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CONTRACT AGREEMENT This agreement made on the 13th January 2014 between:1.

M/S SBCM Saudi Building & Construction Management (hereinafter called “The 1st Party” of the one part)

2.

M/S Postmodern Studio hereinafter called “The 2nd Party or I.D.” of the other part)

Whereas the 1st Party intends to contract the Architecture Co-ordination & Interior Design for the M-1 project in Mecca, Saudi Arabia.

NOW THIS AGREEMENT WITNESSETH as follows: 1.

Project shall mean M-1 project located in Mecca, Saudi Arabia. Located in Mansour St. area, land size 1,166 m2, with approximate total built up area of 20,850m2.

2.

In consideration of the payments to be made by the 1st party to the 2nd party as hereinafter mentioned, the 2nd party hereby agrees to execute the scope of works as stipulated in item 2 in the conditions of contract in all respects with the provisions of this contract and in accordance with good engineering practice.

3.

The 1st Party hereby covenants to pay the 2nd Party in consideration of the above works at the Contracted price of (Saudi Riyals One Hundred Fifty Only) at the times and payment schedule prescribed by the Contract.

IN WITNESS whereof, the parties hereto have set their respective hands today, the 13th January 2014. For and on behalf of 1st Party

For and on behalf of 2nd Party

____________________________ Engr. Ashraf A. Ibrahim Architect

_________________________ Engr. Mahmoud A. Chaaban General Manager

Postmodern Studio

SBCM

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CONDITIONS OF CONTRACT

1.

Definition a. 1st Party

b. 2nd Party

2.

The 1st Party shall mean M/S SBCM Saudi Building & Construction Management P.O. Box 22149 Jeddah 21495 Tel. No: 012-664 4177 Fax: 012-668 6445

The 2nd Party shall mean M/S Postmodern Studio Jeddah, Saudi Arabia Mobile: 0530280936

Scope of Works The I.D. scope of work includes designing & preparing the full construction documents of M-1 hotel, Mecca to comply with a 4-Star generic hotel requirement. Furniture BOQ by 1st Party

General scope of work of the I/d scope shall be: a) Design & preparation of design drawings & presentations for all interior design disciplines. b) Study & co-ordination of all Architecture drawings (internal & external) and E/M to adapt to I/d design. c) Preparation of perspectives & mood boards for all the spaces of the hotel at various development stages. d) B.O.Q. (headlines & specifications only, actual quantification to be done by 1st Party). e) Specification booklet. f) Selection of finishing & I/d materials g) Samples sourcing & presentation for all internal decoration items for all spaces of the building at all floors. h) Furniture (fixed & loose), accessories & lighting selection & details & production of final F.F.E. booklet. Furniture BOQ by 1st Party i) Co-ordination to execute a mock-up room. The I.D. drawings produced by 2nd Party shall have the sufficient data in a way that they will be ready for production as execution drawings by the 1st Party & include addressing any questions, proposals or suggestions from 1st Party, contractors & suppliers at later stages throughout project execution.

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The I.D. will co-ordinate all other engineering disciplines (Arch, Struct, MEP, Specialties) layouts & requirements & incorporate in the I.D design drawings to produce a final set of design drawings that all Engineering disciplines will base their shop drawings accordingly. I.D. shall execute the following services (but not limited to) for each space: 1-1

Furniture: -

1-2

Produce furniture floor plans (fixed & loose) for all floors (scale 1:100). Furniture design, selection & sourcing for all fixed & loose furniture. Accessories, artwork & lighting selection & sourcing for all spaces. Fabrics selection & sourcing for all spaces. Carpet selection & sourcing for all spaces. Curtains design & material selection. Electrical outlet:

-

1-3

Floor & wall plans showing the distribution with dimension and accurate locations for all low current outlets and power and any accessories outlets. Location of electrical panel board for each room (if required). Location of lighting control systems inside rooms. False ceiling: 1-3-1

‐ ‐ ‐ ‐ ‐ ‐ 1-3-2

1-4

Review & complete reflected falce ceiling design drawings for all spaces (produced by the 1st Party based on perspectives by the I.D.) and should have the following data: Levels, dimensions & cross sections. Location of A/C grills (supply & return). Location of sprinkler, smoke detector and speaker. Location of lighting fixtures and the loops of lighting. Location of any other item required in ceiling layouts. Location & support of curtains. Detailed drawings, blow up details & sections for all different spaces at all areas showing cornices, moulds, connection details…etc. 1-3-3 Type of false ceiling materials and their finishings.

Flooring: -

-

Review & complete floor plans for all areas with proper scale not exceeding (1:100) (produced by the 1st Party based on perspectives by the I.D.) showing type of materials, colors, selected sizes with dimensions. Enlarged plans for all decorative patterns at flooring. Skirting materials and their details for all spaces.

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-

1-5

Any other discipline insert location required in floors (MEP outlets & fixtures)

Wall elevations: -

I.D. will review & complete four elevations for each space of the project (Produced by the 1st Party based on perspectives by the I.D.) showing the design and details, connection details between different materials with complete full dimensions and details of all wall treatment, finishing material, MEP fixtures, appliances, artworks, curtains, lighting & furniture & cabinets.

-

Above mentioned scope will be delivered for each main space such as single rooms, double rooms, executive rooms, suites, corridors, elevator lobbies, restaurant, banquet hall, sitting areas, elevator atrium, reception, cafeteria, prayer areas and all other common areas.

1-6

Bathrooms / Toilets:

-

I.D. will review & complete the following drawings for each type of toilets (Produced by the 1st Party based on I.D. concept perspectives). Floor plan (scale 1:25). Ceiling plan (scale 1:25). Four wall elevations (scale 1:25). Enlarged details and sections with proper scale for bath tub, shower, counter tops & all other MEP fixtures. The above mentioned drawings should have necessary dimensions and should show the location of electrical outlets required for hair drier, shaving machine, telephone, also should show the location with dimensions of toilet accessories and the layout of sanitary fixtures, location of drains, clean outs, type of tiles and their distribution, sizes, mirror details, connection details‌etc. Material selection for tiles, counters, sanitary fixtures, toilet accessories and mixers & fixing details.

1-7

Wooden Works: (includes all mill work details, material specs & color finish) 1-7-1

Doors: - Design of different types of doors with elevation for each type (scale 1:10). - Sections and details showing moulds, door jambs, architrave (scale 1:2 or :5). - Door schedule.

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-

Hardware schedule with selection and finishing. type and finishing of wood and accessories.

1-7-2

Built in cabinets: Details of built in cabinets with dimensions, elevations, interior sections, type and finishing of wood and accessories.

1-7-3

Wood cladding: Details of wood cladding & special wood work decorative elements & partitions with dimensions, elevations, interior sections, type and finishing of wood and accessories.

1-8

Color schemes: Color schemes for all finishing items at all spaces.

1-9

Light fixtures and art works: Selection & sourcing of lighting fixtures (walls & ceilings) and art works and their exact locations.

1-10

Signage Design internal and external signs for all spaces including room/floor name, number, directions and all associated works.

1-11

Selection & specifications of all selected materials along with samples for Client approval.

1-12

Bill of quantities for all I.D. items to produce a standard B.O.Q. indicating material description & specifications & any other reference required to correctly price & procure the item. (All quantification to be done by the 1st Party to be reviewed & approved by I/d)

1-13

I/d material procurement

a) Scope is liaison, co-ordination with the 1st Party procurement agency to supply them the required R.F.Q. suppliers listing for each I/d material to be procured. b) Checking of supplier offers to confirm compliance with original specs. 1-14

Produce interior design perspectives & mood boards for all areas, as per the following stages:-

a) Generic concept designs & mood boards to obtain Client style & establish a design direction. b) Initial perspectives & material selection of all areas to obtain Client’s approval & comments.

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c) Revise perspectives & details to incorporate Client’s comments for final Client approval, this approval shall signal start of design working drawings by 1st Party review & co-ordination by 2nd Party. d) Produce final perspectives as per final approved material selection, color schemes & furniture to be the final document for the Client to hand over the completed works & project. 3.

Stages of execution STAGES OF EXECUTION:

4.

Stage 1-

Produce revised Architecture layouts of all floors, in co-ordination with 1st Party.

Stage 2-

Produce initial mood board, furniture & material preliminary selection board.

Stage 3-

Produce final layouts for all spaces.

Stage 4-

Produce initial perspectives of all spacing, furniture & finishing material presentation.

Stage 5-

Review & co-ordinate design concept for elevations, floor & ceiling layouts of all spaces produced by 1st Party.

Stage 6-

Produce final perspectives, accessories presentation.

Stage 7-

Produce F.F.E. furniture & accessories & lighting booklet (complete with design, material selection, dimensions, finishing & B.O.Q.) ready for tender & procurement. (Specifications & data only quantities by 1st Party).

finishing

material,

furniture

&

Documents All documents forming part of the contract shall be mutually explanatory of one another but in case of ambiguities a mutual understanding to be compromised between both parties based on common Engineering practice & standard local regulations.

5.

Communication All communication between both parties shall be written to, addressed to their respective addresses. The working language of the contract shall be English.

6.

Program of works. Stage 1- Produce revised Architecture layouts - 1 week from contract signature. of all floors, in co-ordination with 1st Party. Stage 2- Produce initial mood board, furniture & material preliminary selection board.

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- 2 weeks from contract signature.


Stage 3- Produce final layouts for all spaces.

- 1 week from approval of Stage 1.

Stage 4- Produce initial perspectives of all spacing, - 3 weeks from approval furniture & finishing material presentation. of Stage 2. Stage 5- Review & co-ordinate & complete design - 2 weeks from approval of Stage 4. information produced by 1st Party for wall elevations, floor & ceiling layouts of all spaces. Stage 6- Produce final perspectives, finishing material, furniture & accessories presentation.

- 3 weeks from approval of Stage 4.

Stage 7- Produce F.F.E. furniture & accessories & - 2 weeks from approval lighting booklet (complete with design, of Stage 6. material selection, dimensions, finishing & B.O.Q. criteria) ready for tender & procurement. 7.

Approvals All drawings shall be submitted to the 1st Party for their approval and comments prior to proceeding to the following stage. The second party undertakes to modify and update the drawings to accommodate the 1st Party comments & ultimately achieve their approval prior to commencing to the second stage. The time required for client study and comment shall be extra over stipulated times above in program of works.

8.

• The review periods for each stage by the client or his Payment Terms representative will be max. Two weeks, which means maximum Total project period of 22 weeks including 2nd Party shall perform the review servicesperiods. outlined in the scope of works above for a lump sum fee of SR 150,000 (One Hundred Thousand Riyals). • Any increase Fifty in the reviewSaudi periods by the client from the above stated total project period will be charged as FEES : additional fee of 5% per each month of increase of project period. Lump sum of 150,000 Sr

Payable as follows:1) 2) 3) 4) 5) 6) 7) 8) 9)

Down payment Upon approval of 1-14 a Upon approval of 1-14 c Upon submittal of design concept drawings Upon approval of final design development drawings Upon submittal of B.O.Q. draft Upon submittal of F.F.E. booklet Upon furniture order Upon submittal of final perspectives

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10% 10% 20% 10% 10% 10% 10% 10% 10%

As per Eng. Yasser Mostafa He directed Max. 5 payments, 20% advance 20% Upon approval of stage 3 20% Upon approval of stage 4 20% Upon completion of stage 6 10% Upon completion of stage 7


9.

Activation of Contract. This contract is deemed active from date of signing contract and receiving advance payment and complete upon receiving all the above stages.

10.

Revisions & changes in the design concept. Any new requests or requirements or additions or modifications to original concept by the 1st Party requested after completion of working drawings shall be considered as a variation order and be billed according to mutually agreed prices and durations.

11.

Inclusions / Exclusions The contract excludes:ƒ ƒ ƒ

12.

13.

Costs of building permits or other municipal fees. Cost of any major re-design caused by changes of the 1st Party to the original design. Time duration excludes any time required for any approvals by 1st Party.

§ The cost of travel and accommodation outside Jeddah, if required. § All other services that are not expressively stated in this The Contract is subject to the laws and regulations of the Kingdom of Saudi Contract shall be considered as Additional Services Arabia & to common Engineering practice & standard norms of construction. § Priced BOQ Force Majeure § Any Construction supervision or shop drawings related. Contract Laws

The 2nd Party shall not be responsible for any delay or failure caused by any incident, policies, mishap, etc or any factors which are beyond the control of the 2nd Party and amounting to force majeure. The 2nd Party shall not be held responsible for any consequential loss or damage directly or indirectly arising from such causes.

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Design contract m1 (postmodern studio)