EXHIBIT 99(d)
Certain confidential information has been omitted from this Exhibit pursuant to
a confidential treatment request filed separately with the Commission. The
omitted information is indicated by the symbol "***" at each place in the
Exhibit where the omitted information appeared in the original.
AMENDED AND RESTATED
AGREEMENT
FOR
ENGINEERING, PROCUREMENT AND CONSTRUCTION
BETWEEN
REPUBLIC PAPERBOARD COMPANY
AND
FLUOR XXXXXX, INC.
RELATING TO THE
LAWTON MILL
Dated As Of June 26, 1998
TABLE OF CONTENTS
ARTICLE 1 GENERAL PROVISIONS.............................. 1
1.1 Team Relationship............................. 1
1.2 Architect/Engineer............................ 1
1.3 Definitions................................... 2
1.4 Contract Time................................. 3
ARTICLE 2 FLUOR DANIEL'S RESPONSIBILITIES................. 3
2.1 Description of Work........................... 3
2.2 Drawings and Specifications................... 4
2.3 Construction Phase Services................... 4
2.4 Royalties, Patents and Copyrights............. 6
2.5 Purchase of Machinery and Equipment........... 6
ARTICLE 3 OWNER'S RESPONSIBILITIES........................ 7
3.1 Construction Phase Responsibilities........... 7
3.2 Start-Up Responsibilities..................... 7
3.3 Taxes......................................... 8
3.4 Environmental Responsibilities................ 8
ARTICLE 4 SUBCONTRACTS.................................... 8
4.1 Retaining Subcontractors...................... 8
4.2 Management of Subcontractors.................. 8
4.3 Assignment of Subcontract Agreements.......... 8
ARTICLE 5 CHANGES IN THE WORK............................. 8
5.1 Change Orders................................. 8
5.2 Procedure for Changes......................... 8
5.3 Emergencies................................... 9
5.4 Scope Change Order............................ 9
ARTICLE 6 COMPENSATION.................................... 9
6.1 Reimbursable Costs............................ 9
6.2 Fixed Price................................... 9
6.3 Fixed Fee..................................... 9
6.4 Schedule and Cost Incentive Fees.............. 9
6.5 Value Awareness............................... 10
6.6 Rework and Warranty Cost...................... 10
6.7 Non-Reimbursable Items........................ 10
6.8 Example....................................... 11
ARTICLE 7 TERMS OF PAYMENT................................ 11
7.1 Funding of Reimbursable Costs................. 11
7.2 [Intentionally Omitted.]...................... 12
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7.3 Payment of Fixed Prices and Fees................ 12
7.4 Final Payment................................... 12
7.5 Interest........................................ 13
ARTICLE 8 WARRANTIES AND GUARANTEES......................... 13
8.1 Fluor Xxxxxx Services Warranty.................. 13
8.2 Construction Warranty........................... 14
8.3 Accounting for Rework and Warranty Costs........ 14
8.4 Third Party Warranty and Guarantee.............. 15
8.5 Limitations..................................... 15
8.6 Delivery of Certificates and Other Materials.... 16
ARTICLE 9 INDEMNIFICATION................................... 16
9.1 Bodily Injury and Property Damage Liability..... 16
9.2 Protection of the Facilities.................... 16
9.3 Owner's Property ............................... 17
9.4 Limitations .................................... 17
ARTICLE 10 INSURANCE......................................... 17
10.1 Commitment...................................... 17
10.2 Certificates.................................... 18
10.3 Professional Liability Insurance................ 18
ARTICLE 11 TRANSFER AND ACCEPTANCE........................... 18
11.1 Care, Custody and Control....................... 18
11.2 Acceptance of the Work.......................... 19
11.3 Limitation...................................... 19
ARTICLE 12 TERMINATION, CANCELLATION AND SUSPENSION.......... 19
12.1 Termination by Owner for Default................ 19
12.2 Termination by Fluor Xxxxxx for Default......... 20
12.3 Cancellation for Convenience.................... 20
12.4 Suspension by Owner............................. 20
ARTICLE 13 SAFETY, ENVIRONMENTAL............................. 21
13.1 Compliance with Laws............................ 21
13.2 Pre-Existing Conditions......................... 21
ARTICLE 14 FORCE MAJEURE..................................... 22
ARTICLE 15 INTELLECTUAL PROPERTY............................. 23
15.1 Title to Plans and Drawings and Specifications.. 23
15.2 Secrecy Agreements.............................. 23
15.3 Patents......................................... 23
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ARTICLE 16 DISPUTE RESOLUTION................................ 23
16.1 General Disputes................................ 23
16.2 Disputes........................................ 24
16.3 Waiver of Jury Trial............................ 24
ARTICLE 17 GENERAL PROVISIONS................................ 24
17.1 Independent Contractor.......................... 24
17.2 Related Party Contracts......................... 24
17.3 Assignment...................................... 25
17.4 Audit and Maintenance of Records................ 25
17.5 Liens........................................... 25
17.6 Surplus Material................................ 25
17.7 Notices......................................... 25
17.8 Representations and Remedies.................... 26
17.9 Damages......................................... 26
17.10 Solicitation of Employment...................... 27
17.11 Interpretation.................................. 27
17.12 Entire Agreement................................ 28
17.13 Venue........................................... 29
EXHIBIT 1 - Scope of the Work
EXHIBIT 2 - Cost Estimate Basis
EXHIBIT 3 - Detail Cost Estimate Report
EXHIBIT 4 - Drawings
EXHIBIT 5 - Commercial Terms
EXHIBIT 6 - Schedule
EXHIBIT 7 - Voith Sulzer Paper Technology "As Purchased" Technical
Specifications dated 26 March 1998
EXHIBIT 8 - Environmental Documents
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AMENDED AND RESTATED
AGREEMENT
FOR
ENGINEERING, PROCUREMENT AND CONSTRUCTION
THIS AMENDED AND RESTATED AGREEMENT (the "Agreement") for the performance
of services is executed on July 21, 1998, but is effective for all purposes as
of June 26, 1998, between REPUBLIC PAPERBOARD COMPANY ("Owner") and FLUOR
XXXXXX, INC. ("Fluor Xxxxxx").
WHEREAS, Owner and Fluor Xxxxxx entered into a letter of intent dated March
24, 1998, as amended (collectively, the "Letter of Intent"), relating to Owner's
new recycled paperboard mill to be constructed in Oklahoma (the "Facilities");
WHEREAS, Owner desires to contract with Fluor Xxxxxx to perform all
necessary engineering, procurement and construction services in connection with
the Facilities, as specifically set forth and described in this Agreement and
Exhibit 1 attached hereto (the "Work");
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WHEREAS, Fluor Xxxxxx has agreed to design and build the Facilities;
WHEREAS, Owner and Fluor Xxxxxx entered into an Agreement for Engineering,
Procurement and Construction dated June 26, 1998 (the "Original Agreement") that
superseded the Letter of Intent except as otherwise provided therein; and
WHEREAS, Owner and Fluor Xxxxxx desire to amend and restate the Original
Agreement to reflect certain changes;
NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties hereto mutually agree is follows:
ARTICLE 1
GENERAL PROVISIONS
1.1 Team Relationship. Owner and Fluor Xxxxxx agree to proceed with the Work
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on the basis of trust, good faith and fair dealing.
1.2 Architect/Engineer. Architectural and engineering services shall be
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procured from licensed, independent design professionals retained by Fluor
Xxxxxx or furnished by licensed employees of Fluor Xxxxxx or by such other
persons permitted by the law of the State of Oklahoma to perform such services.
The person or entity providing the primary architectural and engineering
services shall be referred to as the "Architect/Engineer." Such primary
architectural and engineering services shall be procured pursuant to a separate
agreement between Fluor Xxxxxx
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and the Architect/Engineer. Fluor Xxxxxx will be responsible to Owner for the
acts and omissions of the Architect/Engineer as well as any of its own employees
and others who provide architectural and engineering services to the same extent
that Fluor Xxxxxx is responsible to Owner for other services rendered hereunder.
The Architect/Engineer for the Work is Marathon Engineers/Architects/Planners,
LLC.
1.3 Definitions.
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(a) "Change Order." A written instrument, issued after execution of this
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Agreement, signed by Owner and Fluor Xxxxxx stating their agreement upon a
change and the adjustment in the cost of the Work, Drawings and Specifications,
Construction Phase Services and/or the date of Substantial Completion or any
portion of the Work.
(b) "Contamination." Any substance or material identified now or in the
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future as hazardous under any federal, state or local law or regulation, or any
other substance or material which may be considered hazardous or otherwise
subject to statutory or regulatory requirements governing handling, disposal
and/or clean-up present at the site that has not been introduced to the site by
Fluor Xxxxxx or any Subcontractor.
(c) "Contract Documents." All of the following:
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(i) this Agreement and the Exhibits hereto;
(ii) Change Orders and written amendments to this Agreement signed by
both Owner and Fluor Xxxxxx; and
(iii) the start-up and commissioning plan and schedule referred to in
Section 2.3(p) below.
In case of any inconsistency, conflict or ambiguity among the Contract
Documents, the Contract Documents shall govern in the order in which they are
listed above.
(d) "Day." A calendar day.
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(e) "Equipment Vendor." An entity with which Fluor Xxxxxx has contracted
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to purchase machinery and equipment for the Facilities, but that does not
install such machinery and equipment at the Facilities, including, but not
limited to, Voith Sulzer Paper Technology North America, Inc. and the suppliers
of the boiler and any other Equipment Vendors, all of which will be selected by
Owner after the execution of this Agreement.
(f) "Final Completion." The point at which Fluor Xxxxxx has completed all
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the Work, all permits that Fluor Xxxxxx is required to obtain have been
obtained, all releases of liens have been received, a final payment application
has been submitted and all other things required to be done by Fluor Xxxxxx for
full use and occupancy of the Facilities by Owner have been done.
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(g) "Mechanical Completion." The point at which the Facilities, or the
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applicable portion thereof, have been erected in accordance with the drawings,
specifications, codes, applicable laws and regulations. At this point testing,
checks and motor rotations have been completed and accepted by Owner, and the
Facilities, or the applicable portion thereof, are ready for raw material to be
introduced to the process.
(h) "Schedule." A schedule of the Work prepared by Fluor Xxxxxx and
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attached hereto as Exhibit 3 that includes the dates for the start and
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completion of the various construction activities in connection with the
Facilities, including the dates on which information and approvals are required
from Owner. The Schedule will be revised as required by the conditions of the
Work and as agreed to by the Parties.
(i) "Subcontractor." A person or entity who has an agreement with Fluor
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Xxxxxx to perform any portion of the Work. The term Subcontractor includes the
Architect/Engineer but does not include an Equipment Vendor in its capacity as
an Equipment Vendor.
(j) "Substantial Completion." The date on which construction is
----------------------
sufficiently complete in accordance with the Contract Documents so that Owner
can occupy or utilize the Facilities as contemplated by the Contract Documents,
unless the parties otherwise agree for a portion of the Facilities. This date
shall be confirmed by a certificate of Substantial Completion signed by Owner
and Fluor Xxxxxx. The certificate shall state the respective responsibilities
of Owner and Fluor Xxxxxx for security, maintenance, heat, utilities, damage to
the Facilities and insurance. The certificate shall also list the items to be
completed or corrected, and establish the time for their completion and
correction.
(k) "Target Completion Dates." The target completion date for Substantial
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Completion is as set forth on Exhibit 6.
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(l) "Value Awareness Program." The value awareness program is as described
-----------------------
on Exhibit 5 hereto.
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1.4 Contract Time. Fluor Xxxxxx agrees to accomplish Substantial Completion of
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the Work not later than November 19, 1999.
ARTICLE 2
FLUOR DANIEL'S RESPONSIBILITIES
2.1 Description of Work. Fluor Xxxxxx agrees to provide all necessary
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engineering, procurement and construction services, and all raw materials,
equipment (including equipment provided by Equipment Vendors), tools and
supplies, necessary for the design and construction of the Facilities,
including, without limitation, those specifically set forth and described in the
Exhibits hereto. Fluor Daniel's services shall include, without limitation, all
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engineering, procurement and construction services necessary to integrate the
equipment supplied by
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Equipment Vendors into the Facilities. The parties agree that any and all work
done by Fluor Xxxxxx xxxxx to the date of this Agreement and pursuant to the
Letter of Intent shall be considered to be Work pursuant to the terms of, and
governed by, this Agreement.
2.2 Drawings and Specifications. Fluor Xxxxxx shall submit for Owner's written
---------------------------
approval drawings and specifications (the "Drawings and Specifications") based
on the other Contract Documents or any further development of such Contract
Documents that have been approved in writing by the Owner, including, without
limitation, those drawings and specifications called for by Exhibit 4. The
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Drawings and Specifications shall set forth in detail the requirements for
construction of the Facilities, and shall be based upon and shall comply with
all applicable codes, laws or regulations enacted at the time of their
preparation. Construction shall be in accordance with these approved Drawings
and Specifications. One set of Drawings and Specifications shall be furnished
to Owner prior to commencement of construction.
2.3 Construction Phase Services. The Construction Phase will commence upon the
---------------------------
issuance by Owner of a written notice to proceed. As required for the Work,
Fluor Xxxxxx shall, subject to the terms and provisions of this Agreement:
(a) Furnish all necessary construction supervision, inspection,
construction equipment, labor, materials, tools and subcontracted items;
(b) Furnish all necessary supervisors, engineers, designers, draftsmen and
other personnel necessary for the preparation of drawings and specifications;
(c) Furnish all necessary buyers, inspectors, expediters and all other
personnel necessary to procure all materials, supplies and equipment;
(d) Furnish all necessary supervisors, foremen, skilled and unskilled
labor, and all other personnel; provided that, to the extent available, such
personnel shall be individuals with Fluor Xxxxxx experience;
(e) Procure or supply all necessary machinery, equipment, materials,
expendable construction items and supplies, related services, subcontracts and
construction utilities;
(f) Prepare, submit, update and revise, as necessary, the Schedule and an
estimate of the cost of the Work ("Cost Estimate");
(g) Give all notices and comply with all laws and ordinances legally
enacted at the date of execution of the Agreement that govern the proper
performance of the Work;
(h) Obtain all licenses which are required to be obtained by and in the
name of Fluor Xxxxxx in connection with the Work and the Facilities, and assist
and provide Owner with support in obtaining the permits and licenses described
in Article 3.1(b);
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(i) Supply, or to the extent not available directly to Fluor Xxxxxx
procure, all necessary major construction tools and equipment, and supply small
tools and consumables;
(j) Keep such full and detailed accounts as may be necessary for proper
financial management under this Agreement. Owner shall be afforded access to
all Fluor Daniel's records relating to Reimbursable Costs and Rework and
Warranty Costs (in the case of Rework and Warranty Costs, if such costs exceed
the Warranty Limit), books, correspondence, instructions, drawings, receipts,
vouchers, memoranda and similar data relating to this Agreement (collectively,
the "Records"), and shall have the right to audit such Records for a period of
three years after the final payment. Fluor Xxxxxx shall preserve all such
Records for such three-year period, after the final payment, or longer where
required by law;
(k) At all times, maintain the site of the Facilities and Work free from
debris and waste materials resulting from the Work, and at the completion of the
Work, remove from the premises all construction equipment, tools, surplus
materials, waste materials and debris;
(l) Appoint one or more individuals who shall be authorized to act on
behalf of Fluor Xxxxxx and with whom Owner may consult at all reasonable times,
and whose instructions, requests and decisions will be binding upon Fluor Xxxxxx
as to all matters pertaining to this Agreement and the performance of the
parties hereunder. The individuals referred to in the preceding sentence shall
be Xxxx Xxxxxx or an alternate designated in writing by Fluor Xxxxxx and
approved by Owner, such approval not to be unreasonably withheld or delayed;
(m) Manage and administer all Equipment Vendors' and other suppliers'
warranties and guarantees through the completion of any performance tests or the
expiration of workmanship or warranties whichever occurs later;
(n) Provide assistance to Owner in determining the applicable taxes related
to the operation and maintenance of the Facilities;
(o) Investigate the site of the Facilities to confirm that the site is
clean and free of aboveground or underground obstructions, fissures, faults or
other similarly hidden features, which could reasonably be expected to interfere
with the completion of the Facilities, and obtain soil data which shall be
evidence to such effect;
(p) Prepare the start-up and commissioning plan and schedule for the
Facilities in conjunction with Owner and subject to approval by Owner, such
approval not to be unreasonably withheld or delayed, and provide necessary
personnel to support Owner in the start-up referred to as Owner's responsibility
in Section 3.2; and
(q) Provide Owner's On-Site Representative with full access to the job site
and to all Records, allow the Owner's On-Site Representative to attend and
participate in all construction meetings (other than confidential, internal
Fluor Xxxxxx meetings), deliver copies of all minutes of such meetings to the
Owner's On-Site Representative, advise Owner's On-Site Representative in writing
of any rework or warranty work to be performed, including an estimate of the
cost of
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such work (such estimate to be provided not later than three business days after
the commencement of such rework or warranty work), and prepare and deliver to
Owner a monthly report in summary form setting forth the rework and warranty
work performed during such period, the details of which report shall be
determined by mutual agreement of the parties.
All personnel furnished by Fluor Xxxxxx shall be fully qualified to perform all
functions that are assigned to them.
2.4 Royalties, Patents and Copyrights. Fluor Xxxxxx shall pay all royalties
---------------------------------
and license fees which may be due on the inclusion of any patented or
copyrighted materials, methods or systems selected by Fluor Xxxxxx and
incorporated in the Work or the Facilities. Fluor Xxxxxx shall defend, indemnify
and hold Owner harmless from all suits or claims for infringement of any patent
rights or copyrights arising out of such selection.
2.5 Purchase of Machinery and Equipment.
-----------------------------------
(a) Fluor Xxxxxx shall acquire for resale to Owner all machinery and
equipment for the Facilities (collectively the "Facilities Equipment") and
perform other services in connection therewith, including, without limitation,
the expediting, inspection and administration necessary to the furnishing of all
or any part of such Facilities Equipment, all as required by Owner.
(b) Purchases under this Section 2.5 shall be made on printed "purchase
order" forms mutually agreed to by Owner and Fluor Xxxxxx which shall contain
such provisions as are necessary to comply with applicable sales and use tax
requirements and to assure the availability of exemptions from applicable sales
and use taxes.
(c) Fluor Xxxxxx shall be responsible for negotiating purchase orders for
the Facilities Equipment and monitoring the performance of purchase orders for
the Facilities Equipment. In the event an Equipment Vendor fails to perform
under its purchase order with Fluor Xxxxxx, until the sale, re-sale or transfer
of the Facilities Equipment to Owner pursuant to Section 7.1(d) Fluor Xxxxxx
shall pursue the remedies available under such purchase order for such Equipment
Vendor's failure to perform, and Owner will cooperate with Fluor Xxxxxx in
connection therewith.
(d) Owner agrees that the machinery or equipment purchased hereunder for
installation at, addition to, or incorporation into the Work or Facilities is
for sale, re-sale or other transfer to the Owner. Following the sale, re-sale
or transfer thereof by Fluor Xxxxxx to Owner pursuant to Section 7.1(d), all
obligations relating to the purchase, performance or operation of such machinery
or equipment shall be as transferred or passed through by its manufacturers or
vendors. Therefore, following the sale, re-sale or transfer thereof by Fluor
Xxxxxx to Owner pursuant to Section 7.1(d), Owner hereby indemnifies, releases
and holds Fluor Xxxxxx forever harmless from any and all purchase, performance
and/or operation obligations, including, but not limited to, warranty,
indemnity, and all personal or property damages related to or occurring from the
user of such machinery of equipment, except that Fluor Xxxxxx will render
reasonable assistance to Owner for the purpose of enforcing warranties and
guaranties against Equipment Vendors as provided in Section 8.2 and except that
this indemnity and release does not extend to Fluor
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Daniel's Work relating to the installation of such machinery and equipment (as
distinguished from the machinery and equipment itself).
(e) Fluor Xxxxxx as a policy requires payment and performance bonds from
Subcontractors and Equipment Vendors for contracts involving the supply of goods
and services and purchases of machinery and equipment, as applicable, where the
contract price exceeds a predetermined level. Owner may in certain cases desire
not to require such payment and performance bonds to reduce costs. Fluor Xxxxxx
will consult with Owner whenever under Fluor Daniel's policies a payment or
performance bond would be required of a Subcontractor or an Equipment Vendor.
If Owner instructs Fluor Xxxxxx in writing to waive the requirement for a
payment or performance bond from the Subcontractor or the Equipment Vendor, (i)
Fluor Xxxxxx shall not require a payment or performance bond from the
Subcontractor or the Equipment Vendor, as applicable, and (ii) Fluor Xxxxxx
shall have no liability or obligation to Owner for any loss or damage suffered
by Owner as a result of the failure of such Subcontractor or Equipment Vendor to
have furnished a payment or performance bond.
ARTICLE 3
OWNER'S RESPONSIBILITIES
3.1 Construction Phase Responsibilities. Owner shall at such times as may be
-----------------------------------
required by Fluor Xxxxxx for the successful and expeditious completion of the
Work:
(a) Provide a site for the construction of the Facilities, suitable access
thereto and an adequate area or areas adjoining such site for Fluor Daniel's
office, warehouse, craft change rooms, shop buildings, welding facilities,
materials storage, lay-down area and employee parking;
(b) Obtain any process and other licenses which are required for the
Facilities, except where such licenses are specifically identified as being the
responsibility of Fluor Xxxxxx as part of its Work and provide Fluor Xxxxxx with
any necessary governmental allocation or priorities and obtain all permits and
licenses required to be taken out in the name of Owner which are necessary for
the performance of the Work; and
(c) Appoint one or more individuals who shall be authorized to act on
behalf of Owner, with whom Fluor Xxxxxx xxx consult at all reasonable times, and
whose instructions, requests and decisions will be binding upon Owner as to all
matters pertaining to this Agreement and the performance of the parties
hereunder. The individuals referred to in the preceding sentence shall be Xxxxx
Xxxxxx, Xxxx X. Xxxxx, and an on-site representative to observe the performance
of the Work ("Owner's On-Site Representative"). The Owner's On-Site
Representative shall, to the extent reasonably applicable, comply with all job
site rules established for Fluor Daniel's own on-site personnel.
3.2 Start-Up Responsibilities. Owner shall start up the Facilities in
-------------------------
accordance with the start-up and commissioning plan and schedule described in
Section 2.3(p) and shall and provide all personnel, feedstock and supplies
necessary for commissioning, start-up, operation and maintenance thereof.
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3.3 Taxes. Owner shall pay all taxes assessed against the Facilities,
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including sales taxes, if any, on Fluor Xxxxxx lump sum amounts included in
Articles 6.2 and 6.3.
3.4 Environmental Responsibilities. Owner shall advise of the existence and,
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to the extent required by law, undertake the abatement and disposal of any
Contamination which is encountered by Fluor Xxxxxx in the performance of the
Work. Fluor Xxxxxx hereby acknowledges the receipt of copies of all documents
listed on Exhibit 8 hereto.
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ARTICLE 4
SUBCONTRACTS
Work not performed by Fluor Xxxxxx with its own forces shall be performed by
Subcontractors.
4.1 Retaining Subcontractors. Owner shall have the right to approve all
------------------------
Subcontractors. Fluor Xxxxxx shall not retain any Subcontractor to whom Owner
has objected. In no case shall Owner's approval of any subcontract relieve
Fluor Xxxxxx of any of its obligations under this Agreement.
4.2 Management of Subcontractors. Fluor Xxxxxx shall be responsible for the
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management of the Subcontractors in the performance of their portions of the
Work.
4.3 Assignment of Subcontract Agreements. Fluor Xxxxxx shall provide for
------------------------------------
assignment of Subcontractor agreements in the event that Owner terminates this
Agreement for cause as provided in Section 12.1. Following such termination,
Owner shall notify in writing those Subcontractors whose assignments will be
accepted, subject to the rights of sureties.
ARTICLE 5
CHANGES IN THE WORK
5.1 Change Orders. Changes in the Work which are within the general scope of
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this Agreement may be accomplished by Change Order without invalidating this
Agreement.
5.2 Procedure for Changes. Owner may initiate a change by advising Fluor
---------------------
Xxxxxx in writing of the change believed to be necessary. As soon thereafter as
practicable, Fluor Xxxxxx shall prepare and forward to Owner an estimate of the
cost and schedule impact of the change, and advise Owner of any effect the
change may have on Fluor Daniel's ability to comply with any of its obligations
under this Agreement, including its ability to comply with warranties and
guarantees. Fluor Xxxxxx shall be reimbursed for the reasonable costs incurred
to prepare such estimate. Owner shall advise Fluor Xxxxxx in writing of its
approval or disapproval of the change. If Owner approves the change, Fluor
Xxxxxx and Owner shall prepare a Change Order and Fluor Xxxxxx shall perform the
Work as changed. Fluor Xxxxxx xxx initiate changes by advising Owner
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in writing that in Fluor Daniel's opinion a change is necessary; provided,
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however, that Fluor Xxxxxx shall not proceed with any Work related to such a
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change until it has received written approval from Owner to do so. Thereafter,
the change shall be handled as if initiated by Owner. Notwithstanding the
foregoing provisions of this Section 5.2, if the change is due to rework or
warranty work under Article 8, the rework and warranty work and the cost of the
estimate shall be treated as Rework and Warranty Costs in accordance with
Article 8.
5.3 Emergencies. In any emergency affecting the safety of persons and/or
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property, Fluor Xxxxxx shall act, in its reasonable judgment, to prevent
threatened damage, injury or loss. Any change in the cost of the Work or Fluor
Daniel's fees under Sections 6.2 and 6.3, and any extension of the date of
Substantial Completion, on account of emergency work shall be determined as
provided in this Article.
5.4 Scope Change Order. Fluor Xxxxxx and Owner agree that the design of the
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project is not complete and that Change Orders may be necessary in connection
with design development. For purposes of this Agreement a "Scope Change Order"
is a Change Order (or a portion thereof) that represents the addition of a new
feature to, or the deletion of a planned feature of, the existing design of the
project, but does not include a Change Order (or a portion thereof) that
represents the completion, detailing or refinement of already existing designs,
concepts or plans for the project.
ARTICLE 6
COMPENSATION
6.1 Reimbursable Costs. The term "Reimbursable Costs" shall include all costs
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incurred by Fluor Xxxxxx that are specifically described in Exhibit 5 as
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Reimbursable Costs.
6.2 Fixed Price. The total fixed price for the services and other items that
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are listed as included within the Fixed Price in Exhibit 5 is $***. The total
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price for temporary construction equipment (as defined in Section 3.1 of Exhibit
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2) and for Craft Burdens and Benefits (as defined in Section 3.2 of Exhibit 2)
- ---------
shall be determined in accordance with the formulas set forth in Section 2.0 of
Exhibit 5 and shall not include the cost of any equipment supplied by Equipment
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Vendors.
6.3 Fixed Fee. The total fixed fee payable to Fluor Xxxxxx is $***, and the
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fixed fee will be payable to Fluor Xxxxxx in accordance with the Payment
Schedule as described in Exhibit 5. For all Scope Change Orders authorized
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under Section 5.2, the total fixed fee will be adjusted by an amount equal to
1.33 percent of the amount of the Change Order.
6.4 Schedule and Cost Incentive Fees. All fees earned under Sections 6.4(a)
--------------------------------
and (b) will be payable (or credited) to Fluor Xxxxxx or Owner within 30 days
following Final Completion.
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(a) Fluor Xxxxxx shall be paid a schedule incentive of $*** per day for
each day that Substantial Completion precedes the Target Substantial Completion
Date (as reflected on Exhibit 6) up to a maximum total of $***. Fluor Daniel's
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fixed fee described in Section 6.3 will be reduced by $*** per day for each day
that Substantial Completion exceeds the Target Substantial Completion Date up to
a maximum reduction of $***.
(b) Fluor Xxxxxx will be paid a cost incentive equal to *** percent of any
amount that the actual total installed project cost (as defined in Section 4.0
of Exhibit 5) is less than the Target Price (as defined in Section 4.0 of
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Exhibit 5) up to a maximum cost incentive award of $***. Fluor Daniel's fixed
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fee described in Section 6.3 will be reduced by an amount equal to *** percent
of any amount that the actual total installed project cost is more than the
Target Price up to a maximum reduction of $***.
6.5 Value Awareness. Fluor Xxxxxx shall be paid an amount equal to *** percent
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of the aggregate amount of all Value Awareness cost savings. The Value
Awareness Program will be described in the Project Procedures Manual, as such
manual will be agreed upon by the parties, Value Awareness cost savings will be
administered using the procedure for Changes in The Work as described in Section
5.2 and will be payable as described in the Project Procedures Manual. For
purposes of calculating the cost incentive described in Section 6.4, the
cumulative Value Awareness cost savings will be subtracted from the target
price.
Owner agrees to implement an incentive program for the craft workers and
architect/engineer which cost shall be reimbursable and be part of total
installed project cost. Fluor Xxxxxx agrees to implement an incentive program
for the Fluor Xxxxxx staff which cost shall be borne by Fluor Xxxxxx. Fluor
Xxxxxx will prepare and administer these programs, Owner shall have the right to
approve the program for craft workers and architect/engineer, and Owner will
have final authority for the release of any payments pursuant to the
reimbursable programs.
6.6 Rework and Warranty Cost. Included in the fixed price as described in
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Section 6.2 is the total cost for Fluor Daniel's rework and warranty
obligations, as described in Article 8 of this Agreement which is $***;
provided, however, that if Change Orders are authorized under Section 5.2, the
aggregate cost of which exceeds ***% of the Target Price (the "Agreed Amount"),
then there shall be added to the fixed price under Section 6.2, an amount equal
to ***% of the amount by which the Change Orders have caused the Agreed Amount
to be exceeded. (For reference purposes, the parties agree that the date of
execution of this Agreement, the Target Price is $***.)
6.7 Non-Reimbursable Items. The following costs and expenses are included in
----------------------
Sections 6.2, 6.3, 6.4 and 6.6 and, as such, are expressly not reimbursable or
payable directly to Fluor Xxxxxx:
(a) Fluor Daniel's officers and managers, including, without limitation,
the Chairman of the Board, President, Vice Presidents (except as provided for
herein), Secretary, Treasurer and Controller except that the costs and expenses
of those managers listed on Exhibit 6, when directly engaged in the Work, shall
---------
be reimbursable under Section 6.1;
-10-
(b) Fluor Daniel's medical personnel, when not directly engaged in the
Work, as well as office and maintenance personnel, consisting of sales, public
relations and advertising personnel, telephone and teletype operators, guards,
word processors, accountants, bookkeepers, receptionists, mail room, janitorial
and maintenance employees;
(c) Home office general expenses, including, without limitation, other
personnel expenses, depreciation, rent and maintenance of home office
facilities, furniture, office equipment, light, heat, cafeteria service and
parking space;
(d) General overhead expenses, including, without limitation, the
development of engineering and construction standards and programs not specific
to the Work, entertainment and charitable and other contributions;
(e) Property taxes on Fluor Daniel's real and personal property at the home
office and sites other than the site of the Facilities and taxes assessed
against net income; and
(f) Any and all costs incurred by Fluor Xxxxxx in connection with its
maintenance of the Records or in connection with any audit by Owner of the
Records pursuant to Section 2.3(j) above; and
(g) Rework and Warranty Costs (as defined below), except to the except
otherwise provided in Section 8.2(b).
6.8 Example. An example of the method of calculation of the Schedule and Cost
-------
Incentive Fees, Value Awareness and Cost Incentive Program for Craft Workers is
shown in Section 5.0 of Exhibit 5.
---------
ARTICLE 7
TERMS OF PAYMENT
7.1 Funding of Reimbursable Costs.
-----------------------------
(a) Owner shall fund the Work by establishing and maintaining payable and
general disbursement bank-draft, interest-fund or other zero-balance accounts.
Fluor Xxxxxx shall administer such funds and be paid its invoiced Reimbursable
Costs therefrom, weekly, in accordance with the procedures set forth in the
Project Procedures Manual, as such manual will be agreed upon by the parties.
Commencing on or about the first day of the calendar month following execution
of this Agreement and weekly thereafter, Fluor Xxxxxx shall furnish Owner with a
billing covering fees and costs accrued during the previous week, plus any
interest due under Section 7.6.
(b) Fluor Xxxxxx agrees, warrants and guarantees that title to the
Facilities, all Facilities Equipment, all other materials and equipment and any
other property resulting from the Work
-11-
covered by an application for payment, whether or not incorporated in the
Facilities, will pass to Owner free and clear of all liens, claims, security
interests or encumbrances, including, without limitation, any mechanic's or
materialmen's liens (hereinafter referred to as "Liens"), upon receipt of full
payment under such application by Fluor Xxxxxx. Fluor Xxxxxx shall obtain
releases or waivers of any Liens of Subcontractors or other Equipment Vendors as
a condition to payment of such Subcontractors or Equipment Vendors for their
services or material and equipment supplied.
(c) Owner's progress payments or occupancy or use of the Facilities,
whether in whole or in part, shall not be deemed an acceptance of any defective
Work or property resulting from any defective Work or Work or property not
conforming to the requirements of the Contract Documents.
(d) All Facilities Equipment shall be resold to Owner pursuant to bills of
sale or other instruments or agreements mutually acceptable to Fluor Xxxxxx and
Owner and consistent with the terms of this Agreement.
7.2 [Intentionally Omitted.]
7.3 Payment of Fixed Prices and Fees. The Fixed Price will be paid in
--------------------------------
installments based on the schedule set forth in Exhibit 5. The fixed fee under
---------
Section 6.3 and the fee for rework and warranty obligations under Section 6.6
shall be payable upon the terms and conditions more specifically described in
Exhibit 5.
---------
7.4 Final Payment.
-------------
(a) Final payment, consisting of any unpaid balance of all amounts due
hereunder shall be due and payable when Final Completion has occurred. Before
issuance of final payment, Owner may request satisfactory evidence that all
payrolls, materials bills and other indebtedness connected with the Work have
been paid or otherwise satisfied.
(b) In making final payment Owner waives all claims against Fluor Xxxxxx,
except for:
(i) Fluor Daniel's responsibility to remove all outstanding Liens;
(ii) improper workmanship or defective materials;
(iii) Work not in conformance with the Contract Documents;
(iv) terms of any special warranties and indemnities under the
Contract Documents; and
(v) those claims previously made in writing which remain unsettled.
-12-
(c) In accepting final payment, Fluor Xxxxxx waives all claims, except the
terms of any special indemnities under the Contract Documents and those claims
previously made in writing which remain unsettled.
7.5 Interest. If Fluor Xxxxxx advances any of its funds for payment of
--------
Reimbursable Costs and Fixed Prices and if Owner is delinquent in the
reimbursement of such funds, or if any payments of fees hereunder are
delinquent, interest shall accrue on, the amounts so advanced or which are
delinquent from the date of the advance or due date until Fluor Xxxxxx is
reimbursed or paid at in annual rate equal to one and twenty-five hundredths
(1.25) times the prime rate then currently charged by the Chase Manhattan Bank
in New York, New York, but in no event shall such rate exceed the maximum legal
rate allowed by applicable usury laws. Payment of interest shall not excuse or
cure any default or delay in payment of amounts due. Notwithstanding the
foregoing provisions of this Section 7.6, no interest shall accrue on any
amounts claimed by or owed to Fluor Xxxxxx which Owner has disputed in good
faith by written notice to Fluor Xxxxxx.
ARTICLE 8
WARRANTIES AND GUARANTEES
8.1 Fluor Xxxxxx Services Warranty.
------------------------------
(a) Fluor Xxxxxx warrants it and its Subcontractors shall perform the
engineering, procurement and other services to be performed under this Agreement
and the Contract Documents that are not Construction Work (as defined below) in
accordance with the current standards of professional care and diligence
normally practiced by recognized firms in performing services of similar nature.
If, prior to Substantial Completion of the Facilities and/or during the one-year
period following Substantial Completion of the Facilities, it is shown that
there is an error in the Work as a result of Fluor Daniel's or a Subcontractor's
failure to meet those standards and Owner has notified Fluor Xxxxxx in writing
of any such error prior to the end of that one-year period, Fluor Xxxxxx shall
perform such corrective services as, subject to the limitations in Sections
8.2(a), (b) and (c), may be necessary to remedy such error, as well as any and
all of the Construction Phase Services described in Section 2.3, as may be
necessary to remedy such error.
(b) Notwithstanding the foregoing provisions of subsection 8.1(a), if,
prior to Substantial Completion of the Facilities and/or during the one-year
period following Substantial Completion of the Facilities, it is shown that
there is an error in the Work as a result of the Architect/Engineer's failure to
meet the current standards of professional care and diligence normally practiced
by recognized firms in performing design services of a similar nature and Owner
has notified Fluor Xxxxxx in writing of any such error prior to the end of that
one-year period, Fluor Xxxxxx and/or the Architect/Engineer shall perform,
solely at their cost, such corrective services as may be necessary to remedy
such error, including, without limitation, additional Drawings and
Specifications, as well as any and all of the Construction Phase Services
described in Section 2.3, as may be necessary to remedy such error; provided
that Fluor Daniel's
-13-
obligations under this Section 8.1(b) shall be subject to the limitations in
Sections 8.2(a), (b) and (c).
8.2 Construction Warranty. Fluor Xxxxxx warrants that all materials and
---------------------
equipment (other than equipment supplied by Equipment Vendors) furnished
pursuant to this Agreement will be new, of good quality and in conformance with
the Contract Documents and free from defects; provided, however, that such
warranty will not apply to materials and equipment covered by warranties by
Equipment Vendors in favor of or passed through to Owner and delivered to Owner
pursuant to Sections 8.4 and 8.6(b). Fluor Xxxxxx warrants that it and its
Subcontractors will perform their construction services that are part of the
Work (the "Construction Work") in accordance with the current standards of care
and diligence normally practiced by recognized construction firms in performing
services of a similar nature and that such Construction Work shall be free from
material defects in workmanship. If, prior to Substantial Completion of the
Facilities and/or during the one (1) year period following Substantial
Completion of the Facilities, it is shown that there is an error in the
Construction Work as a result of Fluor Daniel's or a Subcontractor's failure to
meet those standards and Owner has notified Fluor Xxxxxx in writing of any such
error prior to the end of that one-year period, Fluor Xxxxxx shall re-perform
such Construction Work and take such other action as may be necessary to remedy
such error. If any such Work, materials or equipment is covered by a warranty
from a third party, Fluor Xxxxxx shall cooperate with Owner in seeking recovery
under such warranty.
(a) All costs incurred by Fluor Xxxxxx in performing such corrective
services and warranty work shall be borne by Fluor Xxxxxx until the aggregate
amount of such costs reaches a total of ***% of the total direct cost of the
Work. (For reference purposes, the parties agree that at the date of execution
of this Agreement the total direct cost of the Work is estimated to be $***.)
(The aforesaid ***% of the total direct cost of the work shall be referred to as
the "Warranty Limit.")
(b) If Owner requires Fluor Xxxxxx to perform such corrective services or
warranty work that exceeds the Warranty Limit, all costs in excess of the
Warranty Limit incurred in performing such corrective services and warranty work
shall be reimbursable costs due Fluor Xxxxxx under Sections 6.1 and 7.1 hereof;
provided, however, if such corrective services or warranty work are required due
to the gross negligence or willful misconduct of Fluor Daniel's or a
Subcontractor's supervisory personnel down through the level of project
superintendents, procurement managers and lead process engineers, then such
costs will be borne by Fluor Xxxxxx.
(c) In no event shall Fluor Xxxxxx, under any Section of this Agreement
whatsoever, be obligated to perform any corrective services or warranty work or
pay any rework or warranty costs once the aggregate total of such rework or
warranty costs exceeds $***, and in no event shall Owner be obligated to pay any
additional fee to Fluor Xxxxxx in connection with any corrective services or
warranty work under this Article 8.
8.3 Accounting for Rework and Warranty Costs. Fluor Xxxxxx shall utilize cost
----------------------------------------
accounting systems sufficient to accurately account for all costs of re-
performing Work that does not meet the warranties and guarantees contained in
this Article 8 and other warranty costs (collectively,
-14-
"Rework and Warranty Costs") and shall accurately record in such accounting
system all such Rework and Warranty Costs incurred prior to Substantial
Completion of the Facilities and during the one-year period following
Substantial Completion.
8.4 Third Party Warranty and Guarantee.
----------------------------------
(a) Fluor Xxxxxx shall, for the protection of Owner, demand from all
Equipment Vendors, suppliers and Subcontractors from which Fluor Xxxxxx procures
machinery, equipment or materials or services, warranties and guarantees with
respect to such machinery, equipment, materials or services, which shall be
passed through and made available to Owner to the full extent of the terms
thereof. Fluor Daniel's liability with respect to machinery, equipment and
materials or services obtained from Equipment Vendors shall be limited to
procuring warranties and guarantees from such Equipment Vendors upon which by
their respective terms, both Fluor Xxxxxx and Owner may specifically rely, and
rendering all reasonable assistance to Owner for the purpose of enforcing the
same. The limitations on the warranty obligations of Fluor Xxxxxx under Section
8.1, 8.2 and 8.5 shall not apply to any warranties or guarantees of any
Equipment Vendor, supplier or Subcontractor under this Section 8.4.
(b) Fluor Xxxxxx agrees that prior to seeking reimbursement from Owner
pursuant to Section 8.2(b) relating to the failure to meet standards or an error
that is attributable to a Subcontractor or supplier (other than an Equipment
Vendor), it will pursue all available remedies against such Subcontractor or
supplier, including, if necessary, the filing and diligent prosecution of a suit
to final judgment or settlement. Notwithstanding the above, to the extent that
Fluor Xxxxxx has been unable to cause such Subcontractor or supplier to perform
the corrective services or pay its cost of performing such corrective services
within six months after the date reimbursement from Owner would otherwise be due
under Section 8.2(b), Owner shall reimburse Fluor Xxxxxx for its unrecovered
costs to the extent required by such Section. In that event, Flour Xxxxxx will
assign its claim to the Owner while continuing to pursue recovery on the Owner's
behalf.
8.5 Limitations. Fluor Xxxxxx shall have no warranty obligation or liability
-----------
for any errors or defects in the Work to the extent that: (i) the warranty
claim is attributable to Fluor Daniel's reliance upon or use of data, design
criteria, drawings, specifications or other information furnished by Owner (it
being agreed that any data, design criteria, drawings, specifications or other
information furnished by an Equipment Vendor or prepared by Fluor Xxxxxx or its
Subcontractors is not furnished by Owner); or (ii) the warranty claim is
attributable to the failure of Owner to operate and maintain the Facilities in a
reasonable manner in accordance with industry standards. Owner shall provide
Fluor Xxxxxx an opportunity to make such tests and perform such remedial
services as Fluor Xxxxxx xxxxx appropriate in its reasonable discretion to
investigate the warranty claim. Fluor Xxxxxx shall conduct any such testing
promptly after notice of any such warranty claim. If it is necessary to perform
a shut-down of the Facilities to allow investigation of the warranty claim,
Owner and Fluor Xxxxxx shall coordinate such Facility shutdown, if any, during
the warranty period in a manner designed to minimize disruption of Owner's
production at the Facilities.
-15-
8.6 Delivery of Certificates and Other Materials.
--------------------------------------------
(a) Fluor Xxxxxx shall secure all certificates of inspection, testing or
approval that are required by law to be obtained for the Facilities, including,
without limitation, a certificate reflecting that all pressure vessels in the
Facilities meet the code requirements of the American Society of Mechanical
Engineers (the "ASME"). Fluor Xxxxxx shall deliver such certificates to Owner
within 30 Days of Substantial Completion of the Work.
(b) Fluor Xxxxxx shall collect all written warranties and equipment manuals
and deliver them to Owner.
ARTICLE 9
INDEMNIFICATION
9.1 Bodily Injury and Property Damage Liability. To the fullest extent
-------------------------------------------
permitted by law, Fluor Xxxxxx shall indemnify, defend and hold harmless Owner,
Owner's consultants, agents, employees and other representatives of any of them,
from and against any and all claims, damages, losses and expenses, including,
without limitation, attorneys' fees, arising out of or resulting from
performance of the Work, provided that such claim, damage, loss or expense is
attributable to bodily injury, sickness, disease or death, or to injury to or
destruction of tangible property (other than the Work itself or other Owner's
property covered by Owner's property insurance) including loss of use resulting
therefrom, but only to the extent caused in whole or in part by negligent acts
or omissions of Fluor Xxxxxx, anyone directly or indirectly employed by Fluor
Xxxxxx, any subcontractor of Fluor Xxxxxx or anyone for whose acts Fluor Xxxxxx
xxx be liable, regardless of whether or not such claim, damage, loss or expense
is caused in part by a party indemnified hereunder. Such obligation shall not
be construed to negate, abridge or reduce other rights or obligations of
indemnity which otherwise exist as to a party or person described in this
Section 9.1. In claims against any person or entity indemnified under this
Section 9.1 by an employee of Fluor Xxxxxx, anyone directly or indirectly
employed by Fluor Xxxxxx or any subcontractor of Fluor Xxxxxx or anyone for
whose acts Fluor Xxxxxx xxx be liable, the indemnification obligation under this
Section 9.1 shall not be limited by a limitation on amount or type of damages,
compensation or benefits payable by or for Fluor Xxxxxx or any subcontractor of
Fluor Xxxxxx under workers' compensation acts, disability benefit acts or other
employee benefit acts.
9.2 Protection of the Facilities. Fluor Xxxxxx shall be responsible for and
----------------------------
obligated to replace, repair or reconstruct, and to furnish any material,
equipment or supplies furnished by Fluor Xxxxxx which are lost, damaged or
destroyed prior to transfer of care, custody and control of the Facilities or
the affected portion thereof to Owner. Fluor Xxxxxx shall be entitled to
receive the proceeds, if any, of insurance maintained pursuant to Section
10.1(c) which relate specifically to the material, equipment or supplies
replaced, repaired or reconstructed by Fluor Xxxxxx. Owner assumes all
responsibility for such loss, damage or destruction after such transfer of care,
custody and control to Owner.
-16-
9.3 Owner's Property. Commencing with the Substantial Completion of the
----------------
Facilities, or if by agreement of the parties, any portion thereof is
transferred to the care, custody and control of Owner prior to Substantial
Completion, then upon such transfer, Owner will maintain property damage
insurance fully covering the Facilities from the risk of loss or damage, shall
name Fluor Xxxxxx as an additional loss payee on such insurance policy and shall
cause its insurers to waive rights of subrogation against Fluor Xxxxxx and its
vendors and subcontractors under any insurance which Owner may carry.
9.4 Limitations. Fluor Xxxxxx shall have no obligation to Owner with respect
-----------
to any damage or loss to property caused by the perils of war, insurrection,
revolution, nuclear reaction or other like perils as may be excluded under the
scope and limits of the insurance coverage provided pursuant to Section 10.1.
ARTICLE 10
INSURANCE
10.1 Commitment. Commencing with the performance of its Work hereunder, and
----------
continuing until the order of acceptance of the Work or termination of this
Agreement (except with regard to "Builder's Risk" Course of Construction
Insurance which shall commence and continue for the period specified in
subparagraph (c) below), Fluor Xxxxxx shall maintain, or in the case of Section
10.1(d) cause Equipment Vendors to maintain, standard insurance policies as
follows:
(a) Workers' Compensation and/or all other social insurance in accordance
with the statutory requirements of the state, province or country having
jurisdiction over Fluor Daniel's employees who are engaged in the Work, with
Employer's Liability of One Million Dollars ($1,000,000) for each accident;
(b) Commercial General Liability, including Automobile (owned, non-owned or
hired vehicle) Insurance in a combined single limit of Two Million Dollars
($2,000,000) for each occurrence for bodily injury to or death of persons and/or
loss of or damage to property of parties other than Owner, which policy shall
contain contractual liability coverage;
(c) "Builder's Risk" Course of Construction Insurance protecting the
respective interests of Owner, Fluor Xxxxxx and Fluor Daniel's Subcontractors of
all tiers covering physical loss or damage (the "Builder's Risk Policy"). The
Builder's Risk Policy shall have an effective date commencing with the
Construction Phase and continuing during the course of construction and testing
at least until Substantial Completion of the Facilities as described on
Exhibit 1. The Builder's Risk Policy shall cover any and all materials and
---------
equipment for the Facilities, while in transit (other than in the course of
ocean marine or air transit movement, which is to be provided for pursuant to
subsection (d) below), while at the job site, awaiting and during erection, and
until transfer of care, custody and control of the Facilities or portion thereof
to Owner pursuant to Section 11.1. The Builder's Risk Policy shall be maintained
to cover the replacement value of the Facilities at risk. This insurance shall
not cover losses caused by the perils of war or nuclear
-17-
action as defined in the policy of insurance nor shall it cover loss of use,
business interruption or loss of product. Owner shall be included as an
additional loss payee and Fluor Xxxxxx shall cause its insurer to waive rights
of subrogation against Owner under such insurance. A deductible of Twenty-Five
Thousand Dollars ($25,000) shall apply to each and every covered loss, except
earthquake, flood, windstorm, hot testing and other deductibles as specified in
the contract of insurance and the policy limit shall not be less than
$***;
(d) Ocean Marine Cargo Insurance covering any and all materials and
equipment which may be in transit to the job site by wet marine bottoms, or by
air transportation and/or by connecting conveyances. Such insurance shall be
maintained in sufficient amounts to cover the full replacement value of the
materials and equipment at risk and the policy limit shall not be less than the
declared value of such shipments; and
(e) Deductibles paid as part of this Article 10 shall be reimbursed as part
of Section 6.1, but without prejudice to any rights Owner may have under Section
7.5(b) and Article 8.
10.2 Certificates. The foregoing insurance shall be maintained with carriers
------------
satisfactory to Owner, and the terms of coverage shall be as evidenced by
certificates to be furnished to Owner. Such certificates shall provide that
thirty (30) Days' written notice shall be given to Owner prior to cancellation
of any policy.
10.3 Professional Liability Insurance. Fluor Xxxxxx shall cause the
--------------------------------
Architect/Engineer to maintain professional liability insurance for claims
arising from the negligent performance of professional services under this
Agreement written for not less than $5,000,000 in the aggregate per year with a
deductible not to exceed $2,000. These requirements shall be continued in
effect for two years after the date of Substantial Completion. If the
Architect/Engineer retains consultants for a portion of the design, Fluor Xxxxxx
shall cause their professional liability insurance coverage, including
deductible amounts, to be as set forth in this Section 10.3. The Parties hereto
acknowledge and agree that no rights of Owner to take any action against the
Architect/Engineer in connection with the Work conducted by the
Architect/Engineer with respect to the Facilities shall be limited in any way by
any provisions of this Agreement.
ARTICLE 11
TRANSFER AND ACCEPTANCE
11.1 Care, Custody and Control. When Fluor Xxxxxx believes that the Facilities
-------------------------
are Substantially Complete and ready for operation, it shall so advise owner.
Unless Owner shall advise Fluor Xxxxxx within five business days thereafter why
the Facilities are not Substantially Complete and ready for operation,
Substantial Completion shall be deemed to have occurred and the care, custody
and control thereof shall pass to Owner at the expiration of such five business
days. In any event, the care, custody and control of the Facilities or portion
thereof pass to Owner no later than the time when Owner takes physical
possession thereof. From and after the
-18-
date of the transfer of the care, custody and control of the Facilities or Phase
thereof, Owner shall assume all risks of physical loss or damage thereto and
shall and does hereby release Fluor Xxxxxx from, and Owner will and shall cause
its insurers to waive rights of subrogation against Fluor Xxxxxx and its vendors
and Subcontractors for, loss or damage to the Facilities which may thereafter
occur. Notwithstanding the foregoing limitation, if by agreement with Owner
Fluor Xxxxxx transfers to Owner the care, custody and control of a portion of
the Facilities at such time as Fluor Xxxxxx or its Subcontractors are continuing
the Work on other portions of the Facilities, Owner shall not assume any risks
of physical loss or damage caused by Fluor Xxxxxx or its Subcontractors, to the
remainder of the Facilities as to which care, custody and control have not been
turned over to Owners, and Owner shall not release Fluor Xxxxxx from, or cause
its insurers to waive rights of subrogation against Fluor Xxxxxx, its vendors
and Subcontractors for, any such loss or damage to the Facilities.
11.2 Acceptance of the Work. When Fluor Xxxxxx xxxxx it has completed the Work,
----------------------
it shall so notify Owner in writing. Within five business days thereafter,
Owner shall advise Fluor Xxxxxx in writing of any defects in the Work, other
than defects that are not reasonably ascertainable by Owner within such five
business day period, for which Fluor Xxxxxx is responsible under this Agreement.
As soon as any such defects are corrected (or as soon as the five business day
period for such notice has expired if Owner does not advise Fluor Xxxxxx of any
such defects within the period), Owner shall accept the Work in writing or the
Work shall be deemed accepted; provided, however, that Owner shall not be deemed
-------- -------
to have accepted the Work to the extent of any defects that are not reasonably
ascertainable by Owner within such five business day period.
11.3 Limitation. Notwithstanding the foregoing provisions, nothing in this
----------
Article 11 shall affect the respective rights of the parties under Section 7.5
and under Articles 8 and 9 hereof.
ARTICLE 12
TERMINATION, CANCELLATION AND SUSPENSION
12.1 Termination by Owner for Default. Should Fluor Xxxxxx become insolvent or
--------------------------------
bankrupt, or should Fluor Xxxxxx commit a substantial breach of a material
provision of this Agreement, and should Fluor Xxxxxx thereafter fail to commence
proceedings in good faith to remedy such breach within ten (10) Days after
written demand by Owner and thereafter to proceed diligently in remedying the
same and to remedy the same within 45 Days, then Owner may terminate this
Agreement and enter upon the premises and take possession thereof and at the
same time instruct Fluor Xxxxxx to remove from the premises all of its tools,
equipment and supplies, or Owner may take possession of any and all of such
tools, equipment and supplies for the purpose of completing the Work. Upon any
such termination, Fluor Xxxxxx shall be compensated for all reasonable costs
then incurred and the portion of the Fixed Price accrued to such date in
accordance with the provisions of Sections 6.1 and 6.2 hereof, plus the earned
portion of the Fixed Fee provided for in Section 6.3, less any costs incurred by
Owner to transition the Work to another contractor. In the event that Owner
uses any of Fluor Daniel's equipment or tools,
-19-
Owner shall return the same to Fluor Xxxxxx in good condition and repair,
reasonable wear and tear excepted, and shall pay Fluor Xxxxxx for the use
thereof as provided in Section 6.1.
12.2 Termination by Fluor Xxxxxx for Default. Should Owner become insolvent or
---------------------------------------
bankrupt or commit a substantial breach of a material provision of this
Agreement and: (i) fail to remedy the same within ten (10) Days after written
notice thereof from Fluor Xxxxxx, if the breach constitutes a failure to pay
money or (ii) fail to commence proceedings to remedy the same within ten (10)
Days after written notice thereof from Fluor Xxxxxx and thereafter to proceed
diligently in remedying the same and to remedy such default within 45 Days, if
the breach is other than to pay money, then Fluor Xxxxxx xxx, at its option,
suspend performance of the Work or terminate this Agreement. Should Fluor
Xxxxxx so suspend such performance or terminate this Agreement, it shall be paid
for all reasonable costs incurred and the portion of the Fixed Price accrued to
the date of suspension/termination in accordance with the provisions of Sections
6.1 and 6.2, including any reasonable cancellation charges by vendors and
Subcontractors, and the reasonable cost of all standby and
demobilization/remobilization expenses plus the earned portion of the Fixed Fee
provided for in Section 6.3 based on the percent of the Work that has been
Substantially Completed.
12.3 Cancellation for Convenience. Owner reserves the right to cancel the Work
----------------------------
hereunder upon notice in writing to Fluor Xxxxxx (a "Cancellation for
Convenience"). Should the Work be so canceled by Owner, Fluor Xxxxxx shall be
paid for all costs incurred and the portion of the Fixed Price accrued to date
of cancellation and through demobilization in accordance with Sections 6.1 and
6.2 hereof, including any reasonable cancellation charges by vendors and
Subcontractors, in accordance with the provisions of Article 6, and, if such
Cancellation for Convenience is at any time after Owner gives Fluor Xxxxxx a
notice to proceed in accordance with Section 2.3, the earned portion of the
Fixed Fee provided for in Section 6.3 based on the percent of the Work that has
been completed. In the event Owner elects to utilize another contractor for the
performance of all or a part of the cancelled Work within a one (1) year period
following the cancellation of the Work, Owner shall pay a cancellation charge
equal to any remaining portion of the Fixed Fee that has not theretofore been
paid, which amount shall be due and payable upon the recommencement by the
contractor of the previous cancelled Work. Owner acknowledges and agrees that
the cancellation charge has been agreed after negotiations as the parties'
reasonable estimate of Fluor Daniel's lost business opportunities.
12.4 Suspension by Owner. Owner reserves the right to suspend the Work upon ten
-------------------
(10) Days' written notice to Fluor Xxxxxx, unless Fluor Xxxxxx agrees in writing
to a shorter notice period. Should the Work be so suspended, Fluor Xxxxxx shall
be paid for all costs incurred and the portion of the Fixed Price then accrued
in accordance with the provisions of Sections 6.1 and 6.2 and the portion of the
Fixed Fee under Section 6.3 earned for Work performed to the date of suspension
and through demobilization, including any suspension or cancellation charges by
vendors and Subcontractors. When a suspension equals or exceeds ninety (90)
Days in the aggregate, Fluor Xxxxxx xxx elect to treat such suspension as a
Cancellation for Convenience of Owner pursuant to Section 12.3; provided,
--------
however, that such suspension may not be treated as a Cancellation for
-------
Convenience if the suspension is the result of: (i) identification of
Contamination or any other environmental condition on the premises; (ii) a
breach by Fluor
-20-
Xxxxxx of its obligations under this Agreement; or (iii) failure of Owner to
obtain any environmental permits required for the Work.
ARTICLE 13
SAFETY, ENVIRONMENTAL AND OTHER LAWS
13.1 Compliance with Laws.
--------------------
(a) Fluor Xxxxxx shall design the Facilities so that the Facilities are
capable of complying with all applicable safety, environmental and other laws,
rules and regulations in force at the effective date of this Agreement. If
during the course of the Work, any questions should arise regarding safety,
environmental or other regulated aspects of the Work, Fluor Xxxxxx and Owner
shall mutually agree upon any changes required in the Work and such changes
shall be treated as changes in the Work under Article 5;
(b) Fluor Xxxxxx shall take necessary precautions for the safety of its
employees on the Work, shall comply with all applicable provisions of federal,
state and municipal safety laws to prevent accidents or injury to persons on,
about or adjacent to the site of the Facilities or the Work and shall cause its
Subcontractors to do likewise. Fluor Xxxxxx, directly or through its
Subcontractors, shall erect and properly maintain at all times, as required by
the conditions and progress of the Work, necessary safeguards for the protection
of workers and the public. Fluor Xxxxxx, however, shall not be responsible for
the elimination or abatement of safety hazards created or otherwise resulting
from Work at the site carried on by Owner or its employees, agents, separate
contractors or tenants. Owner agrees to cause its employees, agents, separate
contractors and tenants to abide by and fully adhere to all applicable
provisions of federal, state and municipal safety laws and regulations. The
above provision shall not relieve Subcontractors of their responsibility for the
safety of persons or property in the performance of their work, nor for
compliance with all applicable provisions of relevant laws. Fluor Xxxxxx shall,
and shall require each Subcontractor to, have an appropriate safety program
covering the Subcontractor's employees;
(c) During the course of construction Fluor Xxxxxx shall perform its Work
in accordance with applicable laws, rules, regulations and orders relating to
environmental concerns; and
(d) From and after transfer to Owner of care, custody and control of the
Facilities or portion thereof, Owner assumes all responsibility for compliance
by the Facilities or any portion thereof with applicable safety, environmental
and other laws, rules and regulations and orders.
13.2 Pre-Existing Conditions
-----------------------
(a) Owner warrants it has disclosed or it shall immediately disclose as
information becomes available to it: (i) any and all reports, test results,
public records and other sources of
-21-
information known to Owner which show areas of Contamination at the site and
(ii) all other material information known by Owner and relevant to the conduct
of the Work at the site. Anything herein to the contrary notwithstanding, as
between Owner and Fluor Xxxxxx, legal responsibility and liability for any and
all Contamination shall at all times remain with Owner.
(b) Owner shall, at Owner's sole expense and risk, arrange for handling,
storage, transportation, treatment and delivery for disposal of Contamination.
Owner shall be solely responsible for obtaining a disposal site for such
material. Owner shall look to the disposal facility and/or transporter for any
responsibility or liability arising from improper disposal or transportation of
such waste. Fluor Xxxxxx shall not have or exert any control over Owner in
Owner's obligations or responsibilities as a generator in the storage,
transportation, treatment or disposal of any Contamination. Owner shall
complete and execute any required governmental forms relating to regulated
activities, including, but not limited to, generation storage, handling,
treatment, transportation or disposal of Contamination. Owner shall indemnify,
release and save Fluor Xxxxxx harmless from all damages or penalties paid by
Owner or Fluor Xxxxxx resulting from Contamination.
ARTICLE 14
FORCE MAJEURE
Any delays in or failure of performance by Owner or Fluor Xxxxxx, other
than payment of money, shall not constitute a default hereunder if and to the
extent such delays or failures of performance are caused by occurrences beyond
the reasonable control of Owner or Fluor Xxxxxx, as the case may be, including
but not limited to: (i) acts of God or the public enemy; (ii) expropriation or
confiscation of facilities; (iii) compliance with any order of any governmental
authority; (iv) changes in law; (v) acts of war (declared or undeclared),
hostilities or acts of terrorism; (vi) rebellion or sabotage or damage resulting
therefrom; (vii) fires, floods or other unusually severe weather conditions,
(i.e. tornadoes, hurricanes, blizzards, etc.); (viii) explosions; (ix)
accidents; (x) riots or strikes or other concerted acts of workmen, whether
direct or indirect; or (xi) any causes, whether or not of the same class or kind
as those specifically above named, which are not within the control of Owner or
Fluor Xxxxxx respectively, and which by the exercise of reasonable diligence,
Owner or Fluor Xxxxxx, respectively, is unable to prevent. Fluor Daniel's
scheduled completion date shall be adjusted to account for any force majeure
delay and it shall be reimbursed by Owner under Article 2 for all costs incurred
in connection with or arising from a force majeure event, including, but not
limited to, those costs incurred in the exercise of reasonable diligence to
avoid or mitigate a force majeure event. Notwithstanding anything to the
contrary contained herein, the parties agree that Fluor Xxxxxx will not be
entitled to relief under this Article for delays or failures of performance
caused by or resulting from the acts or omissions of its Subcontractors,
suppliers or the Equipment Vendors.
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ARTICLE 15
INTELLECTUAL PROPERTY
15.1 Title to Plans and Drawings and Specifications. The Drawings and
----------------------------------------------
Specifications shall become the property of Owner. Fluor Xxxxxx acknowledges
and agrees that the specific designs embodied in the Work and the Facilities,
the cost of the Work and the Facilities, the cost of materials and equipment,
and all other costs hereunder, the performance and other specifications of the
Facilities and the machinery and equipment, including, without limitation, the
paper machine operating speed, design capacity, mill layout, and operating
procedures, are confidential and proprietary information of Owner (the
"Confidential Information"). Fluor Xxxxxx also acknowledges and agrees that
Owner would be damaged by the disclosure of the Confidential Information to
Owner's competitors or to others, and by the use or knowledge of the
Confidential Information in connection with the performance of similar work for
any of Owner's competitors or others. Accordingly, Fluor Xxxxxx agrees that it
will maintain the confidentiality of, and not disclose to persons other than its
employees, subcontractors, suppliers and the Equipment Vendors with a specific
need to know such information and who have executed similar confidentiality
agreements (and only to the extent of such specific need), the Confidential
Information or use the Confidential Information other than in the performance of
its Work hereunder. Nothing herein shall be construed as limiting Fluor
Daniel's ownership of all rights to use its basic know-how, experience and
skills, whether or not acquired during performance of the Work, or to perform
any independently developed engineering design or other services for any other
party.
15.2 Secrecy Agreements. Any written agreements between Fluor Xxxxxx and Owner
------------------
entered into prior to the effective date hereof relating to secrecy or
confidentiality of information exchanged between Fluor Xxxxxx and Owner shall be
deemed incorporated herein by reference as if fully set forth in this Agreement.
15.3 Patents. Fluor Xxxxxx agrees to include, as a term or condition of each
-------
purchase order and each subcontract entered into by it in the performance of the
Work, a patent indemnification provision extending from the Equipment Vendor,
other supplier or Subcontractor under such purchase order or subcontract to
Owner and Fluor Xxxxxx. Fluor Xxxxxx further agrees to render such assistance
to Owner is may be reasonably required on a reimbursable cost basis to enforce
the terms of such indemnification by Equipment Vendors, other suppliers and
Subcontractors. In addition, Fluor Xxxxxx shall indemnify and hold harmless
Owner from and against any and all claims, disputes, actions or proceedings
resulting from patent, trademark, copyright or other infringement arising from
the performance of the Work.
ARTICLE 16
DISPUTE RESOLUTION
16.1 General Disputes. In the event of a dispute between the parties arising
----------------
under or relating to this Agreement which cannot be amicably resolved by the
individuals appointed pursuant to
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Sections 2.3(l) and 3.1(c) hereof, such dispute shall, in the first instance, be
referred to a representative of senior management of the parties hereto for
resolution.
16.2 Disputes.
--------
(a) In the event a dispute arises pursuant to the provisions of Article 5
hereof, which is unresolved pursuant to Section 16.1, solely at the parties'
---------------------
mutual option, such dispute may be decided by binding arbitration with the firm
-------------
of Judicial Arbitration & Mediation Services, Inc. ("JAMS"), acting as the sole
arbitrator.
(b) All claims, disputes and other matters in question arising out of or
relating to this Agreement or the breach thereof, if the parties mutually agree,
may be decided by mediation or arbitration by JAMS in accordance with the Rules
of Practice and Procedure of JAMS (the "Rules").
(c) If the parties agree to arbitrate a dispute pursuant to Subsections
(a) or (b) above, except as specifically modified by this Subsection, the Rules
shall govern. In the event of a dispute pursuant to the provisions of Article 5
hereof, the Rules shall be modified by changing the stated time periods to five
(5) Days in Rules 2, 5-D and 7.D.
(d) If the parties agree to arbitrate a dispute pursuant to Subsections
(a) or (b) above, judgment may be entered on the award, the award may be
judicially enforced, the award will be final and binding and no appeal may be
taken on the grounds of error in the application of the law or finding of fact.
16.3 Waiver of Jury Trial. Solely at the parties' mutual option, the parties
-------------------- ------------------------------------
may agree to knowingly, voluntarily and intentionally waive any rights they may
have to a trial by jury in respect to any litigation based hereon, or arising
out of, under, or in connection with, this Agreement, or any course of conduct,
course of dealing, statements (whether oral or written) or actions of Owner or
Fluor Xxxxxx.
ARTICLE 17
GENERAL PROVISIONS
17.1 Independent Contractors. Fluor Xxxxxx shall be an independent contractor
-----------------------
with respect to the Work to be performed hereunder. Neither Fluor Xxxxxx nor
its subcontractors, nor the employees of either, shall be deemed to be the
servants, employees, or agents of Owner.
17.2 Related Party Contracts. Fluor Xxxxxx xxx have portions of the Work
-----------------------
performed by its affiliated entities or their employees at the same prices,
rates and other terms as would be negotiated at arms length between unaffiliated
parties, in which event Fluor Xxxxxx shall be responsible for such Work and
Owner will look solely to Fluor Xxxxxx as if the Work was performed by Fluor
Xxxxxx.
-24-
17.3 Assignment. This Agreement shall not be assignable by either party
----------
without the prior written consent of the other party hereto, except that it may
be assigned without such consent to the successor of either party, or to a
person, firm or corporation acquiring all or substantially all of the business
assets of such party or, to a wholly owned subsidiary of either party, but such
assignment shall not relieve the assigning party of any of its obligations under
this Agreement. Any attempted assignment without such consent shall be null and
void. No assignment of this Agreement shall be valid until this Agreement shall
have been assumed by the assignee. When duly assigned in accordance with the
foregoing, this Agreement shall be binding upon and shall insure to the benefit
of the assignee.
17.4 Audit and Maintenance of Records. Owner shall have the right to audit and
--------------------------------
inspect Fluor Daniel's records and accounts covering reimbursable costs
hereunder at all reasonable times during the course of the Work and for a period
of one (1) year after the date of the invoice related thereto, provided,
however, the purpose of any such audit shall be only for verification of such
costs and that Fluor Xxxxxx shall not be required to keep records of or provide
access to those of its costs covered by the Fee, allowances, fixed rates, fixed
prices or of costs which are expressed in terms of percentages of other costs.
17.5 Liens. Fluor Xxxxxx shall deliver the Facilities to Owner free and clear
-----
of any Lien arising from the Work and Fluor Xxxxxx shall discharge any such
Liens and the costs incurred by Fluor Xxxxxx in so doing shall be reimbursable
under Article 3.
17.6 Surplus Material. It is understood that in performing work of the scope
----------------
and complexity of the Work to be performed hereunder, it is necessary and
inevitable that certain surplus material be purchased provided that such
surpluses are at a reasonable amount for the Work. The purchase price and
transportation costs of such surplus materials shall be considered costs of the
Work to the same extent as any materials incorporated into the Work. Fluor
Xxxxxx shall, as soon as it is feasible to do so, determine and advise Owner
what materials are surplus materials and thereafter shall dispose of such
materials as directed by Owner, and the proceeds shall be credited to Owner in
an amount equal to the net proceeds therefrom.
17.7 Notices. Any notice, request, instruction, document or other
-------
communication to be given hereunder by any party hereto to any other party
hereto shall be in writing and validly given if (i) delivered personally, (ii)
sent by telecopy (with oral confirmation), (iii) delivered by overnight express,
or (iv) sent by registered or certified mail, postage prepaid, as follows:
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If to Owner:
Republic Group Inc.
for delivery other than by mail:
000 Xxxx 00xx Xxxxxx
Xxxxxxxxxx, Xxxxxx 00000-0000
Attention: Xxxx X. Xxxxx
for delivery by mail:
X.X. Xxx 0000
Xxxxxxxxxx, Xxxxxx 00000-0000
Attention: Xxxx X. Xxxxx
If to Fluor Xxxxxx:
Fluor Xxxxxx, Inc.
000 Xxxxx Xxxxxx Xxxxx
Xxxxxxxxxx, Xxxxx Xxxxxxxx 00000-0000
Attention: Xxxx Xxxxxx
or at such other address for a party as shall be specified by like notice. Any
notice which is delivered personally, or sent by telecopy or overnight express
in the manner provided herein shall be deemed to have been duly given to the
party to whom it is directed upon actual receipt by such party. Any notice
which is addressed and mailed in the manner herein provided shall be
conclusively presumed to have been given to the party to whom it is addressed at
the close of business, local time of the recipient, on the fifth day after the
day it is so placed in the mail.
17.8 Representations and Remedies. Neither Fluor Xxxxxx nor Owner makes any
----------------------------
representations, covenants, warranties or guarantees, express or implied, other
than those expressly set forth herein. The parties' rights, liabilities,
responsibilities and remedies with respect to the Work shall be exclusively
those expressly set forth in this Agreement.
17.9 Damages.
-------
(a) Fluor Xxxxxx shall in no event be responsible or held liable for
consequential, incidental, special or indirect damages, including without
limitation, liability for loss of use of the Facilities or Owner's existing
property, loss of profits, interest, product or business interruption, increased
costs of operations and maintenance or staffing needs, however the same may be
caused. Owner shall in no event be responsible or held liable for
consequential, incidental, special or indirect damages, including without
limitation, liability for loss of use of the Facilities or Fluor Daniel's
existing property, loss of profits, interest, product or business
-26-
interruption, increased costs of operations and maintenance or staffing needs,
however the same may be caused.
(b) Owner hereby releases, indemnifies and agrees to hold Fluor Xxxxxx
harmless from any liability arising from the ownership, use or operation of the
Facilities, or any part thereof, subsequent to the transfer of care, custody and
control to Owner, except only as provided in Section 7.5(b) and Article 8.
(c) If Owner is not the sole owner of the Facilities or existing
property at or adjacent to the job site, or if the Facilities are to be owned or
operated by a person or entity other than Owner, Owner shall obtain waivers
and/or releases from the other owners or operators thereof sufficient to provide
to Fluor Xxxxxx the same protection from liability for loss or damage that would
be afforded to Fluor Xxxxxx under this Agreement as if Owner were the sole owner
or operator.
17.10 Solicitation of Employment. For a period of 180 Days after Final
--------------------------
Completion, neither party, directly or indirectly for itself or on behalf of, or
in conjunction with, any other person, partnership, corporation, business or
organization, shall solicit, hire, contract with or engage the employment of an
employee of the other with whom that party or its personnel, excluding
construction craft personnel, have had contact in the course of providing Work
under this Agreement, unless that party has obtained the written consent of the
other to such hiring and that party pays to the other a fee to be mutually
agreed upon. Fluor Xxxxxx, to the extent possible under the terms and
conditions described, will work with Owner to attempt to incorporate certain
future employees of Owner into the engineering and skilled trade work for the
Facilities. Any employees of Owner so utilized shall agree to work under the
direct supervision and control of Fluor Xxxxxx, the costs related to the
employment of Owner's employees under this Article shall be considered
reimbursable costs.
17.11 Interpretation.
--------------
(a) This Agreement shall be governed by and interpreted in accordance
with the laws of Oklahoma, without regard to its choice of law principles.
(b) Headings and titles of articles, sections and other subparts of
this Agreement are for convenience of reference only and shall not be considered
in interpreting the text of this Agreement. Modifications or amendments to this
Agreement must be in writing and executed by a duly authorized representative of
each party.
(c) INDEMNITIES AGAINST, RELEASES FROM, ASSUMPTIONS OF AND LIMITATIONS
ON LIABILITY EXPRESSED IN THIS AGREEMENT, AS WELL AS WAIVERS OF SUBROGATION
RIGHTS, SHALL APPLY EVEN IN THE EVENT OF THE FAULT, NEGLIGENCE OR STRICT
LIABILITY OF THE PARTY INDEMNIFIED OR RELEASED OR WHOSE LIABILITY IS LIMITED OR
ASSUMED OR AGAINST WHOM RIGHTS OF SUBROGATION ARE WAIVED AND SHALL EXTEND TO THE
OFFICERS, DIRECTORS, EMPLOYEES, LICENSORS, AGENTS, PARTNERS AND RELATED ENTITIES
OF SUCH PARTY AND ITS PARTNERS AND RELATED ENTITIES.
-27-
(d) The parties agree to look solely to each other with respect to the
obligations and liability arising in connection with this Agreement and the Work
performed hereunder. This Agreement and each and every provision hereof is for
the exclusive benefit of Owner and Fluor Xxxxxx and not for the benefit of any
third party, except to the extent such benefits have been expressly extended
pursuant to Section 17.11(c).
(e) In the event that any portion or all of this Agreement is held to
be void or unenforceable, the parties agree to negotiate in good faith to amend
the commercial and other terms of this Agreement in order to effect the intent
of the parties as set forth in this Agreement.
(f) The provisions of this Agreement which by their nature are
intended to survive the termination, cancellation, completion or expiration of
the Agreement, including but not limited to any expressed limitations of or
releases from liability, shall continue as valid and enforceable obligations of
the parties notwithstanding any such termination cancellation, completion or
expiration.
17.12 Entire Agreement.
----------------
(a) This Agreement consists of the Contract Documents and the
following exhibits attached hereto:
EXHIBIT 1 - Scope of the Work
EXHIBIT 2 - Cost Estimate Basis
EXHIBIT 3 - Detail Cost Estimate Report
EXHIBIT 4 - Drawings
EXHIBIT 5 - Commercial Terms
EXHIBIT 6 - Schedule
EXHIBIT 7 - Voith Sulzer Paper Technology "As Purchased"
Technical Specifications dated 26 March 1998
EXHIBIT 8 - Environmental Documents
(b) This Agreement, as defined in this Section 17.12, including,
without limitation, Section 15.2 hereof, sets forth the full and complete
understanding of the parties as of the date first above stated, and it
supersedes any and all agreements and representations made or dated prior
thereto except that the parties agree that all interim services and expenses
provided or incurred pursuant to the Letter of Intent and all payments made
pursuant thereto shall be covered by this Agreement and treated as if provided,
incurred or paid pursuant hereto, and all services provided pursuant to the
Letter of Intent or provided by the Architect/Engineer pursuant to the letter of
intent dated April 15, 1998 between Fluor Xxxxxx and the Architect/Engineer, as
the same may have been amended, shall be covered by the warranties contained in
this Agreement. In the event of any conflict between this contract document and
any of the Exhibits hereto, the terms and provisions of this contract document
shall control. In the event of any conflict among the Exhibits, the Exhibit of
the latest date shall control. Notwithstanding the foregoing provision, the
parties hereto acknowledge and agree that all confidentiality provisions
contained in the letter agreements between Fluor Xxxxxx, as agent for Owner, and
Voith Sulzer Paper Technology, Inc.
-28-
and the Architect/Engineer shall remain in full force and effect pursuant to
their terms notwithstanding the execution and delivery of this Agreement.
(c) THE PARTIES ACKNOWLEDGE AND AGREE THE TERMS AND CONDITIONS OF THIS
AGREEMENT HAVE BEEN FREELY, FAIRLY AND THOROUGHLY NEGOTIATED. FURTHER, THE
PARTIES ACKNOWLEDGE AND AGREE SUCH TERMS AND CONDITIONS, INCLUDING BUT NOT
LIMITED TO THOSE RELATING TO WAIVERS, ALLOCATIONS OF, RELEASES FROM, INDEMNITIES
AGAINST AND LIMITATIONS OF, LIABILITY, WHICH MAY REQUIRE CONSPICUOUS
IDENTIFICATION, HAVE NOT BEEN SO IDENTIFIED BY MUTUAL AGREEMENT AND THE PARTIES
HAVE ACTUAL KNOWLEDGE OF THE INTENT AND EFFECT OF SUCH TERMS AND CONDITIONS.
EACH PARTY ACKNOWLEDGES THAT IN EXECUTING THIS AGREEMENT THEY RELY SOLELY ON
THEIR OWN JUDGMENT, BELIEF, AND KNOWLEDGE, AND SUCH ADVICE AS THEY MAY HAVE
RECEIVED FROM THEIR OWN COUNSEL, AND THEY HAVE NOT BEEN INFLUENCED BY ANY
REPRESENTATION OR STATEMENTS MADE BY ANY OTHER PARTY OR ITS COUNSEL. NO
PROVISION IN THIS AGREEMENT IS TO BE INTERPRETED FOR OR AGAINST ANY PARTY
BECAUSE THAT PARTY OR ITS COUNSEL DRAFTED SUCH PROVISION.
17.13 Venue. The parties hereto agree and acknowledge that any dispute, claim
-----
or litigation arising out of, or in any way related to, this Agreement shall be
exclusively litigated in the appropriate state court located in Comanche County,
Oklahoma or federal court located in Oklahoma City, Oklahoma.
IN WITNESS WHEREOF, the parties hereto have executed this contract document
as of the date and year first above written.
REPUBLIC PAPERBOARD COMPANY
By: /s/ Xxxx X. Xxxxx
-----------------------------------------
Name: Xxxx X. Xxxxx
---------------------------------------
Title: Vice President--Paperboard Operations
--------------------------------------
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FLUOR XXXXXX, INC.
By: /s/ X. Xxxxxxx Liestner
-----------------------------------------
Name: X. Xxxxxxx Liestner
---------------------------------------
Title: President--Manufacturing
--------------------------------------
-30-
EXHIBIT 1
---------
SCOPE OF THE WORK
-----------------
CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS EXHIBIT
PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH
THE COMMISSION. THE OMITTED INFORMATION IS INDICATED BY THE
SYMBOL "***" AT EACH PLACE IN THE EXHIBIT WHERE THE OMITTED
INFORMATION APPEARED IN THE ORIGINAL.
EXHIBIT 1 - SCOPE OF WORK
--------------------------------------------------------------------------------
1.0 SUMMARY
1.1 PROJECT OBJECTIVES
The project objectives are to:
. produce *** tons/year of gypsum paperboard.
. consistently produce the best quality gypsum paperboard available.
. be a low cost gypsum paperboard manufacturer.
. operate using low cost raw materials, including mixed waste.
. meet sheet performance characteristics at the design basis weights.
. meet cream face appearance requirements at ***lb/1000 ft/2/ or less top
ply basis weight.
. begin commercial production in November of 1999.
1.2 FACILITY DESCRIPTION
The proposed facility will produce *** tons/year of gypsum paperboard in
roll form. Rolls will be strapped and wrapped prior to storage and
shipping. The facility includes a 37,500 sq. ft. warehouse capable of
holding up to 1,140 rolls, or several days of average machine production.
The single paper machine will operate at up to *** fpm with a usable winder
trim of *** inches. The machine will be capable of producing a four ply
sheet with overall basis weight ranging from 30 to 50 lb/1,000 ft/2/.
Machine design is based on producing xxxx back at *** lb/1,000 ft/2/ and
cream face at *** lb/1,000 ft/2/.
The sheet will be dried using conventional, fully-felted, steam-heated,
drying cylinders, followed by a calender, ***, a reel and a two-drum
winder.
The press section will use two, *** presses. This technology was selected
to provide good water removal while minimizing sheet densification and loss
of porosity.
*** This arrangement allows independent control of the stock properties and
sheet forming conditions for each ply. Long fiber will be concentrated in
the filler ply to optimize sheet strength and performance characteristics.
Sizing and refining for the back ply can be optimized for dimensional
stability, porosity and water pickup when rewet.
A separate top stock system will provide equipment required to produce good
visual appearance in the top ply. A filler stock line will fractionate
incoming waste paper to produce a relatively long fiber fraction and a
short fiber fraction. The long fiber fraction will be used predominately in
the filler ply. This filler system will allow less expensive, mixed paper
to be used as part of the furnish. The filler stock line includes equipment
designed to reduce the amount of waxes and stickies present in the filler
stock. These materials can develop into objectionable spots during high
temperature drying of the gypsum board.
--------------------------------------------------------------------------------
Page 1
EXHIBIT 1 - SCOPE OF WORK
--------------------------------------------------------------------------------
Raw material will be delivered to the mill by either railcar or truck. The
facility includes a 37,200 sq. ft. warehouse capable of storing up to 3800
tons of baled wastepaper and a 17,500 sq. ft. outside storage area capable
of storing up to 2000 tons of baled wastepaper. This represents about eight
days of operation at the average production rate.
Utility services for the mill will include:
. Natural gas from an existing gas main.
. Steam generated on-site by a natural gas fired package boiler.
. Process and potable water from a municipal treatment plant and
distribution system.
. Electrical power purchased from a local utility company.
. Process effluent discharged to a publicly owned treatment works after
on-site treatment.
. Sanitary sewer discharged to an existing municipal treatment facility.
. Solid waste disposal under contract to local disposal company.
General arrangement drawings are based on preliminary vendor information.
The final plant layout will be adjusted to accommodate operator and
maintenance access requirements. Platforms or other safe access will be
designed for operator control, adjustment or monitoring locations. The
layout will provide for maintenance access using lift trucks or other
mobile equipment. Monorails or other systems may be used in places of
mobile equipment with Owner's approval. General arrangement drawings must
be approved by the Owner before design is released for construction.
1.3 SITE DESCRIPTION
The facility will be built on a 69 acre site in Lawton, Oklahoma with
relatively level topography. The site will be fully fenced. Site roads,
parking lots, and storm run-off control will be provided. Boring data from
adjacent sites was used to estimate site conditions for the cost estimate.
A site soil testing report has been completed.
Offices, conference rooms, locker rooms and other common facilities will be
provided. This facility is based on a total employee count of approximately
***. About 25 of these employees will be supervisory or front office
personnel. The remainder will be operating or maintenance crews.
1.4 PROJECT TEAM
The scope of work includes engineering, procurement, construction,
training, commissioning and startup services required to complete the
project. The project plan is based on:
. Fluor Xxxxxx providing the procurement and construction management
services in accordance with this Agreement.
. Marathon Engineers/Architects/Planners, LLC providing engineering
design services under a not-to-exceed sub contract with Fluor Xxxxxx.
. Voith Sulzer providing main process equipment under a fixed price
contract entered into by Fluor Xxxxxx as agent for the Owner.
1.5 PROJECT PERFORMANCE
The Voith Sulzer contract will include the following performance
specifications:
. Fiber loss to sewer less than *** %
. Production of *** tpd of filler pulp.
--------------------------------------------------------------------------------
Page 2
EXHIBIT 1 - SCOPE OF WORK
--------------------------------------------------------------------------------
. A defined fractionation efficiency
. Top stock production rate of *** OD tpd (with *** tpd of filler
production)
. Top stock ash content between *** %
. Stickies and lightweight contaminants removal efficiency greater than
***%.
. Maximum reel production rate of *** machine dry tons/hr at 6% reel
moisture.
. Reel average cross direction moisture variance less than ***%.
. Machine direction basis weight variance less than ***%
. Cross machine direction basis weight variance less than ***%
. Residual basis weight variance less than ***%
. Sheffield smoothness less than *** seconds.
. Top side brightness greater than ***.
. MD tensile greater than *** lb/inch
. CD tensile greater than *** lb/inch
. Z Direction tensile greater than *** lb/inch/2/
. Xxxxxx porosity less than *** seconds.
. Xxxx sizing
. Top Maximum - ***g/100cm/2/
. Back Maximum - ***g/100cm/2/
. Sizing saturation minimum *** seconds
. Final product free from pinholes
. Formation comparable to a mutually acceptable reference sheet
The Voith Sulzer contract specifies the furnish requirements and test
conditions under which the performance criteria will be evaluated. It also
specifies remedies if the performance criteria cannot be achieved.
1.6 INTENT
The intent of this Agreement, the Exhibits to such Agreement, the Plans and
the Specifications is to describe the Work to be performed. Any work
necessary to complete performance not specifically provided in such
documents but which is reasonably inferable therefrom is included in the
original Scope of Work. In this regard, Fluor Xxxxxx and Owner agree that
the design of the Project is not complete and items that represent the
completion detailing or refinement of already existing designs, concepts or
plans, whether or not covered by Change Orders, will not be the basis for
changing the schedule of the Project or the cost target. Only those items
that represent the addition of a new feature or the deletion of a planned
feature shall be the basis for a Change Order.
2.0 INTRODUCTION
Fluor Xxxxxx will manage engineering, procurement, construction, training,
commissioning and startup services for the Republic Paperboard. The
services are associated with a greenfield, recycled paperboard mill.
The site for the new facility is located in Lawton, Oklahoma.
--------------------------------------------------------------------------------
Page 3
EXHIBIT 1 - SCOPE OF WORK
--------------------------------------------------------------------------------
2.1 AREA BREAKDOWN
The description of the proposed facility is presented in the following area
breakdowns:
. Area 01 - Raw Material Receiving and Storage
. Area 02 - Recycled Fiber Plant
. Area 03 - Paper Machine and Roll Handling
. Area 04 - Roll Storage and Shipping
. Area 05 - Boiler and Utilities
. Area 06 - Effluent Treatment/Water Recycle
. Area 07 - Power Distribution
. Area 08 - Storeroom, Shops and Offices
. Area 09 - Site General
2.2 PROJECT PERFORMANCE
The facility design is based on the performance specifications described in
Section 1.5 of this Exhibit. The values shown reflect performance
warranties in Voith Sulzer's equipment supply contract.
A paper machine acceptance test run will be scheduled after machine
operation has stabilized. The acceptance criteria will be as described in
Exhibit 7.
A recycled fiber plant acceptance test run will be scheduled separate from
the paper machine acceptance test in accordance with Exhibit 7.
3.0 RAW MATERIAL RECEIVING AND STORAGE
This area includes the raw material warehouse building shell, mechanical
components, HVAC and electrical systems.
The warehouse is designed to hold a maximum of 3800 tons of baled
wastepaper with an outside storage area capable of storing 2000 tons of
xxxxx. This represents about eight days of operation at average production
rate.
The detailed cost estimate in this area is based upon the following
assumptions:
. 37,200 sq ft warehouse for inside storage of xxxxx and 17,500 sq ft
fenced slab for outside storage of xxxxx
. *** truck docks
. *** outside rail docks with overhead canopy.
. Pulper conveyors begin in this building and extend into the Recycled
Fiber Plant.
3.1 GENERAL ARRANGEMENT
The general arrangement for the raw material warehouse is shown in the
project drawings.
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3.2 CIVIL AND STRUCTURAL
A 192' X 175' raw material warehouse will be provided for enclosed
wastepaper storage. This is connected with a 48' x 75' pulper load area. A
100' x 175' concrete slab with perimeter fencing will be used to store
wastepaper outside.
3.2.1 Site Preparation
The warehouse floor will be located slightly above grade level at a
nominal elevation of 104'-0". This is four feet higher than the
Recycled Fiber Plant. Site preparation consists of minimal
excavation and backfill for:
. the floor slab
. building footings
. grounding cable
The outside storage area will be surrounded by 16 ft tall fencing
with slats to contain loose paper.
The railroad siding and associated civil work is described in
Section 11 of this Exhibit.
3.2.2 Concrete
The building will be founded on virgin soils using shallow spread
footings.
The warehouse floor will be a 6 inch thick slab on grade
construction. The outside storage area will be an 8 inch thick slab
on grade.
The concrete truck apron is described in Section 11 Site General.
3.2.3 Steel and Miscellaneous Metal
A pre-engineered building will be provided consisting of open web
purlins and girders with structural steel columns spaced on an
approximate 50' x 48' grid.
Insulated metal siding will complete the exterior wall closure
where fire walls are not required. The roof will be standing seam,
metal construction.
Miscellaneous metal installations will include:
. interior wall protection using independent 6 foot high highway
type guard rail
. stairs with railings to the exterior grade level
. supports for unit heaters and other miscellaneous equipment
. all columns in storage areas protected with concrete to a
height of four feet
3.3 ARCHITECTURAL
3.3.1 Doors and Interior Walls
The will be *** truck docks with levelers, lights, door seals and
overhead doors.
A dock plate, railroad dock shelter, door seals and an overhead
door will be provided for *** railcar unloading doors.
Deluge showers will be provided for conveyor openings into the
recycled fiber plant.
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A concrete block wall with a four hour fire resistant rating will
separate this structure from the recycled fiber plant. This wall
will be primed and painted.
3.3.2 Fire Protection
The warehouse is classified as an Extra Hazard by Industrial Risk
Insurers for fire protection purposes. The entire building area
will be sprinkled. The cost estimate is based on a wet pipe system
with a sprinkler density of 0.40 gpm/2,000 S.F.
Water will be supplied to the sprinkler system from the mill fire
protection loop. The fire protection loop is described in the
Section 11 Site General.
Seven fire hose stations will be provided.
Ten fire extinguishers will be provided.
3.3.3 Roof Drains
Rainwater will be diverted to exterior gutters and downspouts.
Interior roof drains are not required.
3.3.4 Potable Water and Sanitary Sewer
The area will be serviced by a 22ft x 12ft break and restroom
facility located near the truck docks.
3.4 EQUIPMENT
3.4.1 Process Equipment
There is no process equipment in this area. In-floor pulper loading
conveyors start in this area but are included in the recycled fiber
plant area.
3.4.2 Mobile Equipment
Mobile equipment for the facility is described in Section 11 of
this volume.
3.5 PIPING
There is no process piping in this area. Utility piping will be provided
for unit heaters and the restroom facility.
The piping will be supported by individual hangers in this area.
Fire protection systems are described in Section 3.3 Architectural.
3.6 ELECTRICAL
3.6.1 Process Electrical
There is no process electrical system required in this area.
3.6.2 Lighting and Electrical Systems
Electrical power for this area will be provided from MCCs located
in the paper machine area electrical room.
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Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 20 foot-candles when the warehouse is
in use and 5 foot-candles in inactive mode. Lighting panel boards
will be 480/277V. Separate standby panels will be established for
egress and EXIT sign lights. Lighting fixtures will be 277 volt
high pressure sodium HID fixtures. Switch rated circuit breakers
will be provided in the lighting panels.
The building structural columns will be grounded via the concrete
footings, "Ufer" style. Adequate rebar will be welded to the column
anchor bolts to satisfy NEC 250-81(c).
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
A #4/0, bare, copper wire will be buried for grounding and bonding
this building to the site general grounding grid.
Six, grounding type welding outlets will be provided. These outlets
will be 480V, 60A, 3 wire configuration.
Twenty four, grounding type, 20 amp, 120 volt convenience and
maintenance outlets will be provided within the warehouse area.
Weather-proof covers will be provide on all outside receptacles.
208Y/120V panel boards for convenience receptacles, office
lighting, control, heat tracing and instrumentation power will be
wall mounted within the recycled fiber plant electric room. Ground
fault circuit breakers will be installed both for 120V convince
receptacle and heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
3.6.3 Spare Parts
An allowance for electrical spare parts has been included in the
cost estimate.
3.7 PROCESS CONTROL
3.7.1 PROCESS
There is no process control system required in this area.
3.7.2 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms.
One telephone system extension and a pay telephone will be provided
in the warehouse area.
The communication system for the entire facility is described in
Section 11 Site General.
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3.8 HEATING AND VENTILATION
3.8.1 Make-up Air
Make-up air will be supplied to the raw material warehouse from a
50,000 CFM, direct gas-fired, air handling unit located on grade
adjacent to the roof of the recycled fiber plant building. The air
will be distributed in the warehouse through a duct system. Make-up
air can be heated to maintain approximately 55 degrees F. in the
warehouse during winter design conditions.
3.8.2 Unit Heaters
Three, gas fired, unit heaters will be located above the truck dock
doors. Four single, gas fired unit heater will be located above the
rail car doors.
3.8.3 Ventilation
Ventilation will be provided by four, exhaust fans. The fans will
have a total capacity of approximately 50,000 CFM.
3.8.4 Duct Work
Duct will be galvanized steel with thickness appropriate for the
duct size. Duct will be either rectangular or spiral reinforced,
round cross section. Exterior duct runs will be insulated.
3.8.5 Spare Parts
An allowance for HVAC spare parts has been included in the cost
estimate.
4.0 RECYCLED FIBER PLANT
This area includes the recycled fiber building shell, mechanical
components, HVAC and electrical systems. All process equipment from the
pulper feed conveyors through the thickener into the high density stock
storage tanks is also included in this area.
The recycled fiber plant processes various grades of waste paper into two
stock streams; top ply stock and filler stock. The recycled fiber plant is
divided into two systems, one for top stock and the other for the filler
stock.
The recycled fiber plant process is summarized on mass flow diagrams.
References to specific drawings are included in Exhibit 5 of the Agreement
for Engineering Procurement And Construction.
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4.1 GENERAL ARRANGEMENT
The general arrangement for the recycled fiber plant is shown in the
project drawings.
Most of the main process equipment is housed in a single building adjacent
to part of the raw material warehouse and in line with the paper machine
building. Some equipment is located on structural steel mezzanines within
this single building.
The main HD stock chests are located to the north and in between the main
recycled fiber plant building, and the raw material receiving building.
The two *** clarifiers are located in a structure northwest of the main
building. The area below the thickener structure is also enclosed to
provide protection for some small tanks and pumps. A rain roof is over the
structures.
The electrical substations and switchgear are located in a fenced, graveled
area northwest of the main recycled fiber plant building.
Two pulper conveyors will bring recycled fiber into the pulpers from the
raw material warehouse. Rejects will be transferred to compactors on the
east side of the building.
4.2 CIVIL AND STRUCTURAL
A 100' X 175' primary recycled fiber plant building will be provided.
Separate elevated structures will be provided to enclose thickeners and a
process water clarifiers. An area at the base of the clarifiers and tanks
will have partial walls.
4.2.1 Site Preparation
The recycled fiber plant floor will be located slightly above grade
level at a nominal elevation of 100'-0". Site preparation consists
of minimal excavation and backfill for:
. the floor slab
. building footings
. tank and pulper foundations
. grounding cable
Deep foundations are provided in the recycled fiber plant area as
required by soil reports from adjacent properties.
4.2.2 Concrete
The primary building will be founded on caissons.
The main building floor will be a six inch slab. Elevated concrete
slabs for the thickener area and mezzanines will also be eight
inches thick.
Twenty four inch wide, concrete floor drains will be included.
Equipment foundations and pads will be provided, including concrete
piers for the filler pulper.
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4.2.3 Steel and Miscellaneous Metal
The primary building will be a pre-engineered structure consisting
of open web purlins and girders with structural steel columns
spaced on an approximate 25' x 50' grid.
Insulated metal siding will complete the exterior wall closure in
areas where fire walls are not required. The roof will be standing
seam, metal construction.
Structural steel mezzanines within the main building will support
the cleaners, some rejects handling equipment and the recycled
fiber plant electrical room.
MCCs for the recycled fiber plant equipment will be housed in an
enclosure on the operating floor of the paper machine building.
The elevated structure for the thickeners will be supported by the
tile chests below. The access platforms will be reached by a
dedicated walkway from the recycled fiber plant mezzanine.
Floor trench grating covers will be provided. The grating will be
able to support a lift truck in aisle or maintenance access areas.
4.3 ARCHITECTURAL
4.3.1 Doors and Interior Walls
An enclosure at grade level beneath the clarifier platform will
enclose pumps, valves and instruments. Sheet metal panels as well
as the tanks will form the sidewalls.
The following doors will be provided:
. Three, 9 ft X 9 ft, overhead sectional doors
. Eight, hollow metal doors
4.3.2 Fire Protection
The recycled fiber plant is classified as an ordinary Hazard Group
II by Industrial Risk Insurers for fire protection purposes. This
would require sprinkling the entire building. Fluor Daniel's
experience is that recycled fiber processing areas are only
sprinkled in areas where dry paper can be present. The cost
estimate is based on sprinkling 4000 SF using a wet pipe system
with a sprinkler density of 0.17 gpm/3,000 SF.
Water will be supplied to the sprinkler system from the mill fire
protection loop. The fire protection loop is described in the site
general area.
Four hose stations will be provided.
4.3.3 Roof Drains
Rainwater will be diverted to exterior gutters and downspouts.
4.3.4 Potable Water and Sanitary Sewer
There will be a 15 ft x 10 ft restroom area located adjacent to the
pulper conveyors. The cost estimate is based on metal stud and
painted gypsum board walls. A suspended, acoustical tile ceiling
will be provided.
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A unisex toilet facility with two fixtures and a drinking fountain
will be provided.
4.4 EQUIPMENT
4.4.1 Process Equipment
Detailed descriptions of the equipment are given in the vendor
proposals. The process scope is based on the Voith Sulzer quoted
scope of supply described in the specification dated March 26,
1998.
4.4.2 Mobile Equipment
Mobile equipment for the facility is described in Section 11 of
this volume.
4.4.3 Other Equipment
The cost estimate assumes that two compactors, trash dumpsters and
rejects dumpsters are supplied by the trash hauling company as part
of the mill service contract.
4.4.4 Spare Parts
An allowance for process and mechanical spare parts has been
included in the cost estimate.
4.5 PIPING
All process and utility piping will be provided. Stock and white water
piping is generally 316 L stainless steel. Compressed air and fresh water
piping is 304 L stainless steel.
Much of the piping will be supported by individual hangers. Gang supports
will be used where a sufficient number of lines can be grouped to make this
cost effective.
Fire protection, potable water and sanitary sewer systems are described in
Section 4.3 Architectural.
An allowance for valve and piping specialty spare parts has been included
in the cost estimate.
4.6 ELECTRICAL
4.6.1 Process Electrical
Motor Control Centers (MCCs) and medium voltage starters will be
located in an electrical room within the paper machine building.
480V MCCs will be either 1200 amp or 1600 amp, 3 Phase, 3 wire in
front mounting arrangements. Motor starters will use MCP type
circuit breakers and feeder circuits will use thermal/magnetic
breakers.
Motor controls will be through a DCS or PLC based central control
system. Local start/stop buttons will not be provided, except in
areas where an emergency stop is required. Emergency stops will be
provided for both pulper and conveyor systems.
Feeder, power, control and instrumentation distribution inside and
outside the structure will use aluminum cable trays. Cable tray
will be 6" high, NEMA class 12A, ladder type with 9" rung spacing.
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Separate tray systems will be provided for feeders, power with
control and instrumentation. The instrument tray will use barriers
for the analog, and discrete signals.
Conduits will be Rigid Galvanized Steel (RGS). Minimum conduit size
will be 3/4". Trade sizes of 1-1/4" and 2-1/2" will not be used.
Cable tray drop out channels and conduits will be sized to
accommodate both the power and the control cable if the load
requires a local control push-button station and conduit is being
used.
Power cables for 480 V loads will be 600 V, tray rated, type 1AC
cables with THHN/THWN or XHHW insulation. Power cables for 4,000 V
motor loads will be 5,000 V, type 1AC cables with 133% EPR
insulation and overall PVC jacket. Control multi-conductor cables
will be 600 V, tray rated, type 1AC or TC with THHN/THWN or XHHW
insulation.
Waterproof armored cable will be used to connect between MCCs and
all main process loads such as process motors. Conduit will only be
used for instrument drops and building facility loads such as unit
heaters, panels, lights and receptacles.
4.6.2 Lighting and Building Electrical Systems
Electrical power for this area will be provided from MCCs located
in the paper machine electrical room.
Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 40 foot-candles in the process areas.
Lighting panel boards will be 480/277V. Separate standby panels
will be established for egress and EXIT sign lights.
Lighting fixtures will be 277 volt high pressure sodium HID
fixtures in process areas and florescent in office, electric,
instrument rooms, etc. Rooms with suspended ceiling, will use lay-
in fluorescent troffers. Electric and utility areas will use open
two lamp industrial fixtures. Strategic light fixtures and EXIT
signs located along routes of egress will be battery-pack type.
Grounding triads consisting of three interconnected 3/4" x 10'
copper clad steel ground rods will be established for the power,
instrumentation and a master ground reference.
The building structural columns will be grounded directly to the
buried grounding grid cable.
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
Lightning protection will be provided for buildings and structures
in the form of air terminals bonded to the vertical columns.
Eight, grounding type welding outlets will be provided. These
outlets will be 480V, 60A, 3 wire configuration.
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Twenty four, grounding type, 20 amp, 120 volt convenience and
maintenance outlets will be provided within the warehouse area.
Weather-proof covers will be provide on all outside receptacles.
208Y/120V panel boards for convenience receptacles and
instrumentation power will be wall mounted within the electric
room. Ground fault circuit breakers will be installed both for 120V
convince receptacle and heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
4.6.3 Spare Parts
An allowance for electrical spare parts has been included in the
cost estimate.
4.7 PROCESS CONTROL
4.7.1 Process
Field instruments not included as part of the process equipment
will be installed in the piping or tanks as required. Compressed
air connections will be provided for air actuated equipment.
Electrical distribution will generally be made using cable tray
with conduit drops to each device. Junction boxes may be used in
areas of high density controls to minimize cable runs. Multiple
conductor cable will be used where feasible. Analog instrument
cables will be 300 volt rated, #14 or #16 AWG shielded with foil
xxxxxxx. Two, four and six conductor cables will be used. Cable
assembly will be tray rated.
All control will be through a DCS or PLC based central control
system. Local control will not be provided, except in areas where
the vendor provides integrated, local controls as part of their
supply. A single, hardened control console will be located near the
pulper area.
A separate, isolated, master control system grounding system will
be furnished.
4.7.2 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms.
One mill telephone extension will be provided in the recycled fiber
plant area. A computer terminal connected to the mill wide LAN will
also be provided, housed in a hardened console.
The communication system for the entire facility is described in
Section 11 Site General.
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4.7.3 Spare Parts
An allowance for process control spare parts has been included in
the cost estimate.
4.8 HEATING AND VENTILATION
4.8.1 Make-up Air
Make-up air will be supplied to the recycled fiber plant from an
80,000 CFM, direct gas-fired, air handling unit located on the roof
of the paper machine building. The air will be distributed in the
plant through a duct system. Make-up air will be heated to maintain
approximately 55 degrees F during winter design conditions.
4.8.2 Ventilation
Ventilation will be provided by eight, exhaust fans located in the
exterior walls of the buildings. The fans will have a total
capacity of approximately 296,000 CFM.
4.8.3 Duct Work
Duct will be galvanized steel with thickness appropriate for the
duct size. Duct will be either rectangular or spiral reinforced,
round cross section. Exterior duct runs will be insulated.
4.8.4 Spare Parts
An allowance for HVAC spare parts has been included in the cost
estimate.
5.0 PAPER MACHINE AND ROLL HANDLING
This area includes the paper machine building shell, mechanical components,
HVAC and electrical systems. All process equipment from the stock storage
chests throughout the roll handling system is included in this area. Broke
and white water systems are also included in this area.
The paper machine stock preparation system provides fractionation of the
filler stock as well as refining and cleaning for the three stock streams,
top ply stock, long fiber stock and short fiber stock. The paper machine
wet end equipment forms the stock streams into a four ply sheet and presses
most of the water out of the sheet. Steam heated cylinders dry the ***. A
two roll calender provides final surface finishing before the sheet is
wound onto reel spools. The parent reels are slit into 85 inch diameter
rolls with various widths by a two drum winder. Individual rolls are banded
and may be plastic wrapped before being sent to shipping or storage.
The paper machine and ancillary systems are summarized in mass flow
diagrams included with the project drawings referenced in Exhibit 5 of this
Agreement For Engineering, Procurement And Construction.
5.1 GENERAL ARRANGEMENT
The general arrangement for the paper machine area is shown in the project
drawings referenced in Exhibit 5 of this Agreement For Engineering,
Procurement And Construction.
Most of the main process equipment is housed in a single paper machine
building. The "basement" level will be slightly above grade level. An
operating floor will be approximately 20 ft. above the basement level. A
mezzanine will be located along the drive side of the paper machine to
support
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air handling equipment. The building height will be about 63 ft. in the
paper machine area and 39 ft. in the stock preparation area.
The white water and broke tanks are located north of the main building.
An extension of the paper machine building on the wet end drive side will
house the vacuum pumps.
Another extension of the paper machine building on the drive side will
house the transformers and switchgear at grade level and the electrical and
rack rooms at operating floor level. The saveall mezzanine will be extended
west to house the wet end control room.
5.2 CIVIL AND STRUCTURAL
5.2.1 Site Preparation
Due to the sensitive nature of the paper machine and the heavy
loads that this structure must support, the building foundation
system and the machine track foundation will consist of drilled
concrete piers founded on an assumed unyielding material.
The paper machine basement floor will be located slightly above
grade level. Site preparation consists of minimal excavation and
backfill for:
. the floor slab
. building caisson caps and grade beams
. tank and pulper foundations
. grounding cable
5.2.2 Concrete
All "basement" level floor will be six inch slab on grade.
Elevated operating and mezzanine level floors will be 8 inch
concrete slab.
The paper machine will be supported by a separate concrete pier and
beam machine track.
Concrete foundations and pads will be provided for equipment, as
required.
A trench and sump area under the vacuum pumps will be provided. The
trench will be arranged to accommodate a future vacuum pump.
Twenty four inch wide U-drains will be provided along the length of
the machine. There will be two effluent sumps in the building that
are pumped to a main collection sump in the recycled fiber plant.
The alum tank area will not have full containment walls. It will be
curbed and drain to the main process sewer.
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5.2.3 Steel and Miscellaneous Metal
The main paper machine building will be conventionally framed using
steel rolled sections. The machine track will be isolated. Two
house bridge cranes with a ***-ton capacity will be incorporated
into the steel frame design. Exterior closure will utilize
insulated metal siding.
The vacuum pump enclosure will be a one-story, conventionally
framed structure using steel rolled sections. The roof will be
standing seam, metal construction. The exterior closure will
utilize insulated metal siding.
The electrical building will be a two-story, conventionally framed
structures using steel rolled sections. The lower section will be
enclosed with fencing to meet electrical code requirements. The
roof will consist of galvanized metal decking covered by an
insulated 4-ply smooth surface membrane. The exterior closure
around the second story will utilize insulated metal siding.
Floor trench grating covers will be provided. The grating will be
able to support a lift truck in aisle or maintenance access areas.
Miscellaneous steel allowances have been included for pipe
supports, machine roll storage racks and for miscellaneous
platforms.
5.3 ARCHITECTURAL
5.3.1 Roof and Roof Drains
The roof for the main paper machine building will consist of
galvanized metal decking covered by a built-up, insulated 4-ply
membrane system. The electrical roof will use the same built-up
system over concrete, roof planks.
5.3.2 Doors, Interior Walls and Finished Spaces
Finished space construction will consist of metal stud and painted
gypsum board walls, suspended acoustical ceiling and vinyl
flooring. Windows will be included in all spaces. Control room
windows will overlook the forming section. Most wiring and services
will be routed through the wall studs to avoid exposed services.
The control room will not be designed to meet "Westvaco", dust free
room standards.
The estimate contains an allowance for minimal furnishings in the
finished spaces.
A 500 ft/2/ office space will be provided at the wet end of the
machine room for the superintendent, tour xxxxxxx and technical
assistant.
A 300 ft/2/ office space will be provided at the dry end of the
machine room for two technical offices.
A 170 ft/2/ employee break room will be located near the dry end
office and lab.
A 12 ft x 36 ft control room at the wet end is planned. The room
will be elevated and positioned so that the machine tender can
monitor forming section operation.
A 10 ft x 18 ft, wet end test lab will be provided. The estimate
includes an allowance for the following test equipment:
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. Canadian Standard Freeness tester
. electronic balance
. handsheet drying oven
. pH meter
. hand sheet mold, press and dryer
. light box for speck count
A 10 ft x 25 ft, dry end test lab will be provided. The estimate
includes an allowance for the following test equipment:
. high temperature furnace for ash testing
. electronic balance
. circulating drying oven
. brightness meter
. Sheffield smoothness test device
. Xxxxxx Densometer test device
. Instron tensile test device with Z direction test attachment
. Xxxx sizing test device
. light table for sheet inspection
5.3.3 Fire Protection
The paper machine building is classified as an Extra Hazard area by
Industrial Risk Insurers for fire protection purposes. This would
require sprinkling the entire building. Fluor Daniel's experience
is that paper machine buildings are only sprinkled in areas where
dry paper can be present.
The cost estimate is based on providing fire suppression systems
for the machine dryer hoods, lube oil reservoir, hydraulic units,
finished spaces and some electrical spaces.
Twenty two interior fire hose racks are included.
Twenty two fire extinguishers will be provided.
Water will be supplied to the sprinkler system from the mill fire
protection loop. The fire protection loop is described in Section
11 Site General.
5.3.4 Potable Water and Sanitary Sewer
Four drinking fountains will be provided.
Two, 8 ft x 10 ft restrooms will be provided at the wet end
operating floor of the paper machine. Location will be determined
after the process equipment layout is finalized. One 8 ft x 10 ft
restroom will be provided at the dry end.
Potable water and sanitary sewer piping will be provided.
Essentially all of this piping will be supported by individual
hangers.
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5.4 EQUIPMENT
5.4.1 Process Equipment
Detailed descriptions of the equipment are given in the vendor
proposals.. The process scope is based on the Voith Sulzer paper
machine scope of supply described in the specification dated March
26, 1998.
5.4.2 Mobile Equipment
Mobile equipment for the facility is described in Section 11 of
this exhibit.
5.4.3 Other Equipment
Two, *** ton capacity bridge cranes are provided to service the
paper machine. The crane will have three trolleys, 2 rated for 17.5
tons, and one rated for 35 tons.
One, *** ton capacity strongback with motorized rotation is
provided for placing parent rolls into the winder unwind stand.
One dedicated monorail hoists is included in the paper machine area
for servicing the mezzanine storage area on the wet end.
5.4.4 Spare Parts
An allowance for process and mechanical spare parts has been
included in the cost estimate.
5.5 PIPING
All process and utility piping not included in the equipment vendor's scope
of supply will be provided.
Some of the piping will be supported by individual hangers. Gang supports
will be used where a sufficient number of lines can be grouped to be cost
effective. The building design will include structural steel beams in the
tending side basement aisle to support piping and cable trays.
Fire protection, potable water and sanitary sewer systems are described in
Section 5.3 Architectural.
An allowance for valve and piping specialty spare parts has been included
in the cost estimate.
5.6 ELECTRICAL
5.6.1 Process Electrical
A variable-speed drive system will be provided for the paper
machine and fan pump motors. Primary control will be through the
central control system with interface points coordinated with the
paper machine vendor. Control will also be available at key points
on the paper machine for use during threading and maintenance
operations.
An uninterruptable power source for computers and key process
control equipment will be provided.
Motor Control Centers (MCCs) and medium voltage starters will be
located in an enclosure at the wet end of the paper machine
building.
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480V MCCs will be either 1200 amp or 1600 amp, 3 Phase, 3 wire in
front mounting arrangements. Motor starters will use MCP type
circuit breakers and feeder circuits will use thermal/magnetic
breakers.
Motor controls will be through a DCS or PLC based central control
system. Local start/stop buttons will not be provided, except in
areas where an emergency stop is required. Emergency stops will be
provided for the paper machine, under machine pulper, couch pit
agitator and winder.
Feeder, power, control and instrumentation distribution inside and
outside the structure will use aluminum cable trays. Cable tray
will be 6" high, NEMA class 12A, ladder type with 9" rung spacing.
Separate tray systems will be provided for feeders, power with
control and instrumentation. The instrument tray will use barriers
for the analog, and discrete signals.
Conduits will be Rigid Galvanized Steel (RGS). Minimum conduit size
will be 3/4". Trade sizes of 1-1/4" and 2-1/2" will not be used.
Cable tray drop out channels and conduits will be sized to
accommodate both the power and the control cable if the load
requires a local control push-button station and conduit is being
used.
Power cables for 480 V loads will be 600 V, tray rated, type 1AC
cables with THHN/THWN or XHHW insulation. Power cables for 4,000 V
motor loads will be 5,000 V, type 1AC cables with 133% EPR
insulation and overall PVC jacket. Control multi-conductor cables
will be 600 V, tray rated, type 1AC or TC with THHN/THWN or XHHW
insulation.
Armored cable will be used to connect between MCCs and all main
process loads such as process motors. Conduit will only be used for
instrument drops and building facility loads such as unit heaters,
panels, lights and receptacles.
5.6.2 Building Lighting and Electrical Systems
Electrical power for this area will be provided from MCCs located
in the paper machine electrical room.
Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 30 foot-candles minimum in the basement
area, 50 foot-candles on the operating floor and 30 foot-candles on
the mezzanine. Lighting panel boards will be 480/277V. Separate
standby panels will be established for egress and EXIT sign lights.
Lighting fixtures will be 277 volt high pressure sodium HID
fixtures in process areas and florescent in office, electric,
instrument rooms, etc. Rooms with suspended ceiling, will use lay-
in fluorescent troffers. Electric and utility areas will use open
two lamp industrial fixtures. Strategic light fixtures and EXIT
signs located along routes of egress will be battery-pack type.
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Grounding triads consisting of three interconnected 3/4" x 10'
copper clad steel ground rods will be established for the power,
instrumentation and a master ground reference.
A #4/0, bare, copper ground grid system for grounding and bonding
the plant electrical distribution equipment, large motors, paper
machines and substations will be installed. The building structural
columns will be grounded directly to the buried grounding grid.
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
Lightning protection will be provided for buildings and structures
in the form of air terminals bonded to the vertical columns.
Twenty, grounding type welding outlets will be provided. These
outlets will be 480V, 60A, 3 wire configuration.
One hundred and seventy grounding type, 20 amp, 120 volt
convenience and maintenance outlets will be provided within the
warehouse area. Weather-proof covers will be provide on all outside
receptacles. 208Y/120V panel boards for convenience receptacles,
office lighting, control, heat tracing and instrumentation power
will be wall mounted within the electric room. Ground fault circuit
breakers will be installed both for 120V convince receptacle and
heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
5.6.3 Spare Parts
An allowance for electrical spare parts has been included in the
cost estimate.
5.7 PROCESS CONTROL
5.7.1 On-Line Scanner and Closed Loop Control
The paper machine will include a paper scanner located near the
reel. This analyzer will provide continuous machine and cross
machine web measurements.
Machine direction basis weight will be closed looped control using
one or more of the basis weight valves.
Machine direction moisture control will be closed loop control
using the dryer steam control valves.
Cross machine basis weight will be closed loop control using
dilution control devices on the filler ply headbox.
Caliper will be monitored but there will be no closed loop control
function.
The control requirements will be coordinated with the paper machine
vendor.
5.7.2 Roll Tracking and Labeling
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A roll tracking system will be provided. The system will include
four bar code scanners and two printers. Information from the roll
tracking system will be available to the mill wide communication
system.
5.7.3 Field Instruments and Installation
Field instruments not included as part of the process equipment
will be installed in the piping or tanks as required. Compressed
air connections will be provided for all air actuated devices.
Electrical distribution will generally be made using cable tray
with conduit drops to each device. Junction boxes may be used in
areas of high density controls to minimize cable runs. Multiple
conductor cable will be used where feasible. Analog instrument
cables will be 300 volt rated, #14 or #16 AWG shielded with foil
xxxxxxx. Two, four and six conductor cables will be used. Cable
assembly will be tray rated.
All control will be through a DCS or PLC based central control
system. Local control will not be provided, except in areas where
the vendor provides integrated, local controls as part of their
supply.
5.7.4 Master Control System
This master control system is a microprocessor technology based,
process control and data acquisition system. The digital technology
allows for a distributed architecture in which the system's
components can be located closer to the points of measurement and
are connected by communication networks. In this master control
system, primary operator interface is by way of a CRT (Cathode Ray
Tube)/keyboard/mouse/function keys. Some operator interface is by
alarm bells, signal lights, pilot lights, and printers for outputs
and selector switches, buttons and other specific inputs. These
hardwired inputs and outputs shall be provided where appropriate.
One necessary system shall be hardwired Emergency Stop circuits
which will communicate to the master control system.
This master control system may have control systems consisting of
DCS (Distributed Control Systems), PLC (Programmable Logic
Controllers), PC (Personal Computers) and other devices that are
linked together electronically to accomplish the desired control,
interface, and acquisition functions.
Each master control will link to vendor provided PLCs via high
speed dedicated process quality data highways with watchdog timers.
The handshaking and watchdog timer techniques will insure data
integrity continuously and initiate major alarms upon loss of
handshake.
The TAG Database of the MCS will be arranged to write its contents
periodically to the management information system server
electronically. Thus the minute by minute process data would be
able to be read by any PC in the facility that is electronically
linked to the LAN server.
5.7.5 Isolated Ground
A separate, isolated, grounding system will be furnished for the
master control system.
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5.7.6 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms.
Eight telephone extensions will be provided in the paper machine
area. Each of the offices and labs will be connected to the mill
wide LAN.
The communication system for the entire facility is described in
Section 11 Site General.
5.7.7 Spare Parts
An allowance for process control spare parts has been included in
the cost estimate.
5.8 HEATING AND VENTILATION
The building ventilation system is based on Valmet's proposal. The
proposal is included with Volume 3 - Cost Estimate and Proposals.
The system includes:
. 11 Building Ventilation Fans
. 4 Wet End False Ceiling Fans
. 1 Roof Supply System Fan
. 10 Roof Exhaust Fans
. 11 Air Make-up Units
Make-up air will be supplied to the paper machine building from air
handling units located on the roof. The air will be distributed in
the building through a duct system. Make-up air will be heated to
maintain approximately 65 degrees F. during winter design
conditions.
Ventilation for the main building will be provided by ten roof
mounted exhaust fans.
Offices and control rooms will be heated and air conditioned. There
is no provision for activated carbon or other chemical filtering of
the supply air for control room or electrical spaces.
The wet end lab will be ventilated but not air conditioned or
humidity controlled.
The dry end lab will be temperature and humidity controlled to
maintain 72 deg. F. +/- 3 deg. and 50 % RH +/- 5 %.
An allowance for HVAC spare parts has been included in the cost
estimate.
6.0 ROLL STORAGE AND SHIPPING
This area includes the roll storage warehouse building shell,
mechanical components, HVAC and electrical systems.
The warehouse is designed to hold up to 1,140 finished rolls. This
represents up to 5.7 days of storage at design production rates.
Roll dimensions, weights and other design information is documented
in the project design criteria, included in Section 12 of this
volume.
6.1 GENERAL ARRANGEMENT
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The general arrangement for the roll storage warehouse is shown in
the project drawings.
6.2 CIVIL AND STRUCTURAL
A 250' X 150' warehouse will be provided for finished roll storage
and shipping.
6.2.1 Site Preparation
The warehouse floor will be located slightly above grade level at a
nominal elevation of 104'-0". This is four feet higher than the
paper machine ground floor. Site preparation consists of minimal
excavation and backfill for:
. the floor slab
. building footings
. grounding cable
The railroad spur and associated civil work are described in
Section 11 Site General.
6.2.2 Concrete
The building will be founded on virgin soils using shallow spread
footings.
The floor will be 6 inch thick slab on grade construction.
The concrete truck apron is described in Section 11 Site General.
6.2.3 Steel and Miscellaneous Metal
A pre-engineered building will be provided consisting of open web
purlins and girders with structural steel columns spaced on an
approximate 50' x 50' grid.
Insulated metal siding will complete the exterior wall closure
where fire walls are not required. The roof will be standing seam,
metal construction.
A pre-engineered rigid frame structure with a standing seam metal
roof and open sides will provide a canopy for loading and tarping
trucks.
Miscellaneous metal installations will include:
. interior wall protection using independent 6 ft high highway
type guard rail
. stairs with railings to the exterior grade level
. supports for unit heaters and other miscellaneous equipment
. a safety restraint system for personnel safety during truck
tarping
. all columns in storage area protected with concrete to a height
of 4 ft.
6.3 ARCHITECTURAL
6.3.1 Doors and Interior Walls
The will be *** truck docks with levelers, lights, door seals and
overhead doors. The truck doors are covered with a canopy for
weather protection when tarps are being installed after loading.
The structure incorporates a tie-off system for operator safety
during this operation. The truck doors have wider than standard
spacing to further improve visibility and safety.
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An overhead door will be provided for the rail siding entry.
Two (2) deluge showers will be provided for the opening into the
paper machine building.
Concrete block walls with a four hour fire resistant rating will
separate this structure from the paper machine building and the
shops area. These walls will be primed and painted.
6.3.2 Fire Protection
The warehouse is classified as an Extra Hazard by Industrial Risk
Insurers for fire protection purposes. The entire building area
will be sprinkled. The cost estimate is based on a wet pipe system
with a sprinkler density of 0.40 gpm/2,000 S.F.
Water will be supplied to the sprinkler system from the mill fire
protection loop. The fire protection loop is described in the
Section 11 Site General.
Seven fire hose stations will be provided.
Twenty fire extinguishers will be provided.
6.3.3 Roof Drains
Rainwater will be diverted to exterior gutters and downspouts.
Interior roof drains are not required.
6.3.4 Potable Water and Sanitary Sewer
There will be a 10 ft X 25 ft break and restroom area in the corner
of the roll storage and shipping warehouse truck docks. The cost
estimate is based on metal stud and painted gypsum board walls. A
suspended, acoustical tile ceiling will be provided.
A pay telephone will be provided for use by truck drivers. A unisex
toilet facility with two fixtures and a drinking fountain will be
provided.
Potable water and sanitary sewer piping will be provided.
Essentially all of this piping will be supported by individual
hangers.
6.4 EQUIPMENT
6.4.1 Process Equipment
There is no process equipment in this area.
6.4.2 Mobile Equipment
Mobile equipment for the facility is described in Section 11 of
this Exhibit.
6.5 PIPING
There is no process piping in this area. Utility piping will be provided
for unit heaters.
The piping will be supported by individual hangers in this area.
6.6 ELECTRICAL
6.6.1 Process Electrical
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There is no process electrical system required in this area.
6.6.2 Lighting and Electrical Systems
Electrical power for this area will be provided from MCCs located
in the paper machine area electrical room.
Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 30 foot-candles when the warehouse is
in use and 5 foot-candles in inactive mode. Lighting panel boards
will be 480/277V. Separate standby panels will be established for
egress and EXIT sign lights. Lighting fixtures will be 277 volt
high pressure sodium HID fixtures. Switch rated circuit breakers
will be provided in the lighting panels.
The building structural columns will be grounded via the concrete
footings, "Ufer" style. Adequate rebar will be welded to the column
anchor bolts to satisfy NEC 250-81(c).
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
A #4/0, bare, copper wire will be buried for grounding and bonding
this building to the site general grounding grid.
Six, grounding type welding outlets will be provided. These outlets
will be 480V, 60A, 3 wire configuration.
24, grounding type, 20 amp, 120 volt convenience and maintenance
outlets will be provided within the warehouse area. Weather-proof
covers will be provide on all outside receptacles. 208Y/120V panel
boards for convenience receptacles, office lighting, control, heat
tracing and instrumentation power will be wall mounted within the
recycled fiber plant electric room. Ground fault circuit breakers
will be installed both for 120V convince receptacle and heat
tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
6.6.3 Spare Parts
An allowance for electrical spare parts has been included in the
cost estimate.
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6.7 PROCESS CONTROL
6.7.1 PROCESS
There is no process control system required in this area.
Inventory control will be maintained using a bar code scanning and
roll tracking system. This system will communicate with the mill
wide information system. This system is described in Section 5
Paper Machine and Roll Handling.
6.7.2 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms. One telephone system extension and a pay telephone will be
provided in the warehouse area.
The communication system for the entire facility is described in
Section 11 Site General.
6.8 HEATING AND VENTILATION
6.8.1 Make-up Air
Make-up air will be supplied to the warehouse from a 50,000 CFM,
direct gas-fired, air handling unit located on the roof of the
paper machine building. The air will be distributed in the
warehouse through a duct system. Make-up air can be heated to
maintain approximately 55 degrees F. in the warehouse during winter
design conditions.
6.8.2 Unit Heaters
Three, gas fired, unit heaters will be located above the truck dock
doors. A single, gas fired unit heater will be located above the
rail car door.
6.8.3 Ventilation
Ventilation will be provided by four, exhaust fans located in the
south wall of the warehouse. The fans will have a total capacity of
approximately 30,000 CFM.
6.8.4 Duct Work
Duct will be galvanized steel with thickness appropriate for the
duct size. Duct will be either rectangular or spiral reinforced,
round cross section. Exterior duct runs will be insulated.
6.8.5 Spare Parts
An allowance for HVAC spare parts has been included in the cost
estimate.
7.0 BOILER AND UTILITIES
This area includes the utility building shell, mechanical components, HVAC
and electrical systems. A natural gas fired boiler designed for 150,000
lb/hr at *** psig and all boiler ancillary systems are included in this
area. The mill compressed air system is included in this area. The chilled
water system is included in this area.
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The boiler and other utilities systems are shown on block flow diagrams
included with this report.
Design criteria for the paper machine and sub-systems are documented in
Section 12 of this volume.
7.1 GENERAL ARRANGEMENT
The general arrangement for the boiler and utility area is shown in
drawings referenced in Exhibit 5 of this Agreement.
Most of the equipment is located at grade level in a building adjacent to
the drive side of the paper machine building. The deaerator tank is
supported on a mezzanine level within the boiler building.
The oil storage tank is located near the perimeter road. A pipe bridge
connects the tank area with the utility building.
7.2 CIVIL AND STRUCTURAL
A 60 ft x 80 ft utility building will be provided.
7.2.1 Site Preparation
The utility building floor will be located slightly above grade
level. Site preparation consists of minimal excavation and backfill
for:
. the floor slab
. building footings
. tank and boiler foundations
There is no provision for deep foundations in the boiler and
utility area.
7.2.2 Concrete
The primary building will be founded on virgin soils using shallow
spread footings.
The main building floor will be six inch slab on grade.
There are no elevated concrete slabs in this area.
Twenty four inch wide, concrete floor drains will be included.
Equipment foundations and pads will be provided, including
containment walls for the fuel oil storage tank area.
7.2.3 Steel and Miscellaneous Metal
The primary building will be a pre-engineered structure consisting
of purlins and girders with a single interior structural steel
column.
Insulated metal siding will complete the exterior wall closure. The
roof will be standing seam, metal construction.
A structural steel mezzanine within the main building will support
the deaerator. It is assumed that process tubing for continuous
emission monitoring systems are routed to the mezzanine, ie. no
special platforms for monitoring the systems are included.
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Floor trench grating covers will be provided. The grating will be
able to support a lift truck in aisle or maintenance access areas.
7.3 ARCHITECTURAL
7.3.1 Doors and Interior Walls
The following doors will be provided:
. One, 9 ft x 9 ft, overhead sectional door
. Four, hollow metal doors
7.3.2 Fire Protection
The utility building is classified as an ordinary Hazard Group II
by Industrial Risk Insurers for fire protection purposes. The cost
estimate is based on a wet pipe system with a sprinkler density of
0.17 gpm/3,000 S.F.
Water will be supplied to the sprinkler system from the mill fire
protection loop. The fire protection loop is described in the site
general area.
Four hose stations
Walls with a four hour fire resistant rating will separate this
structure from the paper machine building. The cost is included in
the paper machine area cost estimate.
7.3.3 Roof Drains
Internal roof drains are not required in this area. Run-off will be
handled through the gutter and downspout system.
7.3.4 Potable Water and Sanitary Sewer
There is no provision for restrooms, drinking fountains or other
personnel facilities in this area.
7.4 EQUIPMENT
7.4.1 Process Equipment
Detailed descriptions of the equipment are given in the vendor
proposals.
7.4.2 Mobile Equipment
No mobile equipment is required in this area.
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7.4.3 Spare Parts
An allowance has been included in the cost estimate for process and
mechanical spare parts.
7.5 PIPING
All utility piping not included in the equipment vendor's scope of supply
will be provided. Compressed air and fresh water piping will be 304 L
stainless steel.
Much of the piping will be supported by individual hangers. Gang supports
will be used where a sufficient number of lines can be grouped to be cost
effective.
An allowance has been included in the cost estimate for valve and piping
specialty spare parts.
Fire protection, potable water and sanitary sewer systems are described in
Section 7.3 Architectural.
7.6 ELECTRICAL
7.6.1 Process Electrical
Motor Control Centers (MCCs) will be located in a structure
adjacent to the drive side of the paper machine building.
480V MCCs will be either 1200 amp or 1600 amp, 3 Phase, 3 wire in
front mounting arrangements. Motor starters will use MCP type
circuit breakers and feeder circuits will use thermal/magnetic
breakers.
Motor controls will be through a DCS or PLC based central control
system. Local start/stop buttons will not be provided, except in
areas where an emergency stop is required. Emergency stops will be
provided for the paper machine, under machine pulper, couch pit
agitator and winder.
Feeder, power, control and instrumentation distribution inside and
outside the structure will use aluminum cable trays. Cable tray
will be 6" high, NEMA class 12A, ladder type with 9" rung spacing.
Separate tray systems will be provided for feeders, power with
control and instrumentation. The instrument tray will use barriers
for the analog, and discrete signals.
Conduits will be Rigid Galvanized Steel (RGS). Minimum conduit size
will be 3/4". Trade sizes of 1-1/4" and 2-1/2" will not be used.
Cable tray drop out channels and conduits will be sized to
accommodate both the power and the control cable if the load
requires a local control push-button station where conduit is
required.
Power cables for 480 V loads will be 600 V, tray rated, type 1AC
cables with THHN/THWN or XHHW insulation. Power cables for 4,000 V
motor loads will be 5,000 V, type 1AC cables with 133% EPR
insulation and overall PVC jacket. Control multi-conductor cables
will be 600 V, tray rated, type 1AC or TC with THHN/THWN or XHHW
insulation.
Armored cable will be used to connect between MCCs and all main
process loads such
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as process motors. Conduit will only be used for
instrument drops and building facility loads such as unit heaters,
panels, lights and receptacles.
7.6.2 Building Lighting and Electrical Systems
Electrical power for this area will be provided from MCCs located
in the paper machine electrical room adjacent to the drive side of
the paper machine building.
Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 25 foot-candles minimum. Lighting panel
boards will be 480/277V. Separate standby panels will be
established for egress and EXIT sign lights.
Lighting fixtures will be 277 volt high pressure sodium HID
fixtures in process areas and florescent in office, electric,
instrument rooms, etc. Strategic light fixtures and EXIT signs
located along routes of egress will be battery-pack type.
Grounding triads consisting of three interconnected 3/4" x 10'
copper clad steel ground rods will be established for the power,
instrumentation and a master ground reference.
A #4/0, bare, copper ground grid system for grounding and bonding
the plant electrical distribution equipment, large motors, main
process equipment. The building structural columns will be grounded
directly to the buried grounding grid.
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
Lightning protection will be provided for buildings and structures
in the form of air terminals bonded to the vertical columns.
Four grounding type welding outlets will be provided. These outlets
will be 480V, 60A, 3 wire configuration.
Twenty grounding type, 20 amp, 120 volt convenience and maintenance
outlets will be provided within the warehouse area. Weather-proof
covers will be provided on all outside receptacles. 208Y/120V panel
boards for convenience receptacles, office lighting, control, heat
tracing and instrumentation power will be wall mounted within the
electric room. Ground fault circuit breakers will be installed both
for 120V convince receptacle and heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
7.6.3 Spare Parts
An allowance for electrical spare parts has been included in the
cost estimate.
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7.7 PROCESS CONTROL
7.7.1 Field Instruments
Field instruments not included as part of the process equipment
will be installed in the piping or tanks as required. Compressed
air connections will be provided for all air actuated devices.
Electrical distribution will generally be made using cable tray
with conduit drops to each device. Junction boxes may be used in
areas of high density controls to minimize cable runs. Multiple
conductor cable will be used where feasible. Analog instrument
cables will be 300 volt rated, #14 or #16 AWG shielded with foil
xxxxxxx. Two, four and six conductor cables will be used. Cable
assembly will be tray rated.
7.7.2 Control Systems
The boiler, compressed air system and chiller system will have
stand alone control systems provided by the vendor. These systems
will be able to communicate status information to a DCS or PLC
based central control system.
Emergency stops will be provided for some critical systems.
7.7.3 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms.
One telephone extension will be provided in the area.
The communication system for the entire facility is described in
Section 11 Site General.
7.7.4 Spare Parts
An allowance for process control spare parts has been included in
the cost estimate.
7.8 HEATING AND VENTILATION
Ventilation will be provided by two exhaust fans located in the wall of the
utility building. The fans will have a total capacity of approximately
10,000 CFM.
Separate HVAC spare parts are not required for this area since the
equipment will duplicate items spared for other areas.
8.0 EFFLUENT TREATMENT/WATER RECYCLE
Environmental permits for the new facility have not been obtained. The
scope and cost estimate is based on a mill designed for minimal water
consumption and discharge. Primary and secondary treatment would be
provided. The treated effluent stream would be discharged to the municipal
sewer system for further treatment prior to discharge. The scope and cost
estimate does not include provisions for an outfall or other stream
discharge facilities.
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The detailed scope and cost estimate in this area is based upon the
following assumptions:
. average flow of influent to plant wastewater treatment facility of
*** gpm or *** gal/day
. average BOD to plant wastewater treatment facility of *** lb/day
. average COD to plant waste water treatment facility of *** lb/day
. average TSS to plant wastewater treatment facility of *** lb/day
Maximum discharge to Municipal Treatment Facility:
. less than *** BOD
. less than *** TSS
. less than ***ppm Ammonia
. less than *** ppm Chlorides
. pH not less than *** or greater than ***
8.1 GENERAL ARRANGEMENT
The effluent treatment area layout is shown in the project drawings. It
occupies an area of 324 feet by 355 feet. The size and layout can be
modified to fit constraints of the site when it is selected.
Major items include:
. *** gallon concrete influent sump tank
. *** ft diameter primary clarifier
. *** gallon cooling tank.
. *** ft diameter sequencing batch reactors
. *** gallon SBR equalization tank.
. gravity filter
. *** gallon sludge chest
. two sludge presses with conveyors
. sludge dewatering building.
8.2 CIVIL AND STRUCTURAL
8.2.1 Site Preparation
The sludge press building floor and concrete tank bottoms will be
located slightly above grade level. Site preparation consists of
minimal excavation and backfill for:
. the floor slab (by subcontractor)
. building footings (by subcontractor)
. tank bases (by subcontractor)
8.2.2 Concrete
The building will be founded on virgin soils using shallow spread
footings.
The floor will be 6 inch thick slab on grade construction.
Bases for the major tanks will be reinforced concrete slabs.
The influent sump and clearwell will be site constructed concrete
tanks.
The concrete truck apron is described in Section 11 Site General.
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8.2.3 Steel and Miscellaneous Metal
Insulated metal siding will complete the exterior wall closure. The
roof will be standing seam, metal construction.
Miscellaneous metal installations will include:
. steel supports for elevated sludge presses
. stairs with railings
. supports for unit heaters and other miscellaneous equipment
8.3 ARCHITECTURAL
8.3.1 Doors and Interior Walls
One overhead door will be provided for the sludge press building.
Two, hollow metal doors will be provided.
There are no interior walls in this area.
8.3.2 Fire Protection
Two fire hose stations will be provided.
Two fire extinguishers will be provided.
There is no provision for a sprinkler system in the sludge
building. Fluor Xxxxxx does not expect a sprinkler system to be
required for this building.
8.3.3 Roof Drains
Rainwater will be diverted to exterior gutters and downspouts.
Interior roof drains are not required.
8.3.4 Potable Water and Sanitary Sewer
There will be no drinking fountains, restroom or wash-up facilities
in the sludge press building. The area will be serviced by a break
and restroom facilities in the warehouses.
8.4 EQUIPMENT
8.4.1 Process Equipment
8.4.2 Mobile Equipment
There is no mobile equipment dedicated to this area.
Mobile equipment for the facility is described in Section 11 of
this volume.
8.4.4 Spare Parts
An allowance for process and mechanical spare parts has been
included in the cost estimate.
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8.5 PIPING
All process and utility piping not included in the equipment
vendor's scope of supply will be provided.
Some of the piping will be supported by individual hangers. Gang
supports will be used where a sufficient number of lines can be
grouped to be cost effective.
An allowance for valve and piping specialty spare parts has been
included in the cost estimate.
8.6 ELECTRICAL
8.6.1 Process Electrical
Motor Control Centers (MCCs) will be located in the sludge press
building.
480V MCCs will be either 1200 amp or 1600 amp, 3 Phase, 3 wire in
front mounting arrangements. Motor starters will use MCP type
circuit breakers and feeder circuits will use thermal/magnetic
breakers.
Motor controls will be through a PLC based central control system.
Local start/stop buttons will not be provided, except in areas
where an emergency stop is required.
Feeder, power, control and instrumentation distribution inside and
outside the structure will use 4 inch channel. Separate channel
will be provided for feeders, power with control and
instrumentation.
Conduits will be Rigid Galvanized Steel (RGS). Minimum conduit size
will be 3/4". Trade sizes of 1-1/4" and 2-1/2" will not be used.
Drops out channels will be sized to accommodate both the power and
the control cable if the load requires a local control push-button
station and conduit is being used.
Power cables for 480 V loads will be 600 V, tray rated, type 1AC
cables with THHN/THWN or XHHW insulation. Power cables for 4,000 V
motor loads will be 5,000 V, type 1AC cables with 133% EPR
insulation and overall PVC jacket. Control multi-conductor cables
will be 600 V, tray rated, type 1AC or TC with THHN/THWN or XHHW
insulation.
Armored cable will be used to connect between MCCs and all main
process loads such as process motors. Conduit will only be used for
instrument drops and building facility loads such as unit heaters,
panels, lights and receptacles.
8.6.2 Building Lighting and Electrical Systems
Electrical power for this area will be provided from MCCs located
in the sludge press building. Contractor to provide one 13.8 kV
feeder to subcontractor's transformer.
Power for truck doors, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 30 foot-candles minimum in the process
areas. Lighting panel boards will be 480/277V. Separate standby
panels will be established for egress and EXIT sign lights.
Lighting fixtures will be 277 volt high pressure sodium HID
fixtures in process areas and
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florescent in office, electric, instrument rooms, etc. Strategic
light fixtures and EXIT signs located along routes of egress will
be battery-pack type.
Grounding triads consisting of three interconnected 3/4" x 10'
copper clad steel ground rods will be established for the power,
instrumentation and a master ground reference.
A #4/0, bare, copper ground grid system for grounding and bonding
the plant electrical distribution equipment, large motors, paper
machines and substations will be installed. The building structural
columns will be grounded directly to the buried grounding grid.
Outdoor platforms, walkways and fences will be grounded "Ufer"
style to concrete footings.
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
Two, grounding type welding outlets will be provided. These outlets
will be 480V, 60A, 3 wire configuration.
Twelve grounding type, 20 amp, 120 volt convenience and maintenance
outlets will be provided within the warehouse area. Weather-proof
covers will be provide on all outside receptacles. 208Y/120V panel
boards for convenience receptacles, office lighting, control, heat
tracing and instrumentation power will be wall mounted within the
electric room. Ground fault circuit breakers will be installed both
for 120V convince receptacle and heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
8.7 PROCESS CONTROL
8.7.1 Field Instruments and Installation
Field instruments not included as part of the process equipment
will be installed in the piping or tanks as required. Compressed
air connections will be provided for all air actuated devices.
Electrical distribution will generally be made using cable tray
with conduit drops to each device. Junction boxes may be used in
areas of high density controls to minimize cable runs. Multiple
conductor cable will be used where feasible. Analog instrument
cables will be 300 volt rated, #14 or #16 AWG shielded with foil
xxxxxxx. Two, four and six conductor cables will be used. Cable
assembly will be tray rated.
All control will be through a PLC based central control system.
Local control will not be provided, except in areas where the
vendor provides integrated, local controls as part of their supply.
8.7.2 Communication and Alarm Systems
Speakers for the voice paging system will be provided in this area.
The same system will provide fire, tornado and other required
alarms.
Two telephone extension will be provided in the paper machine area.
Each of the offices and labs will be connected to the mill wide
LAN.
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The communication system for the entire facility is described in
Section 11 Site General.
8.7.3 Spare Parts
An allowance for process control spare parts has been included in
the cost estimate.
8.8 HEATING AND VENTILATION (by subcontractor)
8.8.1 Unit Heaters
One, gas fired, unit heater will be located in the sludge press
building
8.8.2 Ventilation
Ventilation will be provided by an exhaust fan located in the
sludge building wall.
8.8.3 Spare Parts
No separate allowance for HVAC spare parts is required.
9.0 POWER DISTRIBUTION
This area will include electrical power distribution systems
starting at the main utility company substation and continuing
through the MCCs. Electrical or drive rooms civil, structural and
architectural costs, are be included in that area's building cost.
All electrical power will be purchased from the local utility. This
proposal is based on a nominal 15 kV distribution system within the
mill site.
Voltage levels on this project include:
. 13.2 kV, 3Ph-----Utility service
. 13.2 kV, 3Ph ----Plant distribution
. 4160 V, 3Ph------Motors above 200Hp
. 480 V, 3Ph ------Motor and process loads 200Hp and below
. 277 V, 1Ph-------HID lighting
. 120 V, 1Ph ------Control and convenience receptacles
9.1 GENERAL ARRANGEMENT
A main utility substation and switchgear will be located on the
site. This area will include a perimeter fence and a gravel base.
The cost estimate is based on the entire utility substation,
including site preparation, being designed and installed by the
local utility. Size and configuration will be determined by the
utility company.
All transformers and switch gear for the paper machine and recycled
fiber areas will be located adjacent to the paper machine building.
The floor will be slab on grade construction with pads for the
individual pieces of equipment. The area will be enclosed on three
sides by fencing.
The power distribution system was sized under the assumption that
any future infrared dryer installations would be natural gas fired
and not electric.
9.2 CIVIL AND STRUCTURAL
There are no special requirements for this area.
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9.3 ARCHITECTURAL
9.3.1 FIRE PROTECTION
The cast coil, dry type transformers proposed do not require any
special fire protection or alarm systems.
9.4 EQUIPMENT
9.4.1 Process Equipment
There is no process equipment in this area.
9.4.2 Mobile Equipment
The is no dedicated mobile equipment in this area.
The facility mobile equipment is described in Section 11.
9.5 PIPING
There is no process or utility piping in this area.
9.6 ELECTRICAL
9.6.1 Utility Substation
The main plant substation will be designed and supplied by the
local utility. The demand load will be 30 MVA. Connected load will
be approximately 39 MVA.
The site plan is based on one outdoor, oil filled, medium voltage
transformer, 40/53/66 MVA, supplied by the local utility line at a
voltage of 34.5kV or higher. Fluor Xxxxxx expects the transformer
will be low resistive grounded. The utility source will be from two
separate lines, if possible.
9.6.2 Distribution To Area Transformers and Switchgear
MV underground cable will feed a 15 kV lineup of metal clad main
switchgear located adjacent to the utility substation. The 15kV
switchgear will be rated at 750 MVA. It will consist of a 3,000 A
main breaker and two, 1,200 A feeder breakers equipped with solid
state relaying.
The main switchgear will include two, 1200 A, feeder breakers for
the 4160V, and 480V step-down transformers. The feeder breakers
will be connected to the area transformers by 15 kV direct burial,
metal clad cable and overhead cable tray raceway systems.
9.6.3 Area Transformers
The following area transformer and switchgear arrangements will be
provided.
. Recycled Fiber Plant 480 VAC
1200 A load break and fuse
2500/3333 KVA Transformer
4000 AF Main Breaker
480 V Bus
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Three, 1600 AF Breakers and Bus to MCCs
One, 1200 AF Breaker and Bus to MCCs
One, 1600 AF Breaker and Bus Spare
Space for an Additional Breaker On The 480 V Bus
. Recycled Fiber Plant and PM Auxiliaries 4160 VAC
1200 A load break and fuse
5000/6666 KVA Transformer
1200 A Main Breaker
4160 V Bus
Seven Medium Voltage Starters to Process Motors
Two, fused disconnects to VFDs
Space for an Additional Medium Voltage Starter
. Paper Machine Auxiliaries No. 1 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Bus
Three, 1600 AF Breakers and Bus To MCCs
One, 1200 AF Breaker and Bus to MCCs
One, 1600 AF Breaker and Bus Spare
Space for an Additional Breaker On The 480 V Bus
. Paper Machine Auxiliaries No. 2 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Bus
Three, 1600 AF Breakers and Bus to MCCs
One, 1200 AF Breaker and Bus to MCCs
One, 1200 AF Breaker and Bus Spare
Space for an Additional Breaker on the 480 V Bus
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. Paper Machine Auxiliaries No. 3 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Bus
Three, 1600 AF Breakers and Bus to MCCs
One, 1200 AF Breaker and Bus to MCCs
One, 1200 AF Breaker and Bus Spare
Space for an Additional Breaker on the 480 V Bus
. Paper Machine Drives No. 1 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Feed to Drive
. Paper Machine Drives No. 2 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 Feed to Drive
. Paper Machine Drives No. 3 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Feed to Drive
. Paper Machine Drives No. 4 480 VAC
1200 A load break and fuse
2500/3300 KVA Transformer
4000 AF Main Breaker
480 V Feed to Drive
. PM Auxiliaries No. 4 4160 VAC
1200 A load break and fuse
5000/6666 KVA Transformer
1200 A Main Breaker
4160 V Bus
Space for an Additional Breaker on the 4160 V Bus
. PM Auxiliaries No. 5 4160 VAC
1200 A load break and fuse
5000/6666 KVA Transformer
1200 A Main Breaker
4160 V Bus
Space for an Additional Breaker on the 4160 V Bus
9.7 PROCESS CONTROL
There is no process control equipment in this area.
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10.0 STOREROOM, SHOPS AND OFFICES
The office area will include the building shell, mechanical components,
HVAC and electrical systems required for the following functions.
. accounting and management offices/conference rooms
. training room
. locker rooms and restroom
The shops area will include the building shell, mechanical components, HVAC
and electrical systems required for the following functions.
. maintenance shops
. storeroom
. large spare parts storage
. engineering and maintenance offices/conference rooms
. time clock area
. restroom.
10.1 GENERAL ARRANGEMENT
General offices, reception areas, conference rooms, central (single) rest
room and locker/shower rooms will be housed in a building to the West of
the paper machine building. The two main gates will be observed by the
office reception area via video camera.
Engineering offices, conference rooms, rest rooms, maintenance shops and
storerooms will be housed in a building to the North of the paper machine
building.
10.2 CIVIL AND STRUCTURAL
The office and shop buildings area one-story structures with the nominal
floor elevation at 100'-0".
10.2.1 Site Preparation
The building floors will be located slightly above grade level.
Site preparation consists of minimal excavation and backfill for:
. the floor slab
. building footings
. grounding cable
10.2.2 Concrete
The buildings will be founded on virgin soils using shallow spread
footings.
The floors will be 6 inch thick slab on grade construction.
Concrete pads will be provided for shop equipment, as required.
10.2.3 Steel and Miscellaneous Metals
Pre-manufactured structures will be used for this area. Structural
elements will consist of open web purlins and girders with columns
spaced on an approximate 50' x 50' grid.
Insulated metal siding and window banding for finished areas will
complete the exterior
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wall closure. The roof will be standing seam, metal construction.
A miscellaneous metals allowance for the shops area includes:
. materials storage racks
. lifting monorails or beams
. expanded metal "lockup" areas
10.3 ARCHITECTURAL
10.3.1 Fire Protection
Industrial Risk Insurers rate the offices and locker rooms as an
ordinary Hazard Group I density of 0.15 gpm/2,000 S.F. The shops
and storeroom is rated as a Hazard Group II and sprinkled at a
density of 0.17 gpm/3,000 S.F.
Six fire hose stations will be provided.
Twelve fire extinguishers will be provided.
10.3.2 Potable Water and Sanitary Sewer Piping
Potable water and sanitary sewer piping will be provided.
Essentially all of this piping will be supported by individual
hangers.
10.3.3 Office and Conference Room Area
Approximately 8,400 SF of finished area for engineering,
accounting, maintenance and management is provided. The area will
consist of conference rooms; one for 8 occupants and the other for
45 occupants. Open office area is shown that can be subdivided as
necessary using demountable partitions. The reception area is
located to be able to monitor and control the 2 main gate entrances
to the site. Additional space is provided for a central restroom,
kitchen, file storage, and a break room.
The manufacturing area is internally accessible from the
engineering office core.
Construction will consist of metal stud walls, painted gypsum board
walls, suspended acoustical ceiling and vinyl or carpeted flooring.
The estimate contains an allowance for furnishings.
10.3.4 Locker and Toilet Rooms
The employee entrance is contiguous to the plant's main toilet and
locker room facilities.
Showers and lockers are provided to accommodate the employees and
consists of *** women's lockers and *** men's lockers.
A separate men's and women's restroom facility is planned. Each
unit will contain 5 fixtures and will be handicap accessible.
Construction will consist of metal stud and gypsum board walls and
sealed concrete floors.
Construction will consist of epoxy painted concrete block walls,
sealed concrete floor and a vinyl covered suspended ceiling.
10.3.5 Shops and Storeroom
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Approximately 12,500 SF of area is provided. The area will consist
of three shop areas, a storeroom and a large spare parts storage
area. The shops will serve for maintenance of rolling stock,
mechanical shop, and electrical and instrumentation repair.
Six separate areas are provided for use as offices, storage, or as
a "clean-room" for instrumentation repair.
A large training center is located contiguous to the office and
shops areas. An exterior entrance is close by.
A central corridor will provide access to all areas of the shops as
well as the main offices and a time keeping station. This corridor
and the employee entrance is monitored by a security counter.
Shops and storeroom construction will generally consist of painted
concrete block walls, insulated metal siding and sealed concrete
floors. The ceiling will be exposed construction.
The cost estimate includes an allowance for simple, open, metal
shelving in the storeroom and for heavy duty, open, metal shelving
in the large equipment storage area.
An allowance is included for shop equipment. The allowance is based
on the following equipment.
10.3.5.1 Mechanical Shop
. six foot lathe
. drill press
. equipment for boring couplings
. hand held vibration monitoring equipment
. two welding booths
. pipe threading equipment
. vices
. rigging equipment including slings and chains
. portable hoists
. impact wrenches and other small power tools
10.3.5.2 Rolling Stock Shop
. hydraulic jacks and xxxx stands
. facilities for changing oil and coolant
10.3.5.3 E & I Shop
. portable test gauges
. benches set up for minor motor maintenance
. benches set up for minor instrument repairs
. instrument calibration equipment
Instrument calibration will be provided for use during
construction. This equipment will remain as part of the
facility after construction is complete.
10.4 EQUIPMENT
10.4.1 Process Equipment
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There is no process equipment in this area. Shop equipment is
included in Section 10.3 Architectural.
10.4.2 Mobile Equipment
Mobile equipment required for normal maintenance will be provided.
All mobile equipment is described in Section 11 Site General.
10.5 PIPING
10.5.1 Process Piping
There is no process piping in this area. Utility piping will be
provided for unit heaters, air conditioning equipment and shop
requirements.
The piping will be supported by individual hangers in this area.
Piping insulation for steam and condensate piping is included in
the piping scope of supply.
An allowance has been included in the cost estimate for valve and
piping specialty spare parts.
Fire protection systems are described in Section 10.3
Architectural.
10.6 ELECTRICAL
10.6.1 Process Electrical
There are no process electrical items in this area.
10.6.2 Lighting and Building Electrical
Electrical power for this area will be provided from MCCs located
in the main electrical room adjacent to the paper machine building.
Power for shop equipment, ventilation fans and other ancillary
equipment will be provided.
Illumination levels will be 40 foot-candles minimum in the shop
areas. Lighting panel boards will be 480/277V. Separate standby
panels will be established for egress and EXIT sign lights.
Lighting fixtures will be 277 volt high pressure sodium HID
fixtures in shop areas and florescent in office, electric,
instrument rooms, etc. Rooms with suspended ceiling, will use lay-
in fluorescent fixtures. Electric and utility areas will use open
two lamp industrial fixtures. Strategic light fixtures and EXIT
signs located along routes of egress will be battery-pack type.
The building structural columns will be grounded via the concrete
footings, "Ufer" style. Adequate rebar will be welded to the column
anchor bolts to satisfy NEC 250-81(c).
A separate equipment ground conductor will be specified in each
power cable to motors and loads.
A #4/0, bare, copper ground loop will be provided for grounding and
bonding this building
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to the ground grid.
Six, grounding type welding outlets will be provided. These outlets
will be 480V, 60A, 3 wire configuration.
Two hundred forty, grounding type, 20 amp, 120 volt convenience and
maintenance outlets will be provided within the warehouse area.
Weather-proof covers will be provide on all outside receptacles.
208Y/120V panel boards for convenience receptacles, office
lighting, control, heat tracing and instrumentation power will be
wall mounted within the electric room. Ground fault circuit
breakers will be installed both for 120V convince receptacle and
heat tracing circuits.
Freeze protection heat tracing is not required in this area.
Cathodic protection is not required in this area.
10.7 PROCESS CONTROL
10.7.1 Process
There are no field instruments or process control items required
for this area. HVAC systems will be supplied with integrated
control systems.
10.7.2 Communications Systems
The telephone equipment will reside in the main computer room. This
proposal assumes that approximately eighty voice lines will be
installed. These lines can be either digital or analog type,
depending on the particular phone, fax machine or modem used. This
is configurable through installation of modules inside the PBX
(Private Branch Exchange).
The intercom/paging equipment will be located in the main computer
room. It will interface to the telephone system and operators will
be capable of paging from any telephone. The system will have
numerous speakers located throughout the facility. The intercom
system could be supplied with features such as machine alarm
announcements and emergency warning announcements.
10.7.3 Radio System
The two-way radio system will consist of an estimate of two
repeaters and antennas, located strategically on-site, and
approximately twenty five portable radios. Each portable radio
would be supplied with a ni-cad battery. The radio system can be
supplied with such features as privacy channels and telephone
interconnect, which would allow radio users to patch into the
telephone system or vice versa.
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10.7.4 LAN and Computers
The mill-wide LAN (Local Area Network) network will operate on an
Ethernet platform. A robust operating system, such as Microsoft
Windows NT, will be installed on all network servers. These servers
will use TCP/IP protocol, built into Windows NT, to distribute data
to the client computers on the network.
Plant-wide information, such as production data, scheduling,
inventory, quality assurance, marketing, engineering, accounting,
and typical office software will be stored on one or more computers
in a main computer room. These computers will be connected to a hub
containing various network components, such as a switch, router,
bridge and/or repeaters, as required. This hub will provide a
backbone to other hubs located throughout the site.
The system will include dual servers for machine and process
control data, thus allowing one server to act as a hot backup, in
case the first server should fail. These servers will be connected
to a hub, located in the electrical room, and will run an MMI (Man
Machine Interface) software, such as Intellution Fix or Wonderware.
RG-58U cable will be used for the backbone hub connections. RV-45
twister pair cable will be used for connection of the information
outlets, where operator devices such as personal computers, modems,
printers, fax machines, telephones, and PLCs are connected.
Communications equipment, such as hubs, servers and PLCs, will have
a UPS (Uninterruptable Power Supply) power.
The allowance includes *** personal computers. The typical personal
computer will be a Pentium based system with a 15 inch color
monitor, CD-ROM drive, 2.0 gigabyte hard drive and 16K RAM.
Standard office software such as Microsoft Office will be provided.
Five Laserjet type printers will be provided on the network.
*** CAD capable personal computer systems will be provided. These
systems will be Pentium based personal computers with 20 inch
monitors, CD-ROM drives, 4 gigabyte hard drives and 32 megabytes of
RAM. AutoCad version 13 and standard office software will be
provided.
A pen type plotter will be provided on the network.
10.8 HEATING, VENTILATION AND AIR CONDITIONING
10.8.1 Finished Areas
The office, conference rooms, training room, locker rooms and
restrooms will be heated and air conditioned. The make-up air units
will be indirect, natural gas fired units.
10.8.2 Shops and Storerooms
The shops and storeroom will be heated with indirect gas fired unit
heaters. Ventilation will be provided by area exhaust fans. Air
conditioning is not provided for the shops and storerooms.
11.0 SITE GENERAL
This proposal is based on a 69 acre site with generally level topography
and free from permanent structures and contamination. Geotechnical
information for the adjacent site indicates that the soils include red to
dark xxxxx xxxx to a depth of approximately eight feet. If not removed,
these materials are expected to manifest significant heave if used with
slab-on-grade construction directly
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over the unmodified soils. Moderately loaded structures can use spread type
footings with minimal excavation. This proposal includes planning for
collecting surface runoff and minor subsurface water. Construction below
the local water table is not expected. Open areas of the site will be
grassed over to conform to local ordinances. Minimal landscaping is
planned.
11.1 SITE PREPARATION
11.1.1 GENERAL SITE PREPARATION
Allowances have been included in the cost estimate to clear the
site and complete rough grading. This allowance is not site
specific.
A general allowance for dewatering has also been included.
11.1.2 FENCING
An eight foot high, cyclone type fence will be provided around the
perimeter of the site. Separate gates are provided for truck
arrivals and automobiles.
11.1.3 Parking and Roads
Roadways are configured to accommodate material deliveries and
finish goods shipping. For trucks arriving during off hours, a
parking lane has been established. A perimeter road provides truck
access to all of the buildings on the site.
Adequate parking for mill employees and visitors is provided
adjacent to the paper machine and office buildings.
Parking lots and mill roads are covered with bituminous paving.
11.1.4 Railroad
Two sets of railroad spurs will be utilized for delivery of raw
material and shipping finished rolls. One set of tracks will be
located within the finished roll storage building and the other
will be located outside of the raw material storage building. The
layout will allow for a total of seven rail cars to be utilized for
raw material unload or finished roll loading.
11.1.5 Storm Water
A storm retention pond will be constructed to drain new constructed
areas. The pond will accommodate a 10 year, 24 hour storm of 5
inches of rainfall. The pond will be deepened and lined to contain
an additional 400,000 gallons of water to supply the fire
protection system. A dedicated well will be used to make-up for
evaporation losses from the pond to maintain a minimum of 400,000
gallons of water for fire suppression.
11.1.6 UNDERGROUND UTILITIES
The project scope includes on-site distribution of natural gas,
electrical power, fire protection water, sanitary sewer, and
potable water. The project scope does not include off-site utility
supply systems.
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The facility will be designed for minimal water consumption and low
or zero effluent. This proposal is based on fresh water supply from
a municipal treatment facility. The incoming water system consists
of a surge storage tank and distribution piping.
Effluent from the various process areas will be collected and
treated on-site. A portion of the effluent will be reused for
process make-up. The effluent system will include up to three
treatment stages.
Any effluent that leaves the site will be discharged to a POTW. The
project scope does not include any effluent piping beyond the site
boundaries or any outfall structures.
11.1.7 Solid Waste
Solid waste will be collected and sent to existing, off-site
landfills. The project includes provisions for compactor pads and
loading facilities. It does not include any on-site storage or
disposal facilities.
11.2 CONCRETE
Concrete is provided for:
. Paving at truck docks and dumpster locations
. Foundation for Fresh Water Make-up Tank
. Spill Containment Walls
. Foundation for Oil Supply Pipe Bridge
. Concrete Pit for Truck Scale
. Oil Storage Containment Walls
11.3 STEEL AND MISCELLANEOUS METAL
Miscellaneous steel will be provided for pipe bridge foundations and for
protective bollards.
11.4 ARCHITECTURAL
The cost estimate includes a minimal allowance for landscaping near the
main office entrance. Graded areas on the site will be seeded with grass.
There will be exterior lighting for the main entrances, parking lots and
roadways.
Exterior 100 watt HPS wall packs will be mounted near exterior doors at 12
Ft elevation.
Exterior walkways and platforms will be illuminated with 100 watt
industrial fixtures on 9 Ft stanchions.
Additional roadway lighting required will use 150 watt HPS street light
type fixtures mounted on 40 foot high wooden poles.
Lighting control for outside fixtures including the wall packs and street
lights, will use a common multi-pole lighting contractor on a common
photoelectric control circuit.
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11.5 EQUIPMENT
11.5.1 Fire Pumps
A fire pump with an electric motor will be the primary fire pump. A
diesel driven back-up pump will be provided.
11.5.2 Mobile Equipment
. Three, 10,000 lb capacity lift trucks will be provided. The
trucks will be equipped with clamp mechanisms for handling
wastepaper xxxxx. The equipment will use bottled propane fuel
tanks.
. One, 10,000 lb capacity lift truck will be provided for moving
small rejects dumpsters within the recycled fiber plant. The
truck will be equipped with forks. The lift truck will use
bottled propane fuel tanks.
. Two, 10,000 lb capacity lift trucks will be provided for roll
shipping. The trucks will be equipped with clamp mechanisms for
handling paper rolls. The equipment will use bottled propane
fuel tanks .
. One, 10,000 lb capacity lift truck will be provided for
maintenance. The truck will be equipped with forks. The lift
truck will use bottled propane fuel tanks.
. One, 10,000 lb capacity lift truck will be provided for use as
a spare. The truck will be equipped with forks. The lift truck
will use bottled propane fuel tanks.
. One, bucket lift will be provided for moving maintenance. The
lift will use bottled propane fuel tanks.
. Three, three wheel maintenance carts will be provided. The
carts will use bottled propane fuel.
. One, storeroom truck will be provided.
A propane bottle storage and exchange area will be provided.
11.6 PIPING
11.6.1 Fire Protection Loop
A 10" diameter fire line will loop the facilities for fire
protection. Section control valves and fire hydrants will be
provided.
The source of the water will be from a municipal treatment
facility. A backup source of 400,000 gallons will be provided from
an on-site storm water retention pond. In order to prevent the pond
from being dry when needed, a separate deep water well and pump
will maintain the required water capacity.
11.6.2 Underground Utilities
Piping will be provided for:
. potable water
. sanitary sewer
. natural gas
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EXHIBIT 1 - SCOPE OF WORK
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. process effluent
. storm drainage
11.7 ELECTRICAL
11.7.1 Equipment Feeds
Power will be provided for the fire pump electric motor.
11.7.2 Lighting and Grounding
A #4/0, bare, copper ground site grid system will be
installed for grounding and bonding the plant electrical
equipment, railroads, propane storage area and fire
protection pumps.
Power will be provided for remote operation of the two main
gates.
Power distribution for exterior lighting will be provided.
EXHIBIT 2
---------
COST ESTIMATE BASIS
-------------------
CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS EXHIBIT
PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH
THE COMMISSION. THE OMITTED INFORMATION IS INDICATED BY THE
SYMBOL "***" AT EACH PLACE IN THE EXHIBIT WHERE THE OMITTED
INFORMATION APPEARED IN THE ORIGINAL.
EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
1.0 COST ESTIMATE SUMMARY
Fluor Daniel's cost estimate for the Lawton Mill project is included in
Exhibit 3. The following sections in this Exhibit describe the basis of the
cost estimate.
The total installed cost estimate for the proposed facility is $***. This
estimated cost was developed for the greenfield paperboard mill described
in Exhibit 1 - Scope Of Work.
This estimate is based on construction of the facility in Lawton,
Oklahoma.
The single largest equipment package is the Voith Sulzer recycled fiber
plant and paper machine package. This portion of the scope and estimate is
based on the Voith Sulzer final negotiated price as of February 18, 1998.
Fluor Xxxxxx will provide engineering, procurement and construction
services.
The cost estimate can be divided into the following general areas, based on
the way compensation to Fluor Xxxxxx will be calculated and paid.
- Fixed Price Services
- Fixed Rate Services
- Reimbursable And Agency Costs
2.0 FIXED PRICE SERVICES
Fluor Xxxxxx will provide the services described in this section 2.0 on a
fixed price basis.
The management will be provided by a Project Director supported by a staff
in the home office and the field (project site). The management and
administration team will work closely with Republic Paperboard's team
personnel to expedite decisions, control costs, and make an effort to
improve the schedule.
The Management Team lead by the Project Director will consist of the
following: Project Director, Engineering Manager, Senior Technical Process
Engineer, Technical Process Engineer, Procurement Manager, Construction
Manager and Controls Manager.
Fluor Xxxxxx will develop and maintain an integrated project schedule
(CPM). This schedule will be used by the design engineers, procurement
staff and construction to coordinate production of the required documents
to facilitate the bidding, purchasing, delivery, and installation of all
process equipment and the buildings with all support utilities.
2.1 ENGINEERING, PROCUREMENT AND HOME OFFICE SUPPORT
This cost category covers the home office based project services provided
by Fluor Xxxxxx. The home office staff will be those individuals necessary
to support the process design, procurement, and construction of the process
equipment and the facility. These technical personnel will be located in
Fluor Daniel's offices in Greenville, South Carolina and will travel to
various locations based on the needs of
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
the work. Fluor Xxxxxx Technical personnel will be responsible for the
following: update balance calculations, prepare P&ID's, revise bid
specifications, negotiate with suppliers, prepare equipment lists,
determine pump sizing, determine pipeline sizing, prepare utility diagrams,
and prepare start-up, operation, and shutdown instructions. The home office
staff, under the direction of the Project Director, will provide all of the
technical needs of the project which will consist of, but not be limited
to: accounting to support home office personnel, jobsite safety, quality,
and accounting audits, engineering management to manage Marathon, HVAC
design coordination, industrial relations, scheduling,
secretarial/clerical, etc.
Project management and project controls effort were estimated by the study
management team. The cost estimate includes Fluor Daniel's fixed price for
project management services.
Procurement for engineering and construction will be performed out of
Greenville for major equipment and site bulk purchases. The Procurement
Manager will coordinate all specifications, bidding, and bid evaluations,
develop procurement schedules, analyze bid package terms and conditions,
negotiate final pricing, issue equipment purchase orders, issue bulk
material purchase orders, assist in contract preparation, report monthly
material status, expediting by telephone, and shop visits, if required. The
required effort was estimated by the study team procurement manager and
reviewed by the study management team. The cost estimate includes Fluor
Daniel's fixed price for procurement services.
Engineering costs were estimated by Marathon Engineers/Architects/Planners.
Marathon's costs are included in Reimbursable And Agency Costs. This
portion of he cost estimate includes Fluor Daniel's fixed price for
engineering services by Fluor Xxxxxx personnel.
This category includes miscellaneous home office support provided by Fluor
Xxxxxx including:
. Payroll Department
. Legal Department
. Quality Assurance
. Construction
. General Services
. Field Human Resources and Internal Audits
. Industrial Relations
. Safety Department
. Field Accounting
The cost estimate includes Fluor Daniel's fixed price for these
miscellaneous services.
Fluor Daniel's home office expenses and supplies such as normal telephone,
fax, photocopying, postage, courier service, computer services, (hardware
and software), document reproduction, prints, storage of documents as
required by law and other normal office expenses are included in the fixed
price.
Services not included consist of permits, other than those typically
required for design and construction, siting, legal costs and estimating.
2.2 TEMPORARY CONSTRUCTION FACILITIES, EQUIPMENT AND SERVICES
The cost estimate includes allowances for the following construction
facilities:
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
. OFFICE TRAILERS
. FIRST AID TRAILER
. TOILET TRAILER
. INTERCONNECTING DECK AND ROOFS
. BRASS GATE HOUSE
. STORAGE TRAILERS
. ELECTRICAL HOOK- UP AT PLOT LIMITS
. POWER DISTRIBUTION
. TEMPORARY TRANSFORMER
. 14 PANELBOARDS - 400 AMP
. TEMPORARY LIGHTING - INTERIOR
. CONCRETE PAD/FENCING
. DISTRIBUTION ABOVE GROUND
. SEWER HOOK- UP AND TANK
. TELEPHONE HOOK- UP FOR CONSTRUCTION
. CELLULAR PHONES
. UTILITY BILLS - ELECTRICITY
. UTILITY BILLS - WATER
. CONSTRUCTION PARKING
. LAYDOWN YARD
. CONSTRUCTION ROADS
. MAINTAIN ROADS, LOTS, LAYDOWN
. 3,000 LINEAL FEET OF FENCING
. STORM DRAINAGE
. PROJECT SIGNS, SOFTWARE AND COMPUTERS
. BADGE MACHINE
. COPY MACHINE
. BLUE PRINT MACHINE
. CALCULATORS
. FACSIMILE MACHINE
. OFFICE FURNITURE
The construction facilities cost is included in Fluor Daniel's fixed price,
based on a 17 month construction schedule.
The cost estimate includes the following construction services:
. GENERAL CLEANING SERVICE
. FIELD SANITATION
. TRASH DUMPSTERS
. PROGRESS PHOTOS
. WELDER CERTIFICATION (MATERIAL ONLY)
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EXHIBIT 2 - COST ESTIMATE BASIS
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. SUBSTANCE ABUSE TESTING
. MEDICAL AND SERVICES SUPPLIES
. THIRD PARTY INSPECTIONS
. MONUMENT AND BENCHMARK RECORD
. SECURITY GUARDS
. CHECK PROCESSING
. CONSTRUCTION MANUALS
. TELEPHONE BILLS
. POSTAGE
. COURIER SERVICE
. FINAL RECORDS SHIPPING
The construction services estimate is based on a Lawton, Oklahoma project
site. The cost for these construction services is included in Fluor
Daniel's fixed price.
2.3 FIELD STAFF SALARY, BENEFITS AND BURDENS
This category includes field salaried staff costs for base salary, overtime
pay, company paid benefits and government mandated employee costs. Craft
labor through the general xxxxxxx level is included in the direct cost
estimate.
The field staff will be managed by a Construction Manager, reporting to the
Project Director, and his staff. The Construction Manager and his staff
will have overall responsibility for the safety, quality, cost, and
schedule of the construction activities. The Field Staff will have the
responsibility for participating in review of specifications, bidding and
bid evaluation and all contracts with construction services, assist in the
development of the construction schedule, coordinate, monitor and maintain
schedule, control the construction budget, coordinate all site activities,
implement and monitor safety and quality programs, oversee permitting,
participate in the value awareness program, develop a start-up plan and
schedule, manage start-up to substantial completion, and assist Republic
Paperboard in determining tax structure and coding commitments and
expenditures per the tax incentives.
Key positions on the construction team will be staffed by Fluor Xxxxxx
permanent employees. The cost estimate was based on using Fluor Xxxxxx
personnel for the following positions:
. CONSTRUCTION MANAGER
. ENGINEERING MANAGER
. CIVIL ENGINEER
. ELECTRICAL ENGINEER
. MECHANICAL ENGINEER NO. 1
. MECHANICAL ENGINEER NO. 2
. ELECTRICAL/INSTRUMENT ENGINEER
. DOCUMENT CONTROL CLERK
. SAFETY MANAGER
. SAFETY INSPECTOR
. WAREHOUSE MANAGER
. PAYMASTER
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
. ACCOUNTING MANAGER (HOME OFFICE)
. ACCOUNTANT (HOME OFFICE)
. COST ENGINEER
. PROCUREMENT MANAGER
. NURSE
. CONTROLS MANAGER
. HUMAN RESOURCE MANAGER
. PLANNER/ SCHEDULER
. C/S/A SUPERINTENDENT
. FIELD ENGINEER
. PIPE SUPERINTENDENT
. PERFORMANCE ENGINEER
. QUALITY MANAGER
. QUALITY INSPECTOR
. MILLWRIGHT SUPERINTENDENT
. ELECTRICAL/INSTRUMENT SUPERINTENDENT
Some positions on the construction team will be staffed by temporary, local
hires. The cost estimate was based on using local hire personnel for the
following positions.
. ENGINEER/CONSTRUCTION SECRETARY
. PROJECT MANAGEMENT/SERVICES SECRETARY
. HUMAN RESOURCES AND PAYROLL CLERK
. PROCUREMENT CLERK
. ACCOUNTING TECHNICIAN
. WAREHOUSE CLERK
. CONTROLS START- UP CLERK
Costs for all field staff are calculated from base compensation plus
burdens and benefits. The burden and benefit rate used for the cost
estimate was ***% for Fluor Xxxxxx staff and ***% for local hire staff.
Some field positions will be classified as non-exempt. The cost estimate
includes premium pay for non-exempt personnel overtime. Craft overtime
allowances are built into the craft labor rate.
All personnel related costs described in this section 2.3 are part of Fluor
Daniel's fixed price, except for travel costs.
2.4 INSURANCE, BONDS, PERMITS AND LICENSES
The cost estimate includes the following items:
. Builder's risk insurance supplied by Fluor Xxxxxx covering up to $***
MM of equipment, materials and labor. The coverage would extend from
the start of construction through the initial water runs and start-up.
. An incremental cost for sub-contractor bonds. Direct cost estimates did
not include
--------------------------------------------------------------------------------
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
performance bonds.
. An allowance was included for building permits based on percent of the
project value.
. Fluor Xxxxxx does not expect this project to require new business or
other licenses. Fluor Daniel's fixed price includes welder
certification material and administrative services for obtaining craft
worker licenses. Craft wages for certification testing will be treated
as a reimbursable and agency cost. Fluor Daniel's fixed prices includes
all business licenses or taxes required for Fluor Xxxxxx to operate in
Lawton, Oklahoma.
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
The cost of Builder's Risk insurance is included in Fluor Daniel's fixed
price but any deductible will be a reimbursable cost. The deductible for
all perils except floods, and testing is $25,000 per occurrence. Flood
deductible is $50,000 per occurrence. Testing deductible is $100,000 per
occurrence.
The cost estimate does not include state or local sales taxes. It was
assumed that sales tax exemption would be part of the site incentives
program.
Costs for environmental permit applications were not included in Fluor
Daniel's fixed price. The estimate assumed that permits would be applied
for in Republic Paperboard's name and paid for by Republic Paperboard Inc.
2.5 REWORK AND WARRANTY
Fluor Xxxxxx will provide required rework and warranty repairs as described
in and subject to the conditions and limitations of Article 8 of the
Agreement.
3.0 FIXED RATE SERVICES
The services described in this section 3.0 will be provided based on the
unit rates described below. Final costs will depend on the number of craft
labor hours actually required to complete the Work.
3.1 TEMPORARY CONSTRUCTION EQUIPMENT
The cost estimate includes allowances for the following construction
equipment items:
. SMALL TOOLS
. EXPENDABLES AND CONSUMABLES
. SCAFFOLDING
The cost estimate for construction equipment was based on a fixed rate
proposal from American Equipment, a Fluor Xxxxxx subsidiary. The actual
cost will be a fixed rate multiplied by the number of self perform craft
labor hours. Cost associated with cranes larger than fifty tons have been
included as a separate line item and are not included in the American
Equipment multiplier. The estimate is based on a Lawton, Oklahoma project
site.
The tools provided will be in good repair and suitable for the specified
use. The inventory of tools, expendables and consumables available at the
site will be reasonable in relation to the number of craft workers
employed. Tools, expendables and consumables will be managed so that craft
labor productivity is not impacted by availability or quality of the items
supplied.
3.2 CRAFT BURDENS AND BENEFITS
The base labor rates described in section 4.5.1 of this Exhibit were
adjusted to account for statutory burdens, insurance and benefits. There is
a shortage of skilled and semi-skilled craft workers in the Oklahoma area.
A competitive compensation package will be required to attract the
estimated 400 craft workers needed for construction of the Lawton Mill.
Rates for statutory burdens were based on a project in Oklahoma.
The items included were:
. FICA
. FUI
. SUI
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
. Worker's Compensation Insurance
. Comprehensive General Liability Insurance
. Benefits
. Craft Training
The total adjustment varied slightly for the different crafts. The average
burden and benefit rate was 36.53% of base compensation.
4.0 REIMBURSABLE AND AGENCY COST
4.1 CRAWLER CRANES
Site cranes for unloading equipment, erecting steel and other general tasks
will be provided. This category includes cranes with up to 50 tons or
lifting capacity. Crane rental, transportation, insurance, fuel, setup,
routine maintenance, lubrication and operator costs are included in this
item.
4.2 FLUOR XXXXXX TRAVEL COSTS
An allowance was included in the cost estimate for project related travel
by the field and office staff. This includes:
. Expediting and inspection travel
. Relocation and home visit travel
. Per diem expenses
. Miscellaneous travel or entertainment expenses
4.3 TRAINING AND SIMULATION
This line item includes:
. consulting support with employee selection
. consulting support with operator and maintenance training
. process simulation to enhance the operator training program
The cost of providing the training program is a reimbursable cost. The site
incentives program includes rebates for new employee training. These
incentives are not part of the project target cost and will not be used to
calculate total installed cost.
Separate costs for vendor and craft support have not been included in this
indirect cost line item. The estimate assumes that vendor checkout and
start-up support will be included in the equipment purchase contract
without additional cost. Craft labor during commissioning and start-up is
included in the direct cost portion of the cost estimate.
4.4 SUBCONTRACTED ENGINEERING AND DESIGN SERVICES
The detailed design engineering will be performed in Appleton, Wisconsin by
Marathon Engineers/Architects/Planners with a supervisor and client liaison
from the Fluor Xxxxxx management staff. The Fluor Xxxxxx Engineering
Manager will coordinate drawings with the construction team, coordinate
design information among the vendors and monitor and manage the design.
Fluor Xxxxxx will involve the Construction Manager in the early stages of
design to determine the deliverables to the field and give constructability
input.
This category does not include the process design provided by Fluor Xxxxxx
personnel. Engineering
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
services provided by Fluor Xxxxxx are included in the fixed price.
4.5 DIRECT COSTS
Direct cost estimates were based on the equipment and facilities described
in Exhibit 1 - Scope Of Work. The project will be completed by Fluor Xxxxxx
on an EPC basis. The construction estimate is based on a self perform,
merit shop labor posture.
The direct cost estimate was developed separately for the following project
areas:
. 01 Raw Material Receiving and Storage
. 02 Recycled Fiber Plant
. 03 Paper Machine and Roll Handling
. 04 Roll Storage and Shipping
. 05 Boiler and Utilities
. 06 Effluent Treatment/Water Recycle
. 07 Power Distribution
. 08 Shops, Storeroom and Offices
. 09 Site General
Within each of the project areas, the cost estimate is broken down into the
following craft disciplines:
. 00 Site Preparation
. 20 Steel and Miscellaneous Metals
. 10 Concrete
. 30 Architectural
. 40 Equipment - Process and Mechanical
. 50 Piping and Insulation
. 60 Electrical
. 70 Process Control
. 90 Heating, Ventilation and Air Conditioning
4.5.1 Labor Cost
The labor cost for each discipline was developed, based on an
Oklahoma project location.
An average base labor rate was developed for several crews
representing the different crafts. The crew mixes used for the
estimate were:
. Pipefitter Crew 1 Xxxxxxx
4 Pipefitters
5 Pipefitter Welders
4 Pipefitter Helpers
. Iron Worker Crew 1 Xxxxxxx
4 Iron Workers
2 Iron Worker Welders
4 Iron Worker Helpers
. Civil and Concrete Crew 1 Xxxxxxx
1 Xxxxxx
2 Carpenters
6 Helpers
1 Cement Finisher
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EXHIBIT 2 - COST ESTIMATE BASIS
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. Millwright Crew 1 Xxxxxxx
4 Millwrights
6 Millwright Helpers
. Electrician Crew 1 Xxxxxxx
3 Electricians
4 Electrician Helpers
. Wire Pull Crew 1 Xxxxxxx
2 Electricians
12 Helpers
. Instrumentation Crew 1 Xxxxxxx
4 Instrument Technician
1 Instrument Welder
5 Instrument Helpers
The weighted average base compensation for each crew was based on
current information from contractors working in the region and on
Fluor Xxxxxx experience in Oklahoma. All estimates were based on
an open shop labor posture.
Some craft overtime will be required to complete the project in
the most expedient manner. Generally, smaller focused crews
working a controlled amount of overtime provide the highest
productivity. The crew mix rates were adjusted to reflect typical
overtime experience on greenfield projects. The assumption was
that craft workers would generally be scheduled to work five days
per week and 10 hours per day. Additional spot overtime would be
worked in critical schedule areas. There will generally be one
shift although craft workers might be scheduled on a second shift
to avoid congestion.
The projected labor rates, including burdens, benefits and
overtime, were:
. Pipefitters $***/hr
. Iron Workers $***/hr
. Civil and Concrete $***/hr
. Millwrights $***/hr
. Electricians $***/hr
. Wire Pull Crews $***/hr
. Instrumentation $***/hr
4.5.2 Site Preparation
Excavation, backfill and other quantities were estimated by the
study design team using the information included in Exhibit 1 -
Scope Of Work. Unit material costs were estimated by the study
team based on Fluor Daniel's and Marathon's recent experience.
Unit labor quantities were estimated by the study team based on
Fluor Daniel's recent project experience. The civil and concrete
labor rate was used for site preparation work.
Subcontract pricing was used for cost estimates in the site
preparation area.
4.5.3 Steel And Miscellaneous Metals
The study team used the information included in Exhibit 1 - Scope
Of Work to estimate quantities of:
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EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
. structural steel for custom designed buildings
. stairs, platforms and ladders
. siding
. floor trench grating
. other miscellaneous metals
Unit prices for steel and miscellaneous metals material were based
on recent Fluor Xxxxxx and Marathon's experience.
Unit labor quantities for steel and miscellaneous metals were
estimated by the study team based on recent Fluor Xxxxxx experience.
The iron worker labor rate was used for steel and miscellaneous
metal work.
Subcontract prices were used for the pre-engineered building shells
including structural steel, siding and roofing. This included the:
. Raw Material Warehouse
. Roll Storage Warehouse
. Boiler and Utility Building
. Shops and Storeroom Building
. Office Building
. Recycle Fiber Building
The subcontract prices were based on a proposal using Xxxxx-Xxxxxx
buildings
4.5.4 Architectural
Quantities for architectural items were estimated by the study
design team based on the information included in Exhibit 1 - Scope
Of Work. Unit prices for architectural materials were based on
recent Fluor Xxxxxx and Marathon project experience.
Unit labor quantities for architectural items were estimated by the
study team based on recent Fluor Xxxxxx experience. The civil and
concrete labor rate was used for architectural items.
Subcontract prices were estimated for several architectural items
including:
. fire sprinkler systems
. built-up roofing and insulation
. finished areas in labs and offices
. laboratory equipment
. office and conference room furnishings
. shop tools
. lockers
Prices for subcontracted items were based on study team quantity
estimates and Fluor Daniel's recent subcontract cost experience on
similar projects.
4.5.5 Process And Mechanical
Equipment installation material quantities were estimated by the
study team based on the project equipment list and equipment vendor
proposals. Installation material unit costs were based on recent
Fluor Xxxxxx experience with similar projects.
Unit labor hours for each piece of equipment was estimated
separately by the project team. The millwright labor rate was used
for all equipment installation labor.
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EXHIBIT 2 - COST ESTIMATE BASIS
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Subcontract costs were used for the tanks that will be field
erected. The costs were based on a proposal from Xxxxx-Minneapolis
Tank.
The purchase cost for most of the main process and control equipment
was based on the proposals listed in the following table.
RFQ Name Vendor Quote Date
--------------------------------------------------------------------------------------------------------------------------
50001 Paper Machine & Auxiliary Equipment Voith Sulzer 0199 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50002 Recycled Fiber Plant Voith Sulzer 0199 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50003 Boiler Nebreaska Boiler 11514-H 20-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50004 Shower Water Screens Xxxxxxxx 97P6032A 18-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50005 Paper Machine Vacuum System Xxxx Engineering CJ-97LD0267,R1 03-Oct-97
--------------------------------------------------------------------------------------------------------------------------
50006 Roll Handling Line ViaTech PL97-035 17-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50007 Metal Building Systems Xxxxxx Const. / Xxxxx-Xxxxxx 0000 00-Xxx-00
--------------------------------------------------------------------------------------------------------------------------
Effluent Treatment System Eimco fax ME 13-Mar-98
--------------------------------------------------------------------------------------------------------------------------
50009 Disc Filter & Thickener Alfa laval Celleco BL107-0320 14-Jul-97
--------------------------------------------------------------------------------------------------------------------------
50010 Gravity Xxxxxx Broke Thickener Alfa laval Celleco BL107-0325 11-Jul-97
--------------------------------------------------------------------------------------------------------------------------
00000 XX Xxxxxxxxx Xxxxx XX Xxxxx Xxxxxxx X0000000 06-Aug-97
--------------------------------------------------------------------------------------------------------------------------
50013 Disc Refiner & Broke Deflaker Voith Sulzer 0199 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50014 Switchgear, Substations & MCC's Square D 10748893 23-Jul-97
--------------------------------------------------------------------------------------------------------------------------
50015 Agitators Chemineer / Hydrocorp 195R-CAR-98 25-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50016 Shop Fabricated Tanks Reco Industries fax MS 23-Jul-97
--------------------------------------------------------------------------------------------------------------------------
50017 Large Storage Tanks Xxxxx-Minneapolis Tank fax SW 20-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50018 Master Control System ABB 7072901-0 29-Jul-97
--------------------------------------------------------------------------------------------------------------------------
50019 Gauges ABB 1190 18-Aug-97
--------------------------------------------------------------------------------------------------------------------------
50020 Pumps Xxxxxxxx AL97-059 19-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50021 Cranes Konecranes KCLT-1185&6 04-Aug-97
--------------------------------------------------------------------------------------------------------------------------
50001 Machine Pulpers Voith Sulzer 0199 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
50001 Approach Flow System Voith Sulzer 0199 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
Paper Machine Room Ventialtion Valmet VN17PE0672 11-Feb-98
--------------------------------------------------------------------------------------------------------------------------
Chiller Trane fax CB 16-Feb-98
--------------------------------------------------------------------------------------------------------------------------
Water Softener ITS fax WT.DOC 20-Feb-98
--------------------------------------------------------------------------------------------------------------------------
Continuous Emission Monitoring Control Elements, Inc
--------------------------------------------------------------------------------------------------------------------------
Air Compressors Centrac
--------------------------------------------------------------------------------------------------------------------------
Deaerator Stearing Deaerator
--------------------------------------------------------------------------------------------------------------------------
Motors Rockwell / Reliance Electric fax 23-Feb-98
--------------------------------------------------------------------------------------------------------------------------
Design Engineering Marathon E/A/P 71-0586,R2 2-Mar-98
--------------------------------------------------------------------------------------------------------------------------
Training General Physics 08-Aug-97
--------------------------------------------------------------------------------------------------------------------------
The purchase cost for the remaining process and mechanical equipment
was estimated by the project team using design criteria information
and recent Fluor Xxxxxx and Marathon experience on similar projects.
Examples of equipment estimated in this manner are:
. Lift Station Pumps
. Process Pumps (not included in request for proposal)
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EXHIBIT 2 - COST ESTIMATE BASIS
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. Chemical Pumps
. Cooling Tower
. Air Dryers
. FRP Tanks
4.5.6 Piping And Insulation
Piping quantities were estimated by the study design team using the
process flow diagrams, and general arrangement drawings included in
Exhibit 1 - Scope Of Work. Allowances for small bore piping and
tubing were added based on Fluor Daniel's experience with similar
projects and the number of connection points expected.
Piping materials for various services are described in the Marathon
project piping specifications. Process piping is generally 316L
material. Service piping is generally 304L material. Steam and
condensate piping is carbon steel. Unit material costs for each type
of material were estimated by the study team based on Fluor Daniel's
and Marathon's recent project experience. Material costs include
pipe, fittings, manual valves and hangers.
Most steam and condensate piping will be insulated to conserve
energy and personal protection. Insulation quantities were based on
rigid insulation with an aluminum cover for steam and condensate
piping and on flexible foam insulation for chilled water lines.
Unit labor quantities for piping and insulation were estimated by
the study team based on Fluor Daniel's and Marathon's recent project
experience. The pipefitter labor rate was used for piping and
insulation work.
Subcontract pricing was not used for piping or insulation cost
estimates.
4.5.6 Electrical
Electrical quantities were estimated by the study design team using
the process flow diagrams, general arrangement drawings and motor
list included in Exhibit 1 - Scope Of Work.
Electrical commodity materials such as cable tray and cable are
described in Exhibit 1 - Scope Of Work. Items such as lighting
panels and instrument power supply panels are included as electrical
material. Unit material costs were estimated by the study team based
on Fluor Daniel's and Marathon's recent project experience.
Unit labor quantities for electrical installation were estimated by
the study team based on Fluor Daniel's recent project experience.
The electrician labor rate was used for terminations and general
installation work. The wire pull crew rate was used for cable and
wire installation.
Subcontract pricing was used for lighting cost estimates. The
subcontract prices were estimated by Fluor Daniel's study team based
on the lighting levels described in Exhibit 1 - Scope Of Work and
the square feet to be lit in each project area.
The costs for some major electrical items are included as equipment.
This includes:
. Paper machine variable speed drive system
. Uninterruptible power system for master control system
. Transformers
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. Switchgear
. Motor control centers
The costs were based on vendor proposals, except for the
uninterruptible power system. Proposals from the selected vendors
are included in Section 4 of this volume. The UPS costs was based on
recent Fluor Xxxxxx and Marathon experience on similar projects.
4.5.7 Process Control
Process control quantities were estimated by the study design team
using the process flow diagrams and general arrangement drawings
included in Exhibit 1 - Scope Of Work.
Process control commodity materials such as conduit, cables and
pneumatic tubing are described in Exhibit 1 - Scope Of Work. Field
instruments and control valves are included as process control
material. Unit material costs were estimated by the study team based
on Fluor Daniel's and Marathon's recent project experience. Vendor
budget prices were solicited for most control valves and in-line
instruments. The vendor prices and recent purchase costs were used
to develop a composite unit price estimate.
Unit labor quantities for process control installation were
estimated by the study team based on Fluor Daniel's and Marathon's
recent project experience. The instrumentation labor rate was used
for process control installation.
Subcontract pricing was used for:
. Bar code labeling system
. Two way radio system
. Communication system including telephone, paging and alarms
The subcontract prices were estimated by Fluor Daniel's and
Marathon's study team based on the scope described in Exhibit 1 -
Scope Of Work and recent Fluor Xxxxxx project experience.
The costs for some major item are included as equipment. This
includes:
. Master control system
. On-line gauging system
The equipment costs were based on vendor proposals.
4.5.8 Heating, Ventilation And Air Conditioning
HVAC quantities were estimated by the study design team preliminary
general arrangement drawings.
HVAC materials is primarily duct and insulation. Unit material costs
were estimated by the study team based on Fluor Daniel's recent
project experience.
Unit labor quantities for HVAC installation were estimated by the
study team based on Fluor Daniel's and Marathon's recent project
experience. The millwright labor rate was used for HVAC
installation.
Subcontract pricing was not used for HVAC work.
--------------------------------------------------------------------------------
Page 14
EXHIBIT 2 - COST ESTIMATE BASIS
--------------------------------------------------------------------------------
The costs for major item are included as equipment. This includes:
. Unit heater
. Make-up air units
. Air conditioning equipment
. Humidity control systems
The equipment costs were based on vendor proposals.
4.5.10 Escalation
An escalation allowance is included in the cost estimate as an
indirect cost. Equipment costs were not escalated based on an
assumption that purchase negotiations would offset any escalation
increases. Materials were escalated at 3.5% per year. Labor and
indirect costs were escalated at 4.0% per year. These escalation
rates were applied to a typical purchase time curve. The resulting
escalation allowance was:
. Equipment $ ***
. Material $ ***
. Craft Labor $ ***
. Indirect Costs $ ***
---------
. Total Escalation $ ***
This allowance will not be maintained as a separate line item in the
control budget. Fluor Xxxxxx will apportion the escalation allowance
to appropriate direct cost line items. The adjusted budget items
will be the project control budget. The project control budget total
is equal to the initial target price for the project.
4.6 CONTINGENCY
The total contingency allowance was $***. This contingency allowance does
not include reserves for warranty repairs or rework during construction
5.0 FLUOR XXXXXX FEE
Fluor Xxxxxx will receive a fee as described in Article 6 of the Agreement
and Exhibit 5 to the Agreement. This fee was included as an indirect cost
in Exhibit 3. This fee is included in the initial total install project
cost estimate.
--------------------------------------------------------------------------------
Page 15
EXHIBIT 3
---------
DETAIL COST ESTIMATE REPORT
---------------------------
CERTAIN CONFIDENTIAL INFORMATION HAS BEEN OMITTED FROM THIS EXHIBIT
PURSUANT TO A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH
THE COMMISSION. THE OMITTED INFORMATION IS INDICATED BY THE
SYMBOL "***" AT EACH PLACE IN THE EXHIBIT WHERE THE OMITTED
INFORMATION APPEARED IN THE ORIGINAL. A TOTAL OF
137 PAGES OF INFORMATION HAVE BEEN OMITTED.
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:49:48 PM Page: 1
98-4572 CONFIDENTIAL PROJECT
01 RAW MATERIAL Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 RAW MATERIAL RECEIVING AND STORAGE
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
-----------------------Totals-----------------------
01 RAW MATERIAL
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 RAW MATERIAL RECEIVING AND STORAGE
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals:
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
----------------------------------------------------------------------------------------------------------------------------------
98
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:49:51 PM Page: 11
98-4572 CONFIDENTIAL PROJECT
02 RECYCLED FIBER PLANT Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 RECYCLED FIBER PLANT
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
-----------------------Totals-----------------------
02 RECYCLED FIBER PLANT
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
-------------------------------------------------------------------------------------------------------------
1 RECYCLED FIBER PLANT
***
-------------------------------------------------------------------------------------------------------------
Job Totals:
-------------------------------------------------------------------------------------------------------------
Discipline Totals:
-------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:03 PM Page: 38
98-4572 CONFIDENTIAL PROJECT
03 PAPER MACHINE AND ROLL HANDLING Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 PAPER MACHINE AND ROLL HANDLING
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
03 PAPER MACHINE AND ROLL HANDLING
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------
1 PAPER MACHINE AND ROLL HANDLING
***
----------------------------------------------------------------------------------------------------------------------
Job Totals:
----------------------------------------------------------------------------------------------------------------------
Discipline Totals:
----------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:23 PM Page: 80
98-4572 CONFIDENTIAL PROJECT
04 ROLL STORAGE AND SHIPPING Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 ROLL STORAGE AND SHIPPING
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
04 ROLL STORAGE AND SHIPPING
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 ROLL STORAGE AND SHIPPING
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:26 PM Page: 90
98-4572 CONFIDENTIAL PROJECT
05 BOILER AND UTILITIES Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 BOILER AND UTILITIES
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
05 BOILER AND UTILITIES
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 BOILER AND UTILITIES
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:33 PM Page: 110
98-4572 CONFIDENTIAL PROJECT
06 WATER RECYCLE/EFFLUENT TREATMENT Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 EFFLUENT TREATMENT/WATER RECYCLE
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
06 WATER RECYCLE/EFFLUENT TREATMENT
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 EFFLUENT TREATMENT/WATER RECYCLE
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:34 PM Page: 114
98-4572 CONFIDENTIAL PROJECT
07 POWER DISTRIBUTION Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 POWER DISTRIBUTION
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
07 POWER DISTRIBUTION
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 POWER DISTRIBUTION
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:35 PM Page: 118
98-4572 CONFIDENTIAL PROJECT
08 STOREROOM, SHOPS AND OFFICES Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 STOREROOM, SHOPS AND OFFICES
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
08 STOREROOM, SHOPS AND OFFICES
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 STOREROOM, SHOPS AND OFFICES
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:38 PM Page: 128
98-4572 CONFIDENTIAL PROJECT
09 SITE GENERAL Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
1 SITE GENERAL
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
09 SITE GENERAL
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
1 SITE GENERAL
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
TRIPLE PLAY - DETAIL COST ESTIMATE REPORT
Run Date: 6/29/98 3:50:41 PM Page: 136
98-4572 CONFIDENTIAL PROJECT
99 INDIRECTS Unit Unit Unit Unit Total
Equipment Effort Material Sub Labor Effort
Unit Qty Cost Hours Costs Costs Rates Hours
DESCRIPTION
----------------------------------------------------------------------------------------------------------------------------------
***
----------------------------------------------------------------------------------------------------------------------------------
Job Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
Discipline Totals: ***
----------------------------------------------------------------------------------------------------------------------------------
--------------------Totals-----------------------
99 INDIRECTS
Labor Material Equipment Subcont TOTAL
Cost Cost Cost Cost COST
DESCRIPTION
------------------------------------------------------------------------------------------------------------------------
***
------------------------------------------------------------------------------------------------------------------------
Job Totals:
------------------------------------------------------------------------------------------------------------------------
Discipline Totals:
------------------------------------------------------------------------------------------------------------------------
EXHIBIT 4
---------
DRAWINGS
--------
Certain confidential information has been omitted from this Exhibit pursuant
to a confidential treatment request filed separately with the Commission.
Each of the drawings listed in the following list of drawings under the
headings, "1.0 Marathon Drawings" and "2.0 Fluor Xxxxxx Drawings"
following which the symbol "***" appears has been omitted.
EXHIBIT 4 DRAWINGS
--------------------------------------------------------------------------------
1.0 MARATHON DRAWINGS
. Marathon C-1001 Base Estimate Site Plan Dated 3-20-98 ***
. Marathon L202996 Recycled Fiber Building Mezzanine General Arrangement
Dated 0-00-00 ***
. Xxxxxxxx X000000 Recycled Fiber Building Ground Floor General
Arrangement Dated 3-21-98 ***
. Marathon L302970 Paper Machine Building Ground Floor General Arrangement
Dated 3-21-98 ***
. Marathon L302971 Paper Machine Building Ground Floor General Arrangement
Dated 3-21-98 ***
. Marathon L302972 Paper Machine Building Ground Floor General Arrangement
Dated 0-00-00 ***
. Xxxxxxxx X000000 Paper Machine Operating Floor General Arrangement Dated
3-21-98 ***
. Marathon L302974 Paper Machine Operating Floor General Arrangement Dated
3-21-98 ***
. Marathon L302975 Paper Machine Operating Floor General Arrangement Dated
3-21-98 ***
. Marathon L302976 Paper Machine Mezzanine General Arrangement Dated 3-21-
98 ***
. Marathon L302977 Paper Machine Mezzanine General Arrangement Dated 3-21-
98 ***
. Marathon L302978 Paper Machine Mezzanine General Arrangement Dated 3-21-
98 ***
. Marathon L302979 Paper Machine Building Sections Dated 3-21-98 ***
. Marathon L302980 Paper Machine Building Elevation Dated 0-00-00 ***
. Xxxxxxxx X000000 Paper Machine Building Elevation Dated 0-00-00 ***
. Xxxxxxxx X000000 Paper Machine Building Elevation Dated 0-00-00 ***
. Xxxxxxxx X000000 Outside Tanks Dated 0-00-00 ***
. Xxxxxxxx X000000 Outside Tanks Dated 0-00-00 ***
. Xxxxxxxx X000000 Recycle Fiber Building. Looking West at Pulpers Dated
3-21-98 ***
. Marathon L202996 Recycle Fiber Building Mezzanine General Arrangement
Dated 3-21-98t ***
. Marathon L202997 Recycle Fiber Bldg. Ground Floor General Arrangement
Dated 0-00-00 ***
. Xxxxxxxx Xx0000-00 Single Line Main Incoming Dated 0-00-00 ***
. Xxxxxxxx Xx0000-00 Single Line Diagram.. FSG-01 Dated 0-00-00 ***
. Xxxxxxxx XX0000-00 Single Line Diagram FSG-02 Dated 3-19-98 ***
--------------------------------------------------------------------------------
Page 1
2.0 FLUOR XXXXXX DRAWINGS
. Fluor Xxxxxx F1001 Top Liner Plant Balance Dated 3-26-98 ***
. Fluor Xxxxxx F1002 Filler Plant Mass Balance Dated 3-26-98 ***
. Fluor Xxxxxx F1003 Paper Machine Balance Dated 3-26-98 ***
. Fluor Xxxxxx F1004 Paper Machine Balance Dated 3-26-98 ***
3.0 OTHER DRAWINGS
. Army Corp of Engineers File 36 FEC.31,T.2 N., R. 12 W. Dated April 2,
1985 Topographical
--------------------------------------------------------------------------------
Page 2
EXHIBIT 5
---------
COMMERCIAL TERMS
----------------
Certain confidential information has been omitted from this Exhibit pursuant to
a confidential treatment request filed separately with the Commission. The
omitted information is indicated by the symbol "***" at each place in the
Exhibit where the omitted information appeared in the original.
EXHIBIT 5 - COMMERCIAL TERMS
1.0 FIXED PRICE EPC SERVICES
Fluor Xxxxxx will provide the following services on a fixed price basis.
------------------------------------------------------------------------
Fixed Cost
------------------------------------------------------------------------
Engineering, Procurement and Home Office Support as described
in Exhibit 2, Section 2.1, excluding third party engineering $ ***
------------------------------------------------------------------------
Temporary Construction Facilities, Equipment and Services as
described in Exhibit 2, Section 2.2 $ ***
------------------------------------------------------------------------
Field Staff Salary Benefits and Overtime as described in
Exhibit 2, Section 2.3, except direct travel costs $ ***
------------------------------------------------------------------------
Insurance, Bonds, Permits and Licenses as described in
Exhibit 2, Section 2.4 $ ***
------------------------------------------------------------------------
Rework and Warranty Cost as described in Section 2.5 of
Exhibit 2 $ ***
------------------------------------------------------------------------
TOTAL FIXED PRICE $ ***
------------------------------------------------------------------------
Payment for fixed price EPC services will be made in accordance with the
schedule shown in Section 6 of this Exhibit.
2.0 FIXED RATE SERVICES
Fluor Xxxxxx will provide the following services on a fixed rate basis.
----------------------------------------------------------------------------
Estimated Cost
----------------------------------------------------------------------------
Temporary Construction Equipment $*** per direct hire craft hour worked
as described in Exhibit 2, ($*** estimated cost)
Section 3.1
----------------------------------------------------------------------------
Burden & Benefit Craft Fixed Rate ***% of craft payroll rate
as described in Exhibit 2, ($*** estimated cost)
Section 3.2
-----------------------------------------------------------------------------------
Payment for fixed rate EPC services will be based on the actual number of
craft hours worked during an invoice period times the fixed rate. The
schedule shown in Section 6 is an estimate.
3.0 FLUOR XXXXXX REIMBURSABLE AND AGENCY COSTS
Fluor Xxxxxx will provide the following goods and services on a
reimbursable cost basis or in the case of an Equipment Vendor, shall as
agent for Owner, procure the same for Owner.
------------------------------------------------------------------------
Estimated Cost
------------------------------------------------------------------------
Crawler Cranes as required as described in Exhibit 2,
Section 4.1 $ ***
------------------------------------------------------------------------
Fluor Xxxxxx Travel Costs as described in Exhibit 2,
Section 4.2 $ ***
------------------------------------------------------------------------
Training and Simulation as described in Exhibit 2,
Section 4.3 $ ***
------------------------------------------------------------------------
Subcontracted Eng. and Design Services (Exhibit 2,
Section 4.4) $ ***
------------------------------------------------------------------------
Direct Costs as described in Exhibit 2, Section 4.5 $ ***
------------------------------------------------------------------------
Contingency as described in Exhibit 2, Section 4.7 $ ***
------------------------------------------------------------------------
TOTAL REIMBURSABLE COSTS $ ***
------------------------------------------------------------------------
EXHIBIT 5 - COMMERCIAL TERMS
Payment for reimbursable costs will be based on the actual amount
expended during an invoice period. The schedule shown in Section 6 is an
estimate of reimbursable costs.
All estimates of project cost and all schedule estimates shall be made
in good faith by Fluor Xxxxxx and based on the best and latest
information available to Fluor Xxxxxx.
4.0 TARGET PRICE
"Total installed project cost" is equal to the sum of:
(i) $*** (representing the fixed price EPC services under
Section 1.0 of this Exhibit including the Rework and
Warranty Cost);
(ii) The amount of the Fixed Rate Services under Section 2.0
of this Exhibit.
(iii) Reimbursable and Agency Costs under Section 3.0 of this
Exhibit and
(iv) Fixed Fee under Article 6.
The Target Price for purposes of Section 4.0 and Section 6.4 was
determined based on the following assumptions:
-------------------------------------------
Fixed Price EPC Services $***
-------------------------------------------
Fixed Rate EPC Services $***
-------------------------------------------
Reimbursable Costs $***
-------------------------------------------
Fixed Fee $***
-------------------------------------------
Target Price $***
-------------------------------------------
The Target Price is subject to change for Scope Change Orders only.
EXHIBIT 5 - COMMERCIAL TERMS
5.0 ILLUSTRATION OF INCENTIVE FEE CALCULATION (FOR EXAMPLE AND ILLUSTRATION
PURPOSES ONLY)
EXAMPLE
COST INCENTIVE CALCULATION
Target Price $***
Net Changes to Target Price ***
Less -- Value Awareness ($***)
Cost Incentive Target Price $***
Less -- To Date Expended ($***)
(at final completion) and including
costs of incentive program for craft
labor
Actual Cost Savings $***
Actual Cost Savings Incentive Payment $***
(cost savings x ***)
Value Awareness Payment $***
(value awareness x ***)
REPUBLIC FINAL COST $***
EXHIBIT 5 -- COMMERICAL TERMS
6.0 PAYMENT SCHEDULE (FIXED COST ELEMENTS)
--------------------------------------------------
Fixed Price Fixed Fee
Month Payments per Payments per
Section 6.2 Section 6.3
--------------------------------------------------
Feb-98 $*** $***
--------------------------------------------------
Mar-98 $*** $***
--------------------------------------------------
Apr-98 $*** $***
--------------------------------------------------
May-98 $*** $***
--------------------------------------------------
Jun-98 $*** $***
--------------------------------------------------
Jul-98 $*** $***
--------------------------------------------------
Aug-98 $*** $***
--------------------------------------------------
Sep-98 $*** $***
--------------------------------------------------
Oct-98 $*** $***
--------------------------------------------------
Nov-98 $*** $***
--------------------------------------------------
Dec-98 $*** $***
--------------------------------------------------
Jan-99 $*** $***
--------------------------------------------------
Feb-99 $*** $***
--------------------------------------------------
Mar-99 $*** $***
--------------------------------------------------
Apr-99 $*** $***
--------------------------------------------------
May-99 $*** $***
--------------------------------------------------
Jun-99 $*** $***
--------------------------------------------------
Jul-99 $*** $***
--------------------------------------------------
Aug-99 $*** $***
--------------------------------------------------
Sep-99 $*** $***
--------------------------------------------------
Oct-99 $*** $***
--------------------------------------------------
Nov-99 $*** $***
--------------------------------------------------
Dec-99 $*** $***
--------------------------------------------------
Jan-00 $*** $***
--------------------------------------------------
TOTAL $*** $***
4
EXHIBIT 6
---------
SCHEDULE
--------
Certain confidential information has been omitted from this Exhibit pursuant to a
confidential treatment request filed separately with the Commission. The omitted
information is indicated by the symbol "***" at each place in the Exhibit where the
omitted information appeared in the original.
-----------------------------------------------------------------------------------------
Activity Early Early 1998 1999 2000
Description Start Finish -----------------------------------------------------------------------------------------
F M A M J J A S O N D J F M A M J J A S O N D J F M
-----------------------------------------------------------------------------------------
ALL AREAS
========================================
Milestones
----------------------------------------
Project Award *** ***
----------------------------------------
Order Paper Machine - Client *** ***
----------------------------------------
Paper Machine Building Dry-in *** ***
----------------------------------------
Waste Treatment Plant Available *** ***
----------------------------------------
Mechanical Completion *** ***
----------------------------------------
Target Substantial Completion Date *** *** ***
----------------------------------------
+ Engineering - Marathon
----------------------------------------
*** *** ***
----------------------------------------
+ Engineering - Fluor Xxxxxx
----------------------------------------
*** *** ***
----------------------------------------
+ Client - Republic
----------------------------------------
*** *** ***
----------------------------------------
09 - GENERAL SITE
========================================
+ Engineering - Marathon
----------------------------------------
*** *** ***
----------------------------------------
+ Engineering - Fluor Xxxxxx
----------------------------------------
*** *** ***
----------------------------------------
+ Client - Republic
----------------------------------------
*** *** ***
----------------------------------------
+ Procurement
----------------------------------------
*** *** ***
----------------------------------------
+ Construction
----------------------------------------
*** *** ***
----------------------------------------
01 - RAW MATERIAL REC'G & STORAGE
========================================
+ Engineering - Marathon
----------------------------------------
*** *** ***
----------------------------------------
+ Engineering - Fluor Xxxxxx
----------------------------------------
*** *** ***
----------------------------------------
+ Client - Republic
----------------------------------------
*** *** ***
----------------------------------------
+ Procurement
----------------------------------------
*** *** ***
----------------------------------------
+ Construction
----------------------------------------
*** *** ***
----------------------------------------
Sheet 1 of 3 June 11, 1998
-----------------------------------------------------------------------------------------------------------------------------------
Project Start *** *** Early Bar Republic Paper Date Revision Checked Approved
Project Finish *** *** Progress Bar Exhibit 6 Schedule
Data Date 01JUN98 *** Critical Activity (Target Completion Date)
Run Date 11JUN98
/c/ Primavera Systems, Inc.
-----------------------------------------------------------------------------------------------------------------------------------
Activity Early Early 1998 1999 2000
Description Start Finish F M A M J J A S O N D J F M A M J J A S O N D J F M
------------------------------------------------------------------------------------------------------------------------------------
02 - RECYCLED FIBER PLANT
=====================================================
+ Engineering - Marathon
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Client - Republic
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Procurement
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Construction
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
03 - PAPER MACHINE & ROLL HANDLING
=====================================================
+ Engineering - Marathon
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Engineering - Fluor Xxxxxx
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Client - Republic
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Procurement
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Construction
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
04 - ROLL STORAGE & SHIPPING
=====================================================
+ Engineering - Marathon
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Engineering - Fluor Xxxxxx
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Procurement
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Construction
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
05 - BOILER & UTILITIES
=====================================================
+ Engineering - Marathon
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Engineering - Fluor Xxxxxx
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Client - Republic
-----------------------------------------------------
*** *** ***
-----------------------------------------------------
+ Procurement
-----------------------------------------------------
*** *** ***
----------------------------------------------------------------------------------------------------------------------------------
Sheet 2 of 3
Activity Early Early 1998 1999 2000
Description Start Finish F M A M J J A S O N D J F M A M J J A S O N D J F M
------------------------------------------------------------------------------------------------------------------------------------
+ Construction
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
06 - WATER RECYCLE/EFFLUENT TREATMENT
========================================================
+ Engineering - Marathon
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Procurement
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Construction
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
07 - POWER DISTRIBUTION
========================================================
+ Engineering - Marathon
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Construction
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
08 - OFFICE & SHOP/STOREROOM
========================================================
+ Engineering - Marathon
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Engineering - Fluor Xxxxxx
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Procurement
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Construction - Office
--------------------------------------------------------
*** *** ***
--------------------------------------------------------
+ Construction - Shop/Showroom
--------------------------------------------------------
*** *** ***
------------------------------------------------------------------------------------------------------------------------------------
Sheet 3 of 3
EXHIBIT 7
---------
VOITH SULZER PAPER TECHNOLOGY "AS PURCHASED"
--------------------------------------------
TECHNICAL SPECIFICATIONS DATED 26 MARCH 1998
--------------------------------------------
EXHIBIT 7
VOITH SULZER PAPER TECHNOLOGY "AS PURCHASED" TECHNICAL SPECIFICATION
DATED 26 MARCH 1998
--------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Page 1
[LETTERHEAD OF VOITH SULZER APPEARS HERE]
26 March 1998
Xx. Xxxx Xxxxxx C302C
Fluor Xxxxxx, Inc.
000 Xxxxx Xxxxxx Xxxxx
Xxxxxxxxxx, XX 00000-0000
Subject: New Gypsum Board Machine
VSPT Contract No. 0199
Project Codeword: TRIPLE PLAY
Dear Xx. Xxxxxx,
Enclosed are the Voith Sulzer "As Purchased" technical specifications for the
Triple Play project.
Included are detailed specifications for the Recycle Fiber Plant & PM
Peripherals and the Gypsum Board Machine.
We thank you for the opportunity to work with you on this project. Should you
have any questions or need any information, please contact our Project Manager,
Xxxx Xxxxxxxx.
Very truly yours,
VOITH SULZER PAPER TECHNOLOGY
/s/ XXXX X. XXXX
Xxxx X. Xxxx
Xx. Sales Correspondent
Capital Equipment Sales
encl.: as noted above
c: Mr. Xxx Xxxxxx / Republic Paperboard Company
Xx. Xxxxx Xxxxxxxx / Marathon Engineers
Xx. Xxxx Xxxxxxxx, VSMI / Project Manager
Mrs. Xxxxx Xxxxx, VSMI / Contracts Administrator
Xx. Xxxxx Xxxxxxxxx, VSMI / Applications Engineer
[LETTERHEAD OF VOITH SULZER, APPEARS HERE]
|
|
| "AS PURCHASED"
|
|
|
|
|
| TECHNICAL SPECIFICATIONS
|
| FOR
|
| RECYCLE FIBER PLANT
|
| &
|
| PAPER MACHINE PERIPHERALS
|
|
|
| Project Codeword:
|
| TRIPLE PLAY
|
|
| Voith Sulzer Contract No.:
|
| 0199
|
|
|
| 24 MARCH 1998
|
|
|
[LETTERHEAD OF VOITH SULZER, APPEARS HERE]
|
|
| "AS PURCHASED"
|
|
|
|
|
| TECHNICAL SPECIFICATIONS
|
| FOR
|
| NEW GYPSUM BOARD MACHINE
|
|
|
|
|
|
|
| Project Codeword:
|
| TRIPLE PLAY
|
|
| Voith Sulzer Contract No.:
|
| 0199
|
|
|
| 24 MARCH 1998
|
|
|
[LETTERHEAD OF VOITH SULZER, APPEARS HERE]
|
|
| "AS PURCHASED"
|
|
|
|
|
| WARRANTIES
|
| FOR
|
| STOCK PREPARATION SYSTEM
| &
| GYPSUM BOARD MACHINE
|
|
|
| Project Codeword:
|
| TRIPLE PLAY
|
|
| Voith Sulzer Contract No.:
|
| 0199
|
|
|
| 24 MARCH 1998
|
|
|
EXHIBIT 8
---------
ENVIRONMENTAL DOCUMENTS
-----------------------
EXHIBIT 8 - ENVIRONMENTAL DOCUMENTS
-------------------------------------------------------------------------------
QST Environmental
Phase I Environmental Assessment
QST Project No. 539-8075
-------------------------------------------------------------------------------
Page 1
[LOGO OF QST ENVIRONMENTAL
APPEARS HERE]
March 30, 1998
Xx. Xxx Xxxxxxxx
Republic Group Incorporated
X.X. Xxx 0000
Xxxxxxxxxx, Xxxxxx 00000
RE: Phase I Environmental Assessment
Vacant Parcel
Xxx Boulevard & Ard Street, Lawton, Oklahoma
QST Project No. 539-8075
Dear Xx. Xxxxxxxx:
Enclosed please find one copy of the Final Phase I Environmental Assessment for
the above referenced property.
QST Environmental Inc. appreciates this opportunity to be of service to Republic
Group Inc. Please call our office if you have any questions.
Sincerely,
QST ENVIRONMENTAL INC.
/s/ XXXXX X. XXXXXXX /s/ XXXXXX X. XXX, CHMM
Xxxxx X. Xxxxxxx Xxxxxx X. Xxx, CHMM
Senior Staff Scientist Senior Project Scientist
--------------------------------------------------------------------------------
Privileged and Confidential
Phase I Environmental Assessment
Xxx Boulevard & Ard Street
Lawton, Oklahoma
Prepared for:
Fluor Xxxxxx Forest Products
000 Xxxxx Xxxxxx Xx.
Xxxxxxxxxx, Xxxxx Xxxxxxxx
00000-0000
Prepared by:
QST Environmental Inc.
0000 X. Xxxxxxxxxx, Xxxxx 000
Xxxxxxx, Xxxxxxxx 00000
March 30, 1998
QST Project No. 539-8075
--------------------------------------------------------------------------------
Phase I Environmental Assessment
Privileged and Confidential Lawton, Oklahoma
--------------------------------------------------------------------------------
9.0 Signatures of Environmental Professionals
This report pertains to the property at the northeast corner Xxx Boulevard and
Ard Street, Lawton, Oklahoma. Our professional services have been performed
using the degree of care and skill ordinarily exercised under similar
circumstances by other environmental professionals practicing in this field.
The representations made in this report are accurate and true to the best
knowledge of the undersigned.
REPORT PREPARED BY:
/s/ XXXXX X. XXXXXXX 3/31/98
--------------------------------- ------------
Xxxxx X. Xxxxxxx Date
Senior Staff Scientist
UNDER REVIEW BY:
/s/ Xxxxxxx X. Xxxxxxx 3/31/98
--------------------------------- ------------
Xxxxxxx X. Xxxxxxx, P.E. Date
Senior Project Engineer
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