EXHIBIT 10.48
Contract
[LOGO]
C/G The Carbide/Graphite Group, Inc.
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Plant 3 Modernization Project
Engineering, Procurement and Construction
Management Services
St. Marys, Pennsylvania
June 1996
-------------------------------------------- Process & Manufacturing Industries
[LOGO OF BROWN & ROOT]
[LOGO OF BROWN & ROOT]
Brown & Root Post Office Box 3
Power And Manufacturing Houston, TX 77001-0003
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X. X. Xxxxxxx (000) 000-0000
General Manager FAX: (000) 000-0000
Engineering
June 5, 1996
Xx. Xxxxxx Xxxxxx
Project Manager
The Carbide/Graphite Group, Inc.
000 Xxxxxxxx Xxxxxx
Xx. Xxxxx, Xxxxxxxxxxxx 00000
Subject: Contract to Provide Engineering, Procurement, and Construction
Management Services for the Plant 3 Modernization Project
Dear Mr. Xxxxxx
Xxxxx & Xxxx is pleased to submit this contract document to provide engineering,
procurement, and construction management services for the subject project per a
verbal agreement reached between Brown & Xxxx and Xx. Xxxx Xxxxx per a telephone
conversation on June 4, 1996.
The contract document includes a project description, scope of work, plan of
work, and a commercial offering outlining an Incentive Program to achieve the
project completion within the overall project budget and schedule.
Please return an original signed copy of the Terms and Conditions attached to
this document to authorize Brown & Root to proceed with the work.
Very truly yours,
/s/ X. X. Xxxxxxx
for X. X. Xxxxxxx DNA
YFB /kls:2801-004
A Halliburton Company
THE CARBIDE/GRAPHITE GROUP, INC.
PLANT 3 MODERNIZATION PROJECT
ST. MARYS, PENNSYLVANIA
CONTRACT TO PROVIDE
ENGINEERING, PROCUREMENT, AND CONSTRUCTION MANAGEMENT
SERVICES
BROWN & ROOT, INC.
0000 Xxxxxxx Xxxxx
Xxxxxxx, Xxxxx 00000-0000
[LOGO OF BROWN & ROOT]
2801-006
TABLE OF CONTENTS
1.0 PROJECT DESCRIPTION
2.0 SCOPE OF WORK BY XXXXX & ROOT
3.0 PLAN OF WORK
4.0 SCOPE OF SERVICES BY THE CARBIDE/GRAPHITE GROUP, INC.
5.0 COMMERCIAL OFFERING
6.0 TERMS AND CONDITIONS
ATTACHMENTS
. Engineering, Procurement, and Construction Management Organization
. Division of Responsibilities - Construction Management
. EPC Schedule
. Terms and Conditions
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 1 of 8
1.0 PROJECT DESCRIPTION
The C/G Group, Inc.'s (C/G's) Plant 3 Modernization Project at St. Marys,
Pennsylvania, includes the following:
. 48-inch press system will have a complete redesign of coke screening and
sizing, automatic batch weighing and carbon paste mixing, cooling, and
pollution controls systems for this project. The equipment arrangement for
an alternate case which uses a continuous bucket conveyor to convey coke
fractions to the mixer system will be used as outlined in Brown & Xxxx's
study titled Conceptual Design and Capital Cost Estimate dated April 19,
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1996.
. The equipment arrangement will be generally in accordance to Drawing Nos.
350-085-01A, Revision B, and 350-085-02A, Revision A, indicating the plan
and sections through the Mill Mix Building.
. 25-inch press system - The existing milling and screening system for the 48-
inch press will be used for the 25-inch press once a new mill mix facility
for the 48-inch press is commissioned.
. New Plant air compressors which will have new air dryers, air receivers, and
other miscellaneous components required to replace the plant's compressed
air system which was sold to SGL.
2.0 SCOPE OF WORK BY XXXXX & ROOT
Brown & Root will provide the following Engineering, Procurement, and
Construction Management (EPCM) services for C/G's Plant 3 Modernization Project
at St. Marys, Pennsylvania.
2.1 Engineering Services
--------------------
During this phase of the contract to provide EPCM services, the following
discipline engineering deliverables will be prepared.
. Process
- Block Flow Diagrams
- Process Flow Diagrams with Material Balances
- Engineering Flow Diagrams
- Utility Flow Diagrams
- Major Equipment List
- Description of Facilities
- Process Descriptions
. Mechanical Layout/Piping Design
- Plot Plan
- General Arrangement Drawings with Plan and Sections
- Piping Layout Drawings and Sections
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. Mechanical
- Mechanical Equipment Specifications with Data Sheets
- Piping Specification
- Insulation Specification
- Coating Specification
. Electrical
- Electrical Equipment Specifications
- Electrical Load List
- Cable, Conduit, and Termination Schedule
- Electrical Installation, Legends, and Symbols Drawings
- Motor Elementary Diagrams
- One Line Diagram for New Additions
- One Line Diagrams for New MCCs and Switchgears
- Underground Duct Bank Drawing
- Cable Tray Plan Drawings for Mill Building
- Grounding and Lighting Plan Drawings
- Power and Instrument Conduit Plan Drawings
- Short Circuit, Motor Starting, and Load Flow Studies
- Fire Protection System Plan Drawings
. Instrumentation and Control
- PLC Control System Specifications
- Instrument Specifications/Data Sheets
- Instrument Index
- Instrument Location Plans
- Instruments Installation Details
- Loop Diagrams, Interconnect Diagrams, and Wire Lists
- Control Room Layout Plan
- Logic Diagrams
. Architecture
- Architectural Specifications
_ Architectural Drawings
. Civil
- Civil Specifications
- Civil Drawings
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 3 of 8
. Concrete
- Concrete and Reinforcing Steel Specifications
- Foundation Drawings
. Structural
- Structural Specifications
- Structural Drawings
. HVAC/Plumbing
- Heating, Ventilating, and Air Systems Specifications
- Ventilating Equipment Specification
- HVAC Drawings
. Plumbing
- Plumbing System Specifications
- Plumbing Drawings
. Environmental
- Ductwork Specification
- Baghouse Specification
- Induced Draft Fan Specification
- Fume Incinerator Specification
- Ductwork Process Flow Diagram
. Fire Protection
- Fire Protection Design Criteria
- Fire Pumps Specification
- Fire Detection and Alarm System Specification
- FM2OO Systems Specification for Control Room Fire Protection
- Dry Pipe Sprinkler and Standpipe System Specification
- Underground Firewater Piping Specification
2.2 Procurement Services
--------------------
Procurement activity will be based in Houston. Procurement activity will be
based on the equipment list and specifications prepared by Brown & Root
engineers. Procurement personnel will be assigned to the project staff to
inquire, evaluate, and place purchase orders after review and approval by the
originating engineer and C/G's designee. Procurement personnel will also
expedite the delivery of equipment/supplies in accordance with the project
schedule.
Procurement personnel will also issue subcontract purchase orders and provide
the required expediting services.
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 4 of 8
2.3 Construction Management Services
--------------------------------
Brown & Root proposes to provide an experienced team of construction management
professionals to provide complete project construction management services for
C/G's modernization project at the St. Marys' facility.
To assist C/G's project personnel as to how we envision the responsibilities of
all parties that will be involved in this project, we are providing a Division
of Responsibilities matrix which is attached.
This matrix is the most appropriate method of establishing a baseline to clearly
define the services that Brown & Root proposes to provide C/G for the
construction management requirements for this project.
Our estimate is based on a reasonable contracting approach using a lump sum
approach for major discipline packages. Our plan is also based on using our
Construction Manager and Technical Services Manager for constructability reviews
and coordination with engineering needs and activities. Our experience shows
that the familiarity of the engineer's activities and personnel by these two key
people will greatly enhance communications during the life of the project.
We have marked-up the matrix with our understanding of C/G's needs and are
prepared to meet and discuss this in more detail.
3.0 PLAN OF WORK
For this project, Xxxxx & Xxxx will assume the role of EPCM contractor reporting
to C/G's Project Manager who will be available full time with authority to make
decisions and approve all the work. The engineering and procurement work other
than construction management will be performed in our Houston offices where the
project team will be assembled. Refer to the attached organization chart
indicating the project team.
Immediately upon C/G's approval to proceed with the project, Brown & Root will
commence planning the sequential activities to complete engineering,
procurement, construction, start-up, and commissioning of the proposed process
facilities within a 20-month schedule.
Brown & Xxxx recommends that the following subcontracts be issued immediately to
support engineering and the overall schedule:
. Xxxxxx-Xxxxxxxx'x Report (physical properties testing for coke fractions)
. Geotechnical survey
. Site survey
Engineering and procurement items requiring long lead-time will have priority to
provide momentum to the engineering and procurement schedule. The 12-month
delivery items, such as Xxxxxx'x mixer system and automatic batch weighing
system, will be placed on order within the first month.
Brown & Root and C/G personnel will meet with Xxxxxx Machines Company to
finalize the requisition for the scope of supply and reconfirm the pricing of
the mixer system. Evaluation
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 5 of 8
of Xxxxxx'x capability to engineer and supply an automatic batch weighing
system will also be important before issuing the purchase order to Xxxxxx.
Purchase orders will be issued for the mixer system and automatic batch
weight system within the first month since early receipt of supplier's
process and engineering data and drawings will be essential in achieving the
overall schedule.
Next, the flour mill and the electrical substation equipment items will be
placed on order since their delivery schedule will be seven to eight months.
Other equipment will be placed on order and expedited in accordance with the
attached EPC schedule.
For construction of this facility and through obtaining competitive bids, the
following three major subcontractors specialized in performing the work
efficiently, on schedule, and under the budget will be selected:
. Civil/Architectural (C/A)
. Mechanical/Piping/Insulation/Structural (M/S)
. Electrical/Instrumentation (E/I)
Also, specialized construction work in engineering, equipment/material supply,
and construction capability will be awarded to selected subcontractors
through bids for turnkey installation basis for the following:
. Fire protection
. Elevator
. Electrical substation and switchgear building
. Impedance heating
The above subcontract activities are depicted on the EPC schedule included in
our Conceptual Design and Capital Cost Estimate Study dated April 19, 1996.
4.0 SCOPE OF SERVICES BY THE CARBIDE/GRAPHITE GROUP, INC.
C/G will assign a full time Project Manager who will review and approve our
work and will be authorized to make timely decisions for C/G. We will need
ready access to this individual at all times during the working hours.
Brown & Root will prepare technical documents necessary to perform site survey
and geotechnical investigation. Purchase orders for these services will be
issued to surveying and geotechnical engineering firms in order to obtain these
reports within the first month.
C/G will obtain necessary environmental and construction permits for this
project. Brown & Root understands C/G's environmental department is handling
permitting for the project. We would like to point out that Brown & Root has an
Environmental Engineering staff that could provide assistance to the C/G. The
cost of these services are not included in this proposal.
C/G will prepare operation instructions and training manuals which are not
included in our estimate.
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 6 of 8
C/G will provide timely access to all current facilities and provide the
necessary data on existing facilities.
5.0 COMMERCIAL OFFERING
Brown & Root offers to provide engineering, procurement, and construction
management services for performance of the scope of work set forth within this
proposal on the basis described in this Section.
Brown & Root will provide all supervision, labor, equipment, materials, tools,
and all other services necessary for complete engineering, procurement, and
construction management services for C/G's Plant 3 Modernization Project at St.
Marys, Pennsylvania, as more fully described in Brown & Xxxx's Conceptual Design
and Capital Cost Estimate Report dated April 19, 1996 (the Report).
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5.1 Project Budget
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The budget estimate as set forth in the Report for engineering, procurement, and
construction management (EPCM) services is as follows:
Engineering and Procurement $3,000,000
Construction Management $ 606,000
Construction Management Fee $ 200,000
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Total Budget Estimate $3,806,000
(original from Basic Design Study)
The estimated TIC Project Budget as set forth in the Report, including the EPCM
estimate above, is $26,400,000.
Since this estimated total installed cost (TIC) for the project budget set forth
in Report does not include any Contractor's contingency, this budget amount
henceforth will be termed "Total Project Challenge Budget."
It is proposed that the following two budgets be established to provide
incentives to control total project costs:
. Target Budget for EPCM Services - $3,500,000 + $73,278
. Total Project Challenge Budget - $26,400,000 + $439,528
5.2 Incentive Program
-----------------
Brown & Root proposes an Incentive Program in conjunction with the initial mark-
up of 85% applied to direct engineering, procurement, and home office service
manhours and mark-up of 55% applied to the field construction management
personnel. The object of the Incentive Program is to encourage Brown & Root to
perform quality engineering, procurement, and construction management work on
time and within budget, and, at the same time, for the project outcome to be
successful in the estimation of C/G. The available incentive awards
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 7 of 8
shall be in accordance with the four independent provisions below and shall be
determined within 30 days following mechanical completion.
The Incentive Program will consist of four components: quality, EPCM budget
control, Total Project Challenge Budget control, and project completion
schedule. Each of these components will be worth the amount shown in the
following paragraphs.
5.2.1 Quality
The incentive award amount for Quality will be $50,000.
This portion of the Incentive Program is entirely subjective and depends solely
on C/G's evaluation of the quality of Brown & Xxxx's efforts, including work
product quality, responsiveness, and effectiveness on the project.
5.2.2 EPCM Budget Control
The incentive award amount for budget control will be $100,000.
The full incentive award for this portion of the Incentive Program will be
earned in the event Brown & Xxxx's total charges for the EPCM services at the
conclusion of the project are at or below $3,500,000 plus approved budget
variances. Maximum limit on total charges for B&R's EPCM services will be at
$3,806,000, plus approved budget variances.
If the EPCM services at the conclusion of the project fall between the
$3,500,000 (Target EPCM budget) and $3,806,000 plus approved budget variances,
the incentive amount will be prorated.
5.2.3 Total Project Challenge Budget
At the conclusion of the project, if the total project costs fall below the
$26,400,000 Total Project Challenge Budget plus approved budget variances, then
these savings will be shared 70% to C/G and 30% to Brown & Root.
5.2.4 Project Completion Schedule
The incentive award amount for project completion schedule will be $150,000.
The full incentive for this component will be earned in the event the start-up
of the new facility for the 48-inch press occurs on or before January 1, 1998 or
as rescheduled due to approved schedule variances.
This incentive amount will be prorated to the start-up date of February 15, 1998
or as rescheduled due to approved schedule variances.
6.0 TERMS AND CONDITIONS
Attached is the Terms and Conditions under which which Brown & Root offers to
perform EPCM services.
2801-006 (Revised 06/05/96) [LOGO OF BROWN & ROOT] Page 8 of 8
TERMS AND CONDITIONS
FOR
ENGINEERING, PROCUREMENT AND CONSTRUCTION MANAGEMENT SERVICES
Engineering, Procurement and Construction Management services for The
Carbide/Graphite Group, Inc. ("Owner") will be performed by Xxxxx & Root, Inc.,
("B&R"), within the requirements of the Scope of Work defined in EPCM
Contractor's Proposal dated May 10, 1996, on and subject to the following terms
and conditions:
1. COMPENSATION
------------
1.1 Owner will pay B&R for engineering and procurement services an amount
equal to (i) the product of "Direct Salary Cost" (as defined below)
multiplied by a multiplier of 1.85 (to cover "Direct Salary Cost", payroll
burden allowance, general office overhead and profit), plus (ii) "All
Other Expenses" (as defined below).
1.2 Owner will pay B&R for construction management services an amount equal to
(i) the product of "Direct Salary Cost" (as defined below) multiplied by a
multiplier of 1.55 (to cover B&R's "Direct Salary Cost", and payroll
burden allowance), plus (ii) "All Other Expenses" (as defined below).
In addition Owner will pay B&R a Fee of $200,000 for provision of
Construction Management Services, payable in equal monthly installments
during construction of project.
Owner and B&R agree to participate in an Incentive Program as described in
our Commercial Offering, Section 5.0 of the Proposal Document.
a) DIRECT SALARY COST
------------------
"Direct Salary Cost" shall mean the direct salary and wages, including
premium pay, actually earned by all personnel for time actually engaged in the
services. Personnel whose time is chargeable to the services include
engineers, designers, drafters, technicians, secretaries, clerks, purchasing
and expediting personnel, estimators, construction managers and construction
management site personnel and all other necessary employees, who are employed
by B&R or by any other entities affiliated with B&R, for time directly engaged
in the services. Payroll burden includes social
Carbide/Graphite Group, Inc. 6/5/96 Page 1 of 8
MCP2
security taxes, unemployment and other payroll taxes, workers' compensation
insurance, basic liability insurance, medical, life and accident insurance, sick
leave, vacations, holiday pay, jury duty, and all other fringe benefits
presently in effect. Salaries and wages payable to B&R's employees shall be as
set forth in B&R's "Job Classification and Salary Grade Structures" tables and
"Exempt and Non-Exempt Salary Range Structure" tables, as modified from time to
time, relevant portions of which are available on request. The basic work week
is 40 hours, but the actual work week will be determined by project requirements
to obtain effective overall utilization of personnel. Hourly paid employees
receive 1 and 1/2 times their regular rate for hours worked in excess of 40
hours per week or 8 hours per day as required by local, state or federal law.
b) ALL OTHER EXPENSES
------------------
"All Other Expenses" include all costs and expenses directly attributable
to performance of the services, which are in good accounting practice direct
costs of the services and not covered by the allowances for payroll burden and
general office overhead and profit. In-house services provided in the
performance of the services such as reprographic services, microfilm services,
automated design and drafting services, graphic and text processing services,
purchasing and expediting services, computer services, automobile and
transportation services, and such others as may be applicable will be charged at
the rates published in B&R's Standard Pricing Schedules in effect at the time of
performance of the services. Some of the in-house services may be subcontracted
to affiliates of B&R. The Pricing Schedules shall apply regardless of whether
the service is provided by B&R or by an affiliate of B&R. Copies of current
applicable Pricing Schedules are available on request. Costs of outside services
will be charged at actual invoice cost and include: consultants; subcontracted
services; equipment rental; purchased plant equipment and materials; travel
expenses; outside computer services; long distance telephone and telegraph
charges; mailing and courier services; and others. Expenses for site based
construction management services include: temporary facilities; transportation
for management personnel; utilities for temporary facilities (power, water,
sanitation); office supplies and equipment; travel expenses for site personnel;
telephones, fax and job related communications; mobilization and per diem for
site based personnel; home office services directly related to the project site
maintenance; general business expenses; and fencing and parking lot expenses.
Outside services are subject to a service charge of 3%.
2. BILLING, PAYMENT AND FUNDING
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B&R will submit periodic xxxxxxxx, not more frequently than weekly, with
complete supporting documentation meeting Owner's reasonable requirements for
all charges. In the event Owner does not approve an entire billing, payment of
the approved portion shall be made. Payment, without retainage shall be due 15
days from the date of any such billing. Payments not received 15 days after the
due date shall be subject to interest charges in an amount equal to 1.0% per
month.
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MCP2
3. AUDIT, RECORD RETENTION
-----------------------
B&R shall retain all pertinent records relating to services performed
hereunder for a period of 2 years after completion. Owner's approval and payment
of periodic invoices shall not affect Owner's audit rights. Owner shall have
access at all reasonable times until expiration of the retention period, and the
right to audit, all records pertaining to direct salaries and wages, other costs
reimbursable at actual cost, and usage of services chargeable pursuant to
published Rate Schedules. Actual cost of items chargeable at stipulated markup
allowances or by published Rate Schedules are not subject to audit.
4. INDEPENDENT CONTRACTOR
----------------------
In performing services, B&R will act as an independent contractor and will
control the detailed manner and means of performance of the services. However,
project management services, and procurement services will be performed as agent
of Owner. Owner will furnish information required of it as expeditiously as
necessary for orderly progress and B&R may rely on its accuracy and
completeness.
5. EXTRA SERVICES
--------------
Extra services shall not be performed, nor shall the scope of the services
be increased or decreased, unless authorized by Owner and agreed to by B&R. The
cost of studies and analyses required to determine scope changes shall be
reimbursable and additive to any previous manhour targets or budgets based on
the original scope.
6. PROPRIETARY INFORMATION, PATENTS
--------------------------------
B&R shall accept proprietary information in confidence in accordance with
the terms set forth in B&R's Standard Secrecy Agreement. A copy of this
Agreement is available upon request. B&R will advise Owner of any patents or
proprietary rights and any royalties, licenses, or other charges which B&R knows
to be involved in the design performed by B&R, and obtain Owner's approval
before proceeding. B&R does not perform patent searches or evaluation of claims,
but will assist Owner in this regard if requested, on the basis set forth
herein. All royalties, license fees, or infringement costs or expenses shall be
paid by Owner as a cost of the services and reimbursed to B&R if paid by B&R.
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MCP2
7. STANDARD OF PERFORMANCE AND WARRANTY
------------------------------------
a) B&R'S SERVICES
--------------
B&R's services will conform to the requirements defined in B&R's proposal
in accordance with sound and generally accepted industry standards. If during
performance B&R's services fail to meet the foregoing standard, B&R shall
perform such corrective services as may be requested by Owner, or Owner may
terminate B&R's services for unsatisfactory performance on 10 days' written
notice. Any corrective services requested by Owner shall be paid for on the
same basis as other services performed hereunder. In the event Owner terminates
B&R's services for unsatisfactory performance, Owner shall assume all
obligations, commitments, and claims that B&R may have theretofore in good faith
undertaken or incurred in connection with the services and Owner shall pay B&R
for services performed to date of termination and all costs of closing out the
services.
b) B&R'S WARRANTY
--------------
B&R warrants that if any of its completed services are defective in that
they fail to conform to the requirements defined in B&R's Proposal and are not
in accordance with sound and generally accepted industry standards, B&R will
perform such corrective services of the type originally performed as may be
necessary to correct any such defective services brought to B&R's attention in
writing by Owner within one year from completion of the services. Owner will
compensate B&R for such corrective services on the same basis as other services
performed hereunder. B&R shall not be responsible for corrective construction
or repair work.
c) ASSIGNED WARRANTIES
-------------------
To the extent B&R procures materials and services in B&R's name, it will
assign to Owner the warranty or guarantee of the manufacturer and supplier of
items of machinery, equipment, materials or products manufactured or sold by
others, and the warranty of construction contractors and subcontractors,
consultants or specialized services of others and cooperate and assist Owner in
Owner's enforcement thereof. B&R's responsibility with respect thereto is
limited to such assignment, cooperation and assistance.
d) LIMITATION
----------
Except as provided in this paragraph 7, B&R MAKES NO OTHER WARRANTY,
EXPRESS OR IMPLIED, AND B&R SHALL HAVE NO OTHER LIABILITY TO OWNER FOR ITS
DEFECTIVE SERVICES, WHETHER CAUSED BY B&R'S ERROR, OMISSION, NEGLIGENCE
(CONCURRENT OR SOLE) OR OTHERWISE.
Carbide/Graphite Group, Inc. 6/5/96 Page 4 of 8
MCP2
8. INSURANCE AND ALLOCATION OF RISKS
---------------------------------
a) GENERAL
-------
This section allocates as between B&R and Owner the duty to obtain
insurance for the benefit of both parties, their affiliated companies and their
officers, agents and employees against liability for bodily injury (including
death) of persons and for loss of or damage to property which result from or are
related to the performance of B&R's services.
b) B&R'S OPERATIONS
----------------
B&R shall fully insure for the benefit of the Owner and B&R:
(1) all risks of liability for bodily injury and property damage to
employees of B&R engaged in employment related to this performance of
B&R's services, and
(2) all risks of liability for bodily injury and property damage to third
parties, including employees of Owner, related to the performance of
B&R's services which occur in or about B&R's established engineering
home offices,
INCLUDING ALL LIABILITY WHICH FOR ANY REASON OWNER IS ALLEGED TO BE LEGALLY
LIABLE, INCLUDING LIABILITY BASED ON OWNER'S SOLE OR CONCURRENT NEGLIGENCE.
c) CONSTRUCTION AND OPERATION OF FACILITIES
----------------------------------------
Owner shall fully insure for the benefit of Owner and B&R and any
subcontractor of B&R engaged in the performance of B&R's services, or shall
arrange for one or more of the participants engaged in the construction of the
project to fully insure:
(1) all risks of liability for property damage to the construction
project related to the performance of B&R's services and to any
facilities of Owner at or near the project site, and
(2) all risks of liability for bodily injury and property damage to third
parties, including employees of Owner and employees of other
participants engaged in the construction of the project which occur
(a) during construction or (b) during operation of the facilities
constructed as a part of the project,
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MCP2
INCLUDING ALL LIABILITY WHICH FOR ANY REASON B&R, OR ANY OF ITS SUBCONTRACTORS,
IS ALLEGED TO BE LEGALLY LIABLE, INCLUDING LIABILITY BASED ON B&R'S ERROR,
OMISSION OR SOLE OR CONCURRENT NEGLIGENCE.
d) SELF INSURANCE
--------------
Either party may elect to self insure any risk it has agreed to insure
hereunder, and in that event it agrees to indemnify the parties who would have
been beneficiaries of such insurance against any loss, liability or expense
resulting from its election not to insure the risk. These reciprocal indemnities
are given specifically in consideration for each other.
e) SUBROGATION
-----------
B&R shall obtain endorsements on all insurances obtained or maintained by
it against risks assumed under this Agreement which shall waive all rights of
subrogation against Owner, its affiliated companies and their officers, agents
and employees. Owner shall obtain endorsements on all insurances obtained or
maintained by it against risks assumed under this Agreement which shall waive
all rights of subrogation against B&R, its affiliated companies, its
subcontractors engaged in the performance of B&R's services, and their officers,
agents and employees. Owner shall manage the allocation and insurance of risks
among the participants in the construction of the project so as to obtain from
the participants and their insurers waivers of subrogation, contribution and
indemnity in favor of B&R, its affiliated companies, its said subcontractors,
and their officers, agents and employees.
f) INSURANCE
---------
Unless otherwise agreed in writing by the parties, B&R shall provide Owner
with certificates evidencing insurances in the following coverages and amounts:
Workers' Compensation - Statutory
Employer's Liability - $500,000
Comprehensive General Liability
(including Contractual Liability but not including B&Rs' Errors
& Omissions Liability) with combined single limit of $1,000,000
per occurrence for Bodily Injury and Property Damage.
Comprehensive Automobile Liability
with combined single limit of $1,000,000 per occurrence for
Bodily Injury and Property Damage.
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MCP2
g) COOPERATION
-----------
In the event any claim is asserted which is subject to this Agreement for
bodily injury or property damage, Owner and B&R agree to cooperate with each
other, and to require their respective insurers and contractors to cooperate in
order that such claims are resolved in a manner consistent with the allocation
of risks provided herein.
9. LIABILITY LIMITATIONS
---------------------
This Article shall apply notwithstanding any other provision of this
Agreement.
1) B&R shall not be liable to Owner or its affiliates in any action or
claim for loss of profit, loss of product, loss of use or for indirect,
consequential or special damages, EVEN IF CAUSED BY THE SOLE OR CONCURRENT
NEGLIGENCE OF B&R.
2) ANY LIMITATION ON OR EXCULPATION FROM LIABILITY AFFORDED B&R BY THIS
AGREEMENT SHALL BE APPLICABLE REGARDLESS OF WHETHER THE ACTION OR CLAIM IS BASED
IN CONTRACT, TORT, STATUTE, STRICT LIABILITY OR OTHERWISE AND SHALL LIKEWISE
LIMIT THE LIABILITY OF B&R'S AFFILIATES, SUBCONTRACTORS AND VENDORS OF ANY TIER
AND THEIR RESPECTIVE OFFICERS, AGENTS AND EMPLOYEES. For purposes of this
Article an "affiliate" of a party includes any parent, subsidiary or affiliated
corporation, partnership or other legal entity, and its and their officers,
agents, employees and insurers.
3) Except as expressly provided in this Article, there are no third-
party beneficiaries of this Agreement. This Agreement does not create or confer
any legal claim or cause of action in favor of any party not a signatory to this
Agreement and the obligations and legal duties imposed on any party by this
Agreement are owed exclusively to the other party or parties and are not owed to
any party not a signatory to this Agreement.
10. TERMINATION
-----------
Owner may, at its discretion, terminate the services under this Agreement
at any time by giving 10 days WRITTEN notice. In such event, Owner shall assume
all obligations, commitments, and claims that B&R may have theretofore in good
faith undertaken or incurred in connection with the services, and Owner shall
pay B&R for services performed to date of termination and all costs of closing
out of the services, plus a reasonable termination charge.
Carbide/Graphite Group, Inc. 6/5/96 Page 7 of 8
MCP2
11. ENTIRE AGREEMENT
----------------
The foregoing and the B&R's Proposal constitute the entire agreement
between the parties and supersede any representations, warranties, or agreements
heretofore made. This Agreement may be amended only by a document in writing
signed by the parties.
12. GOVERNING LAW
-------------
This Agreement shall be governed by the laws of the State of Texas.
13. B&R SERVICES
------------
Any engineering services required herein will be performed by Brown & Root
Technical Services, Inc., an affiliated company of B&R.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on the day and year indicated below:
CARBIDE/GRAPHITE GROUP, INC. BROWN & ROOT, INC.
By: /s/ Xxxxxxx X. Xxxxx* By: /s/ Xxxx X. Xxxxxx
--------------------------- ---------------------------
Title: Director of Engineering Title: President
--------------------------- ---------------------------
Date: 6/11/96 Date: 6/18/96
--------------------------- ---------------------------
Attest: /s/ X. Xxxxxx Xxxxxx Attest: /s/ Xxxxxxx X. Xxxxxxxx
--------------------------- ---------------------------
* Note Addition to Contract
in Section 5.2.2.
Carbide/Graphite Group, Inc. 6/5/96 Page 8 of 8
MCP2
Division of Responsibilities - Construction Management
--------------------------------------------------------------------------------
LEGEND
------
Own - C/G; Engr./Proc. - B&R; CM - B&R; CC - Construction Contractors
R - Responsible I - Input A - Approval
-------------------------------------------------------------------------------------
Required
--------- Eng/
WORK ACTIVITIES Yes No Own Proc CM CC
-------------------------------------------------------------------------------------
A. CONSTRUCTION BID PACKAGES
Identify Packages to be Contracted X A I R
-------------------------------------------------------------------------------------
Prepare List of Potential Contractors X I I R
-------------------------------------------------------------------------------------
Pre-qualify Potential Contractors X R
-------------------------------------------------------------------------------------
Approve List of Qualified Contractors X A I R
-------------------------------------------------------------------------------------
Package Schedule X R I
-------------------------------------------------------------------------------------
Instructions to Bidders X A R I
-------------------------------------------------------------------------------------
Bid Form X A R
-------------------------------------------------------------------------------------
Contracts Form X A R
-------------------------------------------------------------------------------------
Scope of Work X R I
-------------------------------------------------------------------------------------
General Conditions X I R I
-------------------------------------------------------------------------------------
Special Conditions X I R I
-------------------------------------------------------------------------------------
Clarifications X I R I
-------------------------------------------------------------------------------------
Addenda X I R I
-------------------------------------------------------------------------------------
Pre-bid Meeting X I I R
-------------------------------------------------------------------------------------
Conduct Site Visits X I I R I
-------------------------------------------------------------------------------------
Technical Evaluation X I R I
-------------------------------------------------------------------------------------
Commercial Evaluation X A I R
-------------------------------------------------------------------------------------
Bonding X R
-------------------------------------------------------------------------------------
Insurance Certificates (Current) X A R R
-------------------------------------------------------------------------------------
Recommendation for Award X A I R
-------------------------------------------------------------------------------------
Pre-award Meeting X I I R
-------------------------------------------------------------------------------------
Approval to Issue Contract X R I
-------------------------------------------------------------------------------------
Contract Award X R I
-------------------------------------------------------------------------------------
Contractor Kickoff Meeting X I I R I
-------------------------------------------------------------------------------------
Issued Revised Drawings X R I
-------------------------------------------------------------------------------------
Receive Vendor Drawings and Cut Sheets X I R
-------------------------------------------------------------------------------------
Review/Approve Vendor Drawings and Cut Sheets X I R
-------------------------------------------------------------------------------------
Expedite Vendor Drawings X I R
-------------------------------------------------------------------------------------
Monitor Contractor Work X I R
-------------------------------------------------------------------------------------
Contractor Request for Extras X A I I R
-------------------------------------------------------------------------------------
Issue Change Orders X A I R
-------------------------------------------------------------------------------------
Contractor Request for Payment X A I I R
-------------------------------------------------------------------------------------
Issue Progress Payment to Contractor X R I
-------------------------------------------------------------------------------------
Evaluate Contractor Performances & Closeout Contracts X I I R
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
2801-002 [LOGO OF BROWN & ROOT] Page 1 of 2
Division of Responsibilities - Construction Management
--------------------------------------------------------------------------------
LEGEND
------
Own - C/G; Engr./Proc. - B&R; CM - B&R; CC - Construction Contractors
R - Responsible I - Input A - Approval
-------------------------------------------------------------------------------------
Required
--------- Eng/
WORK ACTIVITIES Yes No Own Proc CM CC
-------------------------------------------------------------------------------------
B. CONSTRUCTION SUPERVISION
Management/Supervision X R
-------------------------------------------------------------------------------------
Administration X R
-------------------------------------------------------------------------------------
Safety Program X I I R
-------------------------------------------------------------------------------------
Security X I I R
-------------------------------------------------------------------------------------
Temporary Facilities X R R R
-------------------------------------------------------------------------------------
Utilities X R R R
-------------------------------------------------------------------------------------
Construction Management Manual X
-------------------------------------------------------------------------------------
QA/QC Monitoring X I I R R
-------------------------------------------------------------------------------------
NDE X I R
-------------------------------------------------------------------------------------
QA/QC Reporting X R R
-------------------------------------------------------------------------------------
Field Accounting X I I R
-------------------------------------------------------------------------------------
Cost Reporting X R R
-------------------------------------------------------------------------------------
Purchasing - Process Equipment X R I
-------------------------------------------------------------------------------------
Expediting X R I
-------------------------------------------------------------------------------------
Traffic X R
-------------------------------------------------------------------------------------
Receiving X R R
-------------------------------------------------------------------------------------
Purchasing - Field Bulks X A I I R
-------------------------------------------------------------------------------------
Warehousing X I R
-------------------------------------------------------------------------------------
Preventative Maintenance in Storage X I R R
-------------------------------------------------------------------------------------
Project Schedule X A I R
-------------------------------------------------------------------------------------
Weekly Work Schedules X I I R R
-------------------------------------------------------------------------------------
Document Distribution X I R
-------------------------------------------------------------------------------------
As-builts X I R R
-------------------------------------------------------------------------------------
Inspections X I I R R
-------------------------------------------------------------------------------------
Preventative Maintenance in Installation X R
-------------------------------------------------------------------------------------
Identify Process and Utility Systems X I I R I
-------------------------------------------------------------------------------------
Initial Start-up Requirements by System X R I I I
-------------------------------------------------------------------------------------
Component Identification X I I R I
-------------------------------------------------------------------------------------
Progress Components X I R
-------------------------------------------------------------------------------------
Punchlist Preparation X I I I R
-------------------------------------------------------------------------------------
Flush and Run System X I I I R
-------------------------------------------------------------------------------------
Notice of Completion X R R
-------------------------------------------------------------------------------------
Care, Custody, and Control X R I
-------------------------------------------------------------------------------------
Start-up/Commissioning X R I
-------------------------------------------------------------------------------------
Operations and Maintenance Manuals X R I
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
2801-002 [LOGO OF BROWN & ROOT] Page 2 of 2
THE C/G GROUP, INC.
EPC SCHEDULE PLANT 3 MODERNIZATION PROJECT, ST. MARYS, PA.
------------------------------------------------------------------------------------------------------------------------------------
----------- 1996 ------------ ------------------- 1997 ------------------- ------ 1998 -------
------------------------------------------------------------------------------------------------------------------------------------
YEAR 1996-1998 MONTHS Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
------------------------------------------------------------------------------------------------------------------------------------
CONTRACT AWARD MONTH 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
------------------------------------------------------------------------------------------------------------------------------------
ENGINEERING
------------------------------------------------------------------------------------------------------------------------------------
DESIGN CRITERIA LEGEND
-------------------------------------------------------------------------------------------------------
BFD/PFD/P&ID's a SPECIFICATION START DATE
-------------------------------------------------------------------------------------------------------
EQUIPMENT LIST b BID INQUIRY START DATE
-------------------------------------------------------------------------------------------------------
EQUIPMENT ARRANGEMENTS c P.O. AWARD
-------------------------------------------------------------------------------------------------------
PLOT PLAN d DELIVERY DATE
-------------------------------------------------------------------------------------------------------
SPECIFICATIONS e EQUIPMENT INSTALLED/
------------------------------------------------------------------------------------------------------- TASK COMPLETE
DETAIL ENGINEERING
------------------------------------------------------------------------------------------------------------------------------------
JENIKE/XXXXXXXX REPORT acd
------------------------------------------------------------------------------------------------------------------------------------
GEOTECHNICAL REPORT ab cd
------------------------------------------------------------------------------------------------------------------------------------
SURVEY ab cd
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
PROCUREMENT
------------------------------------------------------------------------------------------------------------------------------------
MIXER SYSTEM c d
------------------------------------------------------------------------------------------------------------------------------------
AUTO-BATCH WEIGHING SYSTEM c d
------------------------------------------------------------------------------------------------------------------------------------
FLOUR MILL a b c d
------------------------------------------------------------------------------------------------------------------------------------
ENGINEERED BUILDING STEEL a b c d
------------------------------------------------------------------------------------------------------------------------------------
SERVICE BINS/BINS a b c d
------------------------------------------------------------------------------------------------------------------------------------
STEARIC ACID PUMPS a b c d
------------------------------------------------------------------------------------------------------------------------------------
COAL TAR PITCH PUMPS a b c d
------------------------------------------------------------------------------------------------------------------------------------
ROTARY FEEDERS a b c d
------------------------------------------------------------------------------------------------------------------------------------
SCREENERS a b c d
------------------------------------------------------------------------------------------------------------------------------------
BELT CONVEYORS a b c d
------------------------------------------------------------------------------------------------------------------------------------
SCREW CONVEYORS a b c d
------------------------------------------------------------------------------------------------------------------------------------
BUCKET ELEVATORS a b c d
------------------------------------------------------------------------------------------------------------------------------------
CAGE PAKTOR a b c d
------------------------------------------------------------------------------------------------------------------------------------
ROLL CRUSHER a b c d
------------------------------------------------------------------------------------------------------------------------------------
PLC's a b c d
------------------------------------------------------------------------------------------------------------------------------------
(less than) 4 MONTHS DELIVERY ITEMS a b c d
------------------------------------------------------------------------------------------------------------------------------------
25" PRESS
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS HANDLING EQUIPMENT a b c d
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Page 1
THE C/G GROUP, INC.
EPC SCHEDULE PLANT 3 MODERNIZATION PROJECT, ST. MARYS, PA.
------------------------------------------------------------------------------------------------------------------------------------
----------- 1996 ------------ ------------------- 1997 ------------------- ----- 1998 -------
------------------------------------------------------------------------------------------------------------------------------------
YEAR 1996-1998 MONTHS Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
------------------------------------------------------------------------------------------------------------------------------------
CONTRACT AWARD MONTH 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION
------------------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION & S/C
MOBILIZATION
------------------------------------------------------------------------------------------------------------------------------------
S/C# (1) SITE CLEARING
------------------------------------------------------------------------------------------------------------------------------------
(1) EXCAVATION/BLASTING
------------------------------------------------------------------------------------------------------------------------------------
(1) CONCRETE FOUNDATIONS
& BLDGS a b c e
------------------------------------------------------------------------------------------------------------------------------------
(1) U/G UTILITIES
WATER/AIR/SEWER
------------------------------------------------------------------------------------------------------------------------------------
** (2) STRUCTURAL ERECTION a b c d e
------------------------------------------------------------------------------------------------------------------------------------
(2) ARCHITECTURAL a b c d e
------------------------------------------------------------------------------------------------------------------------------------
** (2) EQUIPMENT/PIPING
ERECTION a b c e
------------------------------------------------------------------------------------------------------------------------------------
(3) ELECTRICAL/
INSTRUMENTATION a b c U/X XXXX e E/I e
------------------------------------------------------------------------------------------------------------------------------------
(4) FIRE PROTECTION a b c e
------------------------------------------------------------------------------------------------------------------------------------
(5) ELEVATOR a b c d e
------------------------------------------------------------------------------------------------------------------------------------
(6) ELECTRICAL SUBSTATION a b c d e
------------------------------------------------------------------------------------------------------------------------------------
(7) IMPEDANCE HEATING a b c e
------------------------------------------------------------------------------------------------------------------------------------
START-UP
------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE TEST
------------------------------------------------------------------------------------------------------------------------------------
25" PRESS
------------------------------------------------------------------------------------------------------------------------------------
** (2) SCREENING SYSTEM
MODIFICATIONS a b c d e
------------------------------------------------------------------------------------------------------------------------------------
START-UP
------------------------------------------------------------------------------------------------------------------------------------
PERFORMANCE TEST
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
NOTES:
** STRUCTURAL/MECHANICAL/PIPING/INSULATION/PAINTING (SUBCONTRACT)
S/C SUBCONTRACTS
Page 2
[LOGO OF CARBIDE/GRAPHITE]
The Carbide/Graphite Group, Inc. [LOGO OF BROWN & ROOT] Brown & Root, Inc.
Plant 3 Modernization Project Minerals & Metals Group
St. Marys, Pennsylvania
Engineering, Procurement, and Construction Management Organization
Senior Construction C/G
Manager Project Manager Project Manager
------------------- ------------------- ---------------
X. Xxxxxxxx X.X. Xxxxx X. Xxxxxx
Construction Manager Procurement
-------------------- ---------------
To Be Named T.O. Xxxxx
Scheduling
---------------
Technical Services To Be Named
Manager Administrative Clerk
-------------------- ----------------------
To Be Named To Be Named
Process Mechanical Electrical Instrument Civil/Structural
Engineer Engineer Engineer Engineer Engineer
------------- --------------- ------------- ------------ ----------------
D.A. Xxxxxx X.X. O'Xxxxx X. Xxxxxxxx X. Xxxxxxx X. Xxxxxxxx
Environmental Mechanical/Piping
Engineer Designer/Plant Layout
------------- ---------------------
X. X'Xxxxx To Be Named
2801-003 (Revised 06/05/96) Page 1 of 1
