but without limitation, with respect to those affecting
transportation, access, disposal, handling and storage of materials, availability
and quality of labour, water and electric power, availability and condition of
roads, climatic conditions, physical conditions at the work sites and the project
areas as a whole, topography and ground surface conditions, sub-surface
geology and nature and quantity of surface and sub-surface materials to be
encountered, equipment and facilities needed preliminary to and during
performance of the Contract, and all other matters which can in any way affect
performance of the Contract, or the cost associated with such performance.
The failure of the Contractor to acquaint itself with any applicable conditions
will not relieve it from the responsibility for properly, estimating the difficulties,
if any, or the costs of successfully performing the Contract.

9 INDEPENDENT CONTRACTOR AND SUB-CONTRACTORS

9-1 Contractor shall act as an independent Contractor and not as the Agent
of SUMED in performing the Contract, maintaining complete control
over its workers and employees and all of its Sub-Contractors.
Nothing contained in this Contract or any Sub-contracts awarded by
Contractor shall create any contractual relationship between any such
person or Sub-Contractor and SUMED. Contractor shall perform all work
in accordance with its methods subject to compliance with the Contract.

9-2 Contractor shall save SUMED harmless, and shall protect and indemnify
SUMED against all and any claim from any Sub-Contractor or any person
assigned or employed by the Contractor or its Sub-Contractor, whether
raised during the Contract period or thereafter.

9-3 Sub-Contractors should be agreed upon in writing by SUMED in advance

before engagement in work. Meanwhile, SUMED shall have the right to
reject any Sub-Contractor proposed by Contractor after start of work
following the approval of SUMED, such approval can be retrieved in case
work performed by said Sub-Contractor is not satisfactory or in used said

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Sub-Contractor is not fully equipped with necessary equipment, materials,

workshop, facilities, processes and tools.
10 TITLE TO MATERIALS FOUND (Not Applicable)
The title and interest in the right to the use of all water and the title to all soil,
stone, gravel, sand mineral, timber and other materials developed or obtained in
the excavation or other operations by the Contractor or any of its Sub-Contractors
or any of their representatives or employees and the right to use or dispose of the
same is hereby expressly reserved by SUMED and neither the Contractor nor any
of its Sub-Contractors, nor any of their representatives or employees, shall have
any right, title or interest in or to any part thereof, neither shall they, or any of
them, assert or make any claim thereto. The Contractor will as determined by
SUMED, be permitted to use in its work, without charge, any such materials
which meet the requirements of the Contract and of which the SUMED shall
have the right to use and consume without payment to a third party.
In the event that any fossils, coins, relic or items with archeological or historical
value are discovered by the Contractor or any of its sub-Contractors or any of
their representatives or employees, the Contractor shall immediately notify
SUMED and await SUMED’s decision before proceeding with any work.
Neither the Contractor nor any of its Sub-Contractors, nor any of their
representatives or employees, shall have any property rights to such relics and
items.

11 WARRANTY
Without prejudice to warranties according to the Egyptian Civil Code and
unless otherwise provided elsewhere in the Contract, all documents, designs,
deliverables, methodology and works covered by the Contract shall be in strict
conformity with the specifications, (where not specified, of the most suitable
grade of its respective kind for its intended use) and all workmanship shall be
in accordance with acceptable best practices. Contractor warrants all
documents, designs, deliverables, methodology and works, labor furnished or
performed under this Contract, against defective design, specifications and
workmanship for a period of one (1) year from the final completion of the
works, successful tests, Go-live, Handover and issuance of the Provisional
Acceptance Certificate (PAC) regardless of whether the same were, furnished
or performed by Contractor or by any of its Sub-Contractors.
Upon receipt of written notice from SUMED of any defect in any such
equipment, materials, or labor of work during the applicable warranty period
due to defective design, materials or workmanship, the affected part or parts
thereof shall be redesigned, repaired or, replaced by Contractor who shall
perform such tests as SUMED may require to verify that such redesign, repairs
or replacements comply with the requirements of this Contract. All costs
incidental to such redesign, repair, replacement and testing including the
removal, replacement and reinstallation of equipment and materials necessary
for the satisfactory rectification of defect, shall be borne by Contractor. As to
any detects in the work which are so redesigned, repaired or replace, Contractor
warrants such redesigned, repaired or replaced work against defective design,
materials and workmanship for a period of one (1) year form and after the date
of acceptance thereof. Should Contractor fail to make the necessary redesign,

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repair, replacement and test within the period defined in SUMED’s written
notice, SUMED may perform or cause to be performed the same at Contractor’s
expense, cost and risk without prejudice to all SUMED’s other rights to apply
penalties for delay and claim for damages.
Contractor and its surety or sureties, if any, shall be liable for the satisfaction
and full performance of the warranties as set forth herein.

12 PATENT INDEMNITY
6B

Contractor shall indemnify, defend and save harmless SUMED and its
representatives form and against all claims, losses, costs, damages and
expenses, including attorney’s fees, incurred by SUMED and its
representatives as a result of or in connection with any claims or actions based
upon infringement or alleged infringement of any patent and arising out of the
use of the equipment or materials furnished under the Contract by Contractor
or out of the process or actions employed by or on behalf of Contractor in
connection with the performance of the work hereunder, and Contractor shall,
at its sole expense, promptly defend against any such claim or action, provided
that SUMED shall have notified Contractor upon becoming aware of such
claims or actions and provided further that Contractor’s aforementioned
obligations shall not apply to equipment, materials or processes furnished or
specified by SUMED.
Contractor shall have the right, in order to avoid such claims or actions to
substitute, at its own expense, non-infringing equipment, materials or
processes, or to modify at its own expense such infringing equipment,
materials and processes so that they become non- infringing, provided that
such substituted and modified equipment, materials and processes shall meet
all the requirements and be subject to all the provisions of this Contract.

13 INDEMNITY
Contractor shall indemnify, defend and hold harmless SUMED against any
and all action, legal or administrative proceedings, claims, demands, damages,
liabilities, interest, attorney’s fees, costs and expenses of whatsoever kind or
nature whether arising before or after completion of the work hereunder and in
any manner directly caused, occasioned or contributed to in whole or in part,
by reason of any act, omission, fault or negligence whether active or passive of
Contractor, or of any one acting under its direction, control or on its behalf in
connection with or incident to the work performed under this Contract.
Contractor’s aforesaid indemnity and hold harmless agreement shall not be
applicable to any liability caused by the sole default of SUMED or its
representative.
14 NON-ASSIGNMENT
Any subletting, assignment or hypothecation of this Contract, or any portion
of the work, or any amount due and payable hereunder, made by Contractor
without the prior written consent of SUMED shall be void.
If such subletting, assignment or hypothecation is attempted or made, SUMED
shall have the right, if it so elects and without prejudice to any other rights it
may have, to withhold at any time thereafter, in whole or in part, payments

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otherwise due to Contract or until the final payment becomes due to

Contractor hereunder.

15 DAMAGES FOR CONTRACTOR’S BREACH OF CONTRACT

12B

Contractor shall pay SUMED any and all direct damages interest, attorney’s
fees, costs, losses and expenses of whatsoever kind or nature whether they arise
before or after completion of the work hereunder arising out of any default
under or breach by Contractor of the terms and conditions of this Contract.

16 CONTRACT WORK AREA

13B

All Contract work area(s) on the job will be allocated within the site defined by
SUMED. Contractor shall be responsible for the preparation of such area(s) to
suit its office, shops, storage, equipment, work and parking...etc.
Should the Contractor find it necessary or advantageous to use any additional
land for any purpose outside the site, the Contractor shall at its expense provide
such additional land on condition that the additional land does not interfere
with SUMED activities.

17 CONTRACTOR’S EQUIPMENT & FACILITIES

Before proceeding with any work or erection of any required facilities including,
but not limited to, temporary structures, machinery, equipment’s, offices and
warehouse, Contractor shall at its expense furnish SUMED with such
information and drawings relative to such equipment, plant and facilities as
SUMED may request. Contractor shall not establish or issue concessions or
permits to third parties for any kind of establishment on land owned or
controlled by SUMED.

USE OF SUMED’S FIRST- AID FACILITIES

Without prejudice to Contractor’s obligation towards all its personnel, SUMED may,
at its option make available its first-aid facilities for the treatment of employees of
the Contractor who may be injured or become ill while engaged in the performance
of the work under this Contract.
If first-aid facilities are made available to Contractor’s employees then, in
consideration for the use of such facilities and the receipt of such service, the
Contractor hereby agrees that:

17-1 It will defend, indemnify and save harmless SUMED or its authorized
representative, successors or assigns and all of their officers and employees
against any and all claims demands or liabilities arising from the receipt of
such services by Contractor’s employees or the use of such facilities by
Contractor’s employees.

17-2 Upon receipt of notice from SUMED of any such claim, demand or liability
being pursued against SUMED or its authorized representatives, successors or
assigns or any of its officers and employees, Contractor will undertake the

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defense of such claim, demand or liability and will upon entry of judgment
make any and all payments necessary thereunder.

17-3 In the event any of Contractor’s employees is transported to a physician or

hospital by means of ambulance service, the Contractor will promptly pay for
such services directly to the company or hospital rendering the service.

17-4 Should any of Contractor’s employees require the services of a physician or

hospitalization, the Contractor will promptly pay all charges directly to the
attending physician and the admitting hospital.

18 USE OF SUMED’S EQUIPMENT AND FACILITIES

7B

Circumstances may arise where Contractor will request that SUMED make
available to Contractor certain equipment or facilities for the performance of
Contractor’s work under the Contract. If SUMED agrees to such request, the
equipment or facilities will be for Contractor’s account at the rental rates
defined by SUMED.
The Contractor shall assure itself of the safety of such equipment before use
and shall assume all risk and responsibilities in the use of the equipment.
Contractor shall hold SUMED harmless, against any damages or claims that
may arise from such use.
It is the responsibility of the Contractor to substantiate, before returning such
equipment to SUMED that no part of the equipment leased to the Contractor
has been over stressed or damaged in any way as a result of its use.
In the event such equipment is furnished with an operator, it is understood that
such operator will perform this services under the complete direction and
control of Contractor and shall be considered
A Contractor employee for all purposes other than the payment of wages or
other benefits paid directly to him by SUMED.
It should be explicitly clear that SUMED has no obligation in providing
equipment to the Contractor and that the Contractor is to provide all necessary
and required equipment to perform the work under Contract.

19 DELIVERY, UNLOADING AND STORAGE (Not Applicable)

3B

The Contractor shall at its cost deliver to the site, unload, insure and store all
materials and equipment for the performance of its work under the Contract.
SUMED may designate ground area for material storage and sub-assembly but
the Contractor shall provide its own covered storage and other facilities which
it may require.
Facilities for storage of construction materials shall be subject to approval.

20 LINES, GRADES AND SURVEY WORK

8B

Unless otherwise specified, all work under the Contract shall be done to the
lines and grades as shown on the drawings and otherwise set forth in the
Contract and as required construction monuments will be established by
Contractor and approved by SUMED.
From such monuments the Contractor shall complete the layout of all work
and shall be responsible for all field measurements that may be necessary or
required for the execution of any work to the locations, lines and grades

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specified or shown on the drawings, subject to such modifications as SUMED

may require as work progresses.
If, through the negligence of the Contractor or its Sub-Contractors, or any of
their representatives or employees, any such permanent monument is moved,
destroyed, or rendered inaccurate, such shall be replaced at the expense of the
Contractor.
The Contractor shall provide during the execution of the works all instruments,
equipment, attendant labor and means of communication reasonably required
by SUMED’s employees to verify work in progress. No separate payment will
be made for the survey work.

21 PERFORMANCE REQUIREMENTS
0B

All work hereunder shall be performed by Contractor at the times stated and in
accordance with the provisions of this Contract.
Anything mentioned in the specifications and not shown on the drawings or
vice versa shall have effect as if shown in both.
In case of conflict or discrepancies among the various Contract documents the
matter shall be submitted immediately by Contractor to SUMED for decision
and such decision shall be final.
Timely performance of the obligations and services required by the Contractor
is a main factor and aim of this Contract.

22 RESPONSIBILITY FOR WORK, PRECAUTION

1B

Contractor shall be responsible for and shall bear any and all risk of loss or
damage to work in progress, including all deliveries to the site and to all
materials and equipment until final completion of the work to be performed
under this Contract, unless such loss or damage results form the sole active
negligence of SUMED.
Contractor shall promptly take all precautions which are necessary and
adequate against any conditions created during the progress of Contractor’s
activities hereunder which involve a risk of bodily harm to persons or a risk of
damage to any property. Contractor shall continuously inspect all work,
materials and equipment to discover and determine any such conditions and
shall be solely responsible for discovery, determination and correction of any
such conditions.
Contractor shall comply with all applicable safety Standards, codes and
regulations in the jurisdiction where the work is being performed. Contractor
assumes all liability for its failure to comply with the provisions of this Article.
Contractor shall include this Article in its entirety in all sub-contractors for any
work at the project’s work site(s).
23 INSPECTION, REJECTION OF MATERIALS AND WORK
9B

All materials and equipment furnished and work performed in connection with
the Contract, shall at all times be subject to inspection by SUMED.
Contractor shall, at its own expense, provide safe and necessary facilities and
all samples, documents, drawing and lists necessary for such inspection.
SUMED shall be afforded full and free access to the shops, factories or places
of business of Contractor and its sub-contractor and suppliers for such
inspection and to determine the general condition and progress of the work

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prior to any inspection or test by SUMED. The cost of any necessary

uncovering and replacing shall be borne by Contractor.
Neither the failure to make such inspection nor to discover defective
workmanship, materials, or equipment nor approval of or payment to
Contractor for such work, materials or equipment shall prejudice the rights of
SUMED herein to correct or reject the same as herein provided.
If any services, materials, equipment or workmanship is determined by
SUMED, either during or after performance of the work to be defective or not
complying with the requirements of this Contract, SUMED shall notify
Contractor in writing that such services, material, equipment or work is
rejected.
There upon, Contractor shall, at its own expense, immediately remove and
replace or correct such defect by making the same comply strictly with all
requirements thereof.

24 SHOP TESTS
For shop manufactured materials, should additional tests to those required by
the technical specifications and called for by the applicable codes and
standards be desired by SUMED, the Contractor will be advised in ample time
to permit the preparation of test specimens during shop manufacture.
Such additional tests shall be performed by Contractor and at its cost.
Field tests, if any, shall be as agreed upon by SUMED and the Contractor. The
Contractor will be notified of and shall be represent at all field tests that may
be made.
Such field tests shall be performed by Contractor and its cost.
All of the conditions contained in this Article shall be extended to cover sub-
contractors and suppliers employed by the Contractor. The Contractor shall be
responsible for informing its sub-contractors and suppliers of these
requirements

25 FIRE PREVENTION
4B

The Contractor shall not permit unauthorized fires within or adjacent to the
limits of the project’s work site and it shall be liable for all damage from fire
due directly or indirectly to its activities or to those of its employees or of its
Sub-Contractors or any of their representatives or employees.
Nevertheless the Contractor shall provide sufficient equipment to extinguish
any fire within the limits of the area of the project and shall comply with all
SUMED safety regulations

26 ENVIRONMENTAL POLLUTION (Not Applicable)

5B

The Contractor shall, at its cost, provide at the work site all required and
necessary facilities and equipment and shall take actions to prevent
environment pollution.
The Contractor should adhere to the law No. 4 for the year 1994 concerning
the environment and all its related regulations. The Contractor shall indemnify
and save harmless SUMED from any claims, costs and expenses direct or
indirect arises from or in connecting with any failure to adhere to the said law
and its regulations.

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Failure of the Contractor, its sub-contractors, labor and employees to adhere to

the said law shall entitle SUMED the right to take the necessary actions on
Contractor’s expense.
27 EXPLOSIVES (Not Applicable)

In case use of explosives is necessary to perform the work, Contractor

shall be responsible for the proper handling, transporting, storage and
use of explosives and shall, at its expense, make good any damage
caused by its handling, transporting, storage and use of explosives.
The Control of the use and handling of explosives must be in accordance with
the local regulations of A.R.E and shall provide and make all permits at is own
expense.
The storage areas will be enclosed and clearly indicated in Arabic and English.
The Contractor shall employ experienced personnel for the use of such
explosives. However, precautions shall be made to prevent any harm or
damage to SUMED’s facilities and any underground properties specially the
two 42” pipeline already in operation.

28 ORDER OF PERFORMANCE OF WORK

SUMED, other Contractors and Sub-Contractors may be working at the site
during the performance of this Contract. SUMED reserves the right to direct
Contractor to schedule the order of performance of its work in such a manner
as not unreasonably to interfere with the performance of the terminal and
operations activities or other Contractors or Sub-Contractors activities.

29 EXPEDITING
the equipment and material furnished under this Contract shall be subject to
expediting by SUMED or its representatives. SUMED’s personnel shall be
allowed reasonable access to Contractor’s plants and those of its suppliers for
expediting purposes.
As required by SUMED, Contractor shall supply schedules and progress
reports for SUMED’s in expediting.

30 PROGRESS
Contractor shall provide and use on any work only equipment as are capable
of producing the quality and quantity for work and materials required by the
Contract and within the time or times specified. Upon written order of
SUMED the Contractor shall promptly remove unsatisfactory equipment and
facilities from the site.
The Contractor shall give SUMED full information in advance as to his plans
for carrying on each part of the work.
If at any time during the progress of work, the Contractor’s actual progress
appears to SUMED to be inadequate to meet the requirements of the Contract,
SUMED may notify the Contractor of such imminent or actual non-
compliance with the Contract. The Contractor shall thereupon take such steps
as may be necessary to improve its progress and SUMED may require an
increase in the labor force, the number of shifts, and/or overtime operations,
days of work and/or the amount of construction plant, all without additional
cost to SUMED.

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Neither such notice by SUMED nor SUMED’s failure to issue notice shall
relieve the Contractor from its obligation to achieve the quality of work and
rate of progress required by the Contract. No equipment is to be demobilized
from the site without obtaining SUMED approval and/or until provisional
acceptance of the works has been given by SUMED.
Failure of the Contractor to comply with the instructions of SUMED under
these provisions may be grounds for determination by SUMED that the
Contractor is not executing its work with such diligence as will assure
completion within the times specified.
Upon such determination SUMED may terminate the Contractor’s right to
proceed with the performance of the Contract or any separable part thereof, in
accordance with the applicable provisions of this Contract.

32 CHANGES AND EXTRA WORK

The term “Change” as used in the Contract, contemplates as substitution for an
addition to or deletion of any work or other requirement, the performance of, or
compliance with which is contemplated by the Contract. The term “Extra
Work” as used in the Contract, contemplates the performance of any work or
compliance with any requirement, which is not contemplated by the Contract
and its aim or scope of work within 25% of contract value.
SUMED may, at any time, without invalidating the Contract and without notice
to the sureties, if any, make changes and may request the Contractor to perform
extra work.
SUMED will issue written orders to the Contractor for any changes or
requested extra work mentioned above (25% of contract value). Provided that
in the event of any emergency which SUMED determines endangers life or
property, SUMED will issue oral orders to the Contractor for any work required
by reason of such emergency, which orders will be confirmed in writing as
soon as practicable. Such orders, whether written or oral, may be accompanied
by drawings and data as are necessary to show the extent of such ordered work.
The Contractor shall commence such work so that all the dates set forth in the
Contractor’s current construction schedule as approved by SUMED will be
met, provided that in the event of an emergency which SUMED determines
endangers life or property, the Contractor shall commence such work as
required by SUMED. Failure to commence any such work in timely fashion
shall entitle SUMED to invoke the provisions of Article 36 “Termination for
default” of the General Conditions.
Unless otherwise required, the Contractor shall, within ten (10) calendar days
following receipt of such written orders, submit in writing to SUMED a
proposal for accomplishing such work, which proposal shall reflect the increase
or decrease, if any, in cost to the Contractor for performing work under the
Contract in comparison to what the cost would have been, had such work not
been ordered.
The proposal shall state the basis of compensation for the work involved in the
change of extra work, or if the change causes a decrease in the cost of
performing work under the Contract, the amount of such decrease shall be
stated. Sufficient detail shall be given in the proposal to permit thorough
analysis of the proposal. The basis for compensation shall be the list of unit
rates for the type of work to be performed under this Contract, if applicable;
otherwise the two parties shall agree upon the respective compensation.
If the performance of such changes or extra work would result in an increase or
decrease in the time required for completion of the items of work as shown on
the Contractor’s approved construction schedule, the Contractor shall revise the
schedule to and submit same to SUMED for review.

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If the time required for completion of any items for which a specific completion
date is set forth in the Contract is increased or decreased because of the
performance of the change of extra work, an equitable adjustment in the time
for completion of the items so affected will be made.
The Contractor’s construction schedule shall be revised to reflect such
adjustment and resubmitted for review by SUMED.

33 CLEANING UP (Not Applicable)

The Contractor shall at all times, keep its work areas in a neat, clean and safe
condition. Upon completion of any portion of the work, the Contractor shall
promptly remove all of its equipment and surplus materials not to be used at or
near the same location during later stage of the work.
Upon completion of the work and before final payment is made, the Contractor
shall at its expense satisfactorily dispose of all plant, building, rubbish, unused
materials, and other equipment and materials belonging to it or used by it in the
performance of the work and the Contractor shall leave the premises in a neat,
clean and safe conditions.
In the event of the Contractor’s failure to comply with the foregoing, the same
may be accomplished by SUMED at the Contractor’s expense.

34 DELAYS AND EXTENSION OF TIME

Without prejudice to article “Force Majeure” and to any other extensions of

time for completion agreed by SUMED in accordance with the provisions of
the Contract a penalty of 1% (One Percent) of the total contract value shall be
applied for each day of delay in performing the needed services with a
maximum of 10% (Ten Percent) of the total contract value. Delay beyond 10
weeks shall entitle SUMED the right to cancel the Contract in whole or in part
and to collect full damages. Nevertheless, it should be specified that payment
of such penalty by Contractor shall be SUMED sole remedy for financial
damages out of such delays but shall not relieve Contractor from its obligation
to deliver the equipment or from any other obligations under the Contract.

If Contractor’s performance of this Contract be unavoidably delayed by any

event beyond the control of and not due to the fault or negligence of the
Contractor and which was not foreseeable by Contractor at the time this
Contract was entered into, Contractor, shall within seven (7) days of the
commencement of any such delay, give to SUMED written notice thereof and
of the anticipated results thereof. Within seven (7) days after the termination
of any such delay, Contractor shall file a written notice with SUMED
specifying the actual duration of the delay. Failure to give either of the above
notices shall be sufficient ground for denial of an extension of time.
If SUMED determines that the unavoidable delay was beyond the control of
and without the fault or negligence of Contractor and not foreseeable by
Contractor at the time of this Contract being entered into, SUMED shall
determine the duration of the delay and shall extend the time of performance
of this Contract accordingly.

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35 SUSPENSION
SUMED may, at its sole option by notice in writing to the Contractor,
suspend at any time the performance of all or any portions of work to
be performed under the Contract.
Upon such notice of suspension of work, SUMED will designate the
amount and type of plant, labor and equipment to be committed to the
work site.
During the period of suspension, Contractor shall use its best efforts to
utilize its plant, labor and equipment in such a manner as to minimize
costs associated with suspension.

35-1 Upon receipt of any such notice, the Contractor shall, unless the notice
requires otherwise:
35-1-1 Immediately discontinue work on the date and to the extent specified in
the notice.

35-1-2 Place no further orders or sub-contractors for materials, services or

facilities with respect to suspended work other than to the extent
required in the notice.

35-1-3 Promptly make every reasonable effort to obtain suspension, upon terms
satisfactory to SUMED of all orders, sub-contractors and rental
agreements to the extent they relate to performance of work suspended.

35-1-4 Unless otherwise specifically stated in the notice, the Contractor shall
continue to protect and maintain the work therefore completed, including
those portions on which work has been suspended.

35-1-5 As full compensation for such suspension the Contractor will be

reimbursed for the following costs, reasonably incurred, without
duplication of any item, to the extent that such costs directly result from
such suspension of work.

35-1-6 A standby charge to be paid to the Contractor during the period of

suspension of work, which standby charge shall be in accordance with
the established standby rates to compensate the Contractor for keeping,
to the extent required in the notice, its organization and equipment
committed to the work site in a standby status.

35-1-7 All reasonable costs associated with demobilization of Contractor’s

plant, forces and equipment.

35-1-8 An equitable amount to reimburse the Contractor for the cost of

maintaining and protecting that portion of the work upon which
activities have been suspended.

Upon receipt of notice to resume suspended work, the Contractor shall

immediately resume work on the suspended work to the extent required in the

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notice. If as a result of any such suspension of work, the cost to the Contractor
of subsequently performing work is increased or decreased, an equitable
adjustment will be made in the cost of performing the remaining portion of
work. Any claim on the part of the Contractor for extension of time shall be
made in accordance with the appropriate provisions of this Contract within
(10) ten calendar days. After receipt of notice to resume work the Contractor
shall submit for review a revised construction schedule.
No compensation or extension of time shall be granted if suspension results
from Contractor’s non compliance with the requirements of this Contract.

36 TERMINATION FOR DEFAULT

Should Contractor at any time refuse or neglect or fail to perform the work
hereunder or any portion thereof with promptness, diligence or in accordance
with any of the provisions set forth herein, or go into liquidation other than as
part of a corporate reorganization or enter into composition with its creditors
or become insolvent, SUMED will notify Contractor in writing to remedy
such default.
Upon receipt of any such written notice of default, the Contractor shall, at its
expense, preserve at the site all materials, equipment and facilities and other
requirements and undertake immediate steps to remedy such default.
Should the Contractor fail to remedy such default within the shortest
reasonable time to be defined for each case but will not be less than forty
eight (48) hours in any case after receipt of such written notice of default,
SUMED may, in writing, terminate the Contract in whole or in part without
prejudice to other SUMED’s rights under the Contract and the law.
Upon receipt of any such written notice of termination the Contractor shall, at
its expense, for that work- or part of - it affected by any such termination:

36-1 Assist SUMED in making an inventory of all materials, spare parts and
equipment at site, or away from the site, and on order from suppliers.
Moreover, submit a complete spare parts list for two years normal operation
of the project and relevant facilities together with items number for easy
ordering

36-2 Assign to SUMED all Sub-Contracts, suppliers and agreements as

designated by SUMED including spare parts suppliers.

36-3 Remove from the site all materials, equipment and plant listed in said
inventory which are designated in writing by SUMED not to be used by
SUMED in completing such work.
In the event of such termination, SUMED may enter upon the premises and
into the plants of manufacture of Contractor’s suppliers and for the purpose of
completing the work or enforcing these provisions, take possession of all
materials, take hold of equipment, take hold of tools and appliances thereon
belonging to or under the control of Contractor and may use them or may
finish the work by whatever method it may deem expedient including the
hiring of another Contractor or Contractors under such form of Contract as
SUMED may deem advisable, or SUMED may itself provide any labor or
materials and perform any part of the work. In such case, Contractor shall not

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be entitled to receive any further payment until the work is completed. If the
unpaid balance of Contractor’s compensation hereunder shall exceed the sum
of the expenses of finishing the work plus compensation for additional
managerial and administrative services and such other costs and damages as
SUMED may suffer, such excess shall be paid to Contractor. If such expenses,
compensation, costs and damages shall exceed such unpaid balance,
Contractor and its sureties, if any, shall be liable for and shall pay the excess to
SUMED. Failure of SUMED to exercise any of its rights hereunder shall not
excuse Contractor form compliance with the provisions of this Contract nor
prejudice the rights of SUMED to recover damages for such default.

37 INSPECTION AFTER COMPLETION AND ISSUANCE OF

PROVISIONAL ACCEPTANCE CERTIFICATE
As soon as practicable after completion of all work hereunder, inspection and
tests will be made by SUMED. When such inspection and tests have proven
that the work is in accordance with the requirements of this Contract, SUMED
shall notify Contractor in writing of completion of its work under this Contract
and shall issue the Provisional Acceptance Certificate (PAC).

38 TAXES, CONTRIBUTIONS, ASSESSMENTS AND

EMPLOYMENT INSURANCE

38-1 The contractor is responsible on his own cost to submit to SUMED a translated
Arabic language copy of the contract within one month from contract signature
date for the use of taxes and social insurance authorities.

38-2 Contractor shall have full and exclusive liability of the payment of any and all
Taxes and contributions for social insurance, health insurance, unemployment
insurance, old age retirement benefits, life pensions, annuities and similar
benefits including “Contractors Social Insurance” contribution which may now
or afterwards be imposed by law or collective bargaining agreement with
respect to persons employed by Contractor or Sub-Contractor for performance
of the work under this Contract. Whether measured by wages, salaries to
remuneration paid or otherwise, Contractor shall comply with all laws, statutes,
rules and regulations applicable to the compensation paid to its employees, its
Sub-Contractor employees and shall maintain suitable forms, books, account
and records....etc.

38-3 Contractor shall bear all taxes including VAT and duties inside and outside
A.R.E. shall abide by tax laws and regulations therein, and shall maintain all
records, books and regular files as required by such laws and regulations.

38-4 The total price of the Contract includes all above-mentioned liabilities and
Contractor shall be liable for and shall indemnify, defend and save harmless
SUMED from all such taxes and contributions of any interest accrued and
penalties imposed and all taxes, excises, assessments and other charges levied
by any government agency or authority on/or because of the work performed
hereunder, or any materials, equipment, services or supplies furnished or used

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in the performance of this Contract.

38-5 Unless taxes & social insurance contributions due on Contractor are paid
promptly by him, SUMED shall deduct and pay to the concerned authorities
local taxes and social insurance contribution from payments due to Contractor
in accordance with the percentage or amounts defined by such authority. Final
payment due to Contractor shall not be released, unless the Contractor submits
to SUMED official evidence that he has fulfilled his obligations concerning
the said contribution. However, according to tax laws SUMED shall also
deduct and pay to the tax department 2% of each such payment.

38-6 The Contractor should notify, immediately after signature of Contract, the
competent Social Insurance Authority “Contractors Social Insurance Office”
with all required information and data concerning the Contract and submit to
SUMED official evidence in this respect.
In the mean time Contractor should notify the concerned tax department with
such required data and information and submit to SUMED official evidence in
this respect together with Tax Card issued in the name of Contractor, such card
should be annually validated.

38-7 It should be understood that any amendment to the Contract should be

promptly notified to said authorities in the same manner.

39 CONTRACTOR’S FOREIGN PERSONNEL

The Contractor shall provide such information about its foreign personnel
engaged under the Contract as may be necessary including, inter alias names,
qualifications, passport numbers, residence permits and work permits numbers.
SUMED, on Contractor’s request shall assist the Contractor, whenever
necessary, without any responsibility on SUMED, to obtain all visas, residence
permits, work permits and other necessary permits and authorizations required
for the foreign personnel of the Contractor and the members of their families,
by issuing formal letters and certificates from SUMED.
The Contractor shall make its own arrangements and bear all costs incurred in
the engagement of foreign personnel and the provision on transport, housing,
feeding, medical services and all other facilities or obligations including all
applicable taxes and contribution of whatsoever kind for such labor.

40 CONFIDENTIALITY
The Contractor shall treat all matters in connection with the Contract as
strictly confidential and shall not publish or cause to be published any other
aspects of the project without the prior written approval of SUMED.

41 CONTRACT LANGUAGE

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The English language shall be the language of the Contract and shall be used in
all correspondence, instructions, catalogues, pamphlets, documents and any
other data be given in this respect.

42 CONTRACT LAW
The Contract will be governed by the laws of the Arab Republic of Egypt.

43 LABOUR AND PERSONNEL

Contractor shall employ only competent and skilled personnel to perform the
work, Contractor shall, if requested to do so by SUMED, remove from the job
site any personnel whom SUMED determines to be incompetent, dishonest or
uncooperative, but such rejection shall not be unreasonable.
Contractor is responsible for maintaining labor relation in such a manner that
there is harmony among its employees and its Subcontractor’s employees.

44 EXAMINATION OF CONTRACTOR’S RECORDS

10B

SUMED or its representative shall have the right to examine any books,
records and other documents of Contractor directly pertaining to costs when
such costs are the basis of compensation to Contractor hereunder, SUMED
will give Contractor reasonable notice of such intended examination.
Contractor shall, at its expense, keep and maintain such records and accounts
in connection with the performance of the Contract and will furnish an
accurate allocation of the total amount paid for performing the work under the
Contract.

45 SETTLEMENT OF DISPUTES
1B

If any disputes or difference of any kind whatsoever shall arise between

SUMED and the Contractor in connection with or arising out of the Contract
or the carrying out of the works (whether during the progress of the works or
after their completion and whether before or after termination, abandonment or
breach of the Contract), is not settled amicably shall be settled by Alexandria
concerned courts.

46 FORCE MAJEURE
Force majeure causes or events beyond the control of either of the parties
which delay the performance of the Contract in whole or in part as, for
example, acts or inaction of government including coercible actions of the
government preventing performance of the Contract in whole or in part, acts of
war (whether war is declared or not) including invasion, acts of foreign
enemies, fire, flood, storms, explosions, civil commotion, strikes or other
causes or events beyond the control of the parties. Contractor and SUMED
shall be released form the timely fulfillment of their respective obligation and
time payment, on the occurrence of Force Majeure’s event.
Any delay or non-performance arising from the occurrences of Force Majeure
shall not be considered as failure by Contractor or SUMED as the case may be,
to fulfill their respective commitments and the time limit set for the
performance of the Contract or respective obligations shall be prolonged by a
period of time corresponding to that which shall have been lost due to the

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Force Majeure’s event. On the occurrence of Force Majeure affecting the

timely fulfillment of the obligations, the party suffering therefrom shall give
the other party notice in writing of the cause of delay including all relevant
information and if requested evidence thereof, within 7 (seven) days from the
start of Force Majeure. Without prejudice to any of the foregoing, should the
circumstances of Force Majeure’s event continue beyond a continuous period
of six months from the date on which notification was given pursuant to this
Article, the parties shall consult with each other to explore alternative methods
for the execution of their respective obligations. However, if such
circumstances shall continue for a further period of thirty days and the parties
have not agreed on such alternative methods, then either party has the right to
terminate this contract by written notice to the other party. Without prejudice
to the right of termination pursuant to the above, either party may settle the
matter as per article “Settlements of Disputes” to settle their respective claims
for damage, if any, resulting from such termination.
Termination of the Contract as aforesaid shall not prejudice the rights and
obligations of either party prior to such termination. In order to enable the
negotiation of a settlement for such rights and obligations, SUMED and the
Contractor shall present a detailed accounting of the work performed
hereunder. In the absence of an agreement on such accounting, either party
shall be entitled to refer the matter to the concerned Alexandria Court.

47 PERFORMANCE BOND
The Contractor shall submit to SUMED, within ten (10) days after receipt of
the official notification of the acceptance of his tender, a performance bond in
the form of letter of guarantee at his cost equal to ten percent (10%) of the
Contract value as pecuniary guarantee for the due execution of the Contract
and related obligations. Such letter of guarantee will be held by SUMED on
the conditions and subject to the stipulations herein contained as a pecuniary
guarantee for the due execution and proper performance of the Contract and
the recovery portent of any penalties or damages or other sums for which the
Contractor may become liable under the Contract or due to its execution.
Performance bond will be held by SUMED until the Contract has been
completely carried out and the final acceptance of the works has taken place.
SUMED shall be entitled to the immediate payment by the bank of any sum or
sums up to the amount guaranteed on first written demand not withstanding
any contestation from Contractor or any other party.
If at any time during the currency of the Contract, any sums are deducted from
the letter of guarantee by SUMED or if the 10% value of the works exceeds
the value of the guarantee the Contractor shall, immediately upon receipt of a
written demand from SUMED, repay the amount so deducted and shall always
maintain the guarantee deposit at its full amount until the final taking over of
the work.
If the Contractor refuses or fails to repay in full the said amount on such
demand as aforesaid, SUMED may make good the deficit by deducting the
amount from any sums payable to the Contractor.
The letter of guarantee should be issued or endorsed by a first class bank in
Alexandria and should be irrevocable and unconditional and in accordance

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with text attachment (4) Meanwhile, the letter of guarantee should be valid 30
(thirty) calendar days after the final acceptance of the works has taken place.

48 INSURANCE

48-1 Contractor shall effect, before arrival of equipment in work site and before
commencement of performance of the work and maintain until the final
acceptance, i.e. valid up to the end of guarantee period, Contractor All Risk
”C.A.R.” Insurance Policy acceptable to SUMED with limits not less than
those set forth below. Contractor shall deliver to SUMED originals of such
policy within 2 weeks from the contract signature evidencing that such
coverage and limits are in full force and effect. Moreover, SUMED shall be
notified fifteen (15) days prior to the cancellation or material change of any
such coverage.

48-2 It should be understood that Contractor’s personnel and/or equipment will not
be allowed to enter the site to perform any work unless the insurance policy is
in force and originals are delivered and accepted by SUMED.

48-3 contractor shall insure with the whole value of this Contract plus all material
and supplies by the principal “SUMED’ which with value of 5 million LE in
which SUMED is named as insured, shall cover all Contractor’s and/or
subcontractors obligations, responsibilities and risks against any physical
damage to all property such as permanent or temporary works, materials,
supplies and equipment. Policy shall include third party liability insurance
covering bodily injury and property loss or damage with a limit not less than
per occurrence:

48-3-1 30 000 USD per person each and every occurrence and
unlimited in the aggregate

48-3-2 300 000 USD for more than one person each and every
occurrence and unlimited in the aggregate.

48-3-3 300 000 USD for existing property each and every occurrence
and unlimited in the aggregate.
For any third party including SUMED, its Contractors,
Subcontractors, consultants and their employees and this section
must include cross liability. Such policy should be issued by an
Egyptian Major Insurance Co.

48-4 Without prejudice to item 48.3 above the policy shall cover the
obligations of the Contract in the guarantee period.

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48-5 “CAR” Policy shall contain a waiver of subrogation in favor of

SUMD, its Contractors, its Subcontractors and their employees.

48-6 Contractor shall immediately advise SUMED within 24 hours of the

occurrence of any event causing any loss or damage covered by
“CAR” Policy.

48-7 The Contractor shall submit to SUMED official evidence that all
premiums of each insurance are paid in due time. In the event that
Contractor fails to pay such premiums, SUMED shall pay such
premiums and deduct all incurred costs from any amount due to
Contractor.

48-8 Any amount not covered under insurance mentioned above

Contractor’s responsibility for indemnity of any damage and/or any
injury shall be regulated by other provisions under this Contract.

49 CUSTOM DUTIES (Not Applicable)

49-1 Materials and Equipment to be permanently Incorporated in

Project
49-1-1 The Contractor will work out all documentation regarding the insurance of
permits of import, if any.

49-1-2 The Contractor will prepare all documentation for the clearance of all
equipment and/or materials

49-1-3 All materials and equipment....etc. to be permanently incorporated in the

project or to be supplied according to Contract shall be imported in the name
of SUMED.

49-1-4 The Contractor’s obligations covers the required measures for custom
clearance and transport of all materials and equipment to site. All costs
incurred due to the delay of Contractor in custom clearance shall be at
Contractor’s expense.

49-1-5 The only obligation of SUMED in this respect is to pay the custom duties at
cost- two percent of the value for the items mentioned in item 49.1.3 above in
accordance to presidential decree No. 300/2004 amending the customs tariff.
SUMED will issue a Cheque in favor of custom Authorities covering above
mentioned custom duties. The aforesaid Bank Cheque to be handed to custom
Authorities by Contractor for effective clearance.

49-1-6 The Contractor will submit in his offer an itemized price for all supplies to be
installed in this project on C & F Basis.

49-1-7 All imported materials and equipment to be strictly in compliance with

prevailing import regulations.

49-1-8 Construction Equipment, Materials and Equipment for Temporary Works

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49-1-9 The Contractor will work out all documentation regarding the issuance of
permits of import, if any.

49-1-10 The Contractor will prepare all documentation for the clearance of such
equipment and for materials and shall take the necessary measures for custom
clearance shall be at Contractor’s expense.

49-1-11 All construction equipment, materials and equipment for temporary work shall
be imported in the name of Contractor.

49-1-12 All construction equipment imported to be engaged in construction of the

project should be re-exported after completion of the work. The Contractor
should submit to SUMED official documents form custom authorities
evidencing that such construction equipment have re-exported and that such
authorities have no claims against Contractor regarding such equipment before
the final payment if effected by SUMED.

50- PACKING, MARKING AND SHIPPING (Not Applicable)

All equipment shall be packed, packages shall bear the following marks:

50-1 Materials and Equipment to be Permanently Incorporated in Project

Consignee: SUMED
Project Name:..................................
Weight: ...................................
Package No: ...................................

50-2 Construction Equipment, Materials and Equipment for Temporary

Works
Consignee: Contractor’s name - C/O SUMED
Project Name: ..................................................
Weight: ..................................................
Package No: ..................................................

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VOLUME II
EXHIBIT C

FINANCIAL CONDITIONS

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FINANCIAL CONDITIONS SUMED

TABLE OF CONTENTS

Description
0B

1.0 Tender value

2.0 Method of payment

3.0 Variations

4.0 Other payments

5.0 Breakdown Table

Attachment No.1: ‫ﺑﻭﻟﻳﺻﺔ ﺍﻟﺗﺄﻣﻳﻥ‬

Attachment No.2: letter of guarantee to cover Bid Bond.
Attachment No.3: letter of guarantee to cover Advance Payment
Attachment No.4: letter of guarantee to cover Performance Bond.
Attachment No.5 : ‫ﻧﻣﻭﺫﺝ ﺇﻗﺭﺍﺭ ﻣﺧﺎﻟﺻﺔ ﻣﺎﻟﻳـــﺔ‬

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1. Tender Value:
Contractor is to submit his offer as follows:

1.1 Basic offer:

Price to be quoted as a Total Lump sum price for all the required modules:
The total tender lump sum price for all the required modules is a value of USD
(Only US Dollars) covering all kinds of taxes including VAT inside and
outside Egypt.
1.2 Optional offer:
Prices to be quoted separately for each Group (as defined below), where SUMED has the right to
choose which Group shall be awarded.
1.2.1 The Total price for Group 1 which includes HCM, FICO, Business planning & consolidation
& Project Systems (EPPM & PS) modules complete with Data Migration, enable now, training
and WRICEFs is a value of USD (Only US Dollars) covering all kinds
of taxes including VAT inside and outside Egypt.
1.2.2 The Total price for Group 2 which includes MM, PM (Plant Maintenance, Asset Management
“EHS & Workplace Safety” & Work Clearance Management) modules complete with Data
Migration, enable now training and WRICEFs is a value of USD (Only
US Dollars) covering all kinds of taxes including VAT inside and outside Egypt.
1.2.3 The Total price for Group 3 which includes Custom Modules (Medical System, Insurance
Policy System, Pension System & Logistics System) complete with Data Migration, enable
now training and WRICEFs is a value of USD (Only US Dollars)
covering all kinds of taxes including VAT inside and outside Egypt.
1.3 The Price as mentioned in item 1.1 & 1.2 above shall represent the full reimbursement for all
Contractor’s obligations, work, expenses and guarantees according to the Tender terms and
conditions.
1.4 The prices include the costs of all materials to be supplied, works to be done and services
provided, in accordance with tender, by Contractor as well as any work which is essential and/ or
necessary for it, whether mentioned or not in the tender documents, shall be, carried out by
Contractor without any extra charge.
1.5 The price covers all taxes including VAT, duties, transport, accommodation and also social
insurance.

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1.6 The total price as mentioned in items 1.1 and 1.2 are fixed, firm and not subjected to any variation
of whatsoever kind during the contract duration. No adjustment in prices shall be made due to
raise or fall in the costs of material, transport, labor, equipment and the like which may affect the
cost of performing the work during the whole duration of the Contract.
1.7 Contractor’s offer price must include the costs of ALL the activities to be performed under the
contract, services to be provided, works that is essential or necessary for the contract, materials to
be supplied, transport, labor, equipment to be used, …etc. accordingly, the tender price must be a
fixed price that includes the costs of site work, all costs related to transport, travel,
accommodation, living expenses, and any other activity that need to be performed in accordance
with the contract. There will not be any other charges separate from the offer.
2.0 Method Of Payment:
2.1 All payments shall be made in EGP according to the applied Central Bank of Egypt rate at the
time of payment.
2.2 All payments due to the Contractor shall be effected by direct transfer to the Contractor’s
account in a bank of its choice against an electronic tax invoice duly approved by both parties
and submission of the Social Insurance Certificate.
2.3 For Basic Offer:
The Tender lump sum Price as mentioned in item 1.1 above shall be paid as follows:
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties as an advanced payment against an irrevocable and
unconditional letter of guarantee in the same amounts and currencies to be issued from a
first class bank in Egypt. The letter of guarantee shall remain valid till recovered in full after
completion of project and issuance of the Provisional Acceptance Certificate (PAC).
The advance payment shall not be paid unless the letters of guarantee to cover the advance
payment and the performance bond have been submitted and approved by SUMED and
submission of the Social Insurance Certificate.
- 15% (Fifteen Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after submission and SUMED approval of the Blue
Print documents of all systems including custom modules (Explore phase) and submission of
the Social Insurance certificate.
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Realize Phase of HCM, Payroll,
FICO and Planning & Consolidation modules and submission of the Social Insurance
certificate.

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FINANCIAL CONDITIONS SUMED
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Deploy Phase of HCM, Payroll,
FICO and Planning & Consolidation modules and submission of the Social Insurance
certificate.
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Realize Phase for the MM module
and remaining required SAP Modules (PM, Asset Management ”EHS & Workplace safety”,
WCM, EEPM & PS) and submission of the Social Insurance certificate.
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Deploy Phase for the MM module
and remaining required SAP Modules (PM, Asset Management ”EHS & Workplace safety”,
WCM, EEPM & PS) and submission of the Social Insurance certificate.
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Realize Phase for all Custom
Modules (Medical System, Insurance Policy System, Pension System & Logistics System)
and submission of the Social Insurance certificate.
- 10% (Ten Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Deploy Phase for all Custom
Modules (Medical System, Insurance Policy System, Pension System & Logistics System)
and submission of the Social Insurance certificate.
- 15% (Fifteen Percent) of the total tender lump sum value shall be paid against an electronic tax
invoice duly approved by both parties after finishing the Run Phase for all modules, final
completion of the works, successful tests, Go-live & Handover and issuance of the
provisional acceptance certificate (PAC) and submission of official all payment documents
evidencing the final settlement with the Social Insurance and that said authorities have no
claims against Contractor.
2.4 For Optional Offer:
The tender value as mentioned in item 1.2 above shall be paid as follows:
- 100% (Hundred Percent) of the total Blue Print value shall be paid against an electronic tax
invoice duly approved by both parties after submission and SUMED approval of the Blue
Print documents of all systems including custom modules (Explore phase) and submission of
the Social Insurance certificate.

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FINANCIAL CONDITIONS SUMED
- 10% (Ten Percent) of the total value for each awarded Group shall be paid against an
electronic tax invoice duly approved by both parties as an advanced payment against an
irrevocable and unconditional letter of guarantee in the same amounts and currencies to be
issued from a first class bank in Egypt. The letter of guarantee shall remain valid till
recovered in full after completion of project and issuance of the Provisional Acceptance
Certificate (PAC).
The advance payment shall not be paid unless the letters of guarantee to cover the advance
payment and the performance bond have been submitted and approved by SUMED and
submission of the Social Insurance Certificate.
- 30% (Thirty Percent) of the total value for each awarded Group shall be paid against an
electronic tax invoice duly approved by both parties after finishing the Realize Phase of the
Group Modules and submission of the Social Insurance certificate.
- 45% (Forty Five Percent) of the total value for each awarded Group shall be paid against an
electronic tax invoice duly approved by both parties after finishing the Deploy Phase of the
Group Modules and submission of the Social Insurance certificate.
- 15% (Fifteen Percent) of the total value for each awarded Group shall be paid against an
electronic tax invoice duly approved by both parties after finishing the Run Phase for all
modules, final completion of the works, successful tests, Go-live & Handover and issuance
of the provisional acceptance certificate (PAC) and submission of official all payment
documents evidencing the final settlement with the Social Insurance and that said authorities
have no claims against Contractor.
2.2 All Payments shall be made against submission of the Social Insurance Certificate.
2.3 Consultant shall bear all fees, duties, and taxes including VAT inside and outside A.R.E.
2.3 The specimens of the letter of guarantee to cover the advance payment and the Performance
Bond as per attachments (3 & 4).
2.4 Payment shall be effected within 15 (fifteen) working days from the date of submission of the
electronic tax invoices duly approved by both parties and Social Insurance Certificate.
2.5 In case of dispute on some amounts in the electronic tax invoice, the undisputed amounts shall
be paid within 15 (fifteen) working days from the date of submission of the electronic tax
invoice duly approved by both parties. The disputed items will be raised to the appropriate
SUMED officer for final decision.
2.6 Payments due to Contractor hereunder may be withheld in whole or in part by SUMED on
account of:

128
FINANCIAL CONDITIONS SUMED
i. Claims according to legal judgment or order filed by third parties or reasonable evidence
indicating the probability of filing thereof.
ii. The failure of Contractor to meet its commitments in whole or in part.
iii. The failure of Contractor to correct defective workmanship or materials.
iv. The failure of Contractor to cure any default in any of the conditions hereof to be
performed by him.
v. Failure of Contractor to pay, satisfy or discharge any claim of SUMED or any person
against Contractor arising out of or in any way connected with the work.
vi. A reasonable doubt that this tender can be completed within the time specified or for the
balance unpaid.
vii. Seizure orders enforceable by law or decree form the social insurance and/or Tax and/or
Custom Authorities.
If the foregoing causes are removed to the satisfaction of SUMED, the withheld payments
shall be released.
If the said causes are not promptly removed after written notice, SUMED may rectify the same
at Contractor’s expense, and deduct all costs and expenses incurred thereby from such
withheld payments.
If such withheld payments are insufficient to satisfy the same, or if any claim against
Contractor shall be discharged by SUMED after payment is made, Contractor and its surety or
sureties, if any, shall promptly reimburse and pay to SUMED all costs and expenses incurred
thereby.
SUMED may, as a condition precedent to any payment to Contractor, require Contractor to
submit complete waivers and release of any claims of any person, firm or corporation in
connection with, or in any way related to the performance of this Tender.
3.0 Variations:
Payment of variation orders shall be made in accordance with the terms of payment to be
mutually agreed upon before the performance of the orders.

4.0 Other Payments:

Any sums which are due to the Contractor under the Tender and not covered under items 2.0 and
3.0 above shall be paid by Direct transfer in the currencies and at the places mutually agreed upon.

129
FINANCIAL CONDITIONS SUMED

5. Breakdown List:
For Basic: Lump sum Price

Item Description Price

in USD
1 Blue Print for all systems listed
2 HCM “Human Capital Management” Module
Time tracking
Single Sign on
3 Payroll
4 FICO “Financial & Controlling”
Finance for treasury and risk management
Cash management
Doc and Reporting Compliance
5 Business planning and consolidation
6 MM “Material Management”
7 PM (Plant Maintenance, Asset Management
“EHS & Workplace Safety”, Work Clearance
Management)
8 Project Systems “EPPM, PS”
9 Custom Module: Medical System
10 Custom Module: Insurance Policy System
11 Custom Module: Pension System
12 Custom Module: Logistics System
13 20 Medium Complexity WRICEF
14 25 High Complexity WRICEF
15 Enable now
16 Data Migration
17 Training ( For Admins& Business Users)
Total Lump sum Price covering all kinds of taxes
including VAT inside and outside Egypt

• Prices in the above mentioned table shall be taken in consideration in case

of any variation is required.

130
FINANCIAL CONDITIONS SUMED
For Optional offer: For each Group
SUMED has the right to award one or more Group.
Item Description Price
in USD
1 Blue Print for all systems listed
2. Group 1:
2.1 HCM “Human Capital Management” Module
Time tracking
Single Sign on
2.2 Payroll
2.3 FICO “Financial & Controlling”
Finance for treasury and risk management
Cash management
Doc and Reporting Compliance
2.4 Business planning and consolidation
2.5 Project Systems (EPPM, PS)
2.6 Data Migration
2.7 Enable Now
2.8 Training ( For Admins& Business Users)
2.9 8 Medium Complexity WRICEF
2.10 10 High Complexity WRICEF
Total Price for Group 1 covering all kinds of
taxes including VAT inside and outside Egypt.
3. Group 2:
3.1 MM “Material Management”
3.2 PM (Plant Maintenance, Asset Management
“EHS & Workplace Safety”, Work Clearance
Management)
3.3 Data Migration
3.4 Enable Now
3.5 Training ( For Admins& Business Users)
3.6 7 Medium Complexity WRICEF
3.7 5 High Complexity WRICEF
Total Price for Group 2 covering all kinds of
taxes including VAT inside and outside Egypt.
4. Group 3:
4.1 Custom Module: Medical System
4.2 Custom Module: Insurance Policy System
4.3 Custom Module: Pension System
4.5 Custom Module: Logistics System
4.6 5 Medium Complexity WRICEF
4.7 10High Complexity WRICEF
4.8 Enable now
4.9 Training ( For Admins& Business Users)
4.10 Data Migration
Total Price for Group 3 covering all kinds of
taxes including VAT inside and outside Egypt

131
‫‪FINANCIAL CONDITIONS‬‬ ‫‪SUMED‬‬

‫)‪ATTACHMENT No (1‬‬

‫ﺷﺮﻭﻁ ﺑﻮﻟﻴﺼﺔ ﺍﻟﺘﺄﻣﻴﻦ ﺍﻟﻤﻄﻠﻮﺑﺔ ﻣﻦ ﺍﻟﻤﻘﺎﻭﻝ‬

‫ﻁﺒﻘﺎ ً ﻟﻠﻤﺎﺩﺓ )‪ (٤۸‬ﻣﻦ ﺍﻟﺸﺮﻭﻁ ﺍﻟﻌﺎﻣﻪ‬
‫‪ .۱‬ﻳﺠﺐ ﻋﻠﻰ ﺍﻟﻤﻘﺎﻭﻝ ﺃﻥ ﻳﻘﺪﻡ ﻟﻠﺸﺮﻛﻪ ﻗﺒﻞ ﺍﻟﺒﺪء ﻓﻰ ﺗﻨﻔﻴﺬ ﺍﻷﻋﻤﺎﻝ ﻭﺛﻴﻘﺔ ﺗﺄﻣﻴﻦ ﻣﺴﺌﻮﻟﻴﻪ ﻣﺪﻧﻴﻪ ﺗﻜﻮﻥ ﺳﺎﺭﻳﻪ ﺣﺘﻰ ﻧﻬﺎﻳﺔ ﻓﺘﺮﺓ‬
‫ﺍﻟﺘﻌﺎﻗﺪ ﻁﺒﻘﺎ ً ﻟﻠﻌﻘﺪ‪ ،‬ﻭﻳﺠﺐ ﺃﻥ ﻳﻨﺺ ﻓﻰ ﺍﻟﻮﺛﻴﻘﺔ ﻋﻠﻰ ﺇﻧﻬﺎ ﻟﺼﺎﻟﺢ ﺷﺮﻛﺔ ﺳﻮﻣﻴﺪ ﺑﺈﻋﺘﺒﺎﺭﻫﺎ ﻣﺆﻣﻦ ﻟﻪ‪.‬‬
‫‪ .۲‬ﻟ��ﻦ ﻳﺴ��ﻤﺢ ﻟﻌﻤ��ﺎﻝ ﺍﻟﻤﻘ��ﺎﻭﻝ ﺃﻭ ﻣﻌﺪﺍﺗ��ﻪ ﺑﺎﻟ��ﺪﺧﻮﻝ ﺇﻟ��ﻰ ﺍﻟﻤﻮﻗ��ﻊ ﻟﺘﻨﻔﻴ��ﺬ ﺍﻷﻋﻤ��ﺎﻝ ﻣﻮﺿ��ﻮﻉ ﺍﻟﻌﻘ��ﺪ ﺇﻻ ﺑﻌ��ﺪ ﺗﻘ��ﺪﻳﻢ ﻭﺛﻴﻘ��ﺔ ﺍﻟﺘ��ﺎﻣﻴﻦ‬
‫ﺍﻟﻤﺬﻛﻮﺭﻩ ﻭﻗﺒﻮﻟﻬﺎ ﻣﻦ ﺳﻮﻣﻴﺪ‪.‬‬
‫‪ .۳‬ﻳﺠﺐ ﺃﻥ ﻳﻨﺺ ﻓﻰ ﺍﻟﻮﺛﻴﻘ�ﻪ ﻋﻠ�ﻰ ﺃﻥ ﻣ�ﻮﻅﻔﻰ ﺳ�ﻮﻣﻴﺪ ﻭﻣﻘﺎﻭﻟﻴﻬ�ﺎ ﻭﻣﻘ�ﺎﻭﻟﻴﻬﻢ ﻣ�ﻦ ﺍﻟﺒ�ﺎﻁﻦ ﻭﻋﻤ�ﺎﻟﻬﻢ ﻁ�ﺮﻑ ﺛﺎﻟ�ﺚ‪ ،‬ﻭﺃﻥ ﺷ�ﺮﻛﺔ‬
‫ﺍﻟﺘﺄﻣﻴﻦ ﺗﺘﻨﺎﺯﻝ ﻋﻦ ﺣﻘﻬﺎ ﺑﺎﻟﺮﺟﻮﻉ ﻋﻠﻴﻬﻢ‪.‬‬
‫‪ .٤‬ﺗﻜﻮﻥ ﺣﺪﻭﺩ ﺍﻟﻤﺴﺌﻮﻟﻴﺔ ﺍﻟﻤﺪﻧﻴﺔ ﺑﺎﻟﻮﺛﻴﻘﺔ ﻛﺎﻵﺗﻲ‪:‬‬
‫‪۰۰ ‬ﺭ‪ ۳۰ ۰۰۰‬ﺩﻭﻻﺭ ﺃﻣﺮﻳﻜﻰ ﻟﻠﻔﺮﺩ ﻟﻠﺤﺎﺩﺙ ﺍﻟﻮﺍﺣﺪ ﻭﺑﻐﺾ ﺍﻟﻨﻈﺮ ﻋﻦ ﻋﺪﺩ ﺍﻟﺤﻮﺍﺩﺙ‪.‬‬
‫‪۰۰ ‬ﺭ‪ ۳۰۰ ۰۰۰‬ﺩﻭﻻﺭ ﺃﻣﺮﻳﻜﻰ ﻷﻛﺜﺮ ﻣﻦ ﻓﺮﺩ ﻟﻠﺤﺎﺩﺙ ﺍﻟﻮﺍﺣﺪ ﻭﺑﻐﺾ ﺍﻟﻨﻈﺮ ﻋﻦ ﻋﺪﺩ ﺍﻟﺤﻮﺍﺩﺙ‬
‫‪۰۰ ‬ﺭ‪ ۳۰۰ ۰۰۰‬ﺩﻭﻻﺭ ﺃﻣﺮﻳﻜﻰ ﻟﻠﻤﺘﻠﻜﺎﺕ ﻟﻠﺤﺎﺩﺙ ﺍﻟﻮﺍﺣﺪ ﻭﺑﻐﺾ ﺍﻟﻨﻈﺮ ﻋﻦ ﻋﺪﺩ ﺍﻟﺤﻮﺍﺩﺙ‬
‫‪ .٥‬ﻳﺠﺐ ﺃﻥ ﺗﻐﻄﻰ ﻭﺛﻴﻘﺔ ﺍﻟﺘﺄﻣﻴﻦ ﺃﺧﻄﺎﺭ ﺍﻟﻤﺴﺌﻮﻟﻴﻪ ﺍﻟﻤﺪﻧﻴﻪ ﻭﺃﺧﻄﺎﺭ ﺍﻟﺤﺮﻳﻖ ﻭﺍﻟﺴ�ﺮﻗﺔ ﻭ ﺍﻟﺘﻠﻔﻴ�ﺎﺕ ﻭ ﺍﻹﻫﻤ�ﺎﻝ ‪……...‬ﺇﻟ�ﺦ‬
‫ﻭ ﻟ���ﻦ ﺗﻘﺒ���ﻞ ﺃﻯ ﺇﺳ���ﺘﺜﻨﺎءﺍﺕ ﺇﺿ���ﺎﻓﻴﻪ ﻣ���ﻦ ﺍﻟﺘﻐﻄﻴ���ﻪ ﺍﻟﺘﺄﻣﻴﻨﻴ���ﻪ ﻳ���ﺘﻢ ﺗﺤﺪﻳ���ﺪﻫﺎ ﺑﻤﻌﺮﻓ���ﺔ ﺷ���ﺮﻛﺔ ﺍﻟﺘ���ﺄﻣﻴﻦ ﺃﻭ ﺍﻟﻤﻘ���ﺎﻭﻝ ﺑﺨ���ﻼﻑ‬
‫ﺍﻹﺳﺘﺜﻨﺎءﺍﺕ ﺍﻟﻤﻄﺒﻮﻋﻪ ﺑﺎﻟﻮﺛﺎﺋﻖ )ﺍﻹﺳﺘﺜﻨﺎءﺍﺕ ﺍﻟﺪﺍﺋﻤﻪ(‪.‬‬
‫‪ .٦‬ﻳﺠﺐ ﺃﻥ ﻳﺘﻢ ﻗﺒﻮﻝ ﺍﻟﻮﺛﻴﻘﻪ ﻣﻦ ﺷﺮﻛﺔ ﺳﻮﻣﻴﺪ ﻭﺍﻥ ﻳﺘﻢ ﺻﺪﻭﺭﻫﺎ ﻣﻦ ﺷﺮﻛﺔ ﺗﺄﻣﻴﻦ ﻣﺼﺮﻳﺔ‪.‬‬
‫‪ .۷‬ﻳﻠﺘﺰﻡ ﺍﻟﻤﻘﺎﻭﻝ ﺑﺘﻘ�ﺪﻳﻢ ﺑﻮﻟﻴﺼ�ﺔ ﺗ�ﺄﻣﻨﻴﻦ ﻣﺴ�ﺌﻮﻟﻴﺔ ﻣﺪﻧﻴ�ﺔ ﻟﺼ�ﺎﻟﺢ ﺍﻟﻤﻘ�ﺎﻭﻝ ﻟﻠﺤ�ﻮﺍﺩﺙ ﺍﻟﺸﺨﺼ�ﻴﺔ ﺗﻐﻄ�ﻰ ﻋﻤﺎﻟ�ﻪ ﻭﻣﻮﻅﻔﻴ�ﺔ‬
‫ﻟﺬﺍﺕ ﺍﻟﻌﻘﺪ ﻭﺑﺤﺪﻭﺩ ﺍﻟﻤﺴﺌﻮﻟﻴﺔ ﺍﻟﻤﺪﻧﻴﺔ ﻋﻠﻰ ﺍﻷﻓﺮﺍﺩ ﺍﻟﻤﺬﻛﻮﺭﺓ ﺃﻋﻼﺓ‪.‬‬
‫‪ .۸‬ﻳﺠﺐ ﻋﻠﻰ ﺍﻟﻤﻘﺎﻭﻝ ﺇﺧﻄﺎﺭ ﺳﻮﻣﻴﺪ ﺑﺄﻱ ﺧﺴﺎﺭﺓ ﺃﻭ ﺗﻠﻔﻴﺎﺕ ﻣﻐﻄﺎﺓ ﺑﺎﻟﻮﺛﻴﻘﺔ ﻓﻰ ﺣﻴﻨﻪ‪.‬‬
‫‪ .۹‬ﻳﺠﺐ ﻋﻠﻰ ﺍﻟﻤﻘﺎﻭﻝ ﺃﻥ ﻳﻘﺪﻡ ﻟﺴﻮﻣﻴﺪ ﺍﻹﻳﺼﺎﻻﺕ ﺍﻟﺮﺳﻤﻴﻪ ﺍﻟﺪﺍﻟﻪ ﻋﻠﻰ ﺳ�ﺪﺍﺩﻩ ﺃﻗﺴ�ﺎﻁ ﺍﻟﻮﺛﻴﻘ�ﺔ‪ ،‬ﻭﻓ�ﻰ ﺣﺎﻟ�ﺔ ﻋ�ﺪﻡ ﻗﻴﺎﻣ�ﻪ ﺑﺎﻟﺴ�ﺪﺍﺩ‬
‫ﻓﺈﻥ ﺳﻮﻣﻴﺪ ﺳﻮﻑ ﺗﻘﻮﻡ ﺑﺬﻟﻚ ﻣﻊ ﺗﺤﺼﻴﻞ ‪ %۱٥‬ﻣﺼﺎﺭﻳﻒ ﺇﺩﺍﺭﻳﺔ‪ ،‬ﻭﺫﻟﻚ ﺧﺼﻤﺎ ً ﻣﻦ ﻣﺴﺘﺤﻘﺎﺕ ﺍﻟﻤﻘﺎﻭﻝ ﻁﺮﻑ ﺍﻟﺸﺮﻛﺔ‪.‬‬
‫‪ .۱۰‬ﺣﺪﻭﺩ ﺍﻟﺘﺤﻤﻞ ﺍﻟﺘﺄﻣﻴﻨﻴﻪ ﻟﻠﺤﻮﺍﺩﺙ ﻳﺘﺤﻤﻠﻬﺎ ﺍﻟﻤﻘﺎﻭﻝ ﻭﻳﻜﻮﻥ ﻣﺴﺌﻮﻻً ﻋﻨﻬﺎ ﻭﺗﺨﺼﻢ ﻣﻦ ﻣﺴ�ﺘﺤﻘﺎﺗﻪ ﻟ�ﺪﻯ ﺳ�ﻮﻣﻴﺪ ﺃﻭ ﺗﺨﺼ�ﻢ ﻣ�ﻦ‬
‫ﺧﻄﺎﺏ ﺍﻟﻀﻤﺎﻥ ﺍﻟﻨﻬﺎﺋﻰ‪.‬‬
‫‪ ‬ﻳﺘﻌﻴﻦ ﺧﺘﻢ ﻫﺬﻩ ﺍﻟﺼﻔﺤﻪ ﻣﻦ ﺷﺮﻛﺔ ﺍﻟﺘﺄﻣﻴﻦ ﺍﻟﻤﺼﺪﺭﺓ ﻟﻠﻮﺛﻴﻘﺔ ﻭﺍﻟﺘﻮﻗﻴﻊ ﻋﻠﻴﻬﺎ ﻣﻦ ﺟ�ﺎﻧﺒﻬﻢ ﻣ�ﻊ ﺫﻛ�ﺮ ﺭﻗ�ﻢ ﺍﻟﻮﺛﻴﻘ�ﻪ ﻋﻠ�ﻰ ﻫ�ﺬﻩ‬
‫ﺍﻟﺸﺮﻭﻁ ﻭﻣﻦ ﺍﻟﻤﻔﻬﻮﻡ ﺃﻥ ﺷﺮﻛﺔ ﺍﻟﺘﺄﻣﻴﻦ ﺗﻮﺍﻓﻖ ﻋﻠﻰ ﺳﺮﻳﺎﻥ ﺍﻟﺘﻐﻄﻴﺎﺕ ﺍﻟﺘﺄﻣﻴﻨﻴﻪ ﻭ ﺣﺪﻭﺩﻫﺎ ﺍﻟ�ﻮﺍﺭﺩﻩ ﺑﻬـ�ـﺬﻩ ﺍﻟﺸ�ﺮﻭﻁ ﻭ ﺃﻧﻬ�ﺎ‬
‫ﺗﻌﺘﺒﺮ ﺟﺰء ﻣﺘﻤﻢ ﻭ ﻣﻜﻤﻞ ﻭ ﻻ ﻳﺘﺠﺰﺃ ﻣﻦ ﻭﺛﻴﻘﺔ ﺍﻟﺘﺄﻣﻴﻦ ﻣﻊ ﺳﺮﻳﺎﻧﻬﺎ ﻓﻰ ﺣﺎﻟﺔ ﺃﻯ ﺗﻌﺎﺭﺽ ﺑﻴﻨﻬﺎ ﻭ ﺑﻴﻦ ﻣ�ﺎ ﻫ�ﻮ ﻭﺍﺭﺩ ﺑﺎﻟﻮﺛﻴﻘ�ﻪ‬
‫ﺫﺍﺗﻬﺎ‪.‬‬

‫‪132‬‬
FINANCIAL CONDITIONS SUMED

ATTACHMENT No (2)

LETTER OF GUARANTEE TO COVER BID BOND

To: THE ARAB PETROLEUM PIPELINES COMPANY “SUMED”

AL-GIESH AVENUE , Loran
Alexandria - Egypt

Dear Sir,

We the undersigned, irrevocably and unconditionally guarantee up to the

sum of USD (say Only.........………….............USD DOLLARS.)
In respect of ………………. And we undertake to pay this sum on first
demand, not with-standing any contestation by the Contractor or our Bank
or any other third party.
This letter of guarantee shall be valid from the date it is issued till ……
Should we receive no claim from you until that date, our liability hereunder will
become null and void.

Please return to us this letter of guarantee on expire date for cancellation.

BANK

133
FINANCIAL CONDITIONS SUMED

ATTACHMENT NO (3)
LETTER OF GUARANTEE TO COVER ADVANCE PAYMENT

To : THE ARAB PERTROLEUM PIPELINES COMPANY "SUMED"

431 Al-Geish Aveneu
PO BOX 158 AL –SARAY, LORAN
Alexandria - Egypt

Dear Sir,
With reference to the Tender signed on ………………….. between the ARAB
PETROLEUM PIPELINES COMPANY “SUMED” and ………………….. relation TO
“ …………………………” for total Tender Price of USDOLLARS
(say: Only .......………………………………. ................. USD.)

We the undersigned, hereby irrevocably and unconditionally guarantee the Contractor up

to the sum of USD ……………………(say: Only
………………………………………………USDOLLARS) to indemnify your advance
payment of Twenty percent (20%) portion of the price stated in the above mentioned
Tender and we undertake to pay to you any amount you may claim up to the total amount
of this letter of guarantee being USD ………… (say: only
………..……………………………… USDDOLLARS) on your first demand in. writing
without notice or any other conditions or restrictions and notwithstanding any
contestation by Contractor or any third party or our bank.

No claim under this guarantee shall be accepted if not presented to us in writing

on or before expiry date, Please return to us this letter of guarantee on expiry
date for cancellation.

BANK

134
FINANCIAL CONDITIONS SUMED

ATTACHMENT NO (4)

BANK LETTER OF GUARANTEE TO COVER PERFORMANCE BOND

To : THE ARAB PERTROLEUM PIPELINES COMPANY "SUMED"

431 Al-Geish Aveneu
PO BOX 158 AL –SARAY, LORAN
Alexandria - Egypt

Dear Sir,
With reference to the Contrat signed on ...............between the ARAB
PETROLEUM PIPELINES COMPANY "SUMED" and ........................ in
relation to " ……………………………..….. " for a total Tender Price of
...................USD ( say: Only .............……………....... US DOLLARS.)
We the undersigned, hereby irrevocably and unconditionally guarantee the
Contractor up to the sum of ........... USD (say: Only ............................. USD
DOLLARS)
for the due execution and proper performance of the above mentioned
Tender .
We undertake to pay you on your first demand to us any amount you may claim up to
and not exceeding this sum, notwithstanding any contestation by the Contractor , or
our Bank or any other third party.
This letter of guarantee shall be valid from the day it is issued until the date
of fulfillment of the Contractor's obligations and guarantees under the
Tender, i.e. not before .................
The validity period shall be automatically extended accordingly upon written
notification to ourselves by SUMED prior to the date of the L/G.
Should we receive no claim from you during the validity of expiry period of this letter
of guarantee our liability hereunder will become null and void.
Please return to us this letter of guarantee as soon as its validity expires.

BANK

135
‫‪FINANCIAL CONDITIONS‬‬ ‫‪SUMED‬‬

‫)‪ATTACHMENT NO (5‬‬
‫ﻧﻣﻭﺫﺝ ﺍﻗــﺭﺍﺭ ﻭﻣﺧﺎﻟﺻـــﻪ‬

‫ﺑﻤﻘﺮ ﺍﻟﺸﺮﻛﺔ ﺍﻟﻌﺮﺑﻴﻪ ﻻﻧﺎﺑﻴﺐ ﺍﻟﺒﺘﺮﻭﻝ " ﺳﻮﻣﻴﺪ" ﺑﺎﻟﻤﺮﻛﺰ‬ ‫ﺍﻟﻤﻮﺍﻓﻖ‬ ‫ﺍﻧﻪ ﻓﻰ ﻳﻮﻡ‬
‫ﺍﻟﺮﺋﻴﺴﻰ ﺑﻠﻮﺭﺍﻥ – ﺍﻻﺳﻜﻨﺪﺭﻳﻪ ﺑﺪﺍﺋﺮﺓ ﻗﺴﻢ ﺍﻟﺮﻣﻞ ‪.‬‬
‫ﺍﻗﺮ ﺍﻧﺎ ﺍﻟﻤﻘﺎﻭﻝ‪ ..............‬ﺑﻄﺎﻗﻪ ﺷﺨﺼﻴﻪ ‪/‬ﻋﺎﺋﻠﻴﻪ ﺭﻗﻢ‪........‬ﺳﺠﻞ ﻣﺪﻧﻰ‪ ........‬ﻣﻘﻴﻢ‬
‫‪........‬ﺑﺼﻔﺘﻰ ﺍﻟﻤﻤﺜﻞ ﺍﻟﻘﺎﻧﻮﻧﻰ ﻟﺸﺮﻛﺔ‪........ ........ ........ ........‬‬
‫ﺑﺄﻧﻪ ﻗﺪ ﺗﻤﺖ ﺗﺼﻔﻴﺔ ﺣﺴﺎﺏ ﺍﻟﻤﻘﺎﻭﻟﻪ ﺍﻟﻤﺒﺮﻣﻪ ﻓﻴﻤﺎ ﺑﻴﻨﻰ ﻭﺑﻴﻦ ﺷﺮﻛﺔ ﺳﻮﻣﻴﺪ ﺑﻤﻮﺟﺐ ﺍﻟﻌﻘﺪ‬
‫ﺍﻟﻤﺆﺭﺥ ‪ / /‬ﻋﻦ ﻋﻤﻠﻴﺔ ‪........ ........ ........‬ﺗﺼﻔﻴﻪ ﻧﻬﺎﺋﻴﻪ ﺣﻴﺚ ﻗﺎﻣﺖ ﺷﺮﻛﺔ ﺳﻮﻣﻴﺪ‬
‫ﺑﺴﺪﺍﺩ ﻛﺎﻣﻞ ﻗﻴﻤﺔ ﺍﻟﻌﻘﺪ ﺍﻟﻤﺸﺎﺭ ﺍﻟﻴﻪ‪ ،‬ﻭﻳﻌﺘﺒﺮ ﻫﺬﺍ ﺍﻟﺴﺪﺍﺩ ﺍﺑﺮﺍءﺍ ﻧﻬﺎﺋﻴﺎ ً ﻟﺬﻣﺔ ﺷﺮﻛﺔ ﺳﻮﻣﻴﺪ ﻋﻦ‬
‫ﻫﺬﺍ ﺍﻟﻌﻘﺪ ﻭﻻ ﻳﺤﻖ ﻟﻰ ﺑﺄﻯ ﺣﺎﻝ ﺍﻻﺩﻋﺎء ﺑﺄﻳﺔ ﺣﻘﻮﻕ ﻗﺒﻞ ﺳﻮﻣﻴﺪ ﻧﺎﺟﻤﻪ ﻋﻦ ﻫﺬﺍ ﺍﻟﻌﻘﺪ ﺍﻭ ﺍﻳﺔ‬
‫ﺗﻌﺪﻳﻼﺕ ﻻﺣﻘﻪ ﻟﻪ ﺍﻭ ﺍﻟﻤﻄﺎﻟﺒﻪ ﺑﺄﻳﺔ ﻣﺒﺎﻟﻎ ﺍﻳﺎ ﻛﺎﻥ ﻧﻮﻋﻬﺎ ﺍﻭ ﻣﺼﺪﺭﻫﺎ ﺍﻭ ﺳﻨﺪ ﺍﻟﻤﻄﺎﻟﺒﻪ ﺑﻬﺎ ﻭﻋﻠﻰ‬
‫ﺳﺒﻴﻞ ﺍﻟﻤﺜﺎﻝ ﻻ ﺍﻟﺤﺼﺮ ﻓﺮﻭﻕ ﺍﻻﺳﻌﺎﺭ – ﺍﻟﻀﺮﺍﺋﺐ ﺑﻜﺎﻓﺔ ﺍﻧﻮﺍﻋﻬﺎ ﺑﻤﺎ ﻓﻴﻬﺎ ﺿﺮﺍﺋﺐ ﺍﻟﻤﺒﻴﻌﺎﺕ ﺍﻭ‬
‫ﺍﻳﺔ ﺭﺳﻮﻡ ﻭﺧﻼﻓﻪ ﻭﺫﻟﻚ ﺣﺎﻟﻴﺎ ً ﺍﻭ ﻣﺴﺘﻘﺒﻼً‪.‬‬

‫ﻭﻳﻌﺘﺒﺮ ﻫﺬﺍ ﺍﻻﻗﺮﺍﺭ ﺑﻤﺜﺎﺑﺔ ﻣﺨﺎﻟﺼﺔ ﻧﻬﺎﺋﻴﺎ ً ﻣﻨﻰ ﺑﺬﻟﻚ‬

‫ﺍﻟﻤــــﻘﺮ ﺑﻤﺎ ﻓﻴـــــــﻪ ‪:‬‬

‫‪/‬‬ ‫ﺗﺤﺮﻳﺮﺍً ﻓﻰ ‪/‬‬

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