The Contract of LPG Pipeline installation Project
The
Contract of LPG Pipeline installation Project
11 April, 2006
Party
A: Zunyi
Minsheng Real Estate Co Ltd (hereinafter called “Party A” )
Party
B: Zunyi
Jiahong Liquefied Petroleum Gas Co Ltd (hereinafter called “Party
B”)
Through
friendly negotiations, both parties have reached an agreement on the
installation of LPG pipeline system project. Consequently, the contract is
to be
signed herewith to make each party’s obligations and responsibilities clear to
enable mutual abidance by the contracted clauses realized.
| 1) |
The
Contract Object
|
Party
B
will provide Party A’s Building A and C located in Minsheng Plaza, Zunyi City
with design, installation and construction of pipeline LPG supply. The LPG
supplying system includes: A central station of gas supplying, the system of
pipeline network, the interior-house-system and indoor facilities (excluding
gas
appliance) as well as other matching parts with the pipeline.
| 2) |
Quality
of the Project
|
The
project must be done as per the detailed shop drawing that was approved by
Party
A and take
those
testing and takeover criterions on installation for LPG project issued by
certain in-charge
departments
of central government as the unique standard. Quality of the pipes to be used
in
the project must accord with relevant national standard and such controllers
as
valves, etc. have to be from legal importation.
| 3) |
Price
and total Amount of the Contract
|
The
unit
price for this installation of LPG system under the contract object is RMB1,980
per household and the total amount is RMB Four hundred Seventy-nine Thousand
One
Hundred and Sixty Yuan Only ( RMB479,160 ) ( The accurate number of the
household users can only be fixed when the building construction is completed
).
| 4) |
Payment
Terms
|
| A) |
Party
A will pay 20% against the total contracted amount to Party B when
the
latter party has been to the working site under request of Party A
having
paved up outdoor underground pipelines and another 40% has to be paid
to
Party B by Party A when Party B has completed all the
indoor-installations.
|
| B) |
The
rest 35% amount will be paid up to Party B one-off within one month
after
the project has successfully passed the testing and been taken over
with
the LPG system starting running ( the xxxxx 0% against the total amount
of
the contract has to be held as quality deposit
).
|
| 5) |
Time
limit of the Project
|
As
soon
as this contract is signed, Party A should offer Party B the plan regarding
the
completion of building construction and inform Party B to enter into the
installation site working only under the precondition that everything is well
ready and Okay for Party B’s job
(
e.g.
the buildings are capped, all the main metopes are completed and the elevation
of the courtyard is well done ). From having received Party A’s informing of
entering into the working site, Party B is requested to complete this project
of
LPG system within 100 working days.
| 6) |
The
Rights and Obligations for Both Parties
|
| A) |
Party
A’s Obligation
|
| a) |
To
effect payment in favor of Party B for what is stipulated in this contract
to pay in due course.
|
| b) |
To
make the land ready for building up LPG central station and fix the
location for the station as per the certain national standards of safely
locating such facilities. Also, Party A
|
is
to be
responsible for making water, electricity and road available for the
station.
| c) |
To
assist Party B to educate the household users to follow “Users’ Handbook
for Safely Using LPG Pipeline” and to protect facilities of this LPG
pipeline system.
|
| d) |
Party
A should cooperate with Party B to keep Party B working in reasonably
good
conditions for the construction according to the detailed shop drawing.
Party B is supposed to be given proper extension from the deadline
of
project completion provided the construction action is delayed by the
changes unexpectedly occur to the project
site.
|
| e) |
The
pipeline system is regarded as a matching part to Party A’s buildings and
Party A should assist Party B applies for the formalities of public
utilities registration. The application fees have to be borne by Party
B.
|
| B) |
Party
B’s Obligations
|
| a) |
Assign
professional superintendents to directly exercise quality surveillance
in
the whole course of the construction.
|
| b) |
To
guarantee the due progress for building-up of system and the quality
of
the project. To hand over the system only after succeeded in having
passed
examinations presided by government department in charge of gas safety
as
per “The Standards on Examination and Takeover for Gas Construction
Project”.
|
| c) |
To
be responsible for applying for approval for the project and also for
examinations and
|
Takeover
for the project completion and pay all the fees and charges for the items
mentioned.
d)
Party
B will also be responsible for keeping one-year warranty period for the
facilities and appliance which are taken over after the completion of the
project and passing the examinations on the quality of the system that is proved
being qualified for starting gas use. The quality deposit will be returned
to
Party B when the quality warranty period is expired.
e)
Party
B must spread “Users’ Handbook for Safely Using LPG Pipeline” among the
household users before handing over the system advising the common sense of
using the system as well as other safety points.
f)
Party
B will be responsible for switching the pipeline to the city network system
when
LNG enters into Zunyi City and Party B will not charge Party A additionally
for
such switchover.
4)
Breach
Responsibilities
A)
Party
A
a)
Party
A has to pay 5% against the total amount of this contract as penal sum in favor
of
Party
B
if it fails to pay what is regulated to pay about as per the contract after
the
contract I has been signed and it should also pay for all the economic losses
consequently caused by this failure.
b)
After
quality testing being passed and takeover of the project is done, if Party
A
fails to give
Party
B
the progress payment, Party B thus has got due rights to bring an accusation
against Party A at local court and request the court to take the expiation
money
by force from Party A’s bank account or to make a compensation for Party B by
taking certain apartments from Party A’s real estate which is equal to what
Party A is supposed to pay Party B at rate of RMB1,300 per square meter in
equivalent ( the floor, unit, main direction and pattern of the apartments
have
to be chosen by Party B )
| C) |
Party
B
|
| a) |
Unless
meeting Force Majeure, Party B, if fails to complete the project as
per
the set schedule, has to pay RMB1,000 per day for each delayed day
as
reparation to Party A for its loss.
|
| b) |
Party
B will be held fully responsible and pay for the total loss caused
by the
accident because of improper design or quality problem with Party B’s
installation for the system but it’s free from the responsibility for the
accident caused by users’ improper using of
the
|
system.
| 7) |
Unmentioned
Matters
|
For
those
possible unmentioned matters, if any occurs, both parties have to negotiate
about accordingly when necessary and mutually reach a new agreement in form
of
Supplementary Agreement which bears equal legal effectiveness with the original
contract. If both fail to find a solution for the disputes via mediation, it
is
mutually agreed that the case has to be brought to Zunyi People’s Court for
obtaining a law judgement.
| 8) |
Others
|
To
protect the rights and interests of the household users, Party A recommends
Party B being the sole LPG provider for the whole residential complex under
the
contract object and is to be responsible for mediating between Party B and
the
household users for signing a formal contract of supplying LPG
there.
The
price
which Party B offers should not be higher than that of market level and Party
A
will not be legally responsible for either of Party B’s failure ____ non-signing
the contract of supplying LPG with the household users or being unable to supply
LPG in normal way.
The
contract is made in form of four originals and either party equally keeps two
of
them which will become effective as soon as both parties put their signatures
and stamps on these documents.
Party
A ( Zunyi Minsheng Real Estate Co Ltd ):
Party
B ( Zunyi Jiahong LPG Co Ltd ):
