<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended JUNE 30, 1996
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ TO ______
COMMISSION FILE NUMBER 0-16484
GETCHELL GOLD CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 64-0748908
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5460 SOUTH QUEBEC STREET
SUITE 240
ENGLEWOOD, COLORADO 80111
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code: (303) 771-9000
FIRSTMISS GOLD INC.
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES /X/ NO / /
Class Outstanding at August 9, 1996
----- -----------------------------
Common Stock, $0.0001 Par Value . . . . . . . . . . . . 25,735,227
1
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
GETCHELL GOLD CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In Thousands of Dollars)
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
---------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 98,187 $114,633
Trade accounts receivable . . . . . . . . . . . . . . . . . 2,635 3,812
Inventories:
Ore and ore in process. . . . . . . . . . . . . . . . . . 2,949 2,088
Materials and supplies. . . . . . . . . . . . . . . . . . 7,557 7,662
-------- --------
Total inventories . . . . . . . . . . . . . . . . . 10,506 9,750
Prepaid expenses and other current assets . . . . . . . . . . 1,550 1,408
Deferred hedging gains, net . . . . . . . . . . . . . . . . . 56 1,046
-------- --------
Total current assets. . . . . . . . . . . . . . . . 112,934 130,649
Property, plant and equipment, net. . . . . . . . . . . . . . 104,536 79,844
-------- --------
Total assets. . . . . . . . . . . . . . . . . . . . $217,470 $210,493
-------- --------
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable. . . . . . . . . . . . . . . . . . . . . . $ 8,267 $ 4,953
Current portion of capital lease obligation . . . . . . . . 1,957 844
Other accrued expenses. . . . . . . . . . . . . . . . . . . 1,822 702
-------- --------
Total current liabilities . . . . . . . . . . . . . 12,046 6,499
Long-term debt. . . . . . . . . . . . . . . . . . . . . . . . 23,814 23,783
Capital lease obligations, less current installments. . . . . 9,632 4,387
Accrued reclamation costs . . . . . . . . . . . . . . . . . . 3,059 2,949
Deferred income taxes . . . . . . . . . . . . . . . . . . . . 7,742 8,611
-------- --------
Total liabilities 56,293 46,229
-------- --------
Stockholders' equity:
Common stock. . . . . . . . . . . . . . . . . . . . . . . . 3 257
Contributed and paid-in capital . . . . . . . . . . . . . . 172,637 171,722
Retained earnings (accumulated deficit) . . . . . . . . . . (11,463) (7,708)
Unearned compensation . . . . . . . . . . . . . . . . . . . - (7)
-------- --------
Total stockholders' equity. . . . . . . . . . . . . 161,177 164,264
-------- --------
Total liabilities and stockholders' equity. . . . . $217,470 $210,493
-------- --------
-------- --------
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
GETCHELL GOLD CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In Thousands of Dollars, Except Per Share Amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
1996 1995 1996 1995
--------- ------- ------- --------
<S> <C> <C> <C> <C>
Net sales. . . . . . . . . . . . . . . . . . . . . . . $ 17,193 $ 17,673 $ 31,848 $ 33,459
Cost of sales. . . . . . . . . . . . . . . . . . . . . 18,436 19,867 35,014 34,016
--------- -------- -------- --------
Gross loss. . . . . . . . . . . . . . . . . . . 1,243 2,194 3,166 557
Selling, general and administrative expenses . . . . . 1,222 983 2,440 1,477
Exploration expenses . . . . . . . . . . . . . . . . . 731 681 1,583 1,478
Abandonment and impairment of mineral properties . . . - 11,531 - 11,531
-------- -------- -------- --------
Loss from operations. . . . . . . . . . . . . . 3,196 15,389 7,189 15,043
Interest expense, net of capitalized interest. . . . . 301 662 534 1,046
Interest and other income. . . . . . . . . . . . . . . (1,476) (46) (3,099) (45)
-------- -------- -------- --------
Loss before income taxes. . . . . . . . . . . . 2,021 16,005 4,624 16,044
Income tax expense (benefit) . . . . . . . . . . . . . - 578 (870) 993
-------- -------- -------- --------
Net loss. . . . . . . . . . . . . . . . . . . . $ 2,021 $ 16,583 $ 3,754 $ 17,037
-------- -------- -------- --------
-------- -------- -------- --------
Loss per common share. . . . . . . . . . . . . . . . . $ 0.08 $ 0.91 $ 0.15 $ 0.94
-------- -------- -------- --------
-------- -------- -------- --------
Average number of shares outstanding . . . . . . . . . 25,716 18,180 25,705 18,159
-------- -------- -------- --------
-------- -------- -------- --------
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
GETCHELL GOLD CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
------------------------
1996 1995
----- -----
<S> <C> <C>
Cash flows from operating activities:
Net loss . . . . . . . . . . . . . . . . . . . . . . $ (3,754) $(17,037)
Adjustments to reconcile net loss to net cash provided
by (used in)operating activities:
Depreciation and depletion . . . . . . . . . . . . 4,261 5,681
Deferred income taxes. . . . . . . . . . . . . . . (1,393) 1,334
Loss on disposal or write-down of assets . . . . . - 11,554
Deferred compensation. . . . . . . . . . . . . . . 7 18
Deferred hedging gain, net . . . . . . . . . . . . 990 -
Net change in operating assets and liabilities,
net of noncash activity:
Trade accounts receivable. . . . . . . . . . . . 1,178 57
Inventories. . . . . . . . . . . . . . . . . . . (756) 1,478
Prepaid expenses and other current assets. . . . (142) 410
Accounts payable . . . . . . . . . . . . . . . . 618 (334)
Interest payable . . . . . . . . . . . . . . . . 807 1,719
Income taxes payable . . . . . . . . . . . . . . 485 (440)
Other accrued expenses . . . . . . . . . . . . . 1,082 177
Accrued reclamation costs. . . . . . . . . . . . 109 (14)
-------- --------
Cash provided by operating activities. . . . . 3,492 4,603
-------- --------
Cash flows from investing activities:
Capital expenditures . . . . . . . . . . . . . . . . (19,888) (12,084)
Proceeds from sale of property . . . . . . . . . . . - 202
Deferred stripping costs . . . . . . . . . . . . . . - (96)
-------- --------
Cash used by investing activities. . . . . . . (19,888) (11,978)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of common stock . . . . . . . 668 285
Proceeds from long-term debt . . . . . . . . . . . . 31 7,050
Principal payments under capital lease obligation. . (749) _
-------- --------
Cash provided by (used in) financing
activities. . . . . . . . . . . . . . . . . . (50) 7,335
-------- --------
Net decrease in cash and cash equivalents. . . (16,446) (40)
Cash and cash equivalents at beginning of period. . . 114,633 635
-------- --------
Cash and cash equivalents at end of period. . . . . . $ 98,187 $ 595
-------- --------
-------- --------
4
<PAGE>
Supplemental disclosures:
Interest paid during the quarter, net of amounts
capitalized. . . . . . . . . . . . . . . . . . . . $ 0 $ 0
-------- --------
-------- --------
Income taxes paid. . . . . . . . . . . . . . . . . . $ 0 $ 0
-------- --------
-------- --------
</TABLE>
See accompanying notes to consolidated financial statements.
Supplemental noncash financing activities:
In the three months ended June 30, 1996 and 1995, $0 and $1,329,000
respectively, of interest payable to First Mississippi Corporation was
transferred to the principal balance of notes payable to First Mississippi
Corporation.
Capital lease obligations of $7,107,000 were incurred to acquire
equipment during the six month period ended June 30, 1996.
5
<PAGE>
GETCHELL GOLD CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL
The financial statements included herein are unaudited and have been
prepared in accordance with generally accepted accounting principles for interim
financial reporting and Securities and Exchange Commission regulations. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations.
In the opinion of management, the financial statements reflect all
adjustments of a normal and recurring nature which are necessary to present
fairly the financial position, results of operations and cash flows for the
interim periods. These financial statements should be read in conjunction with
the Annual Report of the Company on Form 10-K for the six month period ended
December 31, 1995.
Certain prior year amounts have been reclassified to conform with the
current year presentation.
NOTE 2 - CHANGE IN PAR VALUE OF COMMON STOCK
Effective June 25, 1996, FirstMiss Gold Inc. changed its name to
Getchell Gold Corporation (the "Company") and changed its state of
incorporation from Nevada to Delaware. The primary purpose of this
reincorporation was to allow the Company to benefit from Delaware's
well-developed corporate law. In conjunction with the change in state of
incorporation, the par value of the Company's 50,000,000 authorized number of
shares of common stock is $0.0001, a change from FirstMiss Gold Inc.'s par
value of $0.01 for its 50,000,000 authorized number of shares of common stock.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
INTRODUCTION
The information set forth in "Management's Discussion and Analysis of
Financial Condition and Results of Operations" includes "forward looking
statements" within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended (the "Securities Exchange Act"), and is subject to the safe
harbor created by that section. Factors that realistically could cause results
to differ materially from those projected in the forward looking statements are
set forth in "Management's Discussion and Analysis of Financial Condition and
Results of Operations - Risk Factors."
Effective June 25, 1996, FirstMiss Gold Inc. changed its name to Getchell
Gold Corporation (the "Company") and changed its state of incorporation from
Nevada to Delaware. The primary purpose of this reincorporation was to allow
the Company to benefit from Delaware's well-developed corporate law.
RESULTS OF OPERATIONS
Results for the quarter ended June 30, 1996 were a loss of $2.0 million, or
$0.08 per share, versus a loss of $16.6 million, or $0.91 per share, for the
same period in 1995. Results for the six months ended June 30, 1996, were a
loss of $3.8 million, or $0.15 per share, compared to a loss of $17.0 million,
or $0.94 per share, in the first six months of 1995. The 1995 results for both
the quarter and six month periods include $11.5 million of non-cash impairment
and abandonment charges, including a $2.4 million write-off of an inactive
silver exploration property and a $9.1 million write-down of assets associated
with termination of mining in the Main Pit at the Getchell property. While
lower costs associated with mining and leaching resulted in an improved gross
loss in the second quarter of 1996 compared to the second quarter of 1995,
continued use of lower grade stockpile ores to meet mill feed requirements and
increased costs associated with the conversion from open-pit mining to
underground mining were responsible for a slightly less favorable gross loss for
the six month period as compared to a year ago. Both the quarter and six month
periods of 1996 were benefited with higher interest income and lower taxes in
comparison to the 1995 periods. The following table highlights sales and
production information:
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
1996 1995 1996 1995
---- ---- ---- ----
Ounces sold 43,802 45,098 81,019 85,567
Average realized price $ / ounce $393 $392 $393 $391
Average market price $ / ounce $388 $389 $395 $384
Ounces Produced:
Mill 41,731 41,929 77,910 78,105
Heap leach 2,071 3,169 3,109 7,462
Cash cost $ / ounce
Mill $366 $379 $385 $342
Heap leach $269 $491 $219 $409
Combined $361 $387 $378 $347
Total cost $ / ounce
Mill $428 $436 $440 $395
Heap leach $281 $505 $235 $420
Combined $421 $441 $432 $398
7
<PAGE>
SALES. Sales in the second quarter of 1996 of $17.2 million were down 3 percent
from $17.7 million in the same period of 1995. Gold output totaled 43,802
ounces and 45,098 ounces in the 1996 and 1995 second quarters, respectively.
Sales in the first six months of 1996 were $31.8 million compared to $33.5
million in the 1995 same period, reflecting production of 81,019 ounces and
85,567 ounces for the respective periods, a 5 percent decrease for the 1996
period. Production in the 1996 periods came from the Getchell Underground Mine
and stockpiled ores, whereas production in the 1995 periods came from the
Getchell Main Pit and stockpiled ore. The decreases in production in the 1996
periods compared to the 1995 periods were primarily due to lower production from
the heap leach operation resulting from lower grade ores.
Market gold prices averaged $388 and $395 per ounce in the quarter and six
month periods ended June 30, 1996, changed from $389 and $384 in the same
periods of a year ago, respectively. While the Company received full cash
benefit of the gold price improvement during the six month period, decreases in
the carrying value of the hedge positions closed in the period and upon which
non-cash hedge gains had been recognized in earlier periods, reduced the
realized price to $393 per ounce comparing to $391 per ounce in the 1995 six
month period. The realized price for the second quarter of 1996 was $393
compared to $392 for the second quarter of 1995.
At June 30, 1996, the Company had spot deferred contracts on 109,000 ounces
of gold of which 59,000 are scheduled to be delivered during 1996 at prices
ranging between $402 and $423 per ounce and 50,000 ounces scheduled for delivery
in 1997 at prices currently ranging between $396 and $414 per ounce. Based on
the market price of gold at June 30, 1996, the unrealized gain on the contracts
is $2.2 million.
COST OF SALES. Cost of sales for the 1996 second quarter of $18.4 million were
$1.4 million lower than the 1995 period due to lower mining costs and a reduced
scope of operations at the heap leach. Average cash costs for the 1996 second
quarter benefited from the lower operating costs, resulting in $361 per ounce
compared to $387 per ounce in the prior year second quarter. Cost of sales of
$35.0 million for the six months ended June 30, 1996 reflect a slight increase
from the same period a year earlier primarily due to higher mining and milling
costs in the first quarter of 1996. With the slight increase in cost of sales
and the lower production in the 1996 six month period, cash costs per ounce rose
to $378 from $347 in the 1995 same period.
The Company is seeking continued improvements in costs per ounce in 1996 at
the Getchell Underground Mine by accessing higher grade ore zones, and
increasing underground output. During the second quarter of 1996 a second
portal into the Getchell Underground Mine was completed and during the first
quarter of 1996 a backfill plant was completed. The Company is also seeking to
reduce costs from other improvements in underground support facilities. No
assurance can be given that the Company's effort to reduce unit costs per ounce
will be successful.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative costs
of $1.2 million and $2.4 million in the 1996 second quarter and first six
months, respectively, compared to $1.0 million
8
<PAGE>
and $1.5 million in the same respective periods of a year ago. These costs were
higher in the 1996 periods due to increased corporate activity following the
spin off from First Mississippi Corporation in October 1995. As a result,
various corporate administrative costs, including shareholder communications,
investor relations, professional services, salaries, travel and insurance costs
have risen from a year ago.
EXPLORATION. Exploration expenses for the quarter and six months ended June
30, 1996 of $0.7 million and $1.6 million, respectively, were slightly higher
than the same periods in the prior year. Capitalized drilling expenditures were
$0.8 million and $1.3 million for the quarter and six months ended June 30,
1996, respectively, and are expected to increase during the remainder of the
year as discussed in "Planned Activities".
INTEREST EXPENSE. Interest expense was lower by $0.4 million and $0.5 million
in the second quarter and first six months of 1996 compared to the same periods
of 1995 due to lower debt balances on the First Mississippi Corporation notes
and increased amounts of capitalized interest in the current periods related to
the Company's current development projects.
INTEREST AND OTHER INCOME. The increase in 1996 interest and other income over
1995 of $1.4 million for the second quarter and $3.1 million for the six months
reflects higher interest earnings on higher cash balances following the equity
offering in November 1995 as discussed in "Liquidity and Capital Resources".
INCOME TAXES. For the quarter and six months ended June 30, 1995, the Company
recognized a valuation allowance relating to an Amended Tax Sharing Agreement
with First Mississippi Corporation, resulting in income tax expense of $0.6
million and $1.0 million, respectively. No tax benefit was recognized against
the pretax loss in the second quarter of 1996, resulting in a tax benefit of
$0.9 million for the first six months of 1996.
LIQUIDITY AND CAPITAL RESOURCES
The Company is presently financing its operations and capital development
projects from internally generated cash and from cash proceeds of an equity
offering completed in November 1995 which provided a net $137.5 million. At
June 30, 1996, the Company's cash and cash equivalents totaled $98.2 million.
It is currently anticipated that this cash, along with cash generated by
operations, will be sufficient to complete the construction of the Turquoise
Ridge Mine and to meet other capital and operating needs over the next two
years. However, if operational delays are encountered or if cash generated by
operations does not reach expectations (see discussion in "Risk Factors"), these
cash amounts may not be sufficient to meet these needs, in which event the
Company may find it necessary to raise additional funds through borrowings or
additional equity offerings.
During the six month period ended June 30, 1996, the Company spent cash of
$19.9 million in capital expenditures. Of these capital expenditures, the
Company spent $10.5 million on the development of the Turquoise Ridge ore body,
$4.7 million for equipment and underground
9
<PAGE>
development costs at the Getchell Underground Mine, $2.3 million for mill
facility improvements, $1.2 million for development drilling and $1.2 million on
other capital items.
PLANNED ACTIVITIES
The major focus of the Company during the next 15 months will be shaft
sinking and construction of surface support facilities for the Turquoise Ridge
Mine. Initial production of development ore at Turquoise Ridge is not expected
before the end of 1997.
The Company presently plans to focus 1996 exploration drilling on the
evaluation of numerous targets on the Getchell Property located outside of the
known reserve areas. Additional drilling is planned to investigate potential
extensions of the Getchell Underground reserves and to evaluate the structure
and mineralization potential of areas surrounding the Turquoise Ridge ore body.
During the six months ended June 30, 1996, drilling in an area immediately
adjacent to, and southeast of the current Turquoise Ridge ore body encountered a
previously unknown mineralized zone in an area approximately 1,400 feet by 1,000
feet. Drilling to date suggests gold mineralization exists at a depth between
1,000 and 2,500 feet below the surface. The Company has expanded its 1996
exploration drilling program by approximately $2.0 million to allow additional
drilling in this new zone and other areas surrounding the known Turquoise Ridge
ore body. This new program is intended to provide a better understanding of the
overall structure and mineralization around the Turquoise Ridge ore body, as
well as provide information for short and medium-term mine planning purposes.
The Company also plans to continue processing sulfide ores from the
Getchell Underground ore body, supplemented by stockpiled ores as needed to keep
the mill operating at full capacity. The Company is seeking to improve Getchell
Underground grades and output and to achieve an output of 1,500 tons per day by
the end of 1996. There can be no assurance that any of the foregoing plans or
goals will be achieved.
RISK FACTORS
GOLD PRICE VOLATILITY
The Company's profitability is significantly affected by changes in the
market price of gold. Gold prices fluctuate widely and are affected by numerous
industry factors, such as demand for precious metals, forward selling by
producers, central bank sales and purchases of gold, and production and cost
levels in major gold-producing regions such as South Africa and the former
Soviet Union. Moreover, gold prices are also affected by macro-economic factors
such as expectations for inflation, interest rates, currency exchange rates, and
global or regional political and economic situations. The current demand for
and supply of gold affect gold prices, but not necessarily in the same manner as
current demand and supply affect the prices of the other commodities. The
potential supply of gold consists of new mine production plus existing stocks of
bullion and fabricated gold held by governments, financial institutions,
industrial organizations and individuals. Since mine production in any single
year constitutes a very small portion of the total potential supply of gold,
normal variations in current production do not necessarily have a significant
effect on the supply of gold or on its price. If gold prices should decline
below the Company's cash costs of production and remain at such levels for any
sustained period, the Company could determine that it is not economically
feasible to continue commercial production.
10
<PAGE>
The volatility of gold prices is illustrated in the following table of the
annual high, low and average London P.M. Fix:
CALENDAR YEAR PRICE PER OUNCE
--------------- -----------------
HIGH LOW AVERAGE
----- ----- --------
1984. . . . . . . . . . . . . . . . . . . . . . . .$406 $308 $360
1985. . . . . . . . . . . . . . . . . . . . . . . . 341 294 317
1986. . . . . . . . . . . . . . . . . . . . . . . . 438 326 368
1987. . . . . . . . . . . . . . . . . . . . . . . . 500 390 446
1988. . . . . . . . . . . . . . . . . . . . . . . . 495 395 437
1989. . . . . . . . . . . . . . . . . . . . . . . . 416 356 381
1990. . . . . . . . . . . . . . . . . . . . . . . . 474 346 383
1991. . . . . . . . . . . . . . . . . . . . . . . . 403 344 362
1992. . . . . . . . . . . . . . . . . . . . . . . . 374 330 344
1993. . . . . . . . . . . . . . . . . . . . . . . . 406 326 360
1994. . . . . . . . . . . . . . . . . . . . . . . . 396 370 384
1995. . . . . . . . . . . . . . . . . . . . . . . . 396 370 384
The London P.M. Fix on July 31, 1996, was $385 per ounce.
LOSSES
The Company reported net losses of $2.0 million for the six months ended
June 30, 1996, $5.0 million for the six months ended December 31, 1995 and
$18.4 million for the fiscal year ended June 30, 1995. The Company expects to
continue to experience losses until its low grade stockpile ores are replaced by
higher grade ore from new sources, which could include sources presently being
explored or developed by the Company. There can be no assurance that such
higher grade replacement ores will be obtained by the Company.
DEPENDENCE ON A SINGLE MINE
All of the Company's revenues are derived from its mining and milling
operations at the Getchell Property. If the operations at the Getchell
Underground Mine or at any of the Company's processing facilities were to be
reduced, interrupted or curtailed, the Company's ability to generate revenues
and profits in the future would be materially adversely affected.
RESERVES
The ore reserves reported by the Company are, in large part, estimates made
by the Company and confirmed by independent mining consultants. The reserves
confirmed by Mine Development Associates, a consulting firm which reviewed the
Company's reserve estimates, are subject to certain risks and assumptions,
including those discussed in "Certain Turquoise Ridge Mine Risks" below.
Additionally, no assurance can be given that the indicated level of recovery of
gold will be realized or that the assumed gold price of $400 per ounce will be
obtained. Reserve estimates may require revision based on actual production
experience. Market price fluctuations of gold, as well as increased production
costs or reduced recovery rates, may render ore reserves containing relatively
lower grades of mineralization uneconomic and may ultimately result in a
restatement of reserves. Moreover, short-term operating factors relating to the
ore reserves, such as the need for
11
<PAGE>
sequential development of ore bodies and the processing of new or different ore
grades, may adversely affect the Company's profitability in any particular
accounting period.
Declines in the market price of gold may also render ore reserves
containing relatively lower grades of gold mineralization uneconomic to exploit
unless the utilization of forward sales contracts or other hedging techniques is
sufficient to offset the effects of a drop in the market price of the gold
expected to be mined from such reserves. If the Company's realized price per
ounce of gold, including hedging benefits, were to decline substantially below
the levels set for calculation of reserves for an extended period, there could
be material delays in the development of new projects, increased net losses,
reduced cash flow, reductions in reserves and asset impairments.
CERTAIN TURQUOISE RIDGE MINE RISKS
The Turquoise Ridge Mine involves numerous risks. These include the
following:
RESERVES. The resource and reserve estimates were prepared using geological
and engineering judgment based on available data. In the absence of underground
development, such estimates must be regarded as imprecise and some of the
assumptions made may later prove to be incorrect or unreliable.
The grade distribution at Turquoise Ridge is fairly narrow, with most
stopping blocks having grades between 0.2 to 0.4 ounces per ton. This means
that small changes in cutoff grade can cause large shifts in the reserves. If
dilution and/or mining costs related to bad ground are higher than expected, the
reserves could be substantially reduced, resulting in a shortening of mine life
and a reduced or negative cash flow.
There can be no assurance that the probable reserves set forth in the
September 1995 pre-feasibility study conducted by Mineral Resources Development
Inc. (MRDI) will actually be mined and milled on an economic basis, if at all.
The MRDI Study is based upon many assumptions, some or all of which may not
prove to be accurate. The failure of any such assumptions to prove accurate may
alter the conclusions of the MRDI Study and may have a material adverse effect
on the Company.
The Turquoise Ridge Mine is now transitioning from the pre-feasibility
study level of project development to the construction phase of development.
The expenditure required to advance the project to the point of a production
test is large, particularly since the Company has decided to proceed with shaft
systems capable of being used in full-scale production to save time and money,
should trial mining be confirmed as viable. Thus, to a large extent,
expenditures which would usually be supported by a feasibility study will depend
on the data in-hand and assumptions made in the MRDI Study with an attendant
higher level of uncertainty.
DILUTION. The tonnage and grade of the mill feed material were estimated by
applying dilution factors to certain resource data. The dilution agents are
backfill, waste from the back of over-cut crosscuts and drifts, and from the
walls. In the case of the latter two, MRDI assumed that there would be an
average of one foot of back and wall dilution. If this dilution increases,
there will be corresponding negative effects on the tonnage and grade to mill.
This risk is related to the irregular configuration of
12
<PAGE>
the ore body which, even with the tight cut-and-fill stopping method used, could
make achievement of a dilution thickness of one foot impossible to achieve in
practice.
NO. 1 SHAFT COMPLETION. MRDI believes a two-year assumed construction period
for No. 1 Shaft, which will become the main production shaft, is an aggressive
schedule. Delay in construction would necessitate removing ore through the No.
2 Shaft, which is basically designed for waste and the limited ore from early
production. Additionally, the availability of the final ventilation circuit
required for mining depends upon the completion of No. 1 Shaft.
MINING COST. As part of the project risk assessment, sensitivities were run on
various mining costs. Due to uncertainties about actual ground conditions and
productivities, these costs are only predictable within a broad range and the
predictions may not be valid. Therefore, actual mining costs may have a
material adverse effect on the viability of the Turquoise Ridge project and on
the Company.
HYDROLOGY. Drainage of the ore body and surrounding rock will be critical to
the achievement of the mining efficiencies and costs estimated for the study.
If the deposit is not drained and water remains in this clay-rich environment,
mining conditions could worsen, and support costs will increase. If, due to the
presence of fine clays, the deposit drains slowly, the start of production may
be delayed, and the build-up to full production may be of longer duration.
Additionally, depending upon the quantity and quality of water encountered, the
water treatment/disposal options presently available to the Company may be
insufficient to meet estimated amounts needed to treat water pumped from
Turquoise Ridge during de-watering.
GEOTECHNICAL CONSIDERATIONS The Turquoise Ridge ore zones contain areas of
poor ground conditions due to a high percentage of the ground being comprised of
low rock mass rating rock and clay. As a result, additional ground support may
be required.
PROJECT DEVELOPMENT RISKS
The Company from time to time engages in the development of new ore bodies.
The Company's ability to sustain or increase its present level of gold
production is dependent in part on the successful development of such new ore
bodies and/or expansion of existing mining operations. The economic feasibility
of any such development project, and all such projects collectively, is based
upon, among other things, estimate of reserves, metallurgic recoveries, capital
and operating costs of such projects and future gold prices. Development
projects are also subject to the successful completion of feasibility studies,
issuance of necessary permits and receipt of adequate financing.
Development projects have no operating history upon which to base estimates
of future cash operating costs and capital requirements. In particular,
estimates of reserves, metal recoveries and cash operating costs are to a large
extent based upon the interpretation of geologic data obtained from drill holes
and other sampling techniques and feasibility studies which derive estimates of
cash operating costs based upon anticipated tonnage and grades of ore to be
mined and processed, the configuration of the ore body, expected recovery rates
of metals from the ore, comparable facility and equipment costs, anticipated
climate conditions and other factors. As a result, it is possible that
13
<PAGE>
actual cash operating costs and economic returns of any and all development
projects may materially differ from the costs and returns initially estimated.
EXPLORATION
Mineral exploration, particularly for gold, is highly speculative in
nature, involves many risks and frequently is unsuccessful. The Company is
seeking to expand its reserves only through exploration and development at the
Getchell Property. There can be no assurance that the Company's exploration
efforts will result in the discovery of any additional gold mineralization or
that any mineralization discovered will result in an increase of the Company's
reserves. If reserves are developed, it may take a number of years and
substantial expenditures from the initial phases of drilling until production is
possible, during which time the economic feasibility of production may change.
No assurance can be given that the Company's exploration programs will result in
the replacement of current production with new reserves or that the Company's
development program will be able to extend the life of the Company's existing
mines.
HEDGING ACTIVITIES
The Company currently uses spot deferred contracts in its hedging program
to protect earnings and cash flows from the impact of short-term drops in gold
price. These transactions have been designated as hedges of the price of future
production and are accounted for as such. Spot deferred contracts are
agreements between a seller and a counter party whereby the seller commits to
deliver a set quantity of gold, at an established date in the future and at an
agreed upon prices. The established forward price is equal to the current spot
gold price on the day the agreement is signed plus "contango." Contango is equal
to the difference between the prevailing market rate for cash deposits less the
gold lease rate, for comparable periods. The contango rate ranged from 4.0% to
3.8% for 1 month to 12 month periods at June 30, 1996.
At the scheduled future delivery date, the seller may, at the option of the
counter party, deliver gold and thereby fulfill the contract or defer delivery
to a future date. In practice this generally allows the seller to maximize the
price realized. If the spot price on the delivery date is greater than the
contract price, delivery on the contract is deferred to a new forward date and
the gold is sold at the higher spot price. If the spot price is lower than the
contract price, the delivery is made against the contract and the higher
contract price is realized.
Each time a seller defers delivery, the forward sales price is increased by
the then prevailing contango for the next period out to the newly established
forward delivery date. Generally, the counter party will allow the seller to
continue to defer contract deliveries providing that there is sufficient
scheduled production from proven and probable reserves to fulfill the
commitment. During both the second quarter and first six months ended June 30,
1996, the Company deferred delivery on contracts representing 90,000 ounces.
At June 30, 1995, the Company had spot deferred contracts on 109,000 ounces
of gold of which 59,000 are scheduled to be delivered during 1996 at prices
ranging between $402 and $423 per ounce and 50,000 ounces scheduled for delivery
in 1997 at prices currently ranging between $396 and $414 per ounce. Based on
the market price of gold at June 30, 1996, the unrealized gain on the contracts
is $2.2 million. The Company's accounting treatment for spot deferred contracts
is
14
<PAGE>
outlined in Notes 1 and 7 to the Consolidated Financial Statements as found in
the Company's Form 10-K for the period ended December 31, 1995.
Risk of loss from these forward sales and purchases agreements arises from
the possible inability of a counter party to honor contracts and from changes in
the Company's potential ability to deliver gold. However, nonperformance by
any party to the financial instruments in not anticipated.
DEPENDENCE ON KEY PERSONNEL
The Company is dependent on the services of certain key officers and
employees, including its Chief Executive Officer, its Chief Financial Officer
and its Chief Operating Officer. Competition in the mining industry for
qualified individuals is intense, and the loss of any of these key officers or
employees if not replaced could have a material adverse effect on the Company's
business and its operations. The Company currently does not have key person
insurance. The Company has entered into Termination Agreements with its Chief
Executive Officer, Chief Financial Officer and Chief Operating Officer which
provide for certain payments upon termination or resignation resulting from a
change of control (as defined in such agreements).
REGULATION OF MINING ACTIVITY
The mining operations of the Company are subject to inspection and
regulation by the Mine Safety and Health Administration of the Department of
Labor ("MSHA") under provisions of the Federal Mine Safety and Health Act of
1977. The Occupation and Safety Health Administration ("OSHA") also has
jurisdiction over safety and health standards not covered by MSHA.
All of the Company's exploration, development and production activities are
subject to regulation under one or more of the various environmental laws.
These laws address emissions to the air, discharges to water, management of
wastes, management of hazardous substances, protection of natural resources,
protection of antiquities and reclamation of lands which are disturbed. Many of
the regulations also require permits to be obtained for the Company's
activities; these permits normally are subject to public review processes
resulting in public approval of the activity. It is possible that future
changes in these laws or regulations could have a significant impact on some
portion of the Company's business, causing those activities to be economically
reevaluated at that time.
During the past three years, the United States Congress considered a number
of proposed amendments to the General Mining Law of 1872, as amended (the
"General Mining Law"), which governs mining claims and related activities on
federal lands. In 1992, a holding fee of $100 per claim was imposed upon
unpatented mining claims located on federal lands. In October 1994, a one-year
moratorium on processing of new patent applications was approved. This
moratorium has been extended through September 30, 1996. In addition, a variety
of legislation is now pending before the United States Congress to amend further
the General Mining Law. The proposed legislation would, among other things,
change the current patenting procedures, impose royalties, and enact new
reclamation, environmental controls and restoration requirements. The royalty
proposals range from a 2% royalty on "net profits" from mining claims to an 8%
royalty on modified gross income/net smelter returns. The extent of any such
changes is not presently known and the potential impact on the Company as a
result of future congressional action is difficult to predict.
15
<PAGE>
Although a majority of the Company's existing mining operations occur on private
or patented property, the proposed changes to the General Mining Law could
adversely affect the Company's ability to economically develop mineral resources
on federal lands.
ENVIRONMENTAL REGULATIONS
Mining is subject to potential risks and liabilities associated with
pollution of the environment and the disposal of waste products occurring as a
result of mineral exploration and production. Environmental liability may
result from mining activities conducted by others prior to the Company's
ownership of a property. Insurance for environmental risks (including potential
liability for pollution or other hazards as a result of the disposal of waste
products occurring from exploration and production) is not generally available
at a reasonable price to the Company or to other companies within the industry.
To the extent the Company is subject to environmental liabilities, the payment
of such liabilities would reduce funds otherwise available to the Company and
could have a material adverse effect on the Company.
In the context of environmental permitting, including the approval of
reclamation plans, the Company must comply with standards, laws and regulations
which may entail greater or lesser costs and delays depending on the nature of
the activity to be permitted and how stringently the regulations are
implementing by the permitting authority. It is possible that the costs and
delays associated with compliance with such laws, regulations and permits could
become such that the Company would not proceed with the development of a project
or the operation or further development of a mine. Laws and regulations
involving the protection and remediation of the environment are constantly
changing and are generally becoming more restrictive. The Company has made, and
expects to make in the future, significant expenditures to comply with such laws
and regulations.
Pending bills which affect environmental laws applicable to mining include
versions which may substantially alter the Clean Water Act, Safe Drinking Water
Act, Endangered Species Act and a bill which will introduce additional
protection of wetlands (Wetlands Protection and Management Act). Adverse
developments and operating requirements in these acts could impair the ability
of the Company as well as others to develop mineral resources. Revisions to
current versions of these bills could occur prior to passage.
The Environmental Protection Agency ("EPA") continues the development of a
solid waste regulatory program specific to mining operations under the Resource
Conservation and Recovery Act ("RCRA"). Of particular concern to the mining
industry is a proposal by the EPA titled "Recommendation for a Regulatory
Program for Mining Waste and Materials Under Subtitle D of the Resource
Conservation and Recovery Act" ("Strawman II") which, if implemented, would
create a system of comprehensive federal regulation of the entire mine site.
Many of these requirements would be duplicative of existing state regulations.
Strawman II as currently proposed would regulate not only mine and mill wastes
but also numerous production facilities and processes which could limit internal
flexibility in operating a mine. To implement Strawman II as proposed, the EPA
must seek additional statutory authority, which is expected to be requested in
connection with Congress' reauthorization of RCRA.
16
<PAGE>
The Company is also subject to regulations under (I) the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 ("CERCLA" or
"Superfund") which regulates and establishes liability for the release of
hazardous substances and (ii) the Endangered Species Act ("ESA") which
identifies endangered species of plants and animals and regulates activities to
protect these species and their habitats. Revisions to CERCLA and ESA are being
considered by Congress; the impact on the Company of these revisions is not
clear at this time.
Environmental laws and regulations may also have an indirect impact on the
Company, such as increased cost for electricity due to acid rain provisions of
the Clean Air Act Amendments of 1990. Charges by refiners to which the Company
sells its metallic concentrates and products have substantially increased over
the past several years because of requirements that refiners meet revised
environmental quality standards. The Company has no control over the refiners'
operations or their compliance with environmental laws and regulations. If the
refining capacity of the United States is significantly further reduced because
of environmental requirements, it is possible that the Company's operations
could be adversely affected.
MINING RISK AND INSURANCE
The gold ore located on the Getchell Property and the existing tailings
ponds and waste dumps located on the Getchell Property contain relatively high
levels of arsenic, and the milling of such ore involves the use of other toxic
substances, including sodium cyanide, sodium hydroxide, sulfuric acid and nitric
acid. In addition, the business of gold mining is generally subject to a number
of risks and hazards, including environmental hazards, industrial accidents,
labor disputes, the encounter of unusual or unexpected geological conditions,
slope failures, changes in the regulatory environment and natural phenomena such
as inclement weather conditions, floods, blizzards and earthquakes. Such
occurrences could result in damage to, or destruction of, mineral properties or
production facilities, personal injury or death, environmental damage, delays in
mining, monetary losses and possible legal liability. The Company maintains
insurance against risks that are typical in the gold mining industry and in
amounts that the Company believes to be reasonable, but which may not provide
adequate coverage in certain unforeseen circumstances. However, insurance
against certain risks (including certain liabilities for environmental pollution
or other hazards as a result of exploration and production) is not generally
available to the Company or to other companies within the industry.
TITLE TO PROPERTIES
Certain of the Company's mineral rights consist of unpatented mining
claims. Unpatented mining claims are unique property interests that are
generally considered to be subject to greater title risk than other real
property interests. The greater title risk results from unpatented mining
claims being dependent on strict compliance with a complex body of federal and
state statutory and decisional law, much of which compliance involves physical
activities on the land, and from the lack of public records which definitively
control the issues of validity and ownership.
17
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At the Annual Meeting of Stockholders on June 13, 1996, the Company
stockholders, pursuant to proxies solicited under Regulation 14A, cast
votes on proposals as follows:
Proposal No. 1 - Election of Directors
- -------------------------------------- Withhold
For Authority
--- ---------
Walter A. Drexel 20,266,606 481,523
John Racich 20,270,192 477,937
Charles E. Stott, Jr. 20,269,876 478,253
Al Winters 20,270,417 477,712
Robert L. Zerga 20,270,674 477,455
Continuing directors are:
Robert C. Horton
Pete Ingersoll
R. Michael Summerford
G.W. Thompson
J. Kelley Williams
Proposal No. 2 - Approval of 1996 Long Term Equity Incentive Plan
- -----------------------------------------------------------------
For Against Abstain Non Vote
--- ------- ------- --------
19,575,616 879,886 102,872 189,755
Proposal No. 3 - Approval of 1996 Stock Option Plan for Outside Directors
- -------------------------------------------------------------------------
For Against Abstain Non Vote
--- ------- ------- --------
19,954,483 458,922 117,969 189,755
Proposal No. 4 - Approval of a Change in the State of Incorporation of the
- --------------------------------------------------------------------------
Company from the State of Nevada to the State of Delaware
---------------------------------------------------------
For Against Abstain Non Vote
--- ------- ------- --------
17,118,364 559,650 64,171 3,005,944
Proposal No. 5 - Approval of a Change of the Corporate Name of the Company to
- -----------------------------------------------------------------------------
Getchell Gold Corporation
-------------------------
For Against Abstain Non Vote
--- ------- ------- --------
20,318,128 183,905 94,767 151,329
Proposal No. 6 - Ratification of Appointment of Independent Auditors for 1996
- -----------------------------------------------------------------------------
For Against Abstain Non Vote
--- ------- ------- --------
20,697,162 21,726 29,241 0
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
The following exhibits are filed herewith and are referred to and
incorporated herein by reference to such filings.
10(a) - Construction Contract for the Shaft #1 Construction Project
between FirstMiss Gold, Inc. and Thyssen Mining, dated January 2,
1996.
10(b) - Construction Contract for the Turquoise Ridge No. 2 Shaft
Construction Project between FirstMiss Gold, Inc. and Thyssen
Mining, dated May 1, 1996.
27. _ Financial Data Schedule.
REPORTS ON FORM 8-K
During the three months ended June 30, 1996 there were no reports filed on
Form 8-K.
18
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE
--------- ----- ----
/s/ G. W. THOMPSON President, Chief Executive Officer August 13, 1996
------------------ and Director
G. W. Thompson
/s/ DONALD S. ROBSON Vice President and Chief Financial August 13, 1996
-------------------- Officer
Donald S. Robson (Principal Financial Officer)
19
<PAGE>
1.0 INSTRUCTIONS TO BIDDERS..................................................1-1
1.1 DESCRIPTION OF THE AGREEMENT.............................................1-2
1.2 ITEMS TO BE QUOTED BY BIDDER............................................1-2
1.2.1 Unit Prices....................................................1-2
1.2.2 Lump Sum Prices................................................1-2
1.2.3 Additional Work................................................1-2
1.2.4 Pumping Water..................................................1-2
1.2.5 Critical Path..................................................1-2
1.2.6 Extra Work When Unit Prices or Lump Sum Prices Are Not
Applicable................................................1-2
1.3 CONSTRUCTION METHODS.....................................................1-3
1.4 CONTRACTOR'S SCHEDULE....................................................1-3
1.5 CONTRACTOR'S CONSTRUCTION EQUIPMENT......................................1-3
1.6 CONTRACTOR'S BID BOND....................................................1-3
1.7 INFORMATION ON KEY PERSONNEL.............................................1-4
1.8 RESUMES OF PERSONNEL TO BE ASSIGNED TO THIS WORK.........................1-4
1.9 EXCEPTIONS...............................................................1-4
1.10 CONTRACTOR'S SETUP PLAN.................................................1-4
1.11 CONDITIONS AFFECTING THE WORK...........................................1-4
1.12 FORM OF BID.............................................................1-5
1.13 CLARIFICATIONS AND ALTERNATIVES TO SPECIFICATIONS.......................1-5
1.14 SUBMITTING THE BID......................................................1-5
1.15 REQUEST FOR ADDITIONAL INFORMATION......................................1-6
1.16 ACCEPTANCE AND REJECTION................................................1-6
1.16.1 Award..........................................................1-7
1.16.2 Notice to Proceed..............................................1-7
1.17 CONFIDENTIALITY.........................................................1-7
1.18 BONDS...................................................................1-7
1.19 PERMITS.................................................................1-7
<PAGE>
1-1
1.0 INSTRUCTIONS TO BIDDERS
Bidders are requested to prepare a proposal for the No. 1 Shaft
Construction as described in Sections 6.0 and 7.0 of this bid package.
Bidders shall inform the Owner of their intent to submit a proposal for the
Turquoise Ridge Project by close of business on 17 November 1995. The
intent to submit a proposal shall be Faxed to Mr. Ralph M. Barker at (702)
635-8015.
Three (3) copies of the Bidder's proposal shall be delivered as described
in Section 1.14 before the close of business on 08 December 1995.
In order to be considered for the "Work" as described in the "Agreement
Documents" (as such term is described in the General Conditions),
specifically including Sections 6.0 and 7.0, Bidder shall submit all
information requested in the format described. This is required in order
to assist evaluation of the Bidder's proposal by FirstMiss Gold Inc.,
hereinafter call the "Owner." In the event the Owner's request for
information appears to be ambiguous, Bidder shall request clarification
from the Owner.
The letter of invitation to bid lists the documents enclosed therewith. It
is the responsibility of the Bidder to verify, upon receipt, that the
documents listed therewith are in fact furnished as represented and every
revision number or letter shown.
If it is discovered by Bidder that a document or an attachment thereto is
not enclosed or is not furnished in the same revision form as represented
by the invitation to bid or the relevant documents, Bidder shall promptly
notify, in writing, the Owner's Representative designated in the letter to
receive proposals.
Owner desires Bidder to submit any other information considered necessary
to fully explain and/or define its proposal. Owner expects this
information in the form of bound text and drawings, if any, explaining and
showing detail data describing what is being proposed. Owner will give
full consideration to this information.
Owner will treat all information provided by the Bidder as proprietary
until released by Bidder.
Owner may amend any document issued with the invitation to bid at any time
prior to final execution of an "Agreement" (as such term is defined in the
General Conditions). Owner reserves the right to reject any and all bids,
reissue this document, or decline award to any bidder.
<PAGE>
1-2
1.1 DESCRIPTION OF THE AGREEMENT
The Contractor whose bid is accepted by Owner will enter into an Agreement
identical to the Agreement form in these bidding documents, except to the
extent changes are made to cover clarifications made by the Contractor in
its bid and accepted by Owner.
1.2 ITEMS TO BE QUOTED BY BIDDER
1.2.1 Unit Prices
Bidder shall submit unit prices where specified in Section 2.0,
Contractor's Proposal. The unit prices shall be inclusive of labor,
supervision, permanent and expendable materials, burden, overhead, and fee.
These unit prices will be extended to an anticipated lump sum through the
use of anticipated quantities shown in Section 2.0. The Work shall be
completed as described in Section 6.0, Scope of Work, and Section 7.0,
Project Specifications and Drawings of this bid package.
1.2.2 Lump Sum Prices
Bidder shall submit lump sum prices where specified in Section 2.0. The
lump sum prices shall be inclusive of labor, supervision, permanent and
expendable materials, burden, overhead and fee. The Work shall be
completed as described in Section 6.0, Scope of Work and Section 7.0,
Project Specifications and Drawings.
1.2.3 Additional Work
Any additional Work performed to expedite the completion of the Work
described in Sections 6.0 and 7.0, such as muck bays or turnouts, and any
additional Work performed to meet state or federal safety regulations, such
as rock bolt testing or refuge stations, shall be included in unit or lump
sum prices specified in Section 2.0.
1.2.4 Pumping Water
The costs of removing water from excavation faces shall be included in unit
and lump sum prices specified in Section 2.0.
1.2.5 Critical Path
Critical path items shall include all Work that impedes advance
specifically including ground support systems and other mine services that
require installation at the face. Noncritical path items shall include
ground support systems and other services that may be installed behind Work
at the face and do not impede advance.
<PAGE>
1-3
1.2.6 Extra Work When Unit Prices or Lump Sum Prices Are Not Applicable
Bidder shall submit labor rates to be used as the basis of reimbursement
for additional or extra Work. These rates shall be inclusive of all
fringes, subsistence, pension, vacation, payroll taxes and insurances and
are to be shown in Section 2.0, Contractor's Proposal.
Bidder shall submit a percentage markup for profit and overhead of the cost
of materials furnished, labor rates and equipment rates for additional or
extra Work. This percentage markup shall be shown in Section 2.0,
Contractor's Proposal.
Bidder shall furnish in Section 2.0, Contractor's Proposal, a list of
equipment to be used on the project for extraordinary Work. Hourly rates
shall be indicated for all Contractor-owned and/or rented equipment to be
used for reimbursement of extraordinary Work.
1.3 CONSTRUCTION METHODS
Bidder shall furnish in Section 2.0 a detailed description of the methods
it intends to use to complete the Work.
1.4 CONTRACTOR'S SCHEDULE
Bidder's proposal shall include in Section 2.0 a statement of the number of
days required to commence Work on the project from the time Bidder receives
notice to proceed. Time is of the essence in this project. The proposed
schedule shall include schedule of Work and manpower.
1.5 CONTRACTOR'S CONSTRUCTION EQUIPMENT
Bidder shall furnish lists of equipment available and anticipated to be
used on this project. The lists shall include the equipment brand, year of
manufacture, model number, size, and the quantity to be used on site of
each type. This information is to be entered in Section 2.0 of the
Contractor's Proposal.
1.6 CONTRACTOR'S BID BOND
The Bidder will be responsible for all costs, expenses, loss, damage and
liabilities incurred as a result of, or arising out of, the invitation to
bid or out of bidding.
A bid bond of $50,000 is required to be submitted with the proposal.
The Owner will hold, without interest, all bid bonds for sixty (60) days
from the closing time for receipt of bids. The Owner will hold, without
interest, the bid bond of the selected Bidder until the Bidder executes the
Agreement and provides the required bonds.
<PAGE>
1-4
The penal amount of the bond of the selected Bidder shall be forfeited to
the Owner, without recourse, if the Bidder does not execute the Agreement
or provide the required bonds. THE BID BONDS OF THE PARTIES NOT SELECTED
SHALL BE RETURNED UPON THE EXPIRATION OF THE 60-DAY PERIOD, OR WHEN THE
SELECTED BIDDER HAS EXECUTED THE AGREEMENT AND PROVIDED THE REQUIRED BONDS,
WHICHEVER IS EARLIER.
1.7 INFORMATION ON KEY PERSONNEL
Bidder shall furnish in Section 2.0 an organizational chart of supervisory,
technical and management personnel to be associated with the Work. The
percent of time each individual will be on the job site shall be indicated
on a separate schedule referencing the organizational chart.
1.8 RESUMES OF PERSONNEL TO BE ASSIGNED TO THE WORK
The Bidder shall provide in Section 2.0 the names and resumes of key
supervisory, technical and management personnel to be assigned to the Work.
Owner shall approve the assignment of each individual chosen, and Bidder
shall agree to maintain the assignment as long as the individual remains in
the employ of the Bidder and shall not reassign the individual without
Owner's approval.
1.9 EXCEPTIONS
Bidder is to include in Section 2.0 a list of any exceptions taken to any
of the terms and conditions or any documents furnished. Qualifying
statements are to be included concerning Contractor's interpretation or
insertion of clauses. If there are none, the Bidder shall state "None."
<PAGE>
1-5
1.10 CONTRACTOR'S SETUP PLAN
The Bidder shall include in Section 2.0 a plan of the area required for
office trailer, change room, shop materials and fuel storage. Dwg
417-SK-001 illustrates the approximate area available for Contractor's
surface facilities.
1.11 CONDITIONS AFFECTING THE WORK
Bidder shall visit the site and take such other steps as may be necessary
to ascertain the nature and location of the Work, and the general and local
conditions which can affect mobilization, materials and supplies, and cost
thereof. Bidder shall become familiar with local labor conditions, supply
and practice, and make full and complete investigation and evaluation of
any other existing conditions and limitations.
Bidder shall read and become thoroughly familiar with the "Agreement
Documents" (as such term is defined in the General Conditions). The
failure or omission of any Bidder to do any of the foregoing shall in no
way relieve the Bidder from any obligation in respect to its Bid.
A prebid conference will be held at the project site. Bidders will be
notified by the Owner of the date, time and location of the prebid
conference, and attendance will be required.
1.12 FORM OF BID
Bids must be submitted on the attached Contractor's Proposal Form (Section
2.0). Blank spaces and table formats are provided and must be filled in by
the Bidder. Certain schedules described in these bidding documents must be
filled in or added by the Bidder. Contractor's Proposal form shall bear
the official company name and business address to be used in execution of
the Agreement, and all copies of the Contractor's Proposal Form and other
required items must be signed by a duly authorized officer of the Bidder.
1.13 CLARIFICATIONS AND ALTERNATIVES TO SPECIFICATIONS
Bidder shall list in the appropriate section any clarifications to
specifications or content which the Contractor wishes to have included in
the final Agreement Documents.
If any Bidder proposes specifications which differ from those in the
bidding documents, these differences (which may be changes or additions)
shall be classified and referred to as either "clarification" or
"alternative." Clarifications are minor deviations which would not change
the scope, nature or extent of the project, and are therefore specific and
limited in their effect on the bid. Alternatives are major deviations in
the scope or specifications and would have a broader effect on the bid.
<PAGE>
1-6
All clarifications and alternatives must be listed separately on additional
pages attached to the proposal form. The Contractor must clearly describe
each clarification or alternative and state the reason for it.
If a Bidder lists any clarifications, including clarifications to Agreement
terms, it will be understood that its bid is submitted on the basis of
Owner accepting and agreeing to all of the clarifications. No modification
or clarification to the Request for Proposal requirement shall be binding
upon Owner or Bidder unless in writing and made part of the Agreement.
If a Bidder lists any unsolicited alternative, it will be understood that
its Bid is being submitted on the basis of the proposal not including the
alternative. In order to enable the Owner to determine whether to accept
an alternative, the Bidder must specify the effect on project costs and on
the schedule if Owner were to accept the alternative. If any unsolicited
alternatives are accepted by the Owner, they will be incorporated by
amendment after award of the Agreement.
1.14 SUBMITTING THE BID
A total of three (3) copies of the Bid must be received no later than the
time shown in Section 1.0. All bids must be sealed, and the envelopes must
be marked and mailed as follows:
NO. OF COPIES ADDRESS
3 FirstMiss Gold Inc.
Attention: Ralph M. Barker, P.E.
Turquoise Ridge Mine Manager
c/o Getchell Mine
28 Miles NE of Golconda, Nevada
P.O. Box 220
Golconda NV 89414
<PAGE>
1-7
1.15 REQUEST FOR ADDITIONAL INFORMATION
If any Bidder wishes additional information concerning the project or any
item contained in these bidding documents, the request for information must
be in writing and addressed to the Owner at the address shown on the
"Invitation to Bid." Owner's written response will be provided to all
Bidders.
1.16 ACCEPTANCE AND REJECTION
The Owner may make such investigations as it deems necessary to determine
the ability of the Bidder to perform the Work, and the Bidder shall furnish
to the Owner all such information and data for this purpose as the Owner
may request. The Owner reserves the right to reject any and all Bids for
any reason, or if the evidence submitted by, or investigation of, such
Bidder fails to satisfy the Owner that such Bidder is properly qualified to
carry out the obligations of the Agreement and to complete the Work
contemplated, or if Bidder has failed to follow the bid proposal format.
Any Bid may be withdrawn prior to the scheduled time for the opening of the
bids or authorized postponement thereof. Any Bid received after the time
and date specified shall not be considered. The Owner will study Bids
submitted and notify the successful bidder within thirty (30) calendar days
after the date of opening.
Owner will accept a proposal only by notifying a Bidder in writing that it
accepts the Bidder's proposal. Upon such acceptance, Owner will notify all
other bidders whose proposals were not accepted.
1.16.1 Award
The selected Contractor (Bidder) will be required to execute (sign) the
Agreement and return it within fourteen (14) calendar days of its receipt,
together with properly executed certificates of insurance, payment bond and
performance bond. The Owner will determine whether the Agreement,
certificates and bonds have been properly executed as required by the
Agreement Documents, and upon such determination will make award by
forwarding a fully executed copy of the Agreement to the Contractor.
<PAGE>
1-8
1.16.2 Notice to Proceed
It is anticipated that the Notice to Proceed will be given with the award
of the Agreement. If, however, a formal Notice to Proceed is not given
within sixty (60) days after the date of acceptance of the Bidder's
proposal, then the Contractor, at its option, may declare this Agreement
null and void.
1.17 CONFIDENTIALITY
All of the provisions of the attached form of Agreement concerning
disclosure and confidentiality of specifications and materials, and
concerning information obtained directly or indirectly by the Contractor
concerning the Owner's property, plans or operations, shall be observed by
each prospective Bidder from and after the date it receives this invitation
for bid and for a period of five (5) years thereafter. Whenever a Bidder
is notified that the project has been awarded to another Bidder, the
unsuccessful Bidder receiving such notice shall promptly return to the
Owner all materials included in the bidding documents or furnished by Owner
to assist in preparation of Bids.
1.18 BONDS
The successful Bidder shall furnish a performance bond and payment bond as
outlined in Section 4.0, General Conditions.
1.19 PERMITS
Prior to commencing the Work, Contractor shall provide Owner with copies of
all licenses, permits and authorizations required for the Work, except as
may be otherwise provided in Section 6.0.
<PAGE>
December 22, 1995
FirstMiss Gold Inc. Contact No. 95-US-0018
Getchell Mine
28 Miles NE of Golconda, NV
P.O. Box 220
Golconda, Nevada 89414
Attn: Mr. Ralph Barker
Re: Turquoise Ridge Project
Modifications to Proposal
Dear Ralph:
We have incorporated notes from our meeting Wednesday into the proposal
documents. Each note is listed below and italicized in the text. You may
replace the existing sections with the attached revised pages.
ITEM SECTION DESCRIPTION
- ---- ------- -----------
1. Table of Contents Noted Revisions
2. Project Methodology Utilities to Remain
3. Schedule of Items & Prices, General Bonus/Penalty
4. Schedule of Items and Prices,
Items 1.4.1 - 1.4.6 Arched/Flat Back
5. Statement A.1, Items 2.2.1 - 2.2.5 Rock Bolt Pricing
6. Statement C.2 Bit and Steel Costs
7. Statement J, 1.5 and 2.2.4 Unit Durations for Bolting
8. Statement K, Alternative 1 Blockouts for Lip Pockets
9. Statement N Demobilization Reduction
Please call if you have any questions.
Sincerely,
Jef A. Johnson
General Manager
<PAGE>
PROPOSAL
TO
FIRSTMISS GOLD INC.
TURQUOISE RIDGE
FOR
NO. 1 SHAFT CONSTRUCTION
PROJECT
BY
THYSSEN MINING
495 IDAHO STREET, SUITE 210
ELKO, NEVADA 89801
PH: (702) 738-5588
FX: (702) 738-4307
DECEMBER 8, 1995
REVISION 1, DECEMBER 22, 1995
<PAGE>
FIRSTMISS GOLD INC.
TURQUOISE RIDGE
NO. 1 SHAFT CONSTRUCTION
TABLE OF CONTENTS
BID FORM
METHODOLOGY (REVISED 12-22-95)
STATEMENTS
A.1 Schedule of Items and Contract Prices (REVISED 12-22-95)
A.2 Schedule of Unit Prices for Changes in Scope of Work
B Schedule of Labor Rates
C.1 Construction Equipment List
C.2 Schedule of Equipment Rental Rates (REVISED 12-22-95)
D Material Markup
E Subcontract Markup
F List of Subcontractors
G Contractor's Personnel
H Union Involvement
I Contractor's Safety Record
J Contract Schedule (REVISED 12-22-95)
K List of Exceptions, Deviations or Qualifications to Bid (REVISED
12-22-95)
L Agreement to Bond
M.1 Mobilization -- Shaft Equipment List
M.2 Mobilization -- Level Development Equipment List
N Hoisting Plant Purchase (REVISED 12-22-95)
CONCLUSION
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
PROJECT METHODOLOGY
INTRODUCTION
At Thyssen Mining, we believe that a number of items will distinguish this
proposal and clearly demonstrate our intent to provide top quality workmanship,
reliability and professionalism to our clients and partners.
- - Thyssen Mining is based in Elko, Nevada to best serve the needs of the
developing mines of the Western U.S. by providing complete and responsive
local service to our clients.
- - Thyssen Mining fully understands that time is of the essence in this
project and a completion schedule has been developed that is realistic and
achievable. Project methodology, personnel and project support have all
been identified to meet this schedule.
- - Thyssen Mining proposes to mine two main levels concurrently advancing the
project time frame by as much as 3 months over single level development.
- - Thyssen Mining will use modern, well maintained equipment to minimize
delays associated with primary equipment maintenance. The use of a modern
two boom shaft jumbo with long round drilling capability is particularly
notable.
- - Thyssen Mining will pay workers an attractive wage to ensure that the best
personnel are available for the project and to minimize turnover rates.
- - Thyssen Mining proposes the use of Magnadet caps in all shaft sinking
rounds. Although more costly than other systems, Magnadets have been shown
to provide the highest level of blast security in shaft sinking operations.
- - Should Thyssen Mining be awarded this contract, Thyssen Mining engineers
will work closely with representatives of FirstMiss Gold to discuss cost
effective changes and alternatives to the defined project scope. Thyssen
Mining brings a wealth of development expertise to this project and this
expertise can be a valuable resource to First Miss Gold.
- - Thyssen Mining is committed to the prevention of accidents involving its
employees, assets and the environment and recognizes that safety is the
direct responsibility of all supervisors and hourly employees. Thyssen
Mining has a full time Safety Coordinator based in Elko to ensure
compliance with safety and training related requirements.
The attached description of the proposed methodology indicates the approach to
be taken by Thyssen Mining in constructing the ventilation shaft and carrying
out the underground development program as required by the Request for Proposal.
This description of the proposed methodology does not include any major
departures from the base proposal as outlined in the Scope of Work.
Those alternatives which we propose are discussed as part of Statement K,
Alternatives.
Page 1
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
MOBILIZATION
Upon receiving either a Letter of Intent or formal Notice of Award, Thyssen
Mining will immediately commence final construction engineering of the shaft
sinking facilities. This work will include the following: the design
alterations to the headframe necessary to accommodate the shaft sinking jumbo,
sheave deck design to accept the proposed sinking rope positions, sinking stage
design, collar design to accept the safety door support steel, headframe and
hoist foundation design, form design and concrete form design. Detailing of the
shaft forms will proceed at a very early date to allow the timely completion of
the collar construction. Those items required for the initial site setup and
collar construction will be ordered immediately to ensure delivery. Longer
delivery items will also be ordered at this time to ensure there are no delays
to the project as a result of late deliveries.
Mobilization includes costs for procurement of project specific items which
result in direct expenses to the contractor. Included are the costs of sinking
ropes and attachments, the sinking stage, safety doors, shaft forms, crossheads
and chairs, buckets and bail chains and other similar items. Those charges
associated with the engineering design necessary to begin the project, freight
charges to land the equipment on the site, training and pre-employment physicals
for the workforce, and some workforce relocation expenses are also included.
SITE SET UP
Site set up includes the installation of the support plant and equipment
necessary to provide an orderly commencement and smooth transition into critical
path activities. Thyssen Mining believes that the provision of proper
facilities is essential to the success of the operation, and cannot be
overemphasized. Our experience has shown that attention to the details of a
good set up will pay dividends in employee morale and consistently high
productivity. One of the most important facilities in this regard is the
provision of a good quality, clean change and dry house facility.
The sinking and development crews require changehouse facilities which allow
their clothes to dry properly between shifts, are clean, comfortable and secure.
To ensure this, Thyssen Mining proposes to use rented wash trailers, set up in
conjunction with a custom fabricated building which will provide space for
hanger baskets, to allow clothes to dry properly between shifts, as well as
lockers to allow secure storage of personal items and street clothes while on
shift. The contractor's office trailers will be established as part of this
complex. This provides a compact facility which is simple to set up and
maintain. A sketch of this proposed facility is included at the end of this
section. As part of the early facility, temporary holding tanks will be
established close to the office/ changehouse complex to receive grey and black
water from the showers and toilets and to store water to feed the wash trailer.
These items are necessary until FirstMiss supplied facilities are installed and
operating. Portable toilets will be used onsite until the wash facility is
ready. These toilets will be serviced by their supplier. Pumping of the
various holding tanks will be handled by a local septic service contractor.
Fuel and lubricant storage will be established in an area, approved by the
owner, in reasonable proximity to the sinking facilities. The fuel storage tank
will be situated within a lined retention berm. Temporary generators will be
sited near the fuel storage, piped directly into the storage tanks, and will
remain operational until line power is available.
Page 2
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
A small field office trailer will be used to start the project. This will serve
as a construction office and warm up room for the site personnel during set up.
It will be removed from site once the above noted main office trailer complex is
ready to move into.
The shop building will be constructed as part of the sinking hoisthouse. The
workshop will be approximately 40 ft. x 40 ft. The sinking hoist building will
be situated so as not to interfere with other construction activities occuring
concurrently with the ventilation shaft construction. The hoist building will
be erected after the sinking hoist foundations have been formed and poured and
the hoist drums have been installed. The sinking stage winches will be housed
in the same building as the sinking hoist.
Other facilities to be installed will consist of the storage containers used to
provide secure storage of site equipment and materials, the temporary air
compressors and an emergency generator. The compressors will be maintained
onsite until the permanent air system is in place. A standby, or emergency,
generator to supply power for emergency egress will be included. The generator
will power the workstage winches to bring the sinking crew to surface in the
event of a power failure.
The explosives and cap magazines will be located in conformity with the owners
operations, and within reasonable proximity to the shaft site.
The final installation will consist of the onsite batch plant. As supplied by a
concrete contractor, the batch plant will be set up in reasonable proximity to
the shafthouse to supply the concrete required for the construction of the shaft
and the ancillary facilities.
COLLAR CONSTRUCTION
As soon as possible after the date of award, a civil sub-contractor will be
mobilized to site to begin the excavation of the collar. This work will include
the removal of the tailings and overburden from the collar site, down to the
bedrock contact, using a hydraulic tracked excavator. The overburden will be
cleared to provide a safe working area in the vicinity of the shaft with the
slopes being laid back to 45 degrees to prevent sloughing into the collar
excavation. Rock excavation will begin using hand held sinker drills to drill
the blastholes for the initial bench rounds. The tracked excavator will be used
to muck the shaft bottom to the maximum reach of the backhoe boom. At that
point the excavator will be demobilized and a crane will be mobilized to
complete the collar excavations. Benching will remain the excavation method of
choice in the collar. Mucking on the shaft bottom will be carried out using a
small tracked excavator to load a regular shaft muck bucket. The loaded bucket
will be hoisted to surface to be dumped. A rubber tired loader will haul the
shaft muck to the designated waste dump location, assumed to be within 250 ft.
of the shaft collar. After each round is mucked out the excavator will be
hoisted to surface and the next bench round will be drilled off and blasted to
repeat the cycle.
Ground support consisting of rockbolts, mesh and/or shotcrete, will be installed
as required to secure the collar excavation, The collar will remain open until
the excavation has been completed. A safety ring, consisting of liner plate
segments, will be erected around the top of the excavation to prevent
inadvertent dropping of equipment or materials into the collar during
construction.
The collar will be excavated to approximately 105 ft. below the designed surface
collar elevation. Immediately above the base of the collar a bearing set will be
excavated around the circumference
Page 3
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
of the excavation. This will serve as the collar foundation. The curb ring and
the bottom ring of forms will be assembled and lowered into position on the
shaft bottom. After levelling and alignment, to ensure the proper location of
the pipe and cable bracket anchors, the starter hanging rods will be installed
in the curb ring. Eight sets of rods will be used to suspend the shaft forms
during upcoming lining pours. The starter reinforcing rods for the collar
concrete will also be installed in the initial pour. After these preparations
are completed the scribing floor will be installed and the initial concrete will
be carefully poured into the forms. This pour will be monitored to ensure that
no movement of the curb ring takes place during the pour. The concrete will be
poured to the top of the A ring, the water stops will be installed and the
concrete will be allowed to set for 24 hours before any work resumes in the
collar.
After the concrete has set, work will resume on the installation of the
reinforcing bar mats. The reinforcing mats will be installed in 12 foot lifts.
The mats will be installed and measured to ensure proper coverage of the bar.
Then, three additional rings of forms will be lowered and assembled on top of
the A ring. The form rings will be made in four feet vertical sections. With
rings B, C and D in place the next lift of concrete will be placed, complete
with water stops. The next lift of reinforcing bar will be installed and the
concrete pours will continue. The E ring will be lowered into place and the A
ring, which was used to pour the initial curb ring, will be moved from the shaft
bottom and placed on top of the E ring to ensure proper insert spacings. This
operation will continue to the elevation of the top of the bedrock by
sequentially jumping the forms. The forms will be moved up and stacked on top
of the previous pour. At least two rings of forms will remain in the lower
concrete pour to act as a foundation for the next pour. Continual care will be
taken to ensure proper alignment of the forms and placement of the reinforcing
and the inserts. All construction joints will be supplied with properly bonded
water stops. A temporary work stage, hoisted by the crane, will be used within
the shaft collar to install the reinforcing and for movement of the forms.
At the elevation of the bedrock/overburden contact the concrete will be poured
to form a level lip around the collar. The safety barrier of liner plate
segments will be removed and replaced by a 24 ft. diameter ring of liner plate
segments. These segments will be assembled and left in place to act as the
outer form for the remainder of the pour to the final collar elevation. The
reinforcing bars will be installed as the liner plate rings are assembled.
After completion of twelve vertical feet of liner plate and rebar assembly the
internal forms will be set and the next concrete lift will be poured.
After completion of the next pour, the collar excavation outside the liner plate
rings will be backfilled and compacted to civil engineering specifications.
This operation will proceed concurrent with the installation of the liner plate,
the reinforcing and the remainder of the collar concrete. The liner plate rings
remain in place allowing backfilling to begin while the concrete cures.
To complete the collar construction, carpenters will construct the outer forms
for the headframe tower foundations at the top of the liner plate column. The
reinforcing mats will be installed per the rod detailing, blockouts for the
subfloor service trench entries will be installed and the remainder of the
collar concrete will be poured using the shaft forms up to the final collar
elevation. The temporary concreting stage will be removed. The shaft sinking
stage, which will have been assembled while the concreting operations advanced,
will be lowered into the shaft collar and secured immediately below the surface
elevation. The outer formwork will be stripped and the remaining backfilling
and compacting will be completed. Headframe erection will follow immediately
thereafter.
Page 4
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
HEADFRAME ERECTION
The erection of the headframe and collarhouse will follow immediately after the
completion of the collar concreting. The initial operation will include the
forming and pouring of the collarhouse floors and grade beams. The floors will
include trenches for the shaft service lines (piping and power cables) as well
as a gutter and sump arrangement for washdown water collection. The time
required to complete the floors will allow the collar concrete sufficient time
to cure. The headframe erection will proceed after the floors have been
completed.
The headframe tower and sheave deck will be erected first. The tower will
consist of modular components which bolt together to form a sinking headframe.
The tower will be assembled to allow the use of a shaft sinking jumbo. A
vertical extension of the tower will create a higher portal from the tower into
the collar house. This allows the removal of jumbo from the shaft between drill
shifts. As it is suspended in the collar house during the inactive drill
periods it will be serviced and repaired. This greatly improves machine
availability and reliability.
Included with the tower erection will be the installation of the dump chute and
dump doors.
Upon completion of the sheave deck installations, the backlegs will be
installed. The backleg foundations will have been constructed while the collar
lining operations were proceeding. Once the backlegs are in place the tower
assembly will be checked for verticality and all bolts tightened. The collar
house will be erected and the completed assembly will be insulated and clad.
New cladding, of a color chosen by the owner, will be installed.
The remainder of the work in the headframe prior to sinking will include the
final positioning of the sheave wheels, the installation of the limit switches,
the crosshead chairs and the controls for the collar doors, the dump doors and
the crossheads. At the collar elevation the collar safety door support steel
and the collar doors will be installed, along with attendant air cylinders and
controls. Compartment safety gates will complete the installations.
HOIST INSTALLATION
Portions of the sinking hoist installations will proceed concurrent with collar
construction and headframe erection. For example, the hoist foundations will be
among the first items constructed on the site. As soon as the foundations are
able to sustain a load the main hoist shaft and drums will be installed on the
bearing mounts. All the heavy hoist components will be installed prior to
completing the building around the hoist. Once the hoist is enclosed the
installation of the electrical and remaining mechanical components will proceed.
It is expected that this process will require as much time as the collar
construction and headframe erection. The hoist house cladding, in any event,
will match the headframe cladding.
The stage winches will be installed on a dedicated concrete slab immediately in
front of the sinking hoist and will be covered with a less permanent structure
than the sinking hoist.
As related previously, the hoist room and the shop will share parts of a common
building.
Page 5
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
COMPLETION OF SINKING SET UP
Completion of the sinking set up will entail the roping up of the stage winches,
finishing the hoist wiring and testing of the various interlocks, installation
and roping up of the Cryderman suspension winches, roping up of the sinking
hoist, installation of the spelter sockets on all ropes, installation of the
sinking crossheads, attaching the suspension ropes to the sinking stage and
picking up same, installation of the sinking hooks and installing and testing
the signal system. The various components in the bucket dumping system will be
tested for proper alignment and operation. This will include the crosshead
chairs, the dump doors and the fifth wheel arrangements. Prior to resuming work
on the shaft bottom the upper limit and track limit switches will be tested for
proper operation. Only after all systems are operating satisfactorily sinking
operations will resume.
RESUMPTION OF SINKING OPERATIONS
After all systems have been checked out as being operational, shaft bottom
advance and construction will proceed on a three shift per day, seven day per
week schedule. The shaft service lines will be installed from the collar down
to the depth of 60 ft. These lines will be supported on brackets attached to
the cast in place wall inserts. On surface, the lines will be run in trenches
and covered conduits to link up with the permanent service lines furnished by
the owner.
The shaft bottom will be advanced, using the benching methodology, from the
bottom of the collar to a depth of 200 feet. The bench rounds will be drilled
using hand held sinker drills, loaded with cartridge explosives and initiated
with Magnadets.
Full bottom rounds are postponed until the shaft bottom is approximately 200
feet below the collar. This prevents excessive damage to the sinking stage from
fly rock.
Cryderman shaft muckers, lowered through specially constructed wells within the
work stage, will load the blasted muck into buckets for hoisting and dumping on
surface. The Cryderman will be suspended from surface on their own dedicated
hoist ropes. This allows the mucking units to be hoisted clear of the workstage
during concreting operations.
The sinking buckets, sized to take maximum advantage of the available hoist and
Cryderman boom capacity, will be guided by sinking crossheads which run on the
stage suspension ropes. In the headframe, crosshead chairs will allow the
sinking bucket to be lowered independently of the crosshead for dumping
purposes. Dump doors with a fifth wheel dumping attachment will allow the
buckets to be tipped and dumped. During dumping operations the collar safety
doors will be closed to prevent any spillage falling to the shaft bottom and
possibly injuring the sinking crew.
Concreting operations will resume after the shaft bottom has advanced
sufficiently to allow the lowering and pouring of 20 feet of shaft wall lining.
This will require that some 30 feet of shaft be excavated below the curb ring to
allow the resumption of drilling operations below the curb after the completion
of concreting operations.
Piping will be installed on permanent brackets attached to the shaft wall with
cast in place inserts. Headers on the air and water lines will be installed
every 100 vertical feet.
Page 6
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
After completion of the service installations, the curb ring and A ring will be
lowered, using the shaft sinking stage, and suspended on the form hanging rods.
The hanging rods will consist of Dywidag-type rods sized to the exact length of
the wall pour. The curb ring will be aligned and levelled, the cast in place
inserts will be installed in the A ring, the scribing floor will be installed
and the curb ring concrete will be poured. The curb ring will be held in place
by a system of screw jacks and cable come-a-longs. After the curb pour is
complete the jacks and come-a-longs will be removed and the remainder of the
shaft forms will be lowered and installed on the top of the A ring. Once the
forms are installed the remainder of the concrete will be poured up to the
bottom of the previous pour. Completion of the pour will signal a resumption in
sinking operations.
After benching operations reach a depth of 200 feet, drilling full face rounds
with the shaft jumbo will begin. The shaft jumbo proposed is a two boom
electric-hydraulic unit specifically designed for shaft work. The jumbo locks
into the bottom deck of the sinking stage in one bucket well, leaving the other
bucket well available for bucket travel. The jumbo is designed to drill a burn
cut full bottom round. Round length will be 16 feet. The bottom will advance
under cover of probe holes drilled ahead of the shaft advance. Ground control
measures will be used as necessary. In order to maintain 20 foot pours it will
be necessary to advance the bottom a minimum of 45 feet ahead of the curb ring.
Close attention to drilling, scaling, and mucking will be necessary to prevent
excessive ground support installations. Smooth wall blasting techniques will be
used to minimize overbreak and rough walls.
In the severely sheared areas it may be necessary to temporarily use hand held
sinkers and benching. If the formation is as badly fractured, as some of the
core indicates, the use of paving breakers can be implemented to break out the
rock. The successful use of paving breakers is well documented and is not
expected to hinder advance. The sinking is continuous through a sheared area
and the absence of blasting allows the formation to stand better. This, in
conjunction with shotcrete, will allow successful penetration of the shear zones
with a minimum of difficulty.
Using these methods the shaft will advance to the level of the first pump
station. Immediately above the pump station a water ring will be installed to
catch any water which may be draining into the shaft and running down the
lining.
PUMP STATION DEVELOPMENT
As the shaft advances through the station elevation, the walls will be slashed
as required to form the shaft walkarounds. The crown of the initial station
round will be line drilled using the shaft jumbo. Probe holing will be done
with the shaft jumbo prior to the start of station excavation. The initial
station round will be blasted and followed by trimming of the station brow to
final dimensions. The permanent ground support, consisting of rock bolts and
shotcrete, will be applied as soon as possible after completion of the blasting
cycle. Prior to advancing the shaft to the station sill elevation, the crown
portion of the second station round will be drilled from the muck pile in the
station. The intent is to advance the station as a full face excavation using
the blast muck as a work platform to install back and upper rib ground support,
and to drill off the crown portion of the succeeding round prior to mucking out
the face.
Initial mucking in the station will be carried out using a slusher and scraper
combination. The slusher will pull the station muck into the shaft where it will
be loaded by the Cryderman into the muck buckets for hoisting. Jackleg drills
will be used to drill the blast holes after the initial station
Page 7
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
round. The shaft will advance to just below the station sill elevation and the
lower portion of the first station round will be drilled off and blasted. Once
again the shaft jumbo will be used to drill the bottom portion of the station
round. After blasting, the station will be slushed out and the lower portion of
the second station round will be drilled off. This will complete drilling on
the second round. This round will then be loaded and blasted. The slusher will
pull back the muck sufficiently to allow installation of required ground support
and the drilling off of the crown segment of the third round. This sequence
will continue to the required extent of the station.
As the station advances and the possibility of damage due to flyrock is reduced,
an LHD unit will be used to muck out the face. This will improve mucking
substantially as the station advances away from the shaft. The LHD will be able
to load the muck buckets directly and the Cryderman will only be used to clean
up spillage which will result from such loading operations. The station will
then advance to its required dimensions. Upon completion of station excavation
and cleanup the LHD will be hoisted to surface for repair and servicing in
anticipation of the next station excavation, whereupon sinking operations will
resume.
The shaft will be advanced sufficiently to allow the pouring of the curb ring
immediately below the station sill. The station floor will be blown clean in
preparation for the concrete floor. The curb ring will be lowered and set so
that the curb and the floor pour will be completed simultaneously.
The installations on the pump station will consist of the permanent piping drops
from the shaft service lines as well as a temporary substation to power the
temporary dewatering pumps. Thyssen Mining will install the permanent shaft
power cable in the shaft and use it to power the substations on each level. The
pricing for the cable and junction boxes is included in the pricing schedule.
The temporary pumping system will be installed in the station and connected to
the shaft rising main. Water from the shaft bottom and the water ring
immediately above the station will be routed through this system to surface. To
complete the installations in the station a safety fence will be provided around
the shaft opening. A "drawbridge" will be installed to allow access from the
sinking bucket to the level when the sinking stage is not spotted at the level.
This structure will be weighted so as to retract automatically when not in use.
CONTINUE SINKING OPERATIONS
Normal sinking operations will resume below the pump station after all
installations are complete. The sinking will continue as noted above until the
next pump station is reached. That construction will mirror the aforementioned
procedure with minor changes due to the learning experience from the first
station. The second leg of the pumping system will be installed in the second
station. Sinking operations will then continue to the 4000 Level which
represents the first development area.
DEVELOPMENT LEVEL STATION CONSTRUCTION
The construction of the development level stations is substantially the same as
the temporary pumping level stations except for the inclusion of muck handling
facilities in the station sill lip. This will result in a slight change in the
concreting sequence at the station sill. The lip pockets will be blasted out in
conjunction with sinking of the shaft. The pocket locations will be blocked out
in the shaft wall pour as the shaft lining proceeds past the station. The
pocket steel will be installed after
Page 8
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
the forms have been stripped and lowered. The remainder of the pocket concrete
and the station floor concrete will be poured after the pocket steel is in
place.
As with the other stations, the permanent service lines will be installed on
each level as the shaft services are installed in the shaft. The pumps for the
temporary pumping system will be installed on each level as the stations are
completed.
COMPLETION OF SINKING OPERATIONS
The shaft will be completed to its ultimate bottom after completion of the 3400
Level shaft station. One round will be blasted in the shaft wall for the future
ramp to break into. This will be properly supported with bolts and shotcrete.
The shaft liner will be extended to the shaft bottom. The liner will be blocked
out where the proposed shaft bottom access ramp is to enter.
To complete the shaft construction phase of the project, the sinking stage will
be hoisted to surface and the second temporary ventilation line, to supply air
to the 4000 level development, will be installed down to the level. This line
will be dedicated to the level and decline advance which will proceed from this
level station. The other ventilation line, installed during sinking operations,
will be used to ventilate the advance on the 3700 and 3400 Levels.
SHAFT CHANGEOVER
The change over to development operations will require the installation of
steady beams at the 4000 and 3700 levels. These beams will be used to prevent
the shaft buckets from swinging away from the lip pocket during loading
operations at each level. The sinking stage will be anchored at the shaft
bottom immediately below the bottom of the 3400 Lip Pocket. One Cryderman
mucker will remain in place to clean up spill at the shaft bottom until
completion of the shaft bottom decline. When that excavation is complete the
Cryderman will be demobilized. In order to complete the changeover, the sinking
buckets will be swapped out for larger buckets to increase the development
hoisting capacity.
LEVEL AND DECLINE DEVELOPMENT
The level and decline development will take place on two levels simultaneously.
The initial proposal is to develop on the 4000 Level with one equipment spread
while, at the same time using a separate equipment spread to develop the 3400
Level, the shaft bottom access decline, and then the 3700 Level to complete the
work on the Main Crosscut and the Shop Access. This will allow the use of the
mining equipment to advance upward in the connecting decline between the 3700
Level and the 4000 Level should the decline from the 4000 Level be delayed.
Each equipment spread will consist of a two boom electric / hydraulic jumbo, a 5
or 6 cubic yard LHD, a scissor lift or mobile bolting deck, a 16 ton rock truck,
and a 2 or 3 cubic yard LHD to load the lip pocket and transport the various
support items required to successfully advance the drifts and declines.
Conventional drill and blast methodologies will be used to excavate the drifts
and declines. Ground support is to be installed as required to maintain a safe
working environment. Permanent and temporary services will be installed as the
headings advance.
Page 9
<PAGE>
Thyssen Mining Project Methodology
- --------------------------------------------------------------------------------
There exists a potential for substantial water inflows to the various headings.
Therefore, we have allowed for drilling a series of fanned dewatering holes
ahead of the advancing face. Since probe holes are required in the advance
program, it should be worthwhile to advance several holes at a time to try and
dewater the face. This will allow the face to drain in advance of the drifting
operations. The drift work is mainly single heading so we are unable to choose
an alternate heading if flooded out of a face. This method may allow the
channelling and capture of the formation waters and may possibly prevent delays
as a result of flooded drill holes.
A remuck bay will be situated close to the station. The drift muck will be
loaded into the lip pocket and muck handling system from there. This system
presents a major source of delay. Invariably, there will be times when it will
be necessary to muck from both levels simultaneously. This is not technically
feasible and will result in delays on one level or the other, or both. The
other major concern is the feasibility of mid shaft loading of skips on rope
guides. The potential for excessive spillage is considerable. We propose an
alternative solution which may prove attractive from a financial and operational
aspect. This proposed alternate is to be found in Statement K. TMCC WILL LEAVE
ALL DEVELOPMENT UTILITIES IN PLACE FOLLOWING THE COMPLETION OF THE PROJECT.
THIS INCLUDES AIR, WATER, VENTILATION AND POWER LINES.
TEAROUT AND DEMOBILIZATION
This phase of the work will involve the removal of those items of the
contractor's plant which are not required by the owner after the completion of
the initial scope of work.
Page 10
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
SCHEDULE OF ITEMS AND PRICES
GENERAL
The Project Specifications and Drawings and the AGREEMENT DOCUMENTS are to be
read in conjunction with this Schedule of Items and Prices.
The Schedule of Items and Prices has not been prepared in conformity with any
standard METHOD OF MEASUREMENT and this preamble shall form the only METHOD OF
MEASUREMENT AND BASIS OF PAYMENT APPLICABLE to this AGREEMENT.
General instructions and descriptions of WORK and materials given in the PROJECT
Specifications AND DRAWINGS are not necessarily repeated in this Schedule of
Items and Prices. Reference is made to the Specifications for this information.
The Schedule of Items and Prices shall be the basis on which all adjustments and
variations arising out of the performance of the Work shall be measured.
Unless otherwise stated herein, all quantities will be measured for payment, net
in place, in the completed Work.
"Net" shall mean to the neat lines shown on the Drawings, specified herein, or
in the PROJECT Specifications AND DRAWINGS, and no allowance will be made for
bulking, shrinkage, waste and offcuts, lapping or working space unless otherwise
authorized in writing by the Owner.
Each sum price shall be the full and only amount payable by the Owner to the
Contractor for the Work and all things directly or indirectly required to
complete it in accordance with the PROJECT SPECIFICATIONS AND Drawings, such as,
but not limited to, supplying, transporting, erecting, handling, storing,
consumable items, temporary facilities, scheduling, setting out and clean-up,
and including overheads and profit.
Each item is to be measured for payment in the unit stated in this Schedule of
Items and Prices.
All Lump Sum and Unit Prices shall be fixed prices and not subject to
escalation. TMCC RECOGNIZES THAT A LUMP SUM CONTRACT INHERENTLY PROVIDES
INCENTIVES TO THE CONTRACTOR FOR COMPLETING THE PROJECT AHEAD OF SCHEDULE.
CONVERSELY, BY EXCEEDING THE SCHEDULE, THE CONTRACTOR IS PENALIZED TO THE EXTENT
THAT INDIRECT PROJECT COSTS ARE NOT RECOVERED DURING THE ADDITIONAL TIME.
ITEM NO. 1.0 - BONDS
Payment shall be the tendered amounts for the costs of satisfactory submitted
bonds.
ITEM NO. 1.2.1 - MOBILIZATION - SHAFT
Payment shall be the total tendered amount and shall be paid in full when all
temporary works including sinking equipment, temporary facilities, and personnel
required for shaft related activities have been delivered to the Site (AS SUCH
TERM IS DEFINED IN THE GENERAL CONDITIONS). If, in the opinion of the Owner,
all items have not been mobilized to the Site, only a proportion of the Lump Sum
amount will be certified by the Owner.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
Items included in mobilization are all things required for the No. 1 Shaft Work
which are not specifically supplied by the Owner, AS PROVIDED IN THE SCOPE OF
WORK (PART 6) PROVISIONS OF THE AGREEMENT DOCUMENTS.
The Contractor shall include, as Statement M.1, a detailed list of equipment
which will be mobilized to Site to perform the Work.
ITEM NO. 1.2.2 - MOBILIZATION -- LEVEL DEVELOPMENT
Payment shall be the total tendered amount and shall be paid in full when all
temporary works including sinking equipment, temporary facilities, and personnel
required for level development related activities have been delivered to the
Site. If, in the opinion of the Owner, all items have not been mobilized to the
Site, only a proportion of the Lump Sum amount will be certified by the Owner.
Items included in mobilization are all things required for the level development
of the No. 1 Shaft Work which are not specifically supplied by the Owner.
The Contractor shall include, as Statement M.2, a detailed list of equipment
which will be mobilized to Site to perform the Work.
ITEM NO. 1.3.1 - SETUP SURFACE PLANT
This item shall include all temporary facilities required for CONTRACTOR'S
PROJECT support and TO initiate collar excavation and construction.
The payment shall be the total tendered amount and shall be paid in full when
the surface plant facilities have been erected or installed as required. If, in
the opinion of the Owner, all items have not been installed or erected, only a
proportion of the Lump Sum amount will be certified by the Owner.
ITEM NO. 1.3.2 - SETUP SHAFT SINKING PLANT
This item shall include all temporary facilities required to sink the No. 1
Shaft. These would include such items as hoist installation, headframe
erection, winch installations, sinking stage installation, hoist house
construction, etc.
The payment shall be the total tendered amount and shall be paid in full when
all sinking facilities have been erected or installed as required. If, in the
opinion of the Owner, all items have not been installed or erected, only a
proportion of the Lump Sum amount will be certified by the Owner.
ITEM NO. 1.3.3 - EXCAVATE, SUPPORT AND CONSTRUCT SHAFT COLLAR
The construction of the No. 1 Shaft collar shall include all required overburden
excavation and disposal, water control, temporary ground support and concrete
construction. The collar shall be constructed in accordance with the PROJECT
SPECIFICATIONS AND DRAWINGS. Any temporary ground support required to construct
the collar as designed shall be included, at the Contractor's discretion, in
order to maintain a safe working environment.
The collar is designed at 100 ft in length measured from the surface elevation.
With any revision to this length, the lump sum price will be adjusted using
prices provided in Statement A.2.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
Overbreak beyond the neat lines shall not be included in the measured advance or
volume for payment. IF, IN THE OPINION OF THE OWNER, ALL ITEMS HAVE NOT BEEN
INSTALLED OR ERECTED, ONLY A PROPORTION OF THE LUMP SUM AMOUNT WILL BE CERTIFIED
BY THE OWNER.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
ITEM NO. 1.3.4 - SHAFT SINKING 20 FT DIAMETER TO 2050 FT BELOW COLLAR
Shaft sinking shall include drilling, blasting, mucking, scaling, dewatering,
concrete lining, and muck disposal by hoisting to surface. Loading and haulage
of waste rock from the headframe to an agreed upon location 250 ft from the
headframe waste dump will be by the Contractor.
In the shaft, ground support will be installed at the Contractor's discretion in
order to maintain sound rock walls and a safe working environment until the
concrete lining is poured. The costs for all temporary ground support shall not
be included in the shaft sinking price. The cost of temporary ground support
will be provided by prices presented in Statement A.1, Item 2.2.
The concrete lining will be constructed in accordance with the drawings and
specifications. Bidders shall provide for a minimum 12-inch thick lining of
3000 psi concrete. The lump sum shaft sinking price shall include the supply
and installation of the concrete and to provide allowance for all wastage and
overbreak.
In providing prices for shaft sinking, it shall be assumed that water inflows
range from 0 to 50 gpm. Water inflows do not include service water required for
shaft sinking. For inflows which exceed this range, prices that correspond to
measured inflows will be obtained from Statement A.2, Item 1.3.4.
The lump sum shaft sinking price shall include supply and installation of all
permanent pipelines in accordance with the PROJECT SPECIFICATIONS AND DRAWINGS.
All temporary services required to sink the No. 1 Shaft are supplied and
installed at the discretion of the Contractor and shall be included in the lump
sum price for this item.
The Contractor shall be responsible to carry a probe hole from 50 ft to 100 ft
ahead of the shaft bottom at all times during sinking. The cost of this probe
hole shall be included in the lump sum cost of shaft sinking.
The Contractor shall be responsible to have a grout plant on site at all times
during sinking operations. Any grouting programs shall be approved by the Owner
prior to commencement. The prices for grouting shall be provided IN WRITING in
Statement A.2, Item 2.3; GROUTING. Costs for grouting shall not be included in
the lump sum price for shaft sinking.
The Contractor shall be responsible for the supply and installation of permanent
power and communication lines in accordance with the PROJECT SPECIFICATIONS AND
DRAWINGS. These permanent facilities may be used by the Contractor during shaft
sinking.
The Contractor will be responsible to include in its lump sum Contract Price the
cost of any additional shaft footage which is required over and above the 2,050
ft specified. This additional footage (e.g., to accommodate the Contractor's
sinking plant below the 3400 level) will not be paid using prices provided in
Statement A.2 - Item 1.3.4.
Two test holes have been diamond drilled near the shaft site. Rock quality data
from the log of the holes are summarized in Appendix A and Appendix B of the
Request for Proposal. Cores from all the holes are available for inspection on
site.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
ITEM NO. 1.3.5 - PERMANENT SHAFT SERVICES ENGINEERING
The Contractor will be responsible to provide detail engineering for the
permanent shaft services, hangers, water ring design and connection, and power
and communication hangers. The general arrangement of these items is included
in the drawings provided.
ITEM NOS. 1.3.6.1, 1.3.7.1, 1.3.8.1, 1.3.9.1, AND 1.3.10.1 -- TEMPORARY PUMP
STATION AND SHAFT STATION EXCAVATION AND SUPPORT
Rock excavation shall include drilling, blasting, dewatering, scaling, mucking
and disposal of waste rock by hoisting to surface. Loading and haulage of rock
from the headframe to a location 250 ft from the headframe or a place agreed
upON will be by the Contractor AND INCLUDED IN THE LUMP SUM PRICES.
Overbreak beyond the neat lines shall not be included in the measured advance or
volume for payment.
Included in the lump sum price shall be a 3-inch thick layer of FIBER-reinforced
shotcrete on the ribs and back of the shaft stations and temporary pump stations
TO THE LIMITS SHOWN ON THE PROJECT SPECIFICATIONS AND DRAWINGS. The lump sum
price shall include shotcreting to the sill of each station, across the brow of
each station, and over the walkaround of each station. THE PLACEMENT OF
FIBER-REINFORCED SHOTCRETE BEYOND THE LIMITS INCLUDED IN THE PROJECT
SPECIFICATIONS AND DRAWINGS, OR BEYOND THE LIMITS DESCRIBED ABOVE FOR THE LUMP
SUM PRICE WILL BE PAID AT THE UNIT PRICES PROVIDED IN STATEMENT A.1, ITEM 2.0.
Not included in the lump sum prices will be temporary ground support (e.g.,
rockbolts and screen). The prices presented in Statement A.1, Item 2.2 shall be
applied as the ground conditions dictate.
ITEM NOS. 1.3.6.2, 1.3.7.2, 1.3.8.2, 1.3.9.2 AND 1.3.10.2 -- TEMPORARY PUMP
STATION AND SHAFT STATION CONSTRUCTION
The Contractor shall construct the temporary pump stations and shaft station in
accordance with the PROJECT SPECIFICATIONS AND DRAWINGS. Included in this item
shall be the supply and installation of all permanent piping and services.
Floors of the shaft stations shall be concreted, with a ditch formed near one
rib.
The Contractor shall supply and install an electrical selector switch and
associated electrics in accordance with PROJECT SPECIFICATIONS AND DRAWINGS.
The design, construction and installation of a temporary level development waste
handling system is the responsibility of the Contractor. Any costs associated
with THIS WORK shall be included in the appropriate station construction, as
presented in Statement A.1.
ITEM NO. 1.3.11 -- WATER RING
This item includes the supply and installation of five (5) water rings in
accordance with the PROJECT SPECIFICATIONS AND DRAWINGS. The water rings will
be cast into the shaft lining above each temporary pump station and shaft
station, with connections made to the shaft drain line.
ITEM NO. 1.3.12 -- NO. 1 SHAFT CHANGEOVER
This item covers the removal of the Contractor's sinking plant and all
associated temporary services and electrics required to sink the No. 1 Shaft,
not including any support facilities required to complete the level development
in accordance with the Scope of Work. The activities in this item
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
should include the removal of temporary shaft vent duct, the cleaning of the
shaft bottom, removal of the sinking stage, etc.
The Scope of Work does not include the installation of a permanent shaft
conveyance system (e.g., rope guides, cage, etc.).
ITEM NOS. 1.4.1, 1.4.2, AND 1.4.3 (1.4.4, 1.4.5 AND 1.4.6 DO NOT APPEAR IN
SCHEDULE) -- LEVEL ACCESS DRIFT AND RAMP
This PART OF THE WORK may be accessed from, and mucked via, the No. 1 Shaft .
The order, direction, equipment, mucking system and entire methodology of
development is at the Contractor's discretion, subject to the approval of the
Owner. Each Bidder is required to submit a description of the methodology
proposed for the Work in order to assist the Owner in assessing the technical
merits of the Bids.
The drifts, ramps, safety bays, and diamond drill stations are to be paid by the
linear foot based on the lump sum prices corresponding to the units provided in
the description Any revision to these quantities shall be paid based on prices
provided in Statement A.2. THE PROVIDED PRICES SHALL APPLY EQUALLY TO FLAT OR
ARCHED BACK.
Permanent and temporary ground support shall not be included in the lump sum
prices for these items. Prices provided in Statement A.1, Item 2.2 will be used
to compensate the Contractor for ground support installed.
Item No. 1.5 - DEMOBILIZATION
Payment shall be the total tendered amount and shall be paid in full when all
temporary items have been removed from the WORK Site. If, in the opinion of the
Owner, all items have not been demobilized from the Site, only a proportion of
the Lump Sum amount will be certified by the OWNER. Payment shall also include
removal of all rubbish, debris and surplus material and removal of foundations
from the Site and restoring all sites to existing grades with proper compacted
material as approved by the OWNER upon completion of the Work.
ITEM NO. 2.2 - GROUND SUPPORT
This item is intended to cover ground support which may be required during level
development, shaft sinking, and shaft station excavation. Payment will be made
only for support which was considered necessary and authorized by the Owner.
OVERHEAD COSTS
Bidders should provide, on the Statement A.1 summary, the following costs:
a) The amount of overhead (as defined in Statement B) and profit which is
included in the total estimated amount tendered,
b) the per diem fixed cost which would be incurred during a total WORK
suspension, including overheads as above, standby rates on equipment, and
continued operation of temporary construction pumps and fans, and,
c) the applicable taxes which are included in the total estimated amount
tendered (provided in the form of State and local taxes).
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1
SCHEDULE OF ITEMS & CONTRACT PRICES
CONTRACT PRICES: Full compensation to Contractor for full and complete
performance by contractor of the Work, compliance with all terms and conditions
of this AGREEMENT, and for Contractor's payment of all obligations incurred in,
or applicable to, performance of the Work shall be determined in accordance with
the following all-inclusive prices:
1.0 LUMP SUM PRICE
Full compensation for the Lump Sum Price portion of THE Work as set forth in
Section 6.0, Scope of Work to this Request for Proposal and designated as the
"Lump Sum Portion of Work," shall be the total Lump Sum Price of: TWELVE
MILLION, THREE HUNDRED FOURTEEN THOUSAND, SEVEN HUNDRED FORTY DOLLARS (U.S.)
($ 12,314,740).
- ------------------------------
The Lump Sum Price is broken down as follows:
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- -------------------
1.1 BONDS
1.1.1 100% Performance Bond $ 82,740
-------------------
1.1.2 100% Material & Labor Bond $ 82,740
-------------------
Subtotal $ 165,480
-------------------
1.2 MOBILIZATION
1.2.1 Recruiting and Move to Site, Shaft Personnel &
Equipment $ 997,060
------------------
1.2.2 Recruiting and Move to Site, Level Development
Personnel & Equipment $ 31,610
------------------
Subtotal $ 1,028,670
------------------
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1 SCHEDULE OF ITEMS & CONTRACT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- --------------------
<S> <C> <C>
1.3 NO. 1 SHAFT
1.3.1 Setup Surface Plant $ 833,075
--------------------
1.3.2 Setup Shaft Sinking Plant $ 725,690
--------------------
1.3.3 Excavate, Support and Construct 100' Collar (20'
diameter), including temporary ground support $ 606,340
--------------------
1.3.4 Shaft Sinking 20' diameter to 2050' below Collar,
including all temporary and permanent services and
concrete lining; assuming inflows of 0-50 gpm. $ 3,995,550
--------------------
1.3.5 Permanent Shaft Services Engineering $ 2,170
--------------------
1.3.6 5000 L Temporary Pump Level
1.3.6.1 Station Excavation and Support (1295 cu yd) $ 179,805
--------------------
1.3.6.2 Station Construction $ 64,110
--------------------
1.3.7 4500 L Temporary Pump Level
1.3.7.1 Station Excavation and Support (1295 cu yd) $ 179,805
--------------------
1.3.7.2 Station Construction $ 64,110
--------------------
1.3.8 4000 L Shaft Station
1.3.8.1 Station Excavation and Support (850 cu yd) $ 125,540
--------------------
1.3.8.2 Station Construction $ 64,110
--------------------
1.3.9 3700 L Shaft Station
1.3.9.1 Station Excavation and Support (850 cu yd) $ 125,540
--------------------
1.3.9.2 Station Construction $ 64,110
--------------------
1.3.10 3400 L Shaft Station
1.3.10.1 Station Excavation and Support (850 cu yd) $ 125,540
--------------------
1.3.10.2 Station Construction $ 64,110
--------------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1 SCHEDULE OF ITEMS & CONTRACT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- --------------------
<S> <C> <C>
1.3.11 Water Rings (5) -- Supply and Install $ 60,580
--------------------
1.3.12 No. 1 Shaft Changeover $ 207,130
--------------------
Subtotal $ 7,487,315
--------------------
1.4 LEVEL DEVELOPMENT
(inclusive of mucking and all service installations)
1.4.1 4000 Level
1.4.1.1 No. 1 Crosscut (15'x15'x915') $ 599,300
--------------------
1.4.1.2 Main Decline 4000 L to 3700 L (15'x15'x2320') $ 1,481,105
--------------------
1.4.1.3 Shaft Station Slashing (320 cu yd) $ 27,240
--------------------
1.4.2 3700 Level
1.4.2.1 No. 1 Crosscut (15'x15'x1050') $ 692,235
--------------------
1.4.2.2 Shop Access Drift (15'x15'x350') $ 223,100
--------------------
1.4.2.3 Shaft Station Slashing (320 cu yd) $ 27,240
--------------------
1.4.3 3400 Level
1.4.3.1 No. 1 Crosscut (15'x15'x145') $ 96,870
--------------------
1.4.3.2 Ramp to Shaft Bottom (12'x12'x335') $ 228,865
--------------------
1.4.3.3 Shaft Station Slashing (320 cu yd) $ 27,240
--------------------
Subtotal $ 3,403,195
--------------------
1.5 DEMOBILIZATION
1.5.1 Teardown Surface Plant & Cleanup $ 147,100
--------------------
1.5.2 Demobilize Equipment and Personnel $ 82,980
--------------------
Subtotal $ 230,080
--------------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1 SCHEDULE OF ITEMS & CONTRACT PRICES (Cont'd)
SUMMARY OF LUMP SUM PRICES
<TABLE>
<CAPTION>
Estimated
Item No. Description Amount (US$)
- -------- ----------- ------------
<S> <C> <C>
1.1 BONDS $ 165,480
--------------------
1.2 MOBILIZATION $ 1,028,670
--------------------
1.3 NO. 1 SHAFT $ 7,487,315
--------------------
1.4 LEVEL DEVELOPMENT $ 3,403,195
--------------------
1.5 DEMOBILIZATION $ 230,080
--------------------
TOTAL ESTIMATED AMOUNT $12,314,740
--------------------
--------------------
a) Overhead and Profit included in the above amount $ 1,224,855
--------------------
--------------------
b) Per diem Fixed Cost during an unplanned WORK $
stoppage /day 7,850
--------------------
--------------------
c) Total taxes included in the above amount:
State $ 251,530
--------------------
--------------------
Local $ -0-
--------------------
--------------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
2.0 UNIT PRICES
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES
<TABLE>
<CAPTION>
Total
Item Unit Price
No. Description Unit (US$)
- ---- ----------- ---- -----
<S> <C> <C> <C> <C> <C>
2.1 WASTE HAULING
0' to 1500' cu yd $ 2.62
------
1501' to 3000' cu yd $ 4.35
------
3001' to 5000' cu yd $ 5.72
------
2.2 GROUND SUPPORT Shaft Sinking Level Development
(supply & install) (supply & install)
2.2.1 Mechanical Rockbolts (incl. 6"X6" plate) Critical Non Critical
5/8" x 5' ea $ 34.20 $ 41.60 $ 21.00
------- ------- -------
5/8" x 6' ea $ 35.10 $ 42.60 $ 22.00
------- ------- -------
5/8" x 7' ea $ 41.20 $ 48.60 $ 28.00
------- ------- -------
5/8" x 8' ea $ 42.80 $ 50.20 $ 29.50
------- ------- -------
2.2.2 Resin / Rebar (threaded incl. 6"X6" plate)
3/4" x 5' ea $ 45.70 $ 53.20 $ 32.50
------- ------- -------
3/4" x 6' ea $ 49.00 $ 56.40 $ 35.70
------- ------- -------
3/4" x 7' ea $ 57.20 $ 64.60 $ 43.90
------- ------- -------
3/4" x 8' ea $ 59.60 $ 67.00 $ 46.40
------- ------- -------
3/4" x 10' ea $ 79.30 $ 86.80 $ 66.10
------- ------- -------
2.2.3 Resin / Rebar (forged incl. 6"x6" plate)
3/4" x 5' ea $ 48.10 $ 55.50 $ 34.80
------- ------- -------
3/4" x 6' ea $ 50.50 $ 58.00 $ 37.30
------- ------- -------
3/4" x 7' ea $ 59.00 $ 66.50 $ 45.80
------- ------- -------
3/4" x 8' ea $ 61.50 $ 68.90 $ 48.20
------- ------- -------
3/4" x 10' ea $ 81.90 $ 89.30 $ 68.60
------- ------- -------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item Unit Price
No. Description Unit (US$)
--- ----------- ---- -----
2.2 GROUND SUPPORT Shaft Sinking Level Development
(cont'd) (supply & install) (supply & install)
<S> <C> <C> <C> <C>
2.2.4 Split Set-Registered Trademark-Bolts Critical Non-Critical
18" NO DRILLING ea $ 18.80 $ 26.20 $5.60
------- ------- -------
3' ea $ 27.60 $ 35.10 $ 14.40
------- ------- -------
5' ea $ 36.00 $ 43.50 $ 22.80
------- ------- -------
6' ea $ 39.20 $ 46.70 $ 26.00
------- ------- -------
7' ea $ 43.60 $ 51.10 $ 30.40
------- ------- -------
8' ea $ 45.50 $ 52.90 $ 32.20
------- ------- -------
2.2.5 Swellex-Registered Trademark-Bolts
5' ea $ 47.50 $ 57.70 $ 37.00
------- ------- -------
6' ea $ 52.10 $ 59.60 $ 38.90
------- ------- -------
7' ea $ 58.50 $ 69.10 $ 48.40
------- ------- -------
8' ea $ 64.00 $ 71.70 $ 51.00
------- ------- -------
2.2.6 Screen
2
No.6 Welded Wire (4"x4") ft $ 2.10 $ 2.65 $ 2.10
------- ------- -------
2
No.9 Chain Link (2"x2") ft $ 1.92 $ 2.53 $ 1.98
------- ------- -------
------- ------- -------
2.2.7 Shotcrete (3" thick)
2
FIBER-Reinforced ft $ 4.80 $ 4.75 $ 4.28
------- ------- -------
2
Non Reinforced ft $ 4.43 $ 4.38 $ 3.91
------- ------- -------
2.2.8 Mats ea
5' ea $ 19.22 $ 29.47 $ 19.22
------- ------- -------
7' ea $ 21.47 $ 31.72 $ 21.47
------- ------- -------
9' ea $ 23.65 $ 33.90 $ 23.65
------- ------- -------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES (Cont'd)
Item
No. Description Unit
--- ----------- ----
2.3 GROUTING Shaft Sinking Level Development
(supply & install) (supply & install)
*2.3.1 Drilling drilled ft $ 6.30 $ 5.40
----------- ------------
2.3.2 Setup/Teardown ea $285.00 $ 227.00
----------- ------------
2.3.3 Packer Installation ea $855.00 $ 680.00
-----------
**2.3.4 Bag Pumped ea $ 67.00 $
----------- ------------
2.4 SLASHING cu yd $135.00 $ 86.00
----------- ------------
***2.5 PROBE HOLE drilled ft Not Applicable
DRILLING $ 5.40
------------
* Based on 2 Booms Drilling
** Based on 8 Bags/Hr injection rate
Please see statement K. RE: Grouting
*** Drilling only - set-up and Teardown not included
- add setups and teardowns per 2.3.2
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT C.2
SCHEDULE OF EQUIPMENT RENTAL RATES
Contractor proposes the following equipment rental rates shall apply, in the
event the equipment is used for additional Work performed on a cost plus basis.
The Item Nos. correspond with the Item Nos. in the Construction Equipment List
(Statement C.1).
Rental rates for equipment not included below and not owned by Contractor shall
not exceed 110% of acceptable published rental rates.
The applicable double shift rate shall apply to equipment, such as generators,
lighting plants, pumps, heaters, etc., which is used continuously.
<TABLE>
<CAPTION>
Working Rate per
---------------------------------------------------------------------------
Item No. Hour Day Week Month Standby/Month
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1* ea $ 188.00 $ 1,505.00 $ 7,530.00 $ 22,600.00 $ 10,000.00
----------------------------------------------------------------------------------------
2 25.00 200.00 1,000.00 3,000.00 3,000.00
----------------------------------------------------------------------------------------
3 NO CHARGE
----------------------------------------------------------------------------------------
4 NO CHARGE
----------------------------------------------------------------------------------------
5 NO CHARGE
----------------------------------------------------------------------------------------
6 NO CHARGE
----------------------------------------------------------------------------------------
7 ea 9.00 70.00 340.00 1,030.00 1,000.00
----------------------------------------------------------------------------------------
8 88.00 705.00 3,530.00 10,600.0 10,000.00
----------------------------------------------------------------------------------------
9 55.00 440.00 2,190.00 6,570.00 4,500.00
----------------------------------------------------------------------------------------
10 81.00 645.00 3,230.00 9,700.00 6,100.00
----------------------------------------------------------------------------------------
11 ea 2.00 15.00 70.00 200.00 200.00
----------------------------------------------------------------------------------------
12 ea 22.00 175.00 880.00 2,650.00 1,500.00
----------------------------------------------------------------------------------------
13 9.00 70.00 340.00 1,030.00 1,000.00
----------------------------------------------------------------------------------------
14 18.00 140.00 710.00 2,120.00 400.00
----------------------------------------------------------------------------------------
15 OUTSIDE RENTAL + 8.5%
----------------------------------------------------------------------------------------
16 OUTSIDE RENTAL + 8.5%
----------------------------------------------------------------------------------------
17 NO CHARGE
----------------------------------------------------------------------------------------
18 NO CHARGE
----------------------------------------------------------------------------------------
19 NO CHARGE
----------------------------------------------------------------------------------------
20* ea 170.00 1,360.00 6,800.00 20,400.0 9,000.00
----------------------------------------------------------------------------------------
21 ea 127.00 1,015.00 5,070.00 15,210.0 9,000.00
----------------------------------------------------------------------------------------
22 ea 25.00 195.00 980.00 2,940.00 1,500.00
----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
Working Rate per
Item No. Hour Day Week Month Stanby/Mon
---------------------------------------------------------------------------
23 ea $ 102.00 $ 815.00 $4,070.00 $12,200.00 $ 8,000.00
---------------------------------------------------------------------------
24 ea 102.00 815.00 4,070.00 12,200.00 8,000.00
---------------------------------------------------------------------------
25 ea 51.00 405.00 2,030.00 6,100.00 2,500.00
---------------------------------------------------------------------------
26 ea 85.00 680.00 3,400.00 10,200.0 6,000.00
---------------------------------------------------------------------------
27 ea 9.00 75.00 370.00 1,100.00 500.00
---------------------------------------------------------------------------
28 ea 32.00 255.00 1,280.00 3,850.00 250.00
---------------------------------------------------------------------------
29 ea 32.00 255.00 1,280.00 3,850.00 250.00
---------------------------------------------------------------------------
30 ea 5.00 35.00 180.00 550.00 250.00
---------------------------------------------------------------------------
31 ea 26.00 210.00 1,050.00 3,160.00 1,000.00
---------------------------------------------------------------------------
32 ea 26.00 210.00 1,050.00 3,160.00 1,000.00
---------------------------------------------------------------------------
33 ea 40.00 320.00 1,610.00 4,820.00 500.00
---------------------------------------------------------------------------
* add $.80 per foot drilled to allow for bit and steel costs.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT C.2 (Cont'd)
1. The equipment rental rates, as tabulated, shall apply for WORK performed by
Contractor as specifically authorized by the Owner in accordance with the
terms and conditions of the AGREEMENT.
2. Only equipment having a capital cost, or replacement value, of $1,000 or
more is chargeable.
3. Equipment rental rates shall be inclusive of:
- Fuels, lubricants, expendables and consumables
- Support equipment
- Depreciation, interest, and overhead
- Obsolescence, corrosion, storage and painting
- Overhaul and major repairs
- Normal wear and tear
- Damage by misuse
- Minor field preventive maintenance
- Special maintenance tools
- All necessary insurances, licenses and taxes
- LOSS OR DAMAGE DUE TO FIRE OR OTHER CASUALTY
4. Equipment rental rates do not include:
- Operators
- Maintenance Labor
5. If the equipment is not available on Site, approval by the Owner is
required before such equipment is brought onto Site.
6. The Owner shall pay rental for the actual rental period, and on the
following basis:
- At established hourly, daily, weekly or monthly rental rates.
- The rental rates stipulated shall apply when the number of hours
the equipment is operated does not exceed 175 hours in any one
month, or does not exceed 40 hours in any one week, or does not
exceed 8 hours in any one day. If operated in excess of these
stated maximums, the charge for the excess will be at 66-2/3% of
applicable rental rates.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
7. Where equipment is subcontracted from another contractor, leasing company
or third party, the applicable rate charged will be Cost Plus 8 1/2%.
8. Contractor shall be responsible for delivery to Site and return to rental
source of all equipment used.
9. All rental rates shall be firm for the duration of the AGREEMENT.
10. Standby rates for motorized equipment shall not be 100% as the working
rates for these items include allowance for fuel consumption, lubricants,
wear and tear, etc. The standby rates shall be expressed as a percentage
(%) of the equipment working rate. Neither the standby rate, working rate,
nor operator will be payable while the equipment is being serviced/
maintained/ repaired and/or when the equipment is otherwise neither working
nor ready to work. Standby rates will not be payable outside the normal
working hours stated herein, except when and to the extent specifically
requested by the Owner in each instance.
11. If an item of equipment is on Site for a longer period than three months,
the rental rate for that equipment will automatically reduce to the lower
rate applicable to monthly long term. Rental rates will then become
retroactive to the date the equipment was first brought onto Site. Monthly
short term shall mean a rental period of up to three months. Monthly long
term shall mean a rental period of over three months.
12. All equipment is subject to the Owner's review and approval, with respect
to condition, safe operation and suitability.
13. Any equipment supplied by Subcontractors of the Contractor shall be subject
to the above conditions, including those relating to percentage markup on
equipment.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT J
CONTRACT SCHEDULE
Bidder shall complete and submit a milestone schedule and bar chart schedule
based on the format contained herein. The bar chart schedule shall show the
planned duration and completion time for major activities. Unit durations shall
be provided for each applicable item in order to determine changes in schedule
due to changes in the Scope of Work. Assume 24 hours per day, 60 minutes per
hour.
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. ----------- Date Date (working days)
- --- ---- ---- --------------
<S> <C> <C> <C> <C>
1.1 BONDS
1.1.1 100% Performance Bond N/A N/A N/A
1.1.2 100% Material & Labor Bond N/A N/A N/A
1.2 MOBILIZATION
1.2.1 Recruiting and Move to Site, Shaft Personnel 01/02/96 04/13/96 N/A
------------ ------------
& Equipment
1.2.2 Recruiting and Move to Site, Level 12/29/96 01/22/97 N/A
Development Personnel & Equipment ------------ ------------
1.3 NO. 1 SHAFT
1.3.1 Setup Surface Plant 01/10/96 02/17/96 N/A
------------ ------------
1.3.2 Setup Shaft Sinking Plant 01/12/96 04/13/96 N/A
------------ ------------
1.3.3 Excavate, Support and Construction 100' 01/10/96 02/21/96 40
Collar (20' diameter), including temporary ------------ ------------ -------
ground support
1.3.4 Shaft Sinking 20' diameter to 2050' below 04/01/96 01/22/97 184
collar, incl all temp and perm services and ------------ ------------ -------
concrete lining; assuming inflows of 0-50 gpm
1.3.5 Permanent Shaft Services Engineering 01/02/96 02/02/96 N/A
------------ ------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. Date Date (working days)
- ---- ---- ---- --------------
<S> <C> <C> <C> <C>
1.3.6 5000 L Temporary Pump Level
1.3.6.1 Station Excavation & Support (1295 cu yd) 05/15/96 05/31/96 15
----------- ------------ ------
1.3.6.2 Station Construction 05/31/96 06/07/96 N/A
----------- ------------
1.3.7 4500 L Temporary Pump Level
1.3.7.1 Station Excavation & Support (1295 cu yd) 07/21/96 08/05/96 15
----------- ------------ ------
1.3.7.2 Station Construction 08/05/96 08/12/96 N/A
----------- ------------
1.3.8 4000 L Shaft Station
1.3.8.1 Station Excavation & Support (850 cu yd) 09/27/96 10/07/96 10
----------- ------------ ------
1.3.8.2 Station Construction 10/07/96 10/14/96 N/A
----------- ------------
1.3.9 3700 L Shaft Station
1.3.9.1 Station Excavation & Support (850 cu yd) 11/13/96 11/23/96 10
----------- ------------ ------
1.3.9.2 Station Construction 11/23/96 12/01/96 N/A
----------- ------------
1.3.10 3400 L Shaft Station
1.3.10.1 Station Excavation & Support (850 cu yd) 12/29/96 01/09/96 10
----------- ------------ ------
1.3.10.2 Station Construction 01/09/97 01/16/97 N/A
----------- ------------
1.3.11 Water Rings (5) - Supply & Install 05/14/96 12/29/96 5
----------- ------------ ------
1.3.12 No. 1 Shaft Changeover 01/22/97 02/05/97 N/A
------------ ------------
1.4 LEVEL DEVELOPMENT
(inclusive of mucking and all service installations)
1.4.1 4000 Level
1.4.1.1 No. 1 Crosscut (15'x15'x915') 02/05/97 03/18/97 40
----------- ------------ ------
1.4.1.2 Main Decline 4000 L to 3700 L (15'x15'x2320') 03/22/97 06/22/97 91
----------- ------------ ------
1.4.1.3 Shaft Station Slashing (320 cu yd) 03/18/97 03/22/97 4
----------- ------------ ------
1.4.2 3700 Level
1.4.2.1 No. 1 Crosscut (15'x15'x1050') 03/16/97 05/01/97 46
----------- ------------ ------
1.4.2.2 Shop Access Drift (15'x15'x350') 05/05/97 06/26/97 51
----------- ------------ ------
1.4.2.3 Shaft Station Slashing (320 cu yd) 05/01/97 05/05/97 4
----------- ------------ ------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. Date Date (working days)
- ---- ---- ---- --------------
<S> <C> <C> <C> <C>
1.4.3 3400 Level
1.4.3.1 No. 1 Crosscut (15'x15'x145') 02/05/97 02/12/97 7
------------ ------------ --------
1.4.3.2 Ramp to Shaft Bottom (12'x12'x335') 02/16/97 03/16/97 27
------------ ------------ --------
1.4.3.3 Shaft Station Slashing (320 cu yd) 02/12/97 02/16/97 4
------------ ------------ --------
1.5 DEMOBILIZATION
1.5.1 Teardown Surface Plant & Cleanup 06/22/97 07/08/97 N/A
------------ ------------
1.5.2 Demobilize Equipment and Personnel 06/22/97 07/08/97 N/A
------------ ------------
</TABLE>
NOTE: THE PROJECT SCHEDULE IS EXCLUSIVE OF TIME REQUIRED FOR CRITICAL PATH
BOLTING. IT IS ESTIMATED THAT BOLTING DURING SHAFT SINKING WILL ADD 27 DAYS TO
THE SINKING SCHEDULE. THIS ASSUMES 3 FOOT BOLTS ARE USED TO ATTACH SHAFT
SCREEN. ANTICIPATED BOLTING OF 3 HOURS PER ROUND DURING LEVEL DEVELOPMENT WILL
ADD AN ESTIMATED 23 DAYS TO THE PROJECT SCHEDULE.
<TABLE>
<CAPTION>
Shaft Sinking Level Development
Item Unit Duration Unit Duration
No. Description (working days) (working days)
--- ----------- -------------- --------------
<S> <C> <C> <C>
2.1 WASTE HAULING
0' to 1500' N/A NA/
1501' to 3000' N/A NA/
3001' to 5000' N/A N/A
2.2 GROUND SUPPORT
2.2.1 Mechanical Rock bolts (incl. 6" x 6" plate)
5/8" x 5' 10 min. 10 min.
----------- -----------
5/8" x 6' 12 min. 12 min.
----------- -----------
5/8" x 7' 13 min. 13 min.
----------- -----------
5/8" x 8 15 min. 15 min.
----------- -----------
2.2.2 Resin/Rebar (threaded incl. 6" x 6" plate)
3/4" x 5' 15 min. 15 min.
----------- -----------
3/4" x 6' 17 min. 17 min.
----------- -----------
3/4" x 7' 18min. 18 min.
----------- -----------
3/4" x 8' 20 min. 20 min.
----------- -----------
3/4" x 10' 25 min. 25 min.
----------- -----------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shaft Sinking Level Development
Item Unit Duration Unit Duration
No. Description (working days) (working days)
- --- ----------- -------------- --------------
<S> <C> <C> <C>
2.2.3 Resin / Rebar (forged incl. 6" x 6" plate)
3/4" x 5' 15 min. 15 min.
----------- -----------
3/4" x 6' 17 min. 17 min.
----------- -----------
3/4" x 7' 18 min. 18 min.
----------- -----------
3/4" x 8' 20 min. 20 min.
----------- -----------
3/4" x 10' 25 min. 25 min.
----------- -----------
2.2.4 Split Set-Registered Trademark- Bolts
3' 10 MIN. 10 MIN.
----------- -----------
5' 10 min. 10 min.
----------- -----------
6' 12 min. 12 min.
----------- -----------
7' 15 min. 15 min.
----------- -----------
8' 20 min. 20 min.
----------- -----------
2.2.5 Swellex-Registered Trademark- Bolts
5' 10 min. 10 min.
----------- -----------
6' 12 min. 12 min.
----------- -----------
7' 14 min. 14 min.
----------- -----------
8' 15 min. 15 min.
----------- -----------
2.2.6 Screen
2 2
No. 6 Welded Wire (4" x 4") w/3'-split sets 2.0 min/yd 2.4 min/yd w/5 split set
----------- -------------------------
2 2
No. 9 Chain Link (2" x 2") w/3'-split sets 1.5 min/yd 2.4 min/yd w/5' split sets
----------- ---------------------------
2.2.7 Shotcrete (3" thick)
3 3
Reinforced 20 min/yd 25 min/yd
----------- -----------
3 3
Non Reinforced 20 min/yd 25 min/yd
----------- -----------
2.2.8 Mats
5' w/5' split sets 5 min. 5 min.
----------- -----------
7' w/5' split sets 5 min. 5 min.
----------- -----------
9' w/5' split sets 5 min. 5 min.
----------- -----------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shaft Sinking Level Development
Item Unit Duration Unit Duration
No. Description (working days) (working days)
- --- ----------- -------------- --------------
<S> <C> <C> <C>
2.3 GROUTING
2.3.1 Drilling 0.9 min/ft. 0.9min/ft.
-------------- --------------
2.3.2 Setup/Teardown 1 hour 1 hour
-------------- --------------
2.3.3 Packer Installation 30 min. 30 min.
-------------- --------------
2.3.4 Bag Pumped 60 lb. bag 10 min. 10 min.
-------------- --------------
3 3 3
2.4 SLASHING over 200 yd 8 min. yd 8 min/yd
-------------- --------------
</TABLE>
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT K
LIST OF EXCEPTIONS, DEVIATIONS, OR QUALIFICATIONS TO BID
Contractor to list exceptions, deviations, alternatives and qualifications to
any of the Contract Documents.
EXCEPTIONS: NONE
DEVIATIONS: NONE
ALTERNATIVES:
ALTERNATIVE 1
Thyssen Mining proposes to substitute a series of two bored raises in place of
the two lip pocket installations which are scheduled and priced in the base bid
for the 4000 and 3700 Levels.
The base bid includes a lip pocket on the 3400 Level. This pocket is still
required in the alternative proposal.
In Alternative 1, a raise borer would be mobilized to site and established on
the 4000 Level after completion of the station excavation. The shaft would
continue to be deepened to the 3700 Level station and the station excavation
would be completed. During the time the 3700 Level station excavation is
proceeding the pilot hole for the first leg of the raise system would be drilled
from the 4000 Level down to the 3700 Level. A suitable access to the raise
bottom from the station would be excavated as part of the station excavations.
The intention is to ream the raise simultaneously with shaft excavation, storing
the cuttings on the 3700 Level, and mucking them out later using the completed
raise system. Since the 3700 Level has additional development which is
scheduled as part of the overall contract, Thyssen Mining would develop an
additional two rounds from the end of the planned station limits into the
planned No. 1 Crosscut to provide temporary storage room for the cuttings. The
LHD which would be used during the station development would remain on the level
to muck and stockpile the cuttings during reaming operations.
After completion of the upper leg, the raise borer would be moved to the 3700
Level station to complete the lower 3700 to 3400 Level segment of the raise
system. The raise borer would be set up so the collar of the lower raise would
be offset from the bottom of the upper raise. A set of
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
control chains would be installed at the bottom of the upper raise. This would
allow transfer of muck from the upper raise to the lower raise while still
allowing safe loading operations to proceed on the 3700 Level. The lower leg
would be constructed in a similar fashion to that of the upper leg. Once again,
additional space would be required on the 3400 Level to accommodate the raise
borer cuttings prior to the commissioning of the temporary loadout system on the
3400 Level. The shaft would be completed to the bottom during the time that the
raise was being reamed.
After commissioning of the muck handling system, development would proceed
simultaneously on the 4000 and 3400 Levels. The LHD on the 3400 Level would be
utilized to load the lip pocket with muck from the raise system and to muck out
the shaft bottom decline. The raise system will transfer development muck down
to the 3400 Level for loading.
The raises would be drilled at 7 foot diameter and each 300 foot leg would store
approximately two rounds of 15 ft. x 15 ft. x 15 ft. development muck. This
surge capacity will prove invaluable during later development operations. AT
THE DISCRETION OF FIRSTMISS GOLD, BLOCKOUTS IN THE SHAFT CONCRETE WILL BE MADE
TO ACCOMMODATE LIP POCKETS AT SOME LATER DATE. THE COST OF THESE BLOCKOUTS IS
INCLUDED IN THIS ALTERNATIVE.
There appear to be several operational and financial advantages to such a
system. An examination of the benefits appears below. At first glance there do
not appear to be any major scheduling or costing disadvantages. In fact, we
feel there may be a substantial financial gain using this system as well as
shortening the overall project schedule.
ADVANTAGES
Using a single loading point allows the hoist to operate at full speed over
the full length of the shaft. If intermediate lip pockets are to be
constructed and used with a system of rope guides, it will be necessary to
install steady beams in the shaft to keep the buckets from swinging away
from the lip pocket as the muck is transferred from the pocket to the
bucket. This is necessary to minimize spillage during loading operations.
These beams represent permanent structures in the shaft. In order to
safely pass these beams it would be necessary to operate the hoist at slow
speed while the buckets are traveling in either direction below the 4000
Level. Full speed hoisting would be severely restricted in both directions
using such a system and productivity will suffer as a result.
The potential for mucking delays is substantial if development is to
advance on two levels with lip pockets. There will invariably be times
when the buckets will be required on both levels simultaneously. The
raise's surge system allows the muck to be stored where it can be
transferred to the hoisting system without requiring rehandling on the
upper levels. This
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
capacity allows the waste to be hauled from the drift or decline face
directly to the raise system without the need to stockpile the muck near
the shaft for later rehandling. The use of underground haulage trucks then
becomes more attractive as the trucks would be able to haul from the face
directly to the raise system. This reduces the amount of equipment
required per level or allows the equipment to be utilized for face mucking
rather than muck rehandling at the shaft when the skips are available.
A single LHD will be required on the 3400 Level to load the lip pocket at
that location. Due to the proximity of the raise bottom to the lip pocket,
a small LHD would be able to adequately load the pocket from the raise.
This represents a savings in equipment.
In order to operate efficiently, using the multiple lip pocket system, it
would be necessary to station an extra LHD on each level to load the lip
pocket during hoisting operations. By using the raise system one LHD can
be eliminated during the development program. This would also be true
during future development operations, should additional development be
desired on the 3400 Level while stope development proceeds on the upper
levels.
The surge capacity in the raise system allows for servicing and repairs of
the loadout LHD to take place without seriously affecting productivity.
The main advantage to the system is that it would allow the development
equipment to concentrate on development without being hindered by delays in
skipping operations. As with most underground operations, hoisting
capability represents the greatest possible source of delay in this
operation. By improving the surge capacity underground it is possible to
minimize the potential delays on the levels. This translates directly into
financial savings by reducing the overall project schedule.
By hoisting from the bottom level, the shaft would remain open, the sinking
stage would be used as a loading platform at the shaft bottom and could be
used as a secondary means of egress during power failures or other
emergencies. The installation of mid shaft lip pocket steady beams takes
away this flexibility and will result in additional costs for standby
hoists.
DISADVANTAGES
The only perceived disadvantage is the need for some additional development
on each level to provide access to the raise system. These costs are
offset by the labor and materials that would have been necessary to
construct and install the lip pockets on the 4000 and 3700 Levels.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
The cost of the raises are again partially offset by the costs that would
have been required for the lip pocket installations. The remainder of the
raising costs will be recovered in the operational efficiencies.
SAVINGS
Thyssen Mining proposes to reduce the base bid price by $50,000 should this
alternative be accepted.
SCHEDULE
Thyssen Mining proposes to reduce the base Project schedule by fifteen (15)
days, should this alternative be accepted.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
ALTERNATIVE 2
Probe Hole Drilling and Grouting
Thyssen Mining suggests some alternatives to the Probe hole drilling and
grouting programs as outlined in the tender documents.
1. Probe Hole Drilling
Rather than drilling a single test hole ahead of the shaft excavation we
would suggest drilling probe holes on the four (4) cardinal compass points
to a depth of 200 feet ahead of the shaft bottom outside the excavation
perimeters.
The holes are to be drilled at a steep dip starting at the edge of the
shaft excavation and looking outward slightly. This will increase the
chances of detecting water in the strata surrounding the proposed
excavation. This is the water which would be most likely to cause
difficulties with the sinking operation. This type of procedure has given
good results on other projects where water has proven to be a problem.
2. Grouting
The unit prices submitted for grouting represent a defined contractor
performance. Due to the variables encountered while grouting, application
of the unit price may not provide for effective grout coverage. Therefore,
we request that FirstMiss Gold approve the provision of grouting services
on a cost plus basis.
Drilling and grouting within the excavation limits will not result in as
great a degree of penetration of the peripheral strata and as a result, the
water will not be as greatly restricted from entering the shaft excavation.
Peripheral drill holes, in multiples, allow grout penetration and
connection between grout holes. In addition, the shaft perimeter area is
grouted rather than the shaft center.
In other programs, grouting has generally been initiated if the probe holes
produce in excess of 5 gpm. Shaft advance is adversely affected by water
inflow. Any water which can be excluded from the excavation will result in
enhanced advance rates. As a result, the effort is generally directed
toward water inflow prevention as opposed to water pumping. The advantages
to grouting include reduced pumping and treatment costs as well as improved
advance.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
Cost plus allows the grouting to proceed under controlled conditions. The
objective of any grouting program should be to achieve the maximum
penetration of the strata by the grouting fluid in order to manage the
exclusion of the groundwater from the future excavations. If done on a unit
price basis grouting can proceed too quickly with an emphasis on grout
quanity. This may reduce the effectiveness of the program, minimizing the
restriction of water inflow.
With a cost plus grouting program FirstMiss Gold controls the start and end
of the program based on results. If it is felt, FirstMiss Gold, that
grouting is not effective, the program can be terminated and sinking
resumed.
The contractor will then be compensated on a time and materials basis at a
previously agreed upon rate. The owner's risk is reduced along with that
of the contractor.
ALTERNATIVE 3
The headframe facility, hoist and hoist house can be offered to FirstMiss Gold
on a long term stand by rental rate in lieu of the buy out option provided in
Statement N. In general, thestandby rate would be approximately $9,000 per
month. Terms can be discussed that would allow applying the rental payments to
the buy out figure at a later date.
ALTERNATIVE 4
Thyssen Mining has provided for top wages for its employees working on this
project. This approach was taken to ensure that high quality personnel were
dedicated to the job and to reduce problems associated with employee turnover.
Should these rates be deemed excessive by FirstMiss Gold, Thyssen Mining would
be willing to negotiate changes to the contract forms that might be impacted by
a wage reduction.
ALTERNATIVE 5
The Magnadet has been developed to enhance safety during loading operations in
the shaft sinking phase, Thyssen Mining has suggested their use. However, these
caps add approximately $54,000 to the overall project and, subject to discussion
with FirstMiss Gold, could be replaced with standard nonelectric caps that are
initiated by a single Magnadet cap.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
ALTERNATIVE 6
Pumping System
The requested pumping system estimate has not been included in the base bid but
is quoted here as an add on. Final costs will depend on the system which is
finally selected but the estimate here is a good approximation of what will be
the final cost.
The quoted system is based on a series of high lift centrifugal pumps capable of
raising 2000 gallons per minute from level to level and ultimately to surface.
A sump will be excavated on each level to service the temporary system. The
preferred location is on the south side of the shop opposite the level station
excavation. This will minimize pipe urns in and out of the shaft.
A reinforced concrete retention dam will be constructed in each sump and keyed
into the sump walls. A cast in place pipe will conduct water from the sump to
the charge pump intake. The charge pump will feed a booster pump which in turn
will lift the water to the next higher lever.
Duplicate pump capacity is included to facilitate repair and maintenance. Due
to their size, these pumps will be mounted on concrete foundations immediately
in front of the concrete dams. No water /solids separation is required with the
pumps quoted as they are designed to handle suspended solids.
Should solids/liquids separation be required or desired then alternate proposals
can be advanced.
Total Estimated Price:
a. 10 pump sets with valving and electrics $864,000
b. 5 Sump Excavations and Installations
(approximately 14,000 gal/sump) 141,650
----------
Total Installation Cost $1,005,650
----------
---------
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
QUALIFICATIONS TO BID
NEVADA CONTRACTOR'S LICENSE
Thyssen Mining currently holds a Nevada contractor's license, Number
0035386.
NEVADA SALES AND USE TAX PERMIT
Thyssen Mining's Sales and Use Tax Permit Number for the state of Nevada is
12318172.
Thyssen Mining has a 30 Year history of timely paying sales and use taxes
in full.
MSHA IDENTIFICATION NUMBER
Thyssen Mining's MSHA identification number is NEV.
STATEMENT OF JOB QUALITY AND PERFORMANCE STANDARDS
We at Thyssen Mining depend largely on our good name and reputation for
most of our bidding opportunities and strive to be fair and reasonable in
all of our dealings. Our employees produce quality work, on time and
maintain good relationships with our clients, their representatives, and
our suppliers. Thyssen provides their employees with opportunities which
promote growth, challenge and compensation for better than expected
performance.
Thyssen Mining is dedicated to a high quality of performance and we make
every effort to employ individuals who are trained and experienced in the
tasks they are assigned. Field personnel receive full support from the
head office, especially in promoting our safety and environmental programs.
INSURANCE STATEMENT
The current limits provided under our existing insurance policy meet or
exceed our present contracted obligations. If awarded the #1 Shaft
Construction Project, Thyssen Mining will provide and maintain in force at
all times relevant to the project, insurance of the type and coverage
limits as required. Certificates of Insurance will be provided to
FirstMiss Gold to document evidence that required coverages are in effect.
Policies will not be canceled or changed by insurer without giving thirty
(30) days prior notice.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
BONDING STATEMENT
Thyssen Mining has been able to meet the individual bonding requirements for all
projects tendered to date. This capability includes obtaining payment,
performance and bid bonding to cover the entire amount of the contract when
required. Thyssen Mining has never been refused a bond and recently obtained a
confirmation of bonding capability for a U.S. mine project contract with a value
in excess of $120,000,000.
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT N
HOISTING PLANT PURCHASE
The Bidder shall provide to the Owner a price for the purchase of the Bidder's
hoisting plant (including headframe), if owned by the Bidder. The Bidder shall
include a detailed list of equipment provided for the price quoted herein.
DESCRIPTION Lump Sum Price
----------- --------------
1. Hoist (Mechanical/Electrical) $ 420,000
--------------
2. Hoist House $ 48,000
--------------
3. Headframe $ 120,000
--------------
4. Other Equipment or Facilities (specify) $ NONE
--------------
List of Equipment included in the quoted price:
- - Hoist House - 60' x 60' metal framed and metal clad. Complete with heating
and electrical systems as installed.
- - 10' x 72" Canadian Ingersoll Rand double drum hoist with 1 1/2" diameter
hoist ropes. hoist is powered by 2 - 450 hp motors and is complete with
all controls and electrics.
- - Complete headframe and sheave wheels as installed.
SHOULD FIRSTMISS GOLD ELECT TO PURCHASE THE ABOVE EQUIPMENT, TMCC WILL REDUCE
THE LUMP SUM PRICE FOR DEMOBILIZATION BY $34,000. APPLICATION OF THE REDUCTION
CAN BE MADE TO ITEM 1.5.1 OF STATEMENT A.1 WHICH CHANGES FROM $147,100 TO
$119,100 AND ITEM 1.5.2 CHANGES FROM $82,980 TO $76,980.
<PAGE>
3.0 FORM OF AGREEMENT
3.1 DEFINITIONS.............................................................3-1
3.1.1 "OWNER" ......................................................3-1
3.1.2 "CONTRACTOR"..................................................3-1
3.1.3 "PROJECT".....................................................3-1
3.1.4 "AUTHORIZED REPRESENTATIVE"...................................3-2
3.2 SCOPE OF THE WORK AND SERVICES..........................................3-2
3.2.1 The "CONTRACTOR" .............................................3-2
3.2.2 The "OWNER"...................................................3-2
3.2.3 The Work......................................................3-2
3.3 GENERAL CONDITIONS......................................................3-2
3.4 TERMS OF PAYMENT........................................................3-2
3.5 THE AGREEMENT DOCUMENTS.................................................3-3
3.6 ASSIGNMENT OF AGREEMENT.................................................3-4
3.7 ORAL AGREEMENTS.........................................................3-4
3.8 IMPLIED OBLIGATION......................................................3-4
3.10 COMMUNICATIONS.........................................................3-4
3.11 SIGNATURES.............................................................3-6
<PAGE>
3-1
3.0 FORM OF AGREEMENT
FORM OF AGREEMENT
BETWEEN CONTRACTOR AND OWNER
THIS AGREEMENT made in triplicate as of the _____ day of _________________,
1996,
"the Effective Date",
between Thyssen Mining
----------------------------
495 Idaho St. Suite 210
----------------------------
Elko, Nevada USA 89801
----------------------------
hereinafter called the "CONTRACTOR"
and FirstMiss Gold Inc.
c/o Getchell Mine
P.O. Box 220
Golconda, Nevada USA 89414
hereinafter called the "OWNER"
WITNESSETH: that the "CONTRACTOR" and the "OWNER" in consideration of their
respective promises and obligations herein set forth covenant and agree
with each other as follows:
3.1 DEFINITIONS
In this Agreement, the following terms will have the following meaning:
3.1.1 "OWNER" shall mean FirstMiss Gold Inc.
3.1.2 "CONTRACTOR" shall mean Thyssen Mining, A BRANCH OF THYSSEN MINING
CONSTRUCTION OF CANADA, LTD., A LIMITED LIABILITY COMPANY INCORPORATED
IN THE PROVINCE OF SASKATCHEWAN, COUNTRY OF CANADA, AND DULY ORGANIZED
AND IN GOOD STANDING UNDER THE LAWS OF THE STATE OF NEVADA, USA; and
also shall include such subcontractors and other parties which shall
be subject to prior acceptance and written authorization by the
"OWNER."
3.1.3 "PROJECT" shall mean the No. 1 Shaft Construction program at the Site
of the Turquoise Ridge Mine as described within the "AGREEMENT
DOCUMENTS" (as such terms ARE defined in the General Conditions).
<PAGE>
3-2
3.1.4 "AUTHORIZED REPRESENTATIVE" shall mean a person, or persons who are
designated from time to time, in writing, by the "OWNER" and by the
"CONTRACTOR", to have authority on their behalf to received and issue
notices, instructions and other communication hereunder. "OWNER'S
REPRESENTATIVE" and "CONTRACTOR'S REPRESENTATIVE" shall also mean
"AUTHORIZED REPRESENTATIVE."
3.2 SCOPE OF THE WORK AND SERVICES
3.2.1 The "CONTRACTOR" shall supply construction services for the "PROJECT,"
together with other related services, EQUIPMENT, AND MATERIALS that
may be required BY THE AGREEMENT DOCUMENTS. All services shall be
performed, AND ALL EQUIPMENT AND MATERIALS PROVIDED, in accordance
with the highest professional standards for a similar assignment in
compliance with applicable laws, codes, regulations and practices
having jurisdiction at the Project Site, and generally in cooperation
with the "OWNER'S REPRESENTATIVE."
3.2.2 The "OWNER" shall determine the areas and type of services to be
performed by the "CONTRACTOR" for the "PROJECT" and the "CONTRACTOR"
shall provide sufficient qualified personnel and professional judgment
to carry out the requested services.
3.2.3 The Work (as such term is defined in the General Conditions) and
services which may be required will include, but will not necessarily
be limited to, the following which are defined in detail in Sections
1.0, 2.0, 5.0, 6.0 and 7.0 (and their related subsectionS).
3.3 GENERAL CONDITIONS
3.3.1 All the Work shall be carried out in accordance with the General
Conditions forming Section 4.0 of this Agreement.
<PAGE>
3-3
3.4 TERMS OF PAYMENT
3.4.1 In full compensation for all Work performed by the "CONTRACTOR"
pursuant to this Agreement, the "OWNER" shall pay the "CONTRACTOR" in
accordance with applicable schedules in the Contractor's Proposal
which forms Section 2.0 of this Agreement.
3.4.2 The "OWNER" will:
(i) Pay to the "CONTRACTOR" for and in respect of the Work and
the performance and observance by the "CONTRACTOR" of the
provisions of this Agreement in lawful money in US Dollars all
subject to such additions and deductions as may properly be made
under the terms of this Agreement;
(ii) Make interim progress payments in accordance with Section
4.20 of the Agreement upon the approved progress payment
certificate for the Work (as provided for in the General
Conditions) completed up to and including the last day of the
month preceding the date of the certificate, less the aggregate
of previous payments.
3.4.3 Provided that the "CONTRACTOR" complies with the conditions of the
Agreement, the "OWNER" will issue the progress payment certificate
within fifteen (15) calendar days after receipt by him of the
"CONTRACTOR" progress billing and all supporting evidence, and the
"OWNER" will pay the "CONTRACTOR" one hundred percent (100%) of
undisputed amounts within twenty (20) calendar days of the date of the
certificate.
3.5 THE AGREEMENT DOCUMENTS
3.5.1 The "Agreement Documents" consist of THIS AGREEMENT AND THE DOCUMENTS
DESCRIBED IN SECTION 4.1.2 OF THE GENERAL CONDITIONS together with
amendments thereto made pursuant to the provisions of the Agreement
and agreed upon in writing between the parties.
3.5.2 The Agreement Documents are complementary and each shall be read in
conjunction with the other documents to explain each other and to make
the whole consistent. However, in the event of a conflict, such
conflict shall be resolved as set forth in Section 4.2 of the General
Conditions.
<PAGE>
3-4
3.6 ASSIGNMENT OF AGREEMENT
The "CONTRACTOR" shall not make any assignment of this Agreement without
the written consent of the "OWNER." The "CONTRACTOR" shall not assign any
part or the whole of any moneys due or to become due under the provisions
of this Agreement without written consent of the "OWNER." "OWNER'S"
consent to allow "CONTRACTOR" to make assignment of this Agreement, or of
MONIES due or to become due can be withheld for any reason, or no reason at
all.
3.7 ORAL AGREEMENTS
No oral agreements or conversations between any of the officers, agents or
employees of either of the parties to the Agreement shall affect or modify
any of the terms or obligations contained in the Agreement.
3.8 IMPLIED OBLIGATION
No implied obligation of any kind on, or on behalf of, the "OWNER," shall
arise or be implied from anything contained in the Agreement Documents, not
from any position or situation of the parties at any time. The express
covenants and agreements contained herein made by "OWNER," shall be the
only covenants and agreements upon which any rights against the "OWNER" may
be founded.
3.9 CHOICE OF LAW
The "OWNER" and the "CONTRACTOR" accept the laws of the State of Nevada as
the proper law of the Agreement and submit to the exclusive jurisdiction of
the courts of Nevada and venue shall be in the county in which the Project
is located.
3.10 COMMUNICATIONS
All communications in writing between the parties shall include reference
to the Agreement Number and shall be deemed to have been received by the
addressee if delivered to the individual or to a member of the firm or to
an officer of the corporation for whom they are intended or if sent by
facsimile addressed as follows:
The "CONTRACTOR" Thyssen Mining
at: -----------------------------------------------
495 Idaho St. Suite 210
-----------------------------------------------
Elko, Nevada USA 89801
-----------------------------------------------
-----------------------------------------------
<PAGE>
3-5
Attention: Jef Johnson
---------------------------
Telephone: (702) 738-5588
---------------------------
Facsimile: (702) 738-4307
---------------------------
The "OWNER" at: FirstMiss Gold Inc.
c/o Getchell Mine
P.O. Box 220
Golconda NV 89414
Attention: Ralph M. Barker, P.E.
Turquoise Ridge Mine Manager
Telephone: (800) 405-4946
Facsimile: (702) 635-8015
Copies of any official notice and/or communications pertaining to MATERIAL
matters of this Agreement including, but not limited to such affecting
costs, time schedules, claims, industrial and labor relations, etc., are to
be forwarded directly to Ralph M. Barker, P.E. at:
FirstMiss Gold Inc.
c/o Getchell Mine
28 Miles NE of Golconda NV
P.O. Box 220
Golconda NV 89414 USA
<PAGE>
3-6
3.11 SIGNATURES
This Agreement is not valid until signed by persons duly authorized in
that behalf by the "CONTRACTOR" and the "OWNER."
Signed for on behalf of Thyssen Mining:
/s/ Peter Kuhn President 1/13/96
__________________________________ ____________________ ____________
Peter Kuhn--Being Duly Authorized Title Date
in That Behalf
Signed for on behalf of FirstMiss Gold Incorporated:
/s/ R. David Russell VP & COO 1/10/96
__________________________________ ____________________ ____________
R. David Russell--Being Duly Title Date
Authorized in That Behalf
<PAGE>
4.0 GENERAL CONDITIONS
4.1 DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1
4.2 AGREEMENT DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . 4-2
4.3 INTERPRETATION . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3
4.4 POWERS OF OWNER OR OWNER'S REPRESENTATIVE . . . . . . . . . . . . . . 4-3
4.5 CONTRACTOR -- INDEPENDENT AND RESPONSIBLE . . . . . . . . . . . . . . 4-4
4.6 CONTRACTOR'S SUPERINTENDENT AND WORK FORCE . . . . . . . . . . . . . 4-4
4.7 INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
4.8 WORKERS' COMPENSATION ACT, SAFETY, FIRST AID . . . . . . . . . . . . 4-7
4.9 INDEMNITY AND HOLD HARMLESS . . . . . . . . . . . . . . . . . . . . .4-10
4.10 BONDS -- PERFORMANCE, LABOR AND MATERIAL . . . . . . . . . . . . . .4-11
4.11 FINAL ACCEPTANCE OF THE WORK AND GUARANTEE . . . . . . . . . . . . .4-11
4.12 PERMITS AND LICENSES . . . . . . . . . . . . . . . . . . . . . . . .4-12
4.13 ROYALTIES AND PATENTS . . . . . . . . . . . . . . . . . . . . . . . .4-12
4.14 TAXES AND CUSTOMS DUTIES . . . . . . . . . . . . . . . . . . . . . .4-13
4.15 SUBCONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-13
4.16 OTHER CONTRACTORS . . . . . . . . . . . . . . . . . . . . . . . . . .4-13
4.17 CHANGES IN THE WORK . . . . . . . . . . . . . . . . . . . . . . . . .4-14
4.18 VALUATION OF CHANGES IN THE WORK . . . . . . . . . . . . . . . . . .4-16
4.19 SCHEDULE OF RATES . . . . . . . . . . . . . . . . . . . . . . . . . .4-17
4.20 APPLICATION FOR PAYMENT AND VALUATION OF WORK FOR PROGRESS PAYMENTS .4-17
4.21 PAYMENTS BY THE CONTRACTOR AND LIENS . . . . . . . . . . . . . . . .4-19
4.22 CONSTRUCTION SCHEDULE, METHODS AND EQUIPMENT . . . . . . . . . . . .4-20
<PAGE>
4.23 PREVAILING WAGES . . . . . . . . . . . . . . . . . . . . . . . . . .4-21
4.24 LABOR RELATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . .4-21
4.25 DELAYS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-23
4.26 ACCELERATION OF THE WORK . . . . . . . . . . . . . . . . . . . . . .4-24
4.27 EMERGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-25
4.28 CONTRACTOR'S FAMILIARITY WITH SITE . . . . . . . . . . . . . . . . .4-25
4.29 SUBSURFACE CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . .4-25
4.30 SURVEYS, LINES AND LEVELS . . . . . . . . . . . . . . . . . . . . . .4-26
4.31 AGREEMENT DOCUMENTS ISSUED FOR CONSTRUCTION . . . . . . . . . . . . .4-26
4.32 REVISIONS OF DRAWINGS AND SPECIFICATIONS . . . . . . . . . . . . . .4-27
4.33 SHOP DRAWINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-28
4.34 RECORD DRAWINGS "AS-BUILT" . . . . . . . . . . . . . . . . . . . . .4-28
4.35 SAMPLES AND MANUFACTURER'S SPECIFICATIONS . . . . . . . . . . . . . .4-29
4.36 MATERIAL AND WORKMANSHIP . . . . . . . . . . . . . . . . . . . . . .4-29
4.37 HANDLING AND STORAGE OF EQUIPMENT AND MATERIALS . . . . . . . . . . .4-29
4.38 INSPECTION AND TESTS . . . . . . . . . . . . . . . . . . . . . . . .4-30
4.39 REJECTED MATERIALS AND WORK . . . . . . . . . . . . . . . . . . . . .4-32
4.40 RESPONSIBILITY FOR DEFECTIVE WORK AFTER FINAL PAYMENT . . . . . . . .4-33
4.41 USE OF SITE BY CONTRACTORS . . . . . . . . . . . . . . . . . . . . .4-33
4.42 TEMPORARY STRUCTURES AND PROTECTION OF WORK AND PROPERTY . . . . . .4-35
4.43 TEMPORARY USE OF EQUIPMENT . . . . . . . . . . . . . . . . . . . . .4-36
4.44 SANITARY ARRANGEMENTS . . . . . . . . . . . . . . . . . . . . . . . .4-36
4.45 CLEANING UP . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-36
<PAGE>
4.46 USE OF COMPLETED PORTIONS BY THE OWNER . . . . . . . . . . . . . . .4-37
4.47 OWNER'S RIGHT TO DO WORK . . . . . . . . . . . . . . . . . . . . . .4-37
4.48 OWNER'S RIGHT TO TERMINATE AGREEMENT . . . . . . . . . . . . . . . .4-38
4.49 CONTRACTOR'S RIGHT TO STOP WORK OR TERMINATE AGREEMENT . . . . . . .4-40
4.50 ASSERTION OF RIGHTS . . . . . . . . . . . . . . . . . . . . . . . . .4-41
4.51 ASSIGNMENT AND BANKRUPTCY . . . . . . . . . . . . . . . . . . . . . .4-41
4.52 DISPUTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-42
4.53 RECORDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4-43
4.54 PROPRIETARY INFORMATION, PLANS AND PROPERTY . . . . . . . . . . . . .4-43
4.55 AGREEMENT EXECUTION . . . . . . . . . . . . . . . . . . . . . . . . .4-45
<PAGE>
4-1
4.0 GENERAL CONDITIONS
4.1 DEFINITIONS
4.1.1 In the Agreement Documents (as hereinafter defined), unless the
context otherwise requires, "Owner" and "Contractor" shall mean the
persons, firms or corporations respectively named as such in the main
body of the Agreement, WHICH IS PART 3 OF THE AGREEMENT DOCUMENTS.
4.1.2 "Agreement Documents" shall mean the main body of the Agreement and
all documents referred to therein including but not limited to the
Instruction to Bidders, the Contractor's Proposal, these General
Conditions, Supplementary Conditions, the Agreement Drawings, the
Project Specifications and Drawings, THE SCOPE OF WORK, the
Construction Schedule, and such modifications, revisions and addenda
thereto as are stipulated in the Agreement.
4.1.3 "Owner's Representative" shall have the meaning set forth in Section
3.1.4 of the Agreement.
4.1.4 "Project" shall have the meaning set forth in Section 3.1.3 of the
Agreement.
4.1.5 "Work" shall mean everything expressly or implicitly required to be
done or furnished by the Contractor under the Agreement as shown or
described in any of the Agreement Documents and shall include such
Extra Work as may be required by the Owner.
4.1.6 "Site" shall mean the area of land owned or controlled by the Owner on
or through which the Work is to be performed.
4.1.7 "Site of the Work" shall mean the particular location or locations on
the Site where the Work is to be performed.
4.1.8 "Subcontractor" shall mean any person, firm or corporation having an
agreement directly or indirectly with the Contractor for the supply of
labor at the Site of the Work, or the furnishing of material called
for under the Agreement and worked specially to a design shown on the
drawings or described in the specifications, but shall not include
suppliers of materials not so worked.
4.1.9 "Other Contractor" shall mean any person, firm, or corporation
employed by or having an agreement, directly or indirectly, with the
Owner otherwise than through the Contractor.
4.1.10 "Final Acceptance" shall mean the written final acceptance of the Work
issued by Owner following 100% completion of the Work by the
Contractor and inspection by the Owner.
4.1.11 "AGREEMENT SUM" SHALL MEAN ANY PAYMENT PROVIDED TO BE MADE TO
CONTRACTOR PURSUANT
<PAGE>
4-2
TO THE AGREEMENT DOCUMENTS.
4.1.12 "CONSTRUCTION SCHEDULE" SHALL MEAN THE SCHEDULE ATTACHED AS STATEMENT
J TO THE CONTRACTOR'S PROPOSAL.
4.2 AGREEMENT DOCUMENTS
4.2.1 The Agreement Documents shall be interpreted as a whole, and the
intent of the whole, rather than the interpretation of any special
part, shall govern.
4.2.2 The Agreement Documents are complementary, and what is called for in
any one shall be as binding as if called for by all.
4.2.3 The Agreement Documents do not indicate every part of detail of the
Work. However, it is the intent of the Agreement that everything
necessary for the proper and complete execution and finish of the Work
shall be provided, that all materials and workmanship shall be of the
highest professional standards for a similar assignment and that the
Work shall be complete in every detail.
4.2.4 Should an error or inconsistency appear in the Agreement Documents,
the Contractor, before proceeding with the Work shall bring it to the
attention of the Owner's Representative who will decide the intent and
arrange for the necessary correction(s).
4.2.5 In case of conflict between these General Conditions and the
Supplementary Conditions, the latter shall govern.
4.2.6 In case of conflict between the PROJECT Drawings and the PROJECT
Specifications, the latter shall govern.
4.2.7 In case of conflict or discrepancies between the Drawings, those of
larger scale shall govern, those of later date shall govern.
4.2.8 Drawings and Specifications shall be interpreted in conformity with
the General Conditions and Supplementary Conditions.
4.2.9 The Agreement Drawings are in sufficient detail to define the Work,
but are not necessarily final drawings of the Work to be carried out.
The Owner reserves the right to issue for construction purposes
revised or additional drawings, or both, to show greater detail or to
clarify the meaning of the Agreement Drawings.
4.2.10 The Agreement Documents shall be signed in triplicate for
identification purposes by a representative of the Owner and a
representative of the Contractor at the time the Agreement is
executed.
<PAGE>
4-3
4.3 INTERPRETATION
4.3.1 The Owner or Owner's Representative is in the first instance the
interpreter of the Agreement and judge of performance under the
Agreement. He shall use his powers under the Agreement to enforce its
faithful performance by both parties hereto.
4.3.2 Words used in describing materials or work which, when so applied,
have a well recognized technical or trade meaning shall be deemed to
have such meaning.
4.3.3 If any party to the Agreement consists of more than one person, firm
or corporation, their obligations under the Agreement shall be joint
and several.
4.3.4 If any term, condition or provision of the Agreement is held to be
illegal or unenforceable, the same shall be considered severed and the
remainder of the Agreement shall remain in force and be binding upon
the parties as if such illegal or unenforceable term, condition or
provision had never been included therein.
4.4 POWERS OF OWNER OR OWNER'S REPRESENTATIVE
4.4.1 The Owner or Owner's Representative shall, without hereby limiting any
other powers stipulated in or implied by the Agreement, have the power
to:
a) Interpret the Agreement and to define its intent and meaning.
b) Determine whether the Work performed and the materials furnished
are in accordance with the terms of the Agreement, iNCLUDING the
right to audit all charges to Owner.
c) Make decisions on all matters relating to the execution and the
progress of the Work.
d) Coordinate the Work of the Contractor with the work and services
of Other Contractors.
e) Stop the Work whenever, in its opinion, such stoppage may be
necessary to ensure the proper execution thereof.
f) Order the issuance of reports, data and information as deemed
necessary.
g) Order the attendance to meetings and request assistance and
cooperation on matters pertaining to the Work.
h) Order the temporary discontinuance of any Work which, in its
opinion may be injuriously affected by weather conditions.
i) Determine the amount payable to the Contractor for Work done
under the Agreement.
j) Determine amounts for deduction and extras and the time to be
allowed for Extra Work.
4.4.2 If the Contractor considers that any decision or instruction of the
Owner or Owner's Representative is at variance with the Agreement
Documents or involves changes in Work already built, fixed, ordered or
in hand that are in excess of the Work contemplated by the Agreement,
or is given in error, the Contractor shall notify the Owner's
Representative in writing before proceeding to carry out such
instruction. If the Owner and the Contractor fail to agree as to such
excess or errors and the Owner decides to
<PAGE>
4-4
carry out such disputed Work, the Contractor shall proceed in
accordance with such decision. Any dispute as to increased cost due
to the aforesaid shall be decided in the manner hereinafter provide in
Section 4.52, Disputes.
4.4.3 The Contractor shall not make any alterations or variations in, or
deviation or omission from the Work without the written authority of
the Owner's Representative. If any alteration, variation, deviation
or omission is required to comply with local conditions, the
requirements of any governmental or other body having jurisdiction or
authority, the exigencies of the Work or of the Site of the Work, or
for any other reason, the Contractor shall immediately inform the
Owner's Representative of such circumstances. The Contractor shall
obtain and comply with the written instructions of the Owner or
Owner's Representative thereon.
4.5 CONTRACTOR -- INDEPENDENT AND RESPONSIBLE
4.5.1 The Contractor shall be an independent contractor in all respects and,
except as explicitly provided in the Agreement, shall be free of
controls and supervision by the Owner or Owner's Representative as to
the means and methods of performing the Work, and shall have complete
control of its organization, and shall exercise direct supervision of
the Work being carried out by its forces.
4.5.2 Unless otherwise explicitly stipulated in the Agreement Documents, the
Contractor shall perform all its obligations under the Agreement at
its own expense and shall provide and pay for everything necessary for
the execution of the Work which, without limiting the generality of
the foregoing, shall include permits, inspection fees, materials,
supplies, labor, supervision, transportation charges for materials,
equipment and personnel, cost of living allowances and camp
accommodation for personnel, falsework, all safety measures, tools,
plant, equipment, temporary buildings and facilities, water, light,
fuel, power, overhead, insurance, taxes, customs duties and government
levies, whether federal, state or municipal, providing and maintenance
of own access roads, and storage areas (including removal of ice and
snow, dewater, etc.), providing own security.
4.5.3 The Contractor is solely responsible for the provision of First Aid
services for its own forces and those of its Subcontractors at all
times, 24 hours per day, 7 days per week, for the full duration period
of the Agreement. Furthermore, the Contractor is solely responsible
at all times, 24 hours per day, 7 days per week, in all locations for
security, especially within the area of the Site of the Work and other
designated areas for all equipment, installations, tools, buildings
directly or indirectly pertaining to the scope of the Agreement until
accepted and taken over by the Owner.
4.6 CONTRACTOR'S SUPERINTENDENT AND WORK FORCE
4.6.1 Before commencing the Work, the Contractor shall provide the Owner
with a chart of its organization showing how he proposes to organize
and supervise the Work.
<PAGE>
4-5
4.6.2 The Contractor shall keep on the Work, throughout its progress, a
competent superintendent (manager) or appointed representative and the
necessary assistants, qualified to properly coordinate and supervise
the trades involved in the Work. The superintendent, appointed
representative, or any of his principal assistants shall not be
changed except with the consent of the Owner unless they cease to be
in the Contractor's employ. The superintendent (manager) or appointed
representative shall represent the Contractor in his absence and
directions given to him shall be as binding as if given to the
Contractor. Important directions shall be confirmed in writing to the
Contractor. Other directions shall be so confirmed on written request
in each case. The Contractor shall enforce proper discipline and good
order among its employees.
4.6.3 Only competent and qualified workers shall be employed to perform the
Work under this Agreement. Should the Owner or Owner's Representative
deem anyone employed on the Work to be incompetent, unqualified,
careless or unfit for his duties and so certify, the Contractor shall
remove him immediately and he shall not be employed again on the Work
without the Owner's written permission.
4.6.4 Subject to the foregoing, the Contractor shall have complete control
of its organization.
4.6.5 No one shall be employed by the Contractor who is an employee of the
Owner, or who has within ninety (90) days been in the employ of the
Owner except with the express consent of the Owner, or unless the
individual was laid off by the Owner. The Owner shall also be bound
by these restrictions, in respect to employees of the Contractor.
4.7 INSURANCE
4.7.1 Insurance to be provided by the Owner:
The Owner will provide and maintain during the continuance of the
Agreement, insurance in an amount to be decided by the Owner against
"All Risks" of physical loss or damage on all property which will
enter into or form part of the completed permanent surface facilities.
The insurance will cover such property whether at the Site, in transit
thereto, and while temporarily stored at premises other than the Site
of the Work.
The insurance shall include the interests of the Contractors and
Subcontractors in the property, but the term property as used herein
shall not include temporary structures, tools, equipment and
apparatus, the ownership of which remains with the Contractors and
Subcontractors.
The insurance shall also include the interests in the property of the
consulting engineers, architects, and Other Contractors who are
engaged directly by the Owner, but the term "property" as used herein
shall not include temporary structures, tools, equipment and apparatus
the ownership of which remains with the consulting engineers,
architects and Other Contractors.
<PAGE>
4-6
A deductible of $25,000 will apply to each and every loss. Such
deductible shall be borne by the Contractor, Subcontractor, consulting
engineer or other party causing such loss.
In the event of loss, the Owner will work with the insurer on the loss
adjustment. The "All Risks" insurance will be subject to the
exclusions usually applicable to such policies and will exclude, among
others, the following:
(i) Flood and earthquake, subsidence or other earth movement.
(ii) Cost of making good any faulty workmanship, material,
construction or design.
4.7.2 Insurance to be provided by the Contractor, Subcontractors, consulting
engineers, architects and other parties to the venture:
Such parties will obtain and maintain, at their own expense, the
following:
Automobile Insurance
Statutory Motor Vehicle Liability Insurance covering their owned
and/or leased vehicles. Minimum limits are to be $1,000,000 inclusive
per occurrence.
Insurance on Equipment and Temporary Buildings
"All Risks" insurance covering their owned and/or leased equipment and
temporary structures, including mechanical and electrical breakdown
coverage, with a minimum deductible of $25,000. Each party shall
arrange for such insurance policy to contain a waiver of subrogation
(by the insurer) against the Owner.
Comprehensive General Liability Insurance
Comprehensive General Liability Insurance, including the Owner as a
named insured, covering Bodily Injury and Property Damage and
including, but not limited to, the following:
a) Products and completed operations. Complete operations to be
insured for a period of one (1) year after Final Acceptance by
the Owner.
b) Contingent liability with respect to Subcontractors.
c) Blanket written contractual coverage.
d) Non-owned automobile coverage.
e) Personal injury coverage.
f) Occurrence property damage coverage.
g) Employers liability coverage.
h) Cross liability clause.
i) Liability arising out of unlicensed equipment.
j) Contractor's policy must include an endorsement stating that
Contractor's policy is primary to any other policy.
k) The Contractor unconditionally agrees to indemnify and save
harmless the Owner from and against all losses, liabilities, cost
charges, claims, damages, demands, suits,
<PAGE>
4-7
expenses or liens which may arise as a consequence of any failure
by the Contractor or any Subcontractor or other person employed
by the Contractor to comply fully with the provisions of this
section, or which may arise as a consequence of any injury,
illness or death of any employee of the Contractor or any
employee of any Subcontractor engaged for or participating in the
performance of the Work to be performed under this Agreement.
NOTE: Minimum limits are to be $10,000,000 inclusive Bodily Injury
and Property Damage.
The Contractor shall provide proof of its insurance coverage as
required under the terms of the Agreement to the satisfaction of the
Owner (see Contractor's Proposal). A certificate of insurance showing
the coverages as required under this Agreement shall be presented to
FirstMiss Gold before the work begins.
4.8 WORKERS' COMPENSATION ACT, SAFETY, FIRST AID
4.8.1 In addition to the requirements of Section 4.5.3, the Contractor shall
register under, abide by, and comply with all provisions of the
Workers' Compensation Act of the state in which the Work is being
performed and all regulations passed thereunder and any other
industrial insurance laws of said state and shall report wages of
workers as required for assessment, and shall carry compensation
insurance, insuring against any claim or liability which may arise
under the provision of said laws.
4.8.2 The Contractor shall deliver to the Owner before the Work is started
satisfactory evidence and certification showing compliance by the
Contractor of said laws.
4.8.3 The Contractor unconditionally guarantees to the Owner full compliance
with said provisions, regulations and laws by any Subcontractor or
other person employed by the Contractor, or with whom the Contractor
may make any agreement for the performance of any of the Work
hereunder.
4.8.4 The Contractor unconditionally agrees to indemnify and save harmless
the Owner from and against all losses, liabilities, cost charges,
claims, damages, demands, suits, expenses or liens which may arise as
a consequence of any failure by the Contractor or any Subcontractor or
other person employed by the Contractor to comply fully with the
provisions of this section, or which may arise as a consequence of any
injury, illness or death of any employee of the Contractor or any
employee of any Subcontractor engaged for or participating in the
performance of the Work to be performed under this Agreement.
4.8.5 The Contractor shall provide all first aid personnel, facilities,
equipment and supplies required by law or by any regulation, order or
direction made pursuant to the relevant Workers' Compensation Act or
other relevant statute.
<PAGE>
4-8
4.8.6 The Contractor shall comply with all the safety rules and regulations
of any relevant Workers' Compensation or Industrial Insurance Act or
safety statutes, rules, regulations, and practices required by
applicable construction safety legislation governing at the site of
the Work, as well as any safety rules and regulations established by
the Owner for its own employees.
4.8.7 The Owner will perform, solely for Owner's benefit, safety inspections
of the Site of the Work used by the Contractor at any time.
4.8.8 Contractor agrees to comply with all safety provisions put into effect
for the Work by Owner, and with all requirements and regulations of
the Mine Safety and Health Administration (MSHA) and applicable state
statutes and regulations relating to control of health and safety on
construction, exploration or mining projects. Such compliance
includes, but is not limited to, approve MSHA training for all
Contractor personnel on the Site for more than seven (7) working days.
4.8.9 In the event of a situation in which life or valuable property are in
apparent imminent danger, Contractor is hereby authorized, without
further special instructions from Owner's Representative, to act at
its own discretion to prevent injury to persons or damage to property.
4.8.10 Owner will not provide or maintain any required toilet facilities for
field personnel or supervisors unless required facilities are already
available at a particular Site and Owner agrees in advance, in
writing, for their use by Contractor.
4.8.11 Contractor shall furnish to Owner's Representative a detailed written
report of all injuries, other than those requiring only first aid
treatment. In addition, Owner's Representative shall be given copies
of all such reports sent by Contractor to its insurer.
4.8.12 Contractor bears the sole responsibility imposed by law for safety of
its own personnel employed in the Work and for persons entering a Site
as agents or visitors of the Contractor.
4.8.13 Contractor shall comply with the Federal Mine Safety and Health Act of
1977 and with all regulations and health and safety standards
promulgated pursuant thereto (all of which are described hereinafter
as "the Act"). Any citation, fine, withdrawal order, abatement
notice, or other action by MSHA arising in connection with
Contractor's performance under the Agreement, which may affect Owner's
operations, shall constitute a breach of the Agreement and shall be
sufficient cause for termination of the Agreement by Owner at its sole
option and without limiting any other rights or remedies Owner may
have.
Contractor shall immediately take any and all actions necessary to
obtain MSHA identification, including applying for and securing from
appropriate MSHA regional office an identification number. Upon
successfully securing identification or upon denial of such
identification by MSHA, Contractor shall immediately notify Owner's
<PAGE>
4-9
Representative in writing.
If Contractor is identified by MSHA, Contractor agrees at its sole
cost, to take whatever steps are necessary to comply with any and all
orders, directives, citation and notices issued to it by MSHA pursuant
to the Act and to abate any conditions cited or noted therein.
In event that MSHA refuses to identify Contractor for purposes of MSHA
liability, or in event that, regardless of whether Contractor is
identified, Owner receives any order, directive, citation, notice or
instruction as a result of Contractor's failure to comply with the Act
or related to any operation or condition under Contractor's control,
Contractor agrees to the following:
Contractor shall immediately notify Owner's Representative of any and
all inspections, notices of violation, citations, orders or other
instructions or actions of MSHA and shall immediately submit to
Owner's Representative a detailed description of same in writing.
Contractor shall either immediately comply or shall prepare and submit
to the Owner's Representative a written plan, which sets forth in
detail measures to be taken by Contractor to remedy such violations
and/or comply with such instructions, together with dates for
completion of each measure. Contractor, at its sole cost, shall take
whatever steps are necessary to comply with such orders, directives,
citations and notices, failing which Owner may do so and charge off
such cost against and payments then due or thereafter becoming due to
Contractor. Should Owner deem it necessary to contest or appeal any
such order, directive, citation, notice or instructions, Owner may
prosecute such contest or appeal to extend necessary in its sole
opinion, and may do so without limiting or waiving any other rights or
remedies it may have. Contractor shall cooperate in all ways with
Owner in the prosecution of any contest or appeal.
Neither Contractor's compliance with the Act nor any supervision by
Owner which may be required as provided above shall derogate
Contractor's status as an independent contractor otherwise created in
the Agreement.
4.8.14 Contractor agrees to indemnify and save harmless Owner for all costs
(including attorney's fees and costs) or financial loss incurred as
result of violations or alleged violations of the Act and MSHA
statutes and regulations related to any operation or condition under
Contractor's control or control of Contractor's employees or agents,
for any costs or financial loss incurred in payment of agents, for any
cost or financial loss incurred in payment of civil penalties, in
abating cited conditions, as result of issuance of withdrawal orders,
or in pursuing or defending any legal action arising from Contractor's
duties or obligations thereunder, or in enforcing terms of this
Section 4.8.
<PAGE>
4-10
4.9 INDEMNITY AND HOLD HARMLESS
4.9.1 The Contractor shall indemnify the Owner and Owner's Representative
and their respective agents, employees AND AFFILIATES for all damage,
losses and expenses, including attorney fees, which they may suffer or
incur, and hold them harmless from and against all claims, demands and
actions brought against them, arising out of or resulting from the
performance of the Work, provided that any such claim, damage, loss or
expense is:
a) Attributable to personal injury, sickness, disease or death, or
to injury to or destruction of property, including the loss of
use resulting therefrom;
b) Caused in whole or in part by any intentional act, negligent act
or omission of the Contractor or Subcontractor, anyone directly
or indirectly employed by any of them or anyone for whose acts
any of them may be liable, regardless of whether or not it is
caused in part by a party indemnified hereunder;
c) The non-payment of Worker's Compensation, income taxes, United
States withholding taxes, and other similar taxes and
assessments; or
d) The breach of any representation, warranty, covenant, condition
or agreement or Contractor pursuant to the Agreement Documents.
4.9.2 The obligation of the Contractor to indemnify the Owner and Owner's
Representative and their respective agents, employees, AND AFFILIATES
as set forth in Section 4.9.1 shall not be affected or limited by the
Contractor's insurance pursuant to Section 4.7 or fact that the law
prohibits or limits a direct recourse against the Contractor or any
Subcontractor as employer of a person affected by injury, sickness,
disease or death.
<PAGE>
4-11
4.10 BONDS -- PERFORMANCE, LABOR AND MATERIAL
4.10.1 The Owner requires the Contractor to furnish a performance and payment
bond for the total amount of the Work, guaranteeing the faithful
performance of the provisions of the Agreement and the payment of the
Contractor's creditors, both those directly connected with the
execution of the Agreement and those arising out of the responsibility
of the Contractor.
4.11 FINAL ACCEPTANCE OF THE WORK AND GUARANTEE
4.11.1 Final Acceptance of the Work will be confirmed by a letter of
acceptance issued by Owner promptly after Owner is satisfied that all
requirements of the Agreement have been met with regard to the
following, as applicable: performance of the Work; equipment
performance warranties; delivery of material, equipment and spare
parts; submittal of schedules, estimates, drawings and specifications
and calculations; submittal of final records of cost-plus Work (if
any); and, presentation of a final release of claims form (including
passage of sufficient time, pursuant to applicable statutes,
regulations and case law, to ensure that the Work, Site(s), and all
other property of Owner is free and clear of all liens, claims,
encumbrances, and demands arising from or that may arise from the
Work).
4.11.2 Contractor agrees that until Final Acceptance, Owner may retain final
payment and/or the retained percentage provided for in the Agreement in
the full or partial amount thereof as considered by Owner to be
reasonable in order to assure full compliance by Contractor with the
Agreement.
4.11.3 The Work performed hereunder may be accepted as a whole or in
separately defined parts, in which case any funds retained will be
reduced in accordance with the pro-rata value of those accepted parts.
In the event the letter of acceptance covers all of the Work, the
letter will state All work under Contract is accepted." In the event,
however, the letter of acceptance includes only part of the Work, the
letter will clearly define and limit acceptance to the part(s),
section(s), or item(s) which is accepted at that time. In addition, it
will be numbered "Acceptance Letter No. 1" and subsequent letters will
be numbered consecutively until the last part of the Work is accepted
and the letter is marked "Final Acceptance."
4.11.4 The Contractor guarantees the Work against defects in material or
workmanship which appear within a period of three (3) years from the
date of Final Acceptance by the Owner, or within such longer period as
may be stipulated elsewhere in the Agreement Documents, and the
Contractor shall at its own expense remedy such defect promptly and
shall indemnify the Owner for any damage resulting therefrom which
appears within such a period.
4.11.5 The Contractor shall secure from its Subcontractors and vendors of
equipment or
<PAGE>
4-12
materials written guarantees in conformity with the foregoing and shall
transmit same to the Owner or Owner's Representative prior to
presentation of its claim for final payment.
4.11.6 The Owner shall give notice of observed defects with reasonable
promptness. Neither inspection nor approval of any samples of any part
of the Work, nor Final Acceptance of the Work, nor any payment by the
Owner shall relieve the Contractor of responsibility for faulty
materials or workmanship.
4.11.7 Nothing herein contained shall diminish any more extended liability for
faulty materials or workmanship which is created by the laws of the
country or state in which the Site is located.
4.12 PERMITS AND LICENSES
4.12.1 Unless otherwise stipulated, the Contractor at its own expense shall:
a) Procure all permits, certificates and licenses required that are not
already supplied by Owner,
b) Issue all necessary legal notices and observe and abide by all
applicable laws, regulations, ordinances and rules of all duly
constituted public authorities bearing on the Work, and pay all fees
and other expenses in connection therewith, and
c) Hold the Owner harmless from any liability or penalty which may
result from a violation of such laws, regulations, ordinances and
rules.
Upon completion of the Work, the Contractor shall deliver to the Owner
a "Permit of Occupancy," should such a document be required to be
issued by city, county, or state authorities.
4.13 ROYALTIES AND PATENTS
4.13.1 The Contractor shall indemnify the Owner against claims, actions, suits
and proceedings for the infringement or use of any patent based upon
the use of any invention protected by such patent in carrying out the
Agreement, and for royalties or other payments resulting therefrom
which may be payable in connection with the Agreement only provided,
however, that in respect of the Agreement only, the Owner shall
indemnify the Contractor against all such claims, actions, suits or
proceedings in respect of anything for which the mode, plan or design
shall have been supplied to the Contractor by or on behalf of the
Owner.
4.13.2 The Party required hereunder to indemnify the other Party shall be
entitled to conduct the defense of such claims, actions, suits or
proceedings so long as such defense is diligently conducted, and each
Party shall keep the other Party promptly and fully informed of the
bringing of such claims, actions, suits or proceedings and of the steps
taken or which ought to be taken in the prosecution or defense thereof
accordingly.
<PAGE>
4-13
4.14 TAXES AND CUSTOMS DUTIES
4.14.1 Unless otherwise stipulated in the Agreement Documents, the Contractor
shall pay all federal, state, county or municipal taxes and duties
whatsoever payable in respect of the Work, but not on material or
equipment, if any, supplied free of charge to the Contractor by the
Owner.
4.15 SUBCONTRACTS
4.15.1 The Contractor shall not sublet any portion of the Work unless, before
signing of the Agreement, he has notified the Owner in writing of the
names of the Subcontractors proposed for the principal part of the
Work, or the Owner has given his written consent subsequent to the
signing of the Agreement. The Contractor shall not employ any
Subcontractors to whom the Owner may reasonably object.
4.15.2 In subcontracting for any part of the Work, the Contractor shall make
an agreement with the Subcontractor wherein the latter shall expressly
agree to be bound by the term of this Agreement, including these
General Conditions, and the PROJECT SPECIFICATIONS AND DRAWINGS
insofar as they are applicable, and the Contractor shall exact from
every Subcontractor strict compliance therewith. Subcontractor shall
be responsible to the Contractor for unsatisfactory Work and for damage
done in removing and replacing defective work or materials and for
other damage done by them or their employees.
4.15.3 The Contractor alone shall be fully responsible to the Owner for the
acts and omission of its Subcontractors and of persons employed by
them, and he shall not be relieved from responsibility if Work that is
sublet is not performed to the satisfaction of the Owner. In view of
this responsibility for the acts and omissions of its Subcontractors,
the Contractor shall not be obliged to employ as a Subcontractor any
person or firm to whom he reasonably objects. Nothing contained in the
Agreement Documents shall create any contractual relation between any
Subcontractor and the Owner.
4.15.4 The Owner reserves the right, at any time during the Work, to have the
Contractor remove from the job and the Site any Subcontractor whose
work does not meet the Owner's approval.
4.16 OTHER CONTRACTORS
4.16.1 The Owner reserves the right to perform work with his own forces and to
let other agreements in connection with the undertaking of which the
Work is a part, even if of like trades and character as those already
let. Notice shall be given to the Contractor of such other agreements.
The Contractor shall afford the Owner and any such Other Contractors
reasonable opportunity for the introduction and storage of their
materials and the execution of their work. The Contractor shall work
in conjunction with the Owner and these Other
<PAGE>
4-14
Contractors to coordinate and connect properly their work with the
several parts of the Work. The Contractor shall not commit or permit
any act which will interfere with the performance of the work of the
Owner or Other Contractors.
4.16.2 Where the Contractor's Work adjoins the work of the Owner or Other
Contractors, Contractor shall confer with them as required and so
arrange its Work that there shall be no discrepancies between the work
of the Owner or Other Contractors and the Contractor's Work when both
are completed.
4.16.3 If the Contractor fails to cooperate with or coordinate the Work with
the work of the Owner or Other Contractors, he shall not make any
claims founded on delays which have resulted from such failure and he
shall save the Owner harmless from all claims made by Other
Contractors, which are founded on delays caused by such failure.
4.16.4 If any part of the Work depends for its proper execution or result upon
the work of Other Contractors, the Contractor shall report promptly in
writing to the Owner's Representative any defects in the work of such
Other Contractors that interfere with the proper execution of the Work.
4.16.5 Copies of drawings and specifications relating to another agreement
will be furnished to the Contractor on request, for its information in
carrying out the above provisions. The Contractor shall be responsible
for any and all damages caused by its negligence or failure to
coordinate its Work with that of the Owner or Other Contractors and any
additional expenses arising therefrom.
4.16.6 If Contractor sustains damage or loss through any delay, default, act
or omission of any Other Contractor, subcontractors, or their agents or
employees, Owner shall not be liable; but nothing in the Agreement
shall be construed to limit Contractor from pursuing its legal remedies
against such Other Contractor or subcontractors, or their agents or
employees.
4.16.7 Contractor shall have no claim against Owner for damage or loss by
reasons of delay, default, act or omission of Other Contractors,
subcontractors or their agents or employees, but nothing in the
Agreement shall limit any rights of Contractor to recover therefor
against such Other Contractors, subcontractors or their agents or
employees. If Contractor by any default, negligence or misconduct on
its part damages any other subcontractor or contractor, it hereby
agrees to be directly responsible to such other subcontractor or
contractor for any such damage and to hold Owner harmless for all such
damages.
4.17 CHANGES IN THE WORK
4.17.1 The Owner or Owner's Representative may make changes by altering,
adding to or deducting from the Work without invalidating the
Agreement.
<PAGE>
4-15
4.17.2 However, except as provided in Section 4.27, Emergencies, no change
shall be made to the Work unless in pursuance of a written order or a
drawing from the Owner or Owner's Representative, and no claim for a
change to the construction schedule or to the completion date or for an
addition to the Agreement Sum will be considered or allowed unless so
ordered.
4.17.3 Any such changes shall be carried out under the terms and conditions of
the Agreement and the adjustment, if any, that thereby results to the
Agreement Sum, the construction schedule and the completion date for
the Work shall be made as set forth in this section.
4.17.4 Any claim for an extension of time in regard to the Construction
Schedule or the completion date shall be dealt with pursuant to Section
4.25, Delays at the time such changes are ordered.
4.17.5 If the Owner or Owner's Representative decides that a change in the
Work shortens the period required for completion of the Work, he shall
so notify the Contractor and state the number of days by which such
period is to be shortened, and the Construction Schedule or the
completion date or both, shall be amended accordingly by the Owner or
Owner's Representative.
4.17.6 If a change in the Work, or any other circumstances arising during the
course of the Work, except those provided for in Section 4.25, Delays,
Section 4.27, Emergencies, and Section 4.46, Use of Completed PortionS
by the Owner, justifies, in the opinion of the Contractor, a claim for
an addition to the Agreement Sum, the Contractor shall present its
claim in writing to the Owner within seven (7) days of the date on
which such other circumstances arise, and if the claim is not presented
to the Owner within such time, the Contractor shall not be entitled to
compensation from the Owner. Upon receipt of such a claim, the Owner
or Owner's Representative will decide whether the claim is valid and
the basis and amount of payment, if any, pursuant to Section 4.18,
Valuation of Changes in the Work.
4.17.7 If the Contractor disputes a decision of the Owner or Owner's
Representative as to whether a change in the Work will result in an
addition to the Agreement Sum, the Contractor shall nonetheless perform
the Work and the performance of the Work shall not prejudice any
remedies that the Contractor may have, provided the Contractor gives
the Owner, before commencing the Work, a further written notice that he
is performing the disputed Work under protest.
4.17.8 If the Owner or Owner's Representative decides that a change in the
Work results in a decrease in the cost of carrying out the Work, the
Owner or Owner's Representative shall decide the amount that is to be
deducted from the Agreement Sum. In such event the Contractor shall
not be entitled to any compensation for loss of anticipated profits.
4.17.9 All claims resulting from changes in the Work submitted by the
Contractor shall be accompanied by a list of the changes and a detailed
estimate of the cost of each change,
<PAGE>
4-16
together with references to the drawings or other documents involved.
4.18 VALUATION OF CHANGES IN THE WORK
4.18.1 If, in the opinion of the Owner or Owner's Representative, a change in
the Work or other circumstances pursuant to Section 4.17, Changes in
the Work, result in a valid claim for an addition to the Agreement Sum,
such addition shall be valued on either a lump sum basis as mutually
agreed upon by the Parties hereto, or
4.18.2 If such lump sum basis cannot be mutually agreed upon, the valuation
shall be determined by the unit prices, if any, shown in the Agreement
Documents where, in the opinion of the Owner or Owner's Representative,
they are applicable or where these unit prices are not deemed
applicable by the Owner or Owner's Representative, by such other unit
prices as may be mutually agreed upon by the parties hereto, or
4.18.3 If neither a lump sum nor a unit price basis for payment can be agreed
upon, the change in the Work shall be carried out on a cost plus basis,
as follows:
a) For laborers, tradesmen, operators, foremen and supervisors wholly
engaged on the Change in Work, the Contractor shall be reimbursed
according to the terms of the Agreement Documents, or if such is not
covered in the said documents, Contractor shall receive the current
local rate of wages, the cost of vacation pay, Workers' Compensation
Insurance, unemployment insurance, and any other labor additives
required by law, but excluding premium wages for overtime work.
b) For material or subcontracted work purchased by the Contractor and
actually used in the Change in the Work, the Contractor shall
receive the actual cost of such materials, transportation charges,
and of such subcontracted work, as shown by invoices or other
records of payment satisfactory to the Owner.
c) To the labor, materials and subcontract costs as specified above,
shall be added the percentages for labor, material and subcontracted
work respectively, set forth in the Agreement to cover profit,
overhead, tools, and all other general expenses.
d) For living allowances and cost of board and lodging for employees
wholly engaged on the Change in the Work, and other costs not
included above which form part of such employees' terms of
employment, the Contractor shall receive that portion of the actual
cost of such items as is attributable on a pro rata basis, to the
amount of time such employees are engaged on the Change in the Work.
No percentage shall be added to this sum.
e) No other allowance shall be made for general supervision, or for
foremen, or for overhead or the use of tools.
f) For any construction equipment (other than tools) required for the
Change in the Work, approved by the Owner, the Contractor shall
receive a rental price to be approved in writing by the Owner before
the Work is begun. Such rental price, unless otherwise stipulated,
shall include at the expense of the Contractor, fuel, lubricants,
supplies, spare parts, and repairs and shall apply only to actual
operating time. No percentages will be added to this rental sum.
<PAGE>
4-17
g) Tools shall include all tools and items of equipment which have
individual replacement values under $1,000. Construction equipment
shall include all items of equipment having an individual
replacement value of $1,000 or more.
h) At the end of each day the Contractor shall submit in duplicate to
the Owner or Owner's Representative for certification a list of the
men and the equipment employed on the Change in the Work and the
hours worked, together with invoices for any materials used during
the day. These daily certified lists and invoices shall be
submitted to the Owner with relevant application for payment.
4.19 SCHEDULE OF RATES
4.19.1 Before making first application for payment under the Agreement, the
Contractor shall submit for the Owner's approval a schedule of rates of
the various parts of the Work and totaling the full amount of the
Agreement Sum. This schedule, when approved by the Owner or Owner's
Representative, shall be used as the basis for applications for
payment.
4.19.2 The schedule of rates shall be set out and divided in a manner which is
consistent with the Owner's accounting codes for the various parts of
the Work.
4.20 APPLICATION FOR PAYMENT AND VALUATION OF WORK FOR PROGRESS PAYMENTS
4.20.1 Within thirty (30) calendar days following a month in which Work has
been performed by the Contractor, the Contractor shall submit to the
Owner or Owner's Representative an application for payment for the
value of the amount of the Work and changes in the Work performed
during the preceding month.
The Owner will not be required to approve any application for payment
or make any such payment until such time as the Contractor has signed
and executed the Agreement and furnished all required performance
bonds, and required labor and material payment bonds and insurances,
and complied with all provisions of the Workers' Compensation Act, Mine
Health and Safety Act, and other such requirements of the Agreement.
The applications shall be made in the form prescribed by the Owner.
The application for final payment shall be submitted at the later of
either sixty (60) calendar days after the completion of the Work, or at
the expiry of the lien period, if applicable.
4.20.2 When the Work, or Change in the Work is being performed on a lump sum
basis, the value of the amount of the Work performed shall be based on
the percentage of the Work performed by the Contractor and, subject to
the following limitations, shall include the value of materials
delivered to the Site, but not yet incorporated into the Work:
<PAGE>
4-18
a) The amount of material so claimed shall not, in the opinion of the
Owner or Owner's Representative, be unreasonably large in relation
to the amount of Work scheduled for the succeeding month; and
b) For the second and subsequent claims, the value of material
delivered to the Site, but not incorporated in the Work, shall not
be included in the claim unless eighty-five percent (85%) or more of
the material so claimed in the previous claim has been paid for by
the Contractor.
4.20.3 When the Work, or Change in the Work is being performed on a unit price
basis, the value of the amount of Work performed shall be the number of
fully completed units of the Work measured as described in the
Agreement Documents. Unless otherwise stated in the Agreement
Documents, the value of the amount of Work shall not include materials
delivered to the Site, but not yet incorporated into the Work.
4.20.4 When a Change in the Work is being performed on a cost plus a
percentage basis or on a cost plus a fixed fee basis, the value of the
Work performed pertaining to such Change in the Work shall be based on
payments that the Contractor has made as substantiated by invoices,
payrolls, or other records, including evidence of payment by the
Contractor satisfactory to the Owner, plus the percentages, or in the
case of a fixed fee, plus a proportion of the fee equivalent to the
proportion of such Change in the Work as has been completed.
4.20.5 If the Owner or Owner's Representative approves the value of the amount
of Work and Changes in the Work set forth in the Contractor's
application for payment and the amount calculated by the Contractor to
be due and payable for such Work, the Owner's Representative shall
certify that such application for payment is correct. If the Owner or
Owner's Representative does not approve the application for payment he
shall determine the value of Work and Changes in the Work performed by
the Contractor during the preceding month and shall certify such
calculated value. The certification of value shall be issued by the
Owner within a period of not more than fifteen (15) calendar days after
he received the Contractor's application for payment.
4.20.6 When making an application for the final payment, the Contractor shall
submit with the application a declaration, satisfactory to Owner,
stating that the Work and the Site are, and will continue to be, free
and clear of liens and claims for wages, services, Workers'
Compensation assessment, materials or otherwise that are the
responsibility of Contractor, and that the time for filing of liens has
expired. The Contractor shall also obtain and submit with the
application for final payment a declaration, satisfactory to Owner,
from each of the Subcontractors identified by name in the tender form
and such other Subcontractors as the Owner may designate, stating that
as far as its subcontract is concerned, the Work and the Site are, and
will continue to be, free and clear of liens and claims for wages,
services, Workers' Compensation assessments, materials or otherwise,
and that the time for filing of liens has expired.
4.20.7 When making application that the Work has been substantially completed,
the Contractor
<PAGE>
4-19
shall send its final invoice for the Work stating any and all claims,
charges, etc., and a written declaration to the Owner stating he has
substantially completed the Work and executed all duties and
obligations under the Agreement except those deficiencies in the Work
as may exist at that time. At such time as the Work is substantially
completed, the Contractor or the Owner may request that the Work be
deemed to be complete subject to downward adjustment of the Agreement
Sum by the appropriate amount to compensate for such deficiencies in
the Work as may exist at that time.
If such request is agreed to by the Owner or Owner's Representative,
the Contractor shall prepare a list of such deficiencies, including any
remaining cleanup operations, with an estimate of the value of each,
for approval of negotiation by the Owner and the Contractor.
4.21 PAYMENTS BY THE CONTRACTOR AND LIENS
4.21.1 To protect the Owner's property from liens, the Contractor shall pay
promptly for all materials, equipment, and labor used on the Work, and
all taxes, duties, assessments, and costs in respect of the materials,
equipment and labor to be used, and shall pay promptly all
Subcontractors doing portions of the Work and shall require each
Subcontractor to make such payments promptly in respect of the
subcontracted work, and if the Subcontractor does not make such
payments when due, the Contractor shall forthwith make such payments on
behalf of the Subcontractor.
4.21.2 Neither the final payment by the Owner nor any part thereof shall
become due until the Contractor, if required by the Owner or Owner's
Representative, has obtained and delivered to the Owner a complete
release of all liens arising out of the Work and has caused each such
lien to be canceled and discharged.
4.21.3 If any lien remains unsatisfied, or any amount owed by the Contractor
remains unpaid, or if any additional assessments are made by any
governmental authority in respect of the Work, either before or after
the Contractor has received the final payment from the Owner, and if
the Owner discharges such lien, makes such payment or pays such
assessment, then the Contractor shall reimburse the Owner on demand for
all costs incurred in discharging such lien, or paying such assessment
or amount, including any legal fees thereby incurred.
4.21.4 The Owner shall have the right at any time to pay and to discharge any
liens placed on Owner's property as a result of the Work, whether or
not such liens constitute valid claims, and to deduct the costs of
discharging the lien from the amount due the Contractor provided the
Contractor wishes to dispute the validity of any such claim and such
dispute shall not, in the opinion of the Owner, unduly prejudice or
inconvenience the Owner, the Contractor may proceed to dispute such
claim upon first furnishing the Owner with a good and sufficient bond
in an amount approved by the Owner and of a bonding company authorized
to carry on business in the state or country in which the Work is being
performed and approved by the Owner, indemnifying the Owner against
<PAGE>
4-20
such claim and any loss or damage which may be caused thereby.
4.21.5 THE OWNER RETAINS THE RIGHT TO AUDIT ANY AND ALL EXPENDITURES MADE IN
SUPPORT OF THE WORK BY THE CONTRACTOR, OR THE CONTRACTORS EMPLOYEES,
AGENTS OR AFFILIATES, INCLUDING SUB-CONTRACTORS, FOR A PERIOD NOT TO
EXCEED ONE YEAR AFTER THE DATE OF COMPLETION OF THE PROJECT.
4.22 CONSTRUCTION SCHEDULE, METHODS AND EQUIPMENT
4.22.1 Not later than one (1) week after the award of an Agreement to the
Contractor, the Contractor shall furnish to the Owner for his approval
a schedule which shall conform to the Construction Schedule mutually
agreed upon at award of Agreement, but shall show in such greater
detail as may be required by the Owner, the proposed starting and
completion dates for the various divisions and subdivisions and types
and classes of Work. If the Owner so requires, such schedule shall be
prepared in such manner as to facilitate "Critical Path Method"
planning. After approval by the Owner, the Contractor shall furnish to
the Owner a copy of the approved schedule.
4.22.2 The Contractor shall complete each portion of the Work on or before the
date set forth in the approved Construction Schedule. Of immediate
importance to the Owner is the completion of the shaft mobilization.
Failure to complete the mobilization as planned MAY result in the Owner
exercising its right to terminate this Agreement, as outlined in
Section 4.48, Owner's Right to Terminate Agreement. Such schedule must
show earliest and latest possible starting and completion dates
"Float."
4.22.3 If at any time before the commencement or during the progress of the
Work any part of the construction plant or equipment, or any of the
Contractor's methods of executing the Work appear to the Owner to be
unsafe, inefficient, or inadequate, or should the Contractor not be
proceeding with the Work with sufficient diligence to satisfy the
Owner, or in the opinion of the Owner, with sufficient force to ensure
its progress and completion in accordance with terms of the Agreement
relating thereto, the Owner may order and direct the Contractor to
increase or improve the plant or equipment, as the case may be, or to
improve its methods, or to increase and employ such additional force,
or to perform such night work or such overtime work as shall be, in the
judgment of the Owner, necessary to ensure the safety, efficiency and
adequacy of the construction plant and equipment and the completion of
the Work, on the particular portion thereof affected, within the
specified time. The Contractor shall comply with the Owner's
instructions in this respect within a reasonable time of the receipt of
said instructions in writing.
4.22.4 Neither compliance with such instructions nor the failure of the Owner
to issue such
<PAGE>
4-21
instructions shall relieve the Contractor of its obligations to secure
the degree of safety, quality of Work and the rate of progress required
under the terms of the Agreement. The Contractor shall be responsible
for the safety, adequacy and efficiency of the plant and equipment at
the Site of the Work and for construction methods, and for the
provision of sufficient force. The Contractor shall cause its
employees and the employees of any of its Subcontractors to comply in
all respects with rules and regulations issued from time to time in
writing by the Owner governing the conduct of such employees, and shall
conduct ` its Work in such manner as not willfully to hinder, impede
or injure the operation of the Owner's plant or affiliated plants.
4.22.5 The Contractor shall not remove any equipment form the Site of the Work
without written approval of the Owner.
4.23 PREVAILING WAGES
4.23.1 The Contractor shall ensure that the labor conditions and wage rates
affecting its employees meet the standards prevailing for labor in the
construction industry in the area in which the Work is performed. In
any area in which prevailing wages (as opposed to minimum wages) are
fixed by government decree, regulation or ordinance, the Contractor
shall conform in particular to any such decree, regulation or ordinance
and the Owner may withhold from the Contractor an amount equivalent to
any deficiency in the wages paid to the Contractor's employees, without
prejudice to the Owner's other rights and recourses.
4.24 LABOR RELATIONS
4.24.1 The Contractor shall conduct its operations in full compliance with
applicable laws and regulations of the USA and of the state where the
Work is being performed.
4.24.2 The Owner reserves the right to terminate the Agreement in accordance
with the provisions of Section 4.48, Owner's Right to Terminate
Agreement and to claim reimbursement from the Contractor for any
additional costs that may be incurred, in the event that a labor
dispute arises affecting other trades or labor employed by the Owner or
Other Contractor or Subcontractor as a result of the Contractor's
assignment of labor to the Work and handling of labor forces and
industrial relations.
4.24.3 Settlement of any and all labor disputes including jurisdictional
disputes shall in no way
<PAGE>
4-22
alter the terms, conditions, and prices as covered by the subject
tenders and subsequent purchase orders.
4.24.4 The Contractor shall provide all labor forces required for the
efficient execution of the Work.
4.24.5 The Contractor will supply the Owner or Owner's Representative with
copy of each of its collective agreements which may be relevant to the
Work at the Site of the Work together with relevant collective
agreements of its Subcontractors and any and all other relevant
correspondence or agreements between the Contractor or its
Subcontractors and the union(s).
4.24.6 The Contractor shall deal with all matters pertaining to industrial
relations within the limits of its organization and to the full extent
of its Work. Where deemed necessary for the efficient and smooth
implementation of the Work, the Contractor shall be obliged to hold and
arrange for pre-job conferences with all parties concerned and/or send
a representative to any and all pre-job conferences and/or regular or
emergency meetings called for the purpose of discussing industrial
relations matters. Copies of minutes of such meetings are to be issued
at once to the Owner or Owner's Representative.
4.24.7 The Contractor shall keep the Owner or Owner's Representative fully
advised on a regular basis with respect to all labor relation matters
relevant to the Work on the Project Site.
4.24.8 The Contractor is to cooperate fully with the Owner's efforts and that
of Other Contractors on the Site. Any information and data relating to
industrial labor relations of its Work is to be communicated in a
timely manner to the Owner or Owner's Representative.
4.24.9 The Contractor shall take any and all steps that may be available for
the resolution of violations of collective bargaining agreements and
jurisdictional disputes, including without limitation, the filing of
appropriate process with any court or administrative agency having
jurisdiction to settle, enjoin or to award damages resulting from
violations of collective bargaining agreements of jurisdictional
disputes, and failing which shall be liable to the Owner for all losses
incurred by the Owner as a result of the aforesaid violations of
collective bargaining agreements or jurisdictional disputes.
<PAGE>
4-23
4.25 DELAYS
4.25.1 The Contractor shall immediately notify the Owner in writing of any
occurrence which, in the opinion of the Contractor, has caused or which
he anticipates may cause a substantial delay which will affect the
performance of the Work according to the Construction Schedule or the
completion date for the entire Work, and in any event shall notify the
Owner, in writing, not later than seven (7) days after the occurrence
which caused the alleged delay or gave rise to the anticipated delay.
4.25.2 In addition to submitting the above notice, if the Contractor claims
that any alleged delay was occasioned through FORCE MAJEURE, INCLUDING,
BUT NOT LIMITED TO, labor disputes, strikes, lockouts, fire, unusual
delay by common carriers or unavoidable casualties, or by any cause of
any kind whatsoever beyond the Contractor's control, then he may also
submit a claim to the Owner for a revision of the Construction Schedule
and for an extension of the time for completing the Work, and at no
extra cost to the Owner.
4.25.3 If the Contractor considers that the alleged delay was the direct
result of the act or neglect of the Owner or Owner's Representative,
then the Contractor may also submit a written claim to the Owner for
approval of the reimbursement of the Contractor's additional field
overhead costs which can be shown to be the result of the delay due to
such act or neglect.
4.25.4 Notwithstanding the remedies prescribed in Section 4.25.2 and Section
4.25.3, no claim shall be made or allowed to the Contractor against the
Owner or Owner against the Contractor for any damages, losses or
liabilities which may arise out of any delay caused by FORCE MAJEURE,
INCLUDING, BUT NOT LIMITED TO, labor disputes of any kind, legal
strikes, work stoppages, lockouts, act of God, acts of civil or
military authority, floods, epidemics, riots or any cause of any kind
whatsoever beyond the Owner's or Contractor's control.
4.25.5 Time shall be deemed to be material and of the essence of the
Agreement.
4.25.6 The Contractor strictly agrees to diligently and expeditiously perform
the Work and to execute any and all available items of Work at the
earliest available opportunity.
<PAGE>
4-24
4.25.7 The Owner will not be obligated to consider any claim for delay and/or
additional moneys unless the Contractor can demonstrate that it has
complied with the provisions of Section 4.25.6.
4.25.8 Any delay or work stoppage of one (1) hour or less in any twenty-four
(24) hour period shall not be considered a delay for the purpose of the
Agreement Documents.
4.26 ACCELERATION OF THE WORK
4.26.1 If the Contractor fails to complete any part of the Work in the time
specified in the Construction Schedule, or if it becomes apparent to
the Owner that the Work will not be completed in the time specified,
and if such failure is due to fault on the part of the Contractor, the
Owner may require that the Contractor expedite the Work, and should it
become necessary to work overtime, to add additional shifts, to employ
additional men, or to provide additional equipment to accomplish this.
The premium for such overtime and for such additional shifts, the cost
of employing additional men or providing additional equipment, together
with any other additional costs thereby incurred shall be at the
Contractor's sole expense.
4.26.2 The Owner shall have the right to require the Contractor to complete
the Work or any part thereof before the date set forth in the
Construction Schedule, or to require the Contractor to complete the
Work according to the Construction Schedule when Contractor's claim for
a delay has been ruled valid by the Owner or Owner's Representative.
4.26.3 The Contractor may submit a claim for reimbursement for its additional
costs that can be shown to be the direct result of the acceleration
provided for in Section 4.26.2, including the costs of additional
shifts or overtime if the Contractor is required by a labor agreement
to pay a premium over and above normal wage rates for such Work. The
premium shall include the actual extra labor costs over the rate for
regular time and shall also include any mandatory labor additives. If
approved by the Owner, the premium shall also apply to the Contractor's
supervisory and clerical staff where the payment of overtime is
required under the terms of their employment. Time slips covering
ordered overtime or additional shifts will be submitted daily to the
Owner or Owner's Representative for checking and approval.
<PAGE>
4-25
4.27 EMERGENCIES
4.27.1 If, in the opinion of the Owner or Owner's Representative, the manner
in which the Work is being performed affects or threatens to affect the
safety of life or the safety of any part of the Work or any adjoining
property, or if any emergency arises which affects or threatens to
affect the safety of life or the safety of any part of the Work or of
any adjoining property, then the Owner or Owner's Representative may
stop the Work or may give whatever instructions are necessary in their
opinion to relieve the circumstances, in which event the Owner or
Owner's Representative shall determine whether the Contractor is
entitled to an extension of time or to extra compensation pursuant to
Section 4.25, Delays.
4.28 CONTRACTOR'S FAMILIARITY WITH SITE
4.28.1 The Contractor acknowledges having examined the Site and the adjoining
premises and areas before entering into the Agreement and having made
its own evaluation of the applicable laws, rules, regulations,
facilities available and the difficulties attending the Work.
4.29 SUBSURFACE CONDITIONS
4.29.1 Where the Owner has made investigations of the soils or other
conditions in the area where the Work is to be performed under the
Agreement, such investigations are made only for the purpose of Owner's
study and design. The records of such investigations are not part of
the Agreement and are furnished to Contractor solely for the
convenience of the Contractor. It is expressly understood and agreed
that the Owner assumes no responsibility whatsoever in respect to the
sufficiency or accuracy of the investigations thus made and the records
thereof, and the same shall not relieve the Contractor from its
obligations under this section.
4.29.2 The Contractor acknowledges that it has not relied upon any information
given or statements made to it by the Owner in connection with, and
shall not claim at any time after tendering that there was any
misunderstanding in regard to the matters referred to in this section.
<PAGE>
4-26
4.30 SURVEYS, LINES AND LEVELS
4.30.1 The Owner's Representative will furnish a basic reference line and a
bench mark and may at his discretion furnish other reference lines and
bench marks. The Contractor shall furnish other reference lines and
bench marks. The Contractor shall furnish from such reference lines
and bench marks such other points and elevations as may be required for
the execution of the Work.
4.30.2 The Contractor shall keep proper records in connection with the
establishment of such other points and elevations. The data books,
sketches and other records pertaining thereto shall be available for
examination by the Owner's Representative upon request.
4.30.3 The Contractor shall protect all bench marks, survey pegs and monuments
from damage or movement. If any of these are moved or disturbed, they
shall be relocated and replaced by the Owner's Representative at the
Contractor's expense.
4.30.4 The Contractor shall be responsible for the entire cost of rectifying
work improperly installed due to such bench marks, survey pegs and
monuments having been removed without authorization, or failure to
protect and maintain same.
4.30.5 The Contractor shall be responsible for any survey work performed by
its Subcontractors.
4.30.6 If, at any time during the progress of the Work, an error shall appear
or arise in the position, levels, dimensions, or alignment of any part
of the Work, the Contractor shall, on being required to do so by the
Owner and at its own expense, rectify such error to the satisfaction of
the Owner, unless such error is based on incorrect data supplied in
writing by the Owner.
4.31 AGREEMENT DOCUMENTS ISSUED FOR CONSTRUCTION
4.31.1 Unless otherwise stipulated, following execution of the Agreement, two
(2) sets of the Agreement Documents, excluding the Drawings, will be
issued to the Contractor to be used for construction purposes.
4.31.2 The Contractor shall supply three (3) copies of all Drawings and
Specifications to the Owner or Owner's Representative for approval and
shall not proceed with any work prior
<PAGE>
4-27
to receipt of approval by the Owner or Owner's Representative in
writing. Upon receipt of such approval the Contractor shall issue
three (3) copies of the approved Specifications and Drawings marked
"Released for Construction" to the Owner or Owner's Representative for
his records.
4.31.3 If, in the Contractor's opinion, changes requested by the Owner to the
Drawings and Specifications, call for Work more costly than called for
by the Agreement or adversely affected the scheduling of the Work, the
Contractor shall give written notice to such effect within seven (7)
calendar days after the same are delivered. If the Owner or Owner's
Representative concurs, the Drawings and Specifications shall be
amended or additional compensation for time, or both shall be
negotiated to cover the increased cost of the Work or the increased
time required to complete same.
4.32 REVISIONS OF DRAWINGS AND SPECIFICATIONS
4.32.1 The Drawings and Specifications may require revisions or amplification
from time to time. The Contractor shall supply three (3) copies of
such Drawings or Specifications clearly marked as to the requested
revision to the Owner or Owner's Representative for approval. No
revision shall be implemented without the written approval of the
Owner. Upon receipt of such approval, the Contractor shall re-issue
such Drawings or Specifications marked "Released for Construction" as
provided in Section 4.31.2.
4.32.2 If, in the Contractor's opinion, changes requested by the Owner to the
PROJECT Specifications and Drawings, call for Work more costly than
called for by the Agreement or adversely affect the scheduling of the
Work, the Contractor shall give written notice to such effect to the
Owner within seven (7) calendars days after the same are delivered. If
the Owner or Owner's Representative concurs, the PROJECT SPECIFICATIONS
AND DRAWINGS, employees shall be amended or additional compensation for
time, or both shall be negotiated to cover the increased cost of the
Work or the increased time required to complete same.
<PAGE>
4-28
4.33 SHOP DRAWINGS
4.33.1 The Contractor shall furnish to the Owner, at proper times, such shop
and setting drawings or diagrams as the Owner or Owner's Representative
may deem necessary in order to clarify the details of the Work. The
Contractor shall make any changes in such drawings or diagrams which
the Owner or Owner's Representative may require, consistent with the
Agreement, and shall submit sufficient copies (as specified by the
Owner or Owner's Representative) of the revised prints to the Owner for
approval. After approval, one (1) copy shall be returned to the
Contractor.
4.33.2 When submitting such shop and setting drawings, the Contractor shall
notify the Owner in writing of any discrepancies between such drawings
and the Owner's or Owner's Representative's approval of such drawings
or of the revised drawings shall not relieve the Contractor of
responsibility for errors made by the Contractor therein or for
deviations from the Owner's and Owner's Representative's drawings or
specifications not covered by the Contractor's written notification to
the Owner.
4.33.3 The Owner is entitled to timely receipt of shop and certified vendor
drawings and will decide in each case if he wishes to review such data
or not.
4.34 RECORD DRAWINGS "AS-BUILT"
4.34.1 As the work progresses, the Contractor shall MARK on one (1) set of the
construction drawings in reproducible form (see Section 4.31, Agreement
Documents Issued for Construction), all changes and deviations from the
construction drawings for all elements and parts of the Work, covering
such items as changes in size, location and elevation.
4.34.2 At the completion of the Work, or such parts of the Work, the
Contractor shall update and deliver to the Owner or Owner's
Representative one (1) set of construction drawings in reproducible
form clearly marked "As-Built."
<PAGE>
4-29
4.35 SAMPLES AND MANUFACTURER'S SPECIFICATIONS
4.35.1 If requested by the Owner, the Contractor shall state the source of any
material it proposes to use in the Work. The Contractor at its own
expense shall furnish to the Owner for the Owner's or Owner's
Representative's approval such samples and manufacturer's
specifications as are called for by the Agreement Documents and such
additional samples and specifications as the Owner or Owner's
Representative may require, the Work shall conform to the samples and
manufacturer's specifications approved in writing by the Owner or
Owner's Representative, but no such approval shall prevent the
subsequent rejection by the Owner or Owner's Representative of all or
any portion thereof which may turn out to be unsound or unfit for use.
4.36 MATERIAL AND WORKMANSHIP
4.36.1 Where reference is made to standard specifications, the latest edition
thereof shall be understood to apply, unless otherwise stipulated.
4.36.2 Materials and workmanship of all items supplied shall be new and of
highest quality, unless otherwise approved by the Owner or Owner's
Representative in writing.
4.37 HANDLING AND STORAGE OF EQUIPMENT AND MATERIALS
4.37.1 The Contractor shall, at its own expense, receive and check, off-load,
handle on the Site and store in area to be designated by the Owner, all
equipment and material supplied by the Owner for the Work, which
arrives on the Site during the time the Contractor is to be on the
Site, according to the Construction Schedule.
4.37.2 If equipment or material that the Contractor is responsible for
receiving and checking, off-loading, handling and storing is off-
loaded, handled or stored by the Owner, the expense incurred shall be
payable by the Contractor on demand or may be deducted by the Owner
from money due to the Contractor.
4.37.3 The Contractor shall take all appropriate precautions against loss,
theft or damage of equipment or material delivered to the site for the
purpose of the Work, whether such equipment or material is the property
of the Owner, the Contractor, or Subcontractors.
<PAGE>
4-30
4.37.4 The Contractor shall be completely responsible for the safekeeping for
all its tools and equipment and for those of its employees while on the
Site and shall provide all necessary facilities and services for such
safekeeping. The Owner will not accept any claims from the Contractor
or Subcontractor for the loss or damage of such tools and equipment.
4.37.5 No tools, equipment, material or other articles may be removed from the
Site, unless the person removing such article can clearly identify each
article and establish his ownership and his right to remove it from the
Site.
4.37.6 The Owner or Owner's Representative will assign to the Contractor a
specific storage area near the Work. Additional space, if desired by
the Contractor, shall be furnished by the Contractor at its own
expense.
All materials, which will become a permanent part of the Work, shall be
stored in a manner which will preserve their original conditions and
fitness for the Work. Materials requiring indoor or special storage,
or preparation for storage, shall be so prepared and stored. The
manufacturer's instructions for storage and handling of its products
shall be followed in full. The Contractor shall provide all storage
facilities.
4.37.7 For materials and equipment designated in this specification as
"supplied by others," the Contractor shall immediately upon receipt of
the materials and equipment, inspect them for quality, condition, and
quantity and shall report any damage or omission to the Owner without
delay. The Contractor will thereafter be held responsible for the
safekeeping of the materials and will be required to make good, at its
own expense, any subsequent damage or loss. All such materials and
equipment shall be located so as to facilitate ready inspection.
4.38 INSPECTION AND TESTS
4.38.1 In order to inspect the Work and the progress thereof, the Owner or
Owner's Representative shall at all times have access to the Work, both
at the Site of the Work and in the premises of the Contractor and its
Subcontractors, or other places where any part of the Work is being
performed, fabricated or manufactured, and the Contractor shall
facilitate such inspections and arrange access.
4.38.2 If the Agreement Documents, the Owner's or Owner's Representative's
instructions,
<PAGE>
4-31
laws, ordinances, or any public authority require any part of the Work
to be inspected, tested or approved, the Contractor shall give the
Owner or Owner's Representative advance notice of its readiness for
inspection, and if the inspection is by an authority other than the
Owner or Owner's Representative, the Contractor shall notify such
authority and the Owner that the Work is ready for inspection. If any
such part of the Work is covered up without the approval or consent of
the Owner or Owner's Representative, it may be uncovered for inspection
and made good at the Contractor's expense.
4.38.3 Inspection or reinspection of any portion of the Work may be ordered by
the Owner or Owner's Representative at any time during the Work and
until the end of the guarantee period specified in Section 4.11, Final
Acceptance of the Work and Guarantee. The Contractor shall uncover or
otherwise expose the questioned Work for inspection. If such part of
the Work is found to be in accordance with the Agreement, the Owner
shall pay the costs of exposing the questioned Work of the inspection,
reinspection and restoration. If such Work is found to be not in
accordance with the Agreement, the Contractor shall pay such costs
unless it is proven conclusively that the defect in the Work was caused
by the Owner or another Contractor, in which case the Owner shall bear
the cost of uncovering, rectification and replacement.
4.38.4 The Contractor shall provide proper facilities for such inspections and
for the taking of such samples of materials as may be required, without
charge, and shall pay for the packaging and delivering of the samples
to the testing laboratory. Materials, workmanship or installed part of
the Work that is certified by the testing laboratory to the Owner as
not conforming to the Agreement Documents shall, upon written notice to
the Contractor by the Owner, be removed, replaced or made good to the
satisfaction of the Owner at the Contractor's expense.
4.38.5 Notwithstanding the above, inspection, testing and operation at design
capacity under full operating conditions of the Work for compliance
with the Agreement shall be the responsibility of the Contractor.
4.38.6 Inspection and acceptance by Owner's Representative does not relieve
Contractor of liabilities including guarantees and warranties under the
Agreement.
4.38.7 The Owner will not be required to accept handing over of any equipment,
systems and
<PAGE>
4-32
installations until total completion to the Owner's Final Acceptance of
the total Work of the Agreement and only then in strict accordance with
the provisions of the Agreement providing, however, that the Owner may
at his own discretion elect to accept an earlier staged/phased handing
over of such portions of the Work as he may choose.
4.39 REJECTED MATERIALS AND WORK
4.39.1 The Contractor shall promptly remove from the Site all materials
furnished by it and rejected by the Owner or Owner's Representative as
failing to conform to the Agreement, and the Contractor shall promptly
replace them with materials conforming to the Agreement and without
expense to the Owner.
4.39.2 If the Contractor does not remove such rejected materials promptly, the
Owner may remove and store them at the expense of the Contractor, and
in addition to any other remedies the Owner may have, the cost of such
removal and storage by the Owner may be deducted by the Owner from
moneys due the Contractor.
4.39.3 The Contractor shall promptly remove and re-execute all Work rejected
by the Owner or Owner's Representative as failing to conform to the
Agreement, without expense to the Owner, and shall bear the expense of
making good all other work destroyed or damaged by such removal and
re-execution.
4.39.4 If the Contractor does not promptly remove and re-execute such rejected
Work, the Owner may cause such removal and re-execution to be carried
out by its own forces, or by Other Contractors, in accordance with the
provisions of Section 4.47, Owner's Right To Do Work.
4.39.5 The Owner shall have the option to allow defective or improper Work to
stand and deduct from the payment to the Contractor a sum of money
equivalent to the difference between the value of the Work as actually
performed and its value if performed as specified in the Agreement
Documents.
<PAGE>
4-33
4.40 RESPONSIBILITY FOR DEFECTIVE WORK AFTER FINAL PAYMENT
4.40.1 Neither the final certificate nor the final payment nor any provision
in the Agreement Document shall relieve the Contractor of
responsibility for faulty materials or workmanship appearing within the
guarantee period specified in Section 4.11, Final Acceptance of the
Work and Guarantee.
4.41 USE OF SITE BY CONTRACTORS
4.41.1 Subject to Section 4.42, Temporary Structures and Protection of Work
and Property, the Contractor shall confine its equipment, the storage
of materials and the operations of its workers to the limits indicated
by laws, ordinances, permits or directions of the Owner, and shall not
unreasonably encumber the Site of the Work with its materials.
4.41.2 The Contractor's employees shall be restricted to the areas on the Site
in which they are employed, and shall not leave those areas.
4.41.3 Passenger vehicles will not be permitted in the construction area and
shall be parked in an area to be designated by the Owner.
4.41.4 Vehicles required for the Work may, at the option of the Owner, be
provided with an identification card by the Owner, which shall be
displayed on the vehicle windshield. Vehicles may, at the option of
the Owner, be checked on and off the Site at the gate by the Owner.
4.41.5 Commercial carriers will be permitted to enter the Site only while
transporting equipment and materials to and from the Site of the Work.
4.41.6 The Contractor is to be responsible for the safety and security for all
men, Work materials and equipment installations, including personal
properties, directly or indirectly pertaining to the scope of its Work
until accepted and taken over by the Owner.
4.41.7 The Contractor shall observe and enforce the Owner's instructions
regarding signs, advertisements, fires, smoking, security regulations
and traffic regulations.
4.41.8 The Contractor shall be responsible for conducting its operations and
those of its
<PAGE>
4-34
Subcontractors in such a manner as will, in the opinion of the Owner,
prevent the creation or existence of fire hazards and facilitate the
extinguishing of any fires that may occur and, to this end, shall take
all precautionary measures as required by applicable laws and
ordinances, the relevant insurance inspection authority and common
prudence. The Contractor shall have portable approved fire
extinguishers near every worksite. The Contractor shall cooperate with
formation and maintenance of local fire brigade, designate manpower for
such, attend meetings and drills, all without extra cost of
compensation.
4.41.9 The Contractor shall not permit any fires to be built or open
salamanders to be used in any part of the Work, except for such
facilities, approved by the Owner, as may be required during winter
weather, and then only under the Contractor's continuous supervision.
The Contractor shall furnish, mount for emergency use and maintain the
necessary equipment, all of approved types, as required by the above
authorities, as shown in Section 4.41.8.
4.41.10 Flammable fluids shall be brought onto the Site in safety containers,
and shall be stored in and dispensed from a storage area designated by
the Owner, and smoking shall be prohibited in that area.
4.41.11 Storage and handling of explosives shall conform to the requirements of
applicable laws and regulations either federal or state.
4.41.12 The Contractor may supply and erect a construction sign. The type of
sign and place of erection are subject to approval by the Owner.
4.41.13 Compliance in design and function with the requirements of applicable
federal, state and local health, safety, environmental protection
regulations, public land administration laws and regulations and the
toxic and hazardous material control acts and regulations of the U.S.
Government Agencies (such as EPA, MSHA, NRC, BLM, USFS and DOT) is a
mandatory requirement of the Agreement.
4.41.14 Labels and Safety Data Sheets for all toxic or hazardous materials must
be provided by Contractor to Owner's Representative in a timely manner.
Contractor's failure to conform to any of above requirements in any
respect shall be corrected promptly by Contractor upon notice thereof,
and the cost of such correction(s) as well as any related
<PAGE>
4-35
costs arising out of any action brought by a governmental agency in
connection with such failure shall be for the account of Contractor.
4.42 TEMPORARY STRUCTURES AND PROTECTION OF WORK AND PROPERTY
4.42.1 The Contractor shall take precaution to ensure that shoring,
construction equipment, materials, or any of its operations or those of
its Subcontractors, or forces of nature, which apply loads to any part
of the Work shall not damage the Work.
4.42.2 All shoring, falsework and similar temporary structures shall be
designed by an engineer authorized to practice in the country and state
in which the Work is being performed and all drawings, specifications
and instructions related thereto must bear his seal and signature, and
copies shall be furnished to the Owner or Owner's Representative upon
request.
4.42.3 Without prejudice to Section 4.9, Indemnity and Hold Harmless, the
Contractor shall, as the Owner may direct, promptly repair or replace
at its own expense any portion of the Work, any property of the Owner
and any property of others that is lost, damaged, destroyed or injured
in any way as a result of the performance of the Work.
4.42.4 The Contractor shall carry out the Work by means and in a manner to
safeguard all persons, property and rights. The Contractor shall
provide adequate protection against accidents, injuries and/or damage
to all persons and property. It shall be responsible for making good
any damage to the Work and/or the Owner's property and the property of
any third party as may arise out of its operations at its own expense.
4.42.5 The Contractor shall provide all barriers, barricades, fencing, warning
signs, fire watch, security, lights and other protection for the
personnel on the Site and the general public, shall ensure that all
personnel directly or indirectly in its employ are provided with and
wear hard hats and other safety accessories required in the performance
of their part of the Work while on the Site, and provide all other
safety measures necessary in conformity with the requirements of this
section and laws, bylaws, rules and regulations of industrial and labor
department government, labor and construction safety organizations
having jurisdiction and as directed by the Owner.
<PAGE>
4-36
4.43 TEMPORARY USE OF EQUIPMENT
4.43.1 Equipment which is part of the Work shall not be put to temporary use
during construction, unless specifically authorized by the Owner.
4.44 SANITARY ARRANGEMENTS
4.44.1 Unless otherwise expressly stipulated in the Special Conditions, the
Contractor shall provide and maintain, in accordance with all
applicable statutory requirements, temporary sanitary facilities on the
Site for the use of all persons connected with the Work, and shall
remove them and their contents on completion of the Work.
4.44.2 The Contractor shall keep the Site of the Work in a clean and sanitary
condition. The Contractor shall post notices and take such other
measures as may be necessary to keep the area clean, and shall remove
any excrement deposited and do any cleaning that may be directed by the
Owner.
4.45 CLEANING UP
4.45.1 The Contractor shall at all times keep the Site neat, clean and free
from accumulation of waste materials and rubbish which arise out of the
performance of the Work.
4.45.2 On completion of the Work, the Contractor shall remove from the Site
all of its waste materials and rubbish, temporary buildings,
facilities, tools, plant, equipment and surplus materials and shall
leave the working area clean.
4.45.3 If the Contractor fails to perform any of his obligations under Section
4.45.1 and 4.45.2, the Owner may arrange to have any Work necessary to
correct such default performed by others, and the Owner will deduct the
cost thereof, as determined by the Owner or Owner's Representative,
from the amount due the Contractor under the Agreement.
4.45.4 If at the time the Contractor has substantially completed this Work,
including removal of temporary buildings and equipment, the weather
conditions are such that, in the opinion of the Owner or Owner's
Representative, it is impracticable for the Contractor to carry out the
remainder of the cleaning up operations effectively, or are such as to
make it impossible for the Owner or Owner's Representative to properly
inspect the conditions of
<PAGE>
4-37
the Site, then Owner may retain from payments due to the Contractor any
amount sufficient to cover the cost of such cleaning up as a guarantee
that the Contractor will carry out the remainder of the cleaning up
operations as soon as weather conditions permit this work to be
performed effectively and the conditions of the Site to be inspected
properly.
4.45.5 Burning of refuse at the Site shall be in full compliance with all
relevant regulations and as directed and approved by the Owner's
Representative.
4.46 USE OF COMPLETED PORTIONS BY THE OWNER
4.46.1 The Owner shall have the right to take possession of and use any
completed or partially completed portions of the Work, notwithstanding
that the period of time for completing the Work, or such portion
thereof, may not have expired. Such taking possession of and use shall
not be deemed an acceptance of any of the Work not carried out in
accordance with the Agreement Documents. If such prior use should
increase the cost or delay the completion of the Work, the Owner or
Owner's Representative shall determine whether the Contractor is
entitled to extra compensation or extension of time, or both, subject
and pursuant to Section 4.25, Delays.
4.47 OWNER'S RIGHT TO DO WORK
4.47.1 If the Contractor fails to comply with any provision of the Agreement
Documents including, but not limited to failure to perform properly any
portion of the Work or to comply with any direction of the Owner, or if
it fails to perform any of the Work in the time specified in the
Construction Schedule or to comply with the Owner's direction to
accelerate the Work pursuant to Section 4.26, Acceleration of the Work,
and if the Owner wishes to make good such failure with his own forces
or to employ Other Contractors to make good such failure, the Owner
may, three (3) calendar days after giving written notice to the
Contractor and without prejudice to any other rights that he may have
under the Agreement, delete portions of the Work, notwithstanding which
the Contractor shall continue to perform the balance of the Work under
the terms of the Agreement.
4.47.2 The Contractor, on receiving such notice, shall promptly vacate those
areas in which it is no longer required to perform the Work, and shall
fully cooperate with and coordinate
<PAGE>
4-38
the balance of the Work with the Owner or Other Contractors employed to
make good the Work.
4.47.3 All additional costs, as determined by the Owner or Owner's
Representative, that the Owner incurs as a result of action being taken
under this Section 4.47, including any excess costs of completion over
and above that which would have been paid to the Contractor, shall be
paid by the Contractor to the Owner on demand, and in addition to any
other rights the Owner may have, such cost may be deducted from any
payment then or thereafter due to the Contractor, and any such payment
may be withheld until such costs are determined.
4.47.4 The payment, if any, that the Contractor shall be entitled to receive
for the Work he has performed up to or after the date of the entry of
the Owner's forces, or forces employed by the Owner, shall be decided
by the Owner or Owner's Representative.
4.48 OWNER'S RIGHT TO TERMINATE AGREEMENT
4.48.1.1 The Owner shall have the right to terminate the Work in whole or in
part FOR ITS CONVENIENCE at any time by written notice to the
Contractor stating the extent and effective date of such termination.
4.48.1.2 In the event of termination pursuant to Section 4.48.1.1, the Owner
shall pay the Contractor for all Work executed in accordance with the
terms of the Agreement Documents, including relocation costs, but not
for any anticipated profit on unexecuted work.
No other payout of any sort or kind whatsoever shall be due Contractor
in the event of Contract termination by Owner including, without
limitation: (a) any lost or anticipated profits, (b) any direct,
indirect, special, consequential or other form of damages, (c) expenses
of Contractor, its subcontractors or vendors or others due to failure
of Contractor, its subcontractors or vendors or others to
discontinuance of the Work at or after the effective date of
termination; (d) losses or open contracts, agreements or arrangements
however arising; or (e) any other cost, loss or expense of Contractor,
its subcontractors or vendors or person or from any other source
whatsoever, whether arising directly or indirectly under or from this
Agreement.
<PAGE>
4-39
4.48.1.3 The Owner shall be entitled to withhold from the amount due the
Contractor the amount of any costs of damages, as determined by the
Owner or Owner's Representative, incurred by the Owner as a result of
any default of the Contractor.
4.48.2.1 If the Contractor has failed to commence Work within the time
stipulated in the Agreement or to diligently execute and complete the
Work or any portion thereof in accordance with established time and
progress schedules and to the satisfaction of the Owner or if the
Contractor is adjudged bankrupt, or if it makes a general assignment
for the benefit of its creditors, or if a receiver is appointed for the
Contractor on account of its insolvency, or if it persistently or
repeatedly refuses or fails to supply enough properly skilled workers
or proper plant or materials, or if it fails to pay Subcontractors or
suppliers promptly, or if he fails to adequately protect property or
persons, so as to ensure the completion of the Work within the time
specified, or if it abandons the Work or unreasonably delays its
progress or completion, or fails promptly to adjust labor difficulties,
or persistently disregards laws, ordinances or the instructions of
Owner or Owner's Representative or otherwise is guilty of a substantial
violation of any provisions of the Agreement, then the Owner, upon the
certificate of the Owner or Owner's Representative that sufficient
cause exists to justify such action, may, without prejudice to any
other right or remedy and by giving the Contractor written notice,
forthwith terminate the employment of the Contractor and take
possession of the premises and the Work, and of all materials for the
Work and tools, plant, appliances and equipment and temporary
construction used in connection therewith, and finish the Work by
whatever method he may deem expedient at the expense of the Contractor.
(ORIGINAL LAST SENTENCE DELETED).
4.48.2.2 If the unpaid balance of the amount of the Agreement according to the
terms of the Agreement Documents exceeds the expense for additional
engineering and administrative services, such excess shall be paid to
the Contractor. If such expense exceeds such unpaid balance, the
Contractor shall pay the difference to the Owner.
4.48.2.3 If the Contractor fails to pay the Owner the amount due him as
certified by the Owner or Owner's Representative, as aforesaid, within
ten (10) calendar days after written notice to do so, the Owner shall
have the right to sell the whole or any part of the said materials,
tools, plant, appliances, equipment and temporary structures at public
or private sale at any time or times thereafter without further notice
to the Contractor, and to transfer and deliver the same. The Owner
shall have the right to become the purchaser at such sale or
<PAGE>
4-40
sales (free and discharged of any equity of redemption) and after
deducting all legal and other costs, attorneys' fees and expense of
sale and delivery, shall apply the balance, if any, of the proceeds of
such sale or sales so made, to pay the Owner's claims as aforesaid.
The Owner shall pay the surplus if any, to the Contractor and the
Contractor shall pay any deficiency to the Owner on demand.
4.48.2.4 The amount payable by the Owner to the Contractor for the Work
performed under the Agreement, the expense incurred by the Owner as
herein provided, the damage incurred through the Contractor's default
and the amount payable by either Party to the other shall be determined
by the Owner or Owner's Representative.
4.48.2.5 The Contractor is not entitled to money or claims for damages, lost
opportunity and similar causes.
4.49 CONTRACTOR'S RIGHT TO STOP WORK OR TERMINATE AGREEMENT
4.49.1 The Contractor shall be entitled to stop the Work or terminate the
Agreement by notice in writing to the Owner or Owner's Representative--
a) Without prior notice, if Work should be stopped permanently, or for
a period of one (1) month, under an order of any court or other
public authority of competent jurisdiction through no act or fault
of the Contractor or of anyone employed by it, or
b) Fourteen (14) calendar days after giving written notice to the Owner
or Owner's Representative should the Owner or Owner's Representative
fail to issue a certificate in accordance with Section 4.20,
Application for Payment and Valuation of Work for Progress Payments,
or should the Owner fail to pay the Contractor any sum due and
payable as specified in the Owner's or Owner's Representative's
certificate within a period of thirty (30) days of the due date of
payment, unless within such fourteen (14) days the Owner or Owner's
Representative issues the required certificate or the Owner pays the
sum due, as the case may be.
4.49.2 After termination of the Agreement pursuant to this Section 4.49, the
Contractor shall be entitled to recover from the Owner payment for all
the Work executed with a reasonable allowance for profit, and for any
loss sustained upon any plant, equipment, material or key personnel,
including relocation costs, but not for any anticipated profit on
unexecuted Work, all as determined by the Owner or Owner's
Representative.
<PAGE>
4-41
4.49.3 The Contractor's right to stop Work or terminate the Agreement pursuant
to this Section 4.49 shall be subject to the Owner's right to withhold
money owing to the Owner by the Contractor.
4.50 ASSERTION OF RIGHTS
4.50.1 Failure of the Owner to assert any of his rights under the Agreement
shall not be construed as a waiver thereof.
4.51 ASSIGNMENT AND BANKRUPTCY
4.51.1 This Agreement shall bind and inure to the benefit of the Parties
hereto and their respective heirs, executors, administrators,
successors and assigns. THE CONTRACTOR, HOWEVER, SHALL NOT MAKE ANY
ASSIGNMENT OF THIS AGREEMENT WITHOUT THE WRITTEN CONSENT OF THE
"OWNER." THE "CONTRACTOR" SHALL NOT ASSIGN ANY PART OR THE WHOLE OF
ANY MONEYS DUE OR TO BECOME DUE UNDER THE PROVISIONS OF THIS AGREEMENT
WITHOUT WRITTEN CONSENT OF THE "OWNER." "OWNER'S" CONSENT TO ALLOW
"CONTRACTOR" TO MAKE ASSIGNMENT OF THIS AGREEMENT, OR OF MONIES DUE OR
TO BECOME DUE CAN BE WITHHELD FOR ANY REASON, OR NO REASON AT ALL.
4.51.2 The Agreement shall not be or be deemed to be an asset in the
bankruptcy of the Contractor.
<PAGE>
4-42
4.52 DISPUTES
4.52.1 It is the general intention of Owner and Contractor that any dispute
relating to the Agreement involving a matter or question of law or fact
common to them or parties thereto shall be settled, to the extent
feasible, in the first instance by Owner and Contractor and failing
such settlement WITHIN 48 HOURS OF THE ONSET OF THE DISPUTE, in the
second instance by Owner and Contractor exploring the possibility of
submitting the dispute to mediation. In the event that a dispute
cannot be settled by direct negotiations between Owner and Contractor
or Owner and Contractor have failed to agree to mediate the dispute or
having agreed to mediate, the dispute has not been resolved by
mediation WITHIN FIVE (5) CALENDAR DAYS, Owner, at its option, may
elect to refer the dispute to binding arbitration, in accordance with
the rules of the American Arbitration Association. Arbitrators shall
be selected as follows: one to be selected by Owner, one to be selected
by Contractor, and the third to be selected by the other two
arbitrators. Their decision shall be binding on all parties.
4.52.2 In the event Owner does not decide to settle such disputes by
arbitration, either party may apply to a court of competent
jurisdiction to have such disputes settled.
4.52.3 The parties hereby consent to such settlement of disputes and agree to
submit themselves to the applicable jurisdiction.
4.52.4 In the event either party has initiated any other action to settle a
dispute prior to the initiation of procedures provided for in this
Section 4.52, such party agrees to stay such action upon initiation by
either party of the procedures provided for in this Section 4.52.
4.52.5 In the event of any dispute or claim by Contractor, Contractor shall
continue the Work in accordance with the Agreement Documents and its
sole remedy shall be to pursue the remedies set forth in this Section
4.52. In addition, payments to Contractor shall be made in the same
manner as prior to the dispute. After a dispute has been finally
resolved by Contractor and Owner, such restitution shall be made as may
be required under the terms of resolution.
<PAGE>
4-43
4.53 RECORDS
4.53.1 Contractor shall keep a complete set of accounts and records on a cost
accounting basis, conforming to accepted accounting principles and
showing all expenditures under this Agreement. If this Agreement
provides for compensation on a cost basis, or if Contractor claims
compensation from Owner under the "Changes," "Suspension of Work," or
"Termination for Convenience" sections of these General Conditions, or
otherwise, as a condition precedent to any obligation of Owner to make
payment therefore, Owner shall be afforded the rights to inspect, audit
and verify such accounts and records.
4.53.2 Contractor's invoices to the Owner are to be submitted with any
necessary breakdown as may be required by the Owner to accommodate the
Owner's cost accounting system.
4.54 PROPRIETARY INFORMATION, PLANS AND PROPERTY
4.54.1 For purpose of the Agreement, the term "Proprietary Information" shall
mean:
a) All information of any nature whatsoever in respect of the Work
revealed to Contractor or its officers or representatives, in
written material or written communications, by Owner or its officers
or representatives.
b) All plans, drawings, models, descriptions, specifications, reports,
formulae, flowsheets, recommendations, processes, inventions,
devices or procedures, or applications of procedures, devices,
inventions, information with respect to business opportunities,
exploration and mining activities, mining and mineral processing
techniques, mineral discoveries, information of third parties which
has been provided to Contractor on a confidential basis, and other
data, information and trade secrets produced by Contractor for Owner
with respect to the Work, or developed by or for Contractor in
connection with the Agreement.
4.54.2 Notwithstanding anything herein to the contrary, Proprietary
Information shall not include:
a)Information which was in the possession of Contractor or its
officers or representatives prior to Effective Date of this Agreement,
which was not acquired, either directly or indirectly, from Owner;
<PAGE>
4-44
b)Information which is hereafter disclosed to Contractor or its
officers or representatives by third parties who have the right to so
disclose such information free of confidentiality restrictions imposed
by Owner; or
c)Information which is or becomes generally available to the public
unless such public disclosure results from the breach of obligations of
Contractor under the Agreement.
4.54.3 Contractor agrees for a period of ten (10) years from date of
termination of the Agreement or from the date of Final Acceptance,
whichever shall first occur, to:
a)Refrain from making commercial use of Proprietary Information, and
b)Use of its best efforts to prevent disclosure to third parties of
any Proprietary Information and to restrict disclosure within
Contractor to employees, consultants or agents who have a need to know
such Information for the purposes of conducting the Work and such
employees, consultants and agents shall be bound to keep such
information and data secret to the same extent that Contractor is
hereby so obligated. Contractor agrees to be responsible for any
breach of the non-use/non-disclosure obligations contained in the
Agreement by any of Contractor's employees, consultants or agents.
4.54.4 Contractor shall promptly disclose to Owner any and all inventions,
discoveries, improvements, technology, and "know-how", whether or not
patentable, relating in any way to the Work which is to be used by
Owner, conceived, originated, developed or actually or constructively
reduced to practice by Contractor or its employee in performance of the
Work (such inventions, discoveries, improvement, technology, and "know-
how" being hereinafter called "Inventions").
4.54.5 Contractor agrees to assign or cause its employees, agents, and
subcontractors to assign to Owner the entire right, title and interest
in and to any and all Inventions. Contractor further agrees to execute
or cause to be executed any papers necessary to transfer to Owner any
Inventions; and, should Owner decide to patent any Inventions,
Contractor agrees at Owner's cost to assist in the preparation of
patent applications, to execute and assign such patent applications and
to execute such other documents as Owner may request in connection
therewith.
4.54.6 All Inventions and all drawings, plans, and specifications developed by
Contractor under the Contract and other items referred in Section
4.54.1 shall become the property of
<PAGE>
4-45
Owner and shall be delivered to Owner upon completion or earlier
termination of the Work. Contractor may retain one (1) copy of such
documents for its own records, subject to restrictions on their use and
disclosure to others as may be acceptable to Owner.
4.55 AGREEMENT EXECUTION
4.55.1 The Owner will prepare the Agreement Documents and submit three (3)
copies of same to the Contractor for its execution.
4.55.2 The Contractor shall execute and return the formal Agreement Document
to the Owner within fourteen (14) calendar days from the date the
Contractor receives same.
<PAGE>
5.0 SUPPLEMENTARY CONDITIONS
1. ENVIRONMENTAL COMPLIANCE
THE CONTRACTOR SHALL COMPLY WITH ALL APPLICABLE ENVIRONMENTAL LAWS, RULES,
AND REGULATIONS GOVERNING THE CONTRACTOR'S ACTIVITIES CONCERNED WITH
COMPLETION OF THE WORK. THE CONTRACTOR AGREES TO PERIODIC INSPECTIONS BY
THE OWNER'S STAFF ENVIRONMENTAL MANAGER, AND WILL COMPLY IMMEDIATELY WITH
OWNER-RECOMMENDED REMEDIATION OF ANY ANY INSTANCES OF ENVIRONMENTAL
NON-COMPLIANCE DISCOVERED DURING THESE INSPECTIONS.
<PAGE>
6.0 SCOPE OF WORK
6.0 SCOPE OF WORK...........................................................6-1
6.1 SPECIFIC CONTRACT WORK..................................................6-2
<PAGE>
6-1
6.0 SCOPE OF WORK
6.0.1 The Scope of Work defines the Contractor's responsibilities for the
construction of the Turquoise Ridge No. 1 Shaft, the shaft stations,
and the lateral development on three separate levels.
6.0.2 The Turquoise Ridge No. 1 Shaft is a circular concrete lined shaft
with a finished inside diameter of 20 ft. The shaft will be used for
initial development of the Turquoise Ridge Mine and will be used for
exhaust ventilation and emergency escapeway once the mine is brought
into production. With the collar of the shaft at the 5400 ft
elevation, the shaft will be sunk to the 3350 ft elevation for a total
depth of 2,050 ft.
6.0.3 As a part of this Scope of Work, the shaft will be equipped with
permanent pipes, power cables, and communication cables required for
permanent mine operations. Upon completion of this Scope of Work and
as separate work, the Owner will install his own emergency hoist and
headframe at the shaft collar or he will elect to purchase the
Contractor's sinking hoist and headframe. The Owner will then install
an emergency cage which will operate on rope guides.
6.0.4 A total of five stations will be excavated off the shaft. The first
two stations located at the 5000 and 4500 ft elevations will serve as
temporary pump stations during shaft construction. The next three
stations located at the 4000, 3700, and 3400 ft elevations will be
used for the development of the mine under this Scope of Work and for
future mine production levels.
6.0.5 This Scope of Work includes lateral development on all three mine
production levels along with the construction of two ramps. One ramp
will connect the 4000 and 3700 ft levels and will be used for rubber-
tired access between the levels; the second ramp will connect the 3400
ft level with the bottom of the shaft. The breakdown of lateral and
ramp development is as follows:
4000 Level . . . . . . . . . . . . . .915 ft of lateral development
3700 Level . . . . . . . . . . . . .1,400 ft of lateral development
3400 Level.. . . . . . . . . . . . . .145 ft of lateral development
4000 to 3700 Connecting Ramp . . . . . 2,320 ft of ramp development
3400 to Shaft Bottom Ramp. . . . . . . . 335 ft of ramp development
<PAGE>
6-2
6.1 SPECIFIC CONTRACT WORK
6.1.1 The Contractor shall be responsible for providing all items required
for the execution of the shaft construction and underground
development work, except for those items specifically identified in
Section 6.1.7 as being supplied by the Owner. The Contractor's
responsibility is to supply, install, properly maintain and remove all
temporary construction facilities, equipment, and utilities necessary
for full and complete performance of the Scope of Work. Such items
shall include those listed in the following sections. The type of
facilities, move-in and move-out dates, and locations on the site
shall be subject to and in accordance with the review and approval of
the Owner. A more detailed account of the Work required along with
drawings is provided in Section 7.0, Project Specifications and
Drawings.
6.1.2 General Items
In general, the items for which the Contractor is responsible (except where
excluded) will include:
- Detailed engineering and design for specific areas of the Scope of
Work
- Quality control of materials, excavation and installations associated
with the Scope of Work
- Provision of bonds and insurances
- Mobilization and demobilization of all items related to the Scope of
Work
- Survey of surface and underground project-related facilities subject
to Owner review and approval
- All safety and first aid for Contractor Scope of Work, except for
Owner-supplied ambulance
- Permits and licenses except those provided by Owner to include:
x - State industrial insurance number or certificate of
self-insurance
x - Sales and use license
x - Contractor's license
x - Explosives and blasting permit
x - MSHA registration number
x - Any other federal, state or local requirement
- Maintenance and operation of all temporary facilities, services and
power distribution
- Preparation and provision of as-built drawings
<PAGE>
6-3
- Compliance with all applicable codes, standards, mining laws/acts and
all other pertinent statutory requirements
- Transportation for all Contractor's personnel onto, off of and while
on the Owner's property
- One Contractor individual per shift for Owner's Mine Rescue Team
6.1.3 Surface Facilities
The Contractor is responsible for the detailed engineering, supply and
installation of the surface facilities except were excluded. This Work is
to include the following:
- The temporary facilities including the sinking hoist and headframe
which are NOT supplied by Owner
- Collar equipment required for sinking such as:
x Dump door(s)
x Dump chute(s) and retaining wall
x Safety door(s)
x Winches, winch ropes, sinking rope(s) and sheave(s)
x All necessary air and/or electrical controls and signals
- Temporary ground support for the shaft collar
- Permanent shaft collar structure (the detailed design is by the Owner)
- Surface haulage of hoisted rock to Owner specified location
- Project first aid and safety facilities
- Mine development ventilation fans and air heating as required
- Explosives and cap magazine(s) installed as per regulations
- Change house, office facility, and shop facility
- On-site concrete batch plant and approved backup source of concrete
- Surface distribution of permanent utilities as specified by Owner
- Surface distribution of Contractor's utilities
The Contractor is responsible for the removal and disposal of all the
temporary surface facilities installed under this Section 6.1.3.
6.1.4 Shaft and Station Work
The Contractor is responsible for the detailed engineering, supply and
construction of the shaft and stations except were excluded. This work is
to include the following:
- Excavation and temporary ground support for total shaft depth
- Placement of shaft concrete lining based on Owner's specifications
- Drilling of shaft probe hole as specified by Owner
- Water ring details and locations including where specifically shown on
Owner's drawings
<PAGE>
6-4
- Placement of shaft grout covers as approved by Owner
- All shaft permanent pipes and cables as specified by Owner
- All Contractor required temporary pipe(s) and ventilation ducting
- All shaft sinking equipment such as:
x - Workstage
x - Shaft mucking machine
x - Drills and shaft jumbo as required by Contractor
x - Crossheads
x - Sinking buckets
x - Shaft bottom pumps and intermediate lift pumps
x - Ventilation fans and ducts
- Shaft construction dewatering pump stations as per Owner
specifications
- Station excavation and ground support
- Placement of station shotcrete and sill concrete as per Owner
specification
- Station lip pocket for loading of development rock into buckets from
levels as required by Contractor to hoist rock
- All station permanent pipes and cables as specified by Owner
- Installation and grounding of station permanent electrical selector
switches as per applicable code
- Portable substations as required by the Contractor's electrical loads
The Contractor is responsible for the removal and disposal of the following
items:
- Contractor-required temporary shaft pipe and ventilation ducting
except for a slick line if installed by Contractor
- Waste rock spilled in bottom of shaft during development rock hoisting
- Contractor's shaft and level development equipment as listed in the
installation portion of the this Section 6.1.4.
6.1.5 Lateral and Ramp Development
The Contractor is responsible for the construction of and supply of
materials associated with the underground lateral and ramp development as
per the Owner's design. This Work is to include the following:
- Excavation and ground support of drifts and ramps
- Excavation and ground support of muckbays as required by Contractor
- All lateral and ramp permanent pipes as specified by Owner
- All Contractor required temporary pipe, ventilation ducting, and power
cables
- All rubber-tired drift equipment such as:
x Jumbo(s)
x LHD(s) mucking machines
x Trucks
<PAGE>
6-5
x Mobile maintenance equipment
x Utility vehicles
x Special ground support equipment as per Contractor requirements
- All fixed ancillary equipment such as:
x Fixed maintenance equipment
x Portable substations
x Ventilation fans
x Face dewatering pumps
The Contractor is responsible for the removal and disposal of the following
items:
- Contractor-required temporary level pipe
- Contractor level development equipment as listed in the installation
portion of this Section 6.1.5.
6.1.6 Miscellaneous Temporary Construction Equipment
The Contractor is responsible for the supply of miscellaneous materials and
equipment associated with the overall Scope of Work unless specifically
provided by Owner.
The Contractor-supplied items are to include the following:
- All hat lamps, batteries and chargers
- Drill bits, steel and other related equipment
- All small tools and all Contractor's shop equipment
- Adequate weather and secure storage of materials, tools and equipment
- Establishment, maintenance, repair and restoration of any required
Contractor's roads, laydown, storage or equipment maintenance area or
Work areas not specifically provided by Owner
- All certified cranes and other necessary equipment for handling,
hauling, unloading and receiving Contractor's supplied materials,
tools, and equipment
- Snow removal and frost protection for any required surface facilities
of the Contractor
- All small tools, rags, gloves, and work-related clothing
- Containers and services for hauling, removal and disposal of
construction debris to designated areas
- All lubricants and oils
- All office consumables, telephone, fax, photocopies, etc.
- All safety equipment as required by regulations
- Security of Contractor's equipment and materials
- Fuel and fuel storage
- Explosives and detonator caps, explosives and cap magazines
<PAGE>
6-6
6.1.7 Owner Supplied Items
The Owner shall supply or cause to be supplied the following temporary
construction facilities, services and utilities to the Contractor, without
cost to the Contractor, for or in connection with his work.
- Owner review and approval of Contractor's survey
- Owner-supplied permits and licenses:
x - Shaft excavation
x - All water discharge
x - Sewage disposal
x - Potable water taps
x - Air quality NOT TO INCLUDE AIR QUALITY PERMITS FOR ANY
DIESEL POWER PLANT OR PLANTS RATED AT 500 HORSEPOWER OR MORE.
x - Power line
- Approval of Contractor's design, construction and fabrication drawings
related to the permanent facilities
- Station permanent electrical selector switch
- Electrical power at a specific voltage and location specified by the
Owner after 01 April 1996. Prior to this date, the Contractor shall
provide all the electrical power to meet his requirements.
- Service water (nonpotable) at a location specified by the Owner
- Potable water supply
- Compressed air at a location specified by the Owner after 01 April
1996. Prior to this date the Contractor shall provide all the
compressed air to meet his requirements.
- Sewage disposal at a location specified by the Owner
- Treatment and storage facilities for mine drainage water, the point of
discharge by the Contractor is specified by the Owner
- Owner-supplied ambulance
- Owner-supplied Mine Rescue Team and Equipment
- Disposal of Contractor's waste oil
- Disposal of Contractor's garbage
- Radio phone (1) for Contractor's use
The Owner shall supply or cause to be supplied a limited number of
permanent materials and/or consumable items the Contractor chooses to
purchase from the Owner so long as the items are from the list contained in
Appendix F, FMG Supplies List. For these items, the Contractor will be
charged at the Owner's discount rate. The Contractor is responsible for
notifying the Owner of items he will purchase and for providing a schedule
of usage so the Owner can maintain an adequate inventory.
<PAGE>
7.0 PROJECT SPECIFICATIONS AND DRAWINGS
7.1 GENERAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-1
7.1.1 Detailed Engineering and Design Services . . . . . . . . . . .7-1
7.1.2 Field Engineering. . . . . . . . . . . . . . . . . . . . . . .7-3
7.1.3 Mobilization . . . . . . . . . . . . . . . . . . . . . . . . .7-3
7.1.4 Site Access Road . . . . . . . . . . . . . . . . . . . . . . .7-4
7.1.5 Site Preparation . . . . . . . . . . . . . . . . . . . . . . .7-4
7.1.6 Shaft Sinking Hoist. . . . . . . . . . . . . . . . . . . . . .7-5
7.1.7 Hoisthouse . . . . . . . . . . . . . . . . . . . . . . . . . .7-5
7.1.8 Headframe. . . . . . . . . . . . . . . . . . . . . . . . . . .7-5
7.1.9 Headframe Foundations. . . . . . . . . . . . . . . . . . . . .7-6
7.1.10 Shaft Collar . . . . . . . . . . . . . . . . . . . . . . . . .7-6
7.1.11 Concrete Batch Plant . . . . . . . . . . . . . . . . . . . . .7-6
7.1.12 Shop and Changehouse . . . . . . . . . . . . . . . . . . . . .7-7
7.1.13 Office . . . . . . . . . . . . . . . . . . . . . . . . . . . .7-7
7.1.14 First Aid and Safety Facilities. . . . . . . . . . . . . . . .7-7
7.1.15 Ventilation. . . . . . . . . . . . . . . . . . . . . . . . . .7-7
7.1.16 Surface Disposal of Excavated Rock . . . . . . . . . . . . . .7-7
7.1.17 Incoming Electrical Power. . . . . . . . . . . . . . . . . . .7-8
7.1.18 Electric Power/Lighting Cables . . . . . . . . . . . . . . . .7-8
7.1.19 Compressed Air . . . . . . . . . . . . . . . . . . . . . . . .7-8
7.1.20 Water Supply . . . . . . . . . . . . . . . . . . . . . . . . .7-9
7.1.21 Sewage Disposal. . . . . . . . . . . . . . . . . . . . . . . .7-9
7.1.22 Mine Discharge Water . . . . . . . . . . . . . . . . . . . . .7-9
7.1.23 Communication System . . . . . . . . . . . . . . . . . . . . 7-10
7.1.24 Explosives and Cap Storage . . . . . . . . . . . . . . . . . 7-10
7.1.25 Fuel Storage . . . . . . . . . . . . . . . . . . . . . . . . 7-10
7.1.26 Transportation . . . . . . . . . . . . . . . . . . . . . . . 7-11
7.1.27 Gates . . . . . . . . . . . . . . . . . . . . . . . . 7-11
7.2 SHAFT SINKING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-11
7.2.1 Installation of Sinking Equipment. . . . . . . . . . . . . . 7-11
7.2.2 Miscellaneous Shaft Furnishing Items . . . . . . . . . . . . 7-12
7.2.3 Permanent Shaft Pipe . . . . . . . . . . . . . . . . . . . . 7-12
7.2.4 Permanent Shaft Cables . . . . . . . . . . . . . . . . . . . 7-13
7.2.5 Contractor Temporary Utilities . . . . . . . . . . . . . . . 7-13
7.2.6 Shaft Rock Excavation and Blasting . . . . . . . . . . . . . 7-13
7.2.7 Temporary Ground Support . . . . . . . . . . . . . . . . . . 7-14
7.2.8 Shaft Concrete Placement . . . . . . . . . . . . . . . . . . 7-14
7.2.9 Probe Hole Drilling and Grouting . . . . . . . . . . . . . . 7-15
7.2.10 Shaft Construction Pumping . . . . . . . . . . . . . . . . . 7-15
<PAGE>
7.3 SHAFT STATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-16
7.3.1 Permanent Station Pipe . . . . . . . . . . . . . . . . . . . 7-16
7.3.2 Permanent Shaft Cables . . . . . . . . . . . . . . . . . . . 7-17
7.3.3 Contractor Temporary Utilities. . . . . . . . . . . . 7-17
7.3.4 Station Rock Excavation and Blasting . . . . . . . . . . . . 7-17
7.3.5 Temporary Ground Support . . . . . . . . . . . . . . . . . . 7-17
7.3.6 Station Concrete and Shotcrete Placement . . . . . . . . . . 7-18
7.4 LEVEL DEVELOPMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . 7-19
7.4.1 Permanent Level Pipe . . . . . . . . . . . . . . . . . . . . 7-19
7.4.2 Permanent Shaft Cables . . . . . . . . . . . . . . . . . . . 7-19
7.4.3 Contractor Temporary Utilities . . . . . . . . . . . . . . . 7-19
7.4.4 Station Rock Excavation and Blasting . . . . . . . . . . . . 7-19
7.4.5 Permanent Ground Support . . . . . . . . . . . . . . . . . . 7-19
7.5 DRAWINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-20
<PAGE>
7-1
7.0 PROJECT SPECIFICATIONS AND DRAWINGS
7.1 GENERAL
These project specifications define the Contractor's responsibilities for
the Work described in Section 6, Scope of Work of this document. These
specifications are to serve as a minimum requirement for the Scope of Work.
The Contractor shall comply with the terms and conditions of these
specifications and conform with all local, state and federal laws,
regulations and codes pertaining to the Work covered by these
specifications.
7.1.1 Detailed Engineering and Design Services
The Contractor shall provide detailed engineering design services related
to the temporary surface facilities required by the Contractor, and some
permanent items which will remain as a part of the shaft facilities after
construction has been completed.
The engineering designs shall include sufficient detail for the proper
execution of the Work. The designs shall conform to the specifications
included in this section, and shall be based on the general arrangement
drawings provided by the Owner as a guideline where applicable.
The Contractor shall submit to the Owner, for review, all layout drawings,
detailed fabrication or construction drawings, design data and other
pertinent information related to any permanent items which will remain on
Site or underground after the completion of this Scope of Work.
The Contractor shall maintain a design and drafting schedule that will
allow sufficient time for the Owner to review and approve the designs
without impacting the construction schedule. Preliminary drawings shall
not be used for construction purposes. Approval of drawings or design data
by the Owner shall not relieve the Contractor from full responsibility for
the drawings or designs.
The general scope of the engineering and design services is summarized as
follows:
Contractor's Surface Facilities
Hoist and foundations
Hoist house and foundations
Headframe and foundations
Headframe dump and retaining wall
Hoist and surface low voltage substation
Surface facilities electrical tie-in to Owner-supplied switchgear
<PAGE>
7-2
Site routing of temporary utilities
Owner's Permanent Surface Facilities
Collar temporary ground support
Site routing of permanent utilities
Shaft power electrical tie-in to Owner-supplied switchgear
Contractor Shaft Facilities
All shaft sinking equipment
Contractor's temporary utilities and shaft wall brackets
Drill and blast procedures
Ventilation design for sinking and lateral development only
Shaft lip loading pockets
Dewatering pumping stations
Owner's Shaft Facilities
Temporary ground support for the changing conditions
Shaft wall brackets for Owner's permanent utilities
Station electrical selector switch
Water ring location and design
Grout covers
<PAGE>
7-3
7.1.2 Field Engineering
It is the responsibility of the Contractor to provide all field engineering
for the Scope of Work outlined in Section 6.0. This engineering is to
include but is not limited to:
- Surveying of surface facilities, the shaft, and the underground
level development
- Quality control related with the excavation, permanent materials,
and construction.
The Contractor's survey responsibility will include providing the
appropriate labor and equipment to ensure the required line, grade and
location is maintained for all the Work. The Contractor will provide upon
the Owner's request all survey data for review. The Owner will provide one
bench mark on the surface along with two reference points.
THE OWNER SHALL BE ALLOWED ACCESS TO ANY PART OF THE CONTRACTOR'S SURFACE
PLANT, THE SHAFT, PUMP STATIONS, LEVEL STATIONS, MICSCELLANEOUS
EXCAVATIONS, OR LEVEL DEVELOPMENT WORKINGS AT ANY TIME IN ORDER TO CONDUCT
CHECK SURVEYS.
The Contractor will provide the quality control of the Work he performs.
This includes performing all tests and inspections required to ensure the
Work complies with all applicable codes and standards, and the Agreement
which includes but is not limited to:
- Inspection of all fabricated items.
- Taking samples and testing concrete placed in permanent
structures.
- Inspect and certify all permanent materials before there
placement.
7.1.3 Mobilization
The Contractor shall supply and mobilize to the Site all labor, materials
and equipment required to perform the Scope of Work, excluding items
provided by the Owner.
As a function of mobilizing, the Contractor shall provide and install
temporary surface facilities, which shall be removed upon completion of the
Work defined in the Agreement.
<PAGE>
7-4
The mobilization is to be broken down into two phases. The first phase is
to include all labor, equipment and materials required for the
establishment of the surface facilities and to support the sinking of the
shaft. The second phase is to include all labor, equipment and materials
required to perform the level development. The items mobilized shall
include the following facilities and equipment:
SURFACE FACILITY, SHAFT MOBILIZATION, AND CONTRACTOR'S OFFICE
- Project shop and warehouse
- Change house
- Sinking hoist and hoist house
- Sinking headframe
- Concrete batch plant
- Sinking equipment
- Surface mobile equipment
LEVEL DEVELOPMENT
- Underground mobile equipment
- Permanent and temporary utilities
- Permanent materials
- Consumable supplies
7.1.4 Site Access Road
The Owner will provide an access road from the main pit haulage road to the
shaft Site. Any specific access road requirements by the Contractor, which
are not provided by the access road as viewed during the Site visit, must
be conveyed to the Owner in writing upon award of the Agreement.
7.1.5 Site Preparation
The Site will be prepared by the Owner. The extent of the Site preparation
is shown on Dwg 417-SK-001. The general area around the Site is clear of
obstructions and consists of two separate level areas.
The area set aside for the Contractor's use measuring approximately 500 ft
x 1,000 ft will be constructed in such a manner as to provide a level,
stable, and drained working area.
Based on current information, the bedrock below the presumed finished Site
grade is between 25 to 40 ft. The Owner will provide bedrock profiles to
the Bidders at a later date as a addendum to this Request for Proposal.
The Bidder shall include in his Bid a sufficient sum to cover such
additional Site investigation Work that he deems necessary to carry out
detailed design of the
<PAGE>
7-5
foundations for temporary facilities.
7.1.6 Shaft Sinking Hoist
The hoist required for the sinking of the No. Shaft will be provided by the
Contractor at his expense. The size, configuration, and electrical
equipment of the hoist is at the discretion of the Contractor. The hoist
must be capable of supporting the requirements of both the shaft sinking
operations and the lateral development as outlined by the Scope of Work.
The hoist and associated equipment must conform with the requirements of
MSHA and the State of Nevada, and the Contractor shall obtain any required
certification. The Owner shall be supplied with all hoist equipment
certifications.
The lump sum portion of the Bid for the shaft construction and lateral
development shall include the rental cost of the hoist and related
equipment. This price shall include the necessary power and control
transformers, switchgear, operator's cubicle and control systems.
The Bid shall include a purchase price of the hoist and related equipment
if the Owner so chooses at the conclusion of the Scope of Work. The Bidder
shall provide, with his Bid, any shop drawings, data sheets and
specifications of the hoist and related equipment enabling the Owner to
evaluate the hoist for possible future mine operations.
7.1.7 Hoisthouse
The hoisthouse required for the sinking of the No. Shaft shall be provided
by the Contractor at his expense. The size and configuration of the
hoisthouse is at the discretion of the Contractor.
The lump sum portion of the Bid for the shaft construction and lateral
development shall include the rental cost of the hoisthouse.
The Bid shall include a purchase price of the hoisthouse if the Owner so
chooses at the conclusion of the Scope of Work.
7.1.8 Headframe
The headframe required for the sinking of the No. Shaft shall be provided
by the Contractor at his expense. The size and configuration of the
headframe is at the discretion of the Contractor.
The lump sum portion of the Bid for the shaft construction and lateral
development shall
<PAGE>
7-6
include the rental cost of the headframe.
The Bid shall include a purchase price of the headframe if the Owner so
chooses at the conclusion of the Scope of Work.
7.1.9 Headframe Foundations
The design of the foundations for sinking headframe tower shall be the
responsibility of the Contractor. The headframe tower shall be supported
independently of the concrete collar as detailed by Dwg 417-SK-003. The
engineering calculations of the headframe foundations shall be submitted to
the Owner for review in regard to the design of the collar.
The design of the foundations for the headframe back legs is the
responsibility of the Contractor.
7.1.10 Shaft Collar
The design of the shaft collar has been provided by the Owner as detailed
by Dwg 417-SK-003. The concrete mix design by the Contractor is to meet as
a minimum a compressive strength of 4,000 psi at 28 days.
The Contractor shall provide all reinforcement, concrete formwork, and
concrete in accordance with applicable ASTM and ACI standards for mixing,
placing, curing, and inspection of the concrete.
The backfill around the collar must be compacted to a 90 percent standard
Proctor Density per ASTM standards. All density tests will be made by the
Contractor at his expense. The backfilling against the collar will not take
place for a minimum of seven (7) days after the structure is in place.
As the loads of the sinking headframe were not included in the design of
the collar, the headframe tower foundations will be designed to be
independent of the shaft collar. The design of the Contractor's headframe
foundations is the responsibility of the Contractor. The design of these
foundations must be submitted to the Owner for review and approval to
ensure the loads from the headframe do not compromise the collar.
The design of the temporary ground support required to allow the
construction of the collar structure is the responsibility of the
Contractor.
7.1.11 Concrete Batch Plant
The concrete batch plant and a backup source of concrete is the
responsibility of the
<PAGE>
7-7
Contractor along WITH the delivery and storage of the cement and aggregate.
The size and placement of the plant will be determined by the Contractor.
7.1.12 Shop and Changehouse
The design, supply, installation and maintenance of the temporary shop and
changehouse is the responsibility of the Contractor. The size and
placement of these facilities will be determined by the Contractor.
7.1.13 Office
The Owner will NOT provide office space for the Contractor's use. It is
the Contractor's responsibility to provide all office-related equipment and
supplies for his office.
7.1.14 First Aid and Safety Facilities
The design, supply, installation and maintenance of a first aid facility is
the responsibility of the Contractor, except for the Owner-supplied
ambulance.
The supply of all fire protection equipment is the responsibility of the
Contractor.
7.1.15 Ventilation
The Contractor is responsible for the design, supply and installation of a
ventilation system adequate for ventilating the shaft and all levels
developed as a part of the Scope of Work.
The volume of air provided must meet as a minimum all state and federal
regulations relating to dust control, gases, and to provide a safe working
environment.
7.1.16 Surface Disposal of Excavated Rock
Excavated waste rock shall be hoisted to the surface and dumped on the
ground by the Contractor at an approved location not more than 250 feet
from the shaft collar. The Owner will be responsible for removing the
material from the approved dump area.
Any ore excavated during the level development will be hoisted separate
from the waste rock and dumped at a separate location by the Contractor.
The ore dump area will be approved by the Owner and will not be any further
than 250 feet from the shaft collar.
<PAGE>
7-8
7.1.17 Incoming Electrical Power
The Owner will provide electrical power to the shaft Site at a voltage of
13.8 kV after 01 April 1996. Prior to this date, the Contractor shall
provide all the electrical power to meet his requirements. The incoming
powerline will terminate at a point within 250 ft of the shaft. The exact
location of the electrical interface between the Owner and the Contractor
will be finalized upon the award of the Agreement.
The Contractor shall supply with the Bid a summary of the anticipated
electrical required for the Scope of Work. The Owner will ensure that the
electrical power supply is sufficient for the Contractor's requirements.
The Contractor shall supply all temporary electrical switchgear,
transformers, and connections for the supply of electrical power from the
Owner's termination to the Contractor's sinking plant facilities.
The Contractor shall design layout, supply, and install the permanent shaft
power cable from the Owner's electrical drop to the shaft collar. The
permanent shaft cable will consist of a single 3c 350 MCM armored self
supporting cable with ground check/pilot wires. The cable shall be
installed in conduit with a spare conduit provided for a future power
cable. Pull boxes will be provided at the shaft and at the Owner's
electrical drop.
7.1.18 Electric Power/Lighting Cables
All surface power/lighting cables related to the hoist plant, change house,
batch plant, and Contractor's shop, shall be sized, supplied and installed
by the Contractor. The Owner does not require any permanent lighting by
the Contractor.
7.1.19 Compressed Air
The Owner will supply compressed air to within 250 ft of the shaft after 01
April 1996. Prior to this date, the Contractor shall provide all the
compressed air to meet his requirements. The exact location of the
compressed air interface between the Owner and the Contractor will be
finalized upon the award of the Agreement.
The Contractor shall design layout, supply, and install the compressed air
lines to the shaft and to the Contractor's temporary surface facilities.
The permanent compressed air line will consist of a 10" Sch 40 steel pipe
connected with Style 77 Victaulic couplings. A single butterfly valve will
be provided at the shaft collar. All pipes will be buried.
The Contractor shall supply with the Bid a summary of the anticipated
compressed air requirements for the Scope of Work. The Owner will ensure
that the compressed air supply is sufficient for the Contractor's
requirements.
<PAGE>
7-9
7.1.20 Water Supply
The Owner shall supply service water to within 250 ft of the shaft. The
exact location of the service water interface between the Owner and the
Contractor will be finalized upon the award of the Agreement.
The Contractor shall design layout, supply, and install the service water
lines to the shaft and to the Contractor's temporary surface facilities.
The permanent service water line will consist of a 4" Sch 40 steel pipe
connected with Style 77 Victaulic couplings. A single butterfly valve will
be provided at the shaft collar. All pipes will be buried.
The service water supplied by the Owner is not potable. A separate potable
water supply will be provided by the Owner to the Contractor for his
facilities.
7.1.21 Sewage Disposal
The CONTRACTOR shall supply, install, AND OPERATE A TEMPORARY sewage
disposal system FOR THE SOLE USE OF CONTRACTOR EMPLOYEES, AGENTS OR
AFFILIATES that conforms to the requirements of the local health and
environmental regulations. THE CONTRACTOR SHALL PROVIDE THIS TEMPORARY
SEWAGE DISPOSAL UNTIL APRIL 01, 1996, OR UNTIL THE OWNER'S PERMANENT SEWAGE
TREATMENT SYSTEM BECOMES AVAILABLE, WHICHEVER COMES FIRST.
The Contractor shall connect to the Owner's sewage disposal pipeline at a
distance of 250 ft from the shaft. The exact location of the sewage
disposal interface between the Owner and the Contractor will be finalized
FOLLOWING the award of the Agreement.
7.1.22 Mine Discharge Water
The Owner will connect to the 8 inch mine discharge pipe from the shaft at
a location 250 ft from the shaft collar. The exact location of the
discharge water interface between the Owner and the Contractor will be
finalized upon the award of the Agreement.
The Contractor shall design layout, supply, and install the mine discharge
water pipes from the shaft. Three 8" Sch 40 steel pipes connected with
Style 77 Victaulic couplings are to be routed from the shaft to the
interface point with the Owner. One of these pipes will be connected to
the water discharge pipe the Contractor is installing in the shaft. The
two remaining pipes will be capped at both ends and will be connected in
the future if additional discharge pipes are required in the shaft. All
pipes will be buried.
<PAGE>
7-10
7.1.23 Communication System
The Contractor shall supply a radio phone link or other alternate
communication network for off-site phone calls and fax transmittals.
The Owner does not have available telephone lines to the shaft Site, and
the installation of an upgraded telephone line is not anticipated in the
near future.
7.1.24 Explosives and Cap Storage
The Contractor shall supply and store all explosives required for the Scope
of Work. The storage facilities shall comply with all local, state, and
federal regulations as to the storage of explosives.
7.1.25 Fuel Storage
The Contractor shall supply all fuel for the required Scope of Work. The
Contractor is required to provide fuel storage facility which complies with
all local, state, and federal regulations.
<PAGE>
7-11
7.1.26 Transportation
The Contractor shall supply his personnel transportation to and from the
Owner's property and transportation around the Site AND THE SITE OF THE
WORK as required. Private vehicles belonging to the Contractor's personnel
will not be allowed on the Site OF THE WORK.
Only limited parking is available at the CONTRACTOR'S SECURITY GATE for the
parking of the Contractor's employee's private vehicles. THE PARKING AREA
AT THE OWNER'S SECURITY GATE WILL NOT BE AVAILABLE TO THE CONTRACTOR'S
EMPLOYEES FOR PARKING OF PRIVATE VEHICLES. The Owner encourages the
Contractor to provide transportation FOR HIS EMPLOYEES to the mine Site
from an offsite area at his choosing.
7.1.27 GATES
THE CONTRACTOR WILL BE PROVIDED WITH A SECURITY GATE, DESIGNED AND BUILT BY
THE OWNER, FOR THE CONTRACTOR'S USE, AND THE USE OF THE CONTRACTOR'S NON-
UNION EMPLOYEES, AGENTS, AND AFFILIATES TO ACCESS THE SITE OF THE WORK.
OWNER ACCESS TO THE SITE OF THE WORK WILL BE LIMITED TO THOSE PERSONS OR
GROUPS APPROVED, IN WRITING, BY THE OWNER'S REPRESENTATIVE. THE CONTRACTOR
WILL BE GIVEN A LIST OF OWNER'S PERSONS OR GROUPS DULY AUTHORIZED TO USE THE
CONTRACTOR'S GATE.
THE CONTRACTOR SHALL NOTIFY THE OWNER, IN WRITING, OF THE CONTRACTOR'S
INTENT TO EMPLOY ORGANIZED LABOR ON THE SITE OF THE WORK. THIS NOTIFICATION
MUST BE MADE AT LEAST TWO WEEKS PRIOR TO THE SCHEDULED ARRIVAL OF THE
ORGANIZED LABOR GROUP OR GROUPS ONTO THE SITE OF THE WORK. THE OWNER WILL
PROVIDE A "UNION GATE" FOR EACH DISTINCT ORGANIZED TRADE OR CRAFT GROUP TO
BE EMPLOYED ON THE SITE OF THE WORK. THE "UNION GATES" SHALL BE SEPARATE
FROM THE CONTRACTOR'S PRIMARY ACCESS TO THE SITE OF THE WORK.
7.2 SHAFT SINKING
7.2.1 Installation of Sinking Equipment
The Contractor shall design, supply, and install all equipment required to
sink the shaft. The supply and installation of the sinking equipment shall
include the following:
- Dump door(s)
- Dump chute(s) and retaining wall
- Crosshead(s)
- Sinking buckets
- Safety door(s)
- Sinking rope(s) and sheave(s)
- Winches
<PAGE>
7-12
- Station pumps
- Shaft bottom pumps
- Portable substations
- All necessary air and/or electrical controls and signals
7.2.2 Miscellaneous Shaft Furnishing Items
The Contractor shall design, detail, specify, supply and install the
following, at appropriate locations and/or as required:
- Water rings as per Owner's Dwg 417-SK-005
- Hanging rods for shaft concrete pours
- All shaft brackets and clamps for permanent pipes and cables as
per Owner's Dwg 417-SK-002
- All shaft brackets and clamps for Contractor's additional
services as per his requirements
7.2.3 Permanent Shaft Pipe
The Contractor shall supply all the material and brackets for the
installation of the permanent shaft pipe. The Contractor is to tie in all
shaft permanent pipe with Owner services on the surface at a distance of no
more than 250 ft from the edge of the shaft collar.
All pipe will be supplied in lengths equal to the Contractor's shaft
concrete pours, which are to be no less than 15 ft and no greater than 20
ft. Refer to Section 7.3 for details of permanent piping on shaft
stations.
- 2" Sch 40, Steel Victaulic Service Water Line for the full length
of the shaft (non-potable water, supplied and installed by
Contractor) Contractor is to include 1" service outlets evenly
spaced between shaft stations at a maximum distance apart of 150
ft and at least 100 ft from the station.
- 10" Sch 40, Steel Victaulic Compressed Air Line for the full
length of the shaft (supplied and installed by Contractor)
Contractor is to include 1" service outlets evenly spaced between
shaft stations at a maximum distance apart of 150 ft and at least
100 ft from the station.
- 2" Sch 80, Steel Class 600 Flanged Diesel Fuel Line down to the
3700 elevation level (supplied and installed by Contractor)
- 8" Sch 40, Steel Victaulic Style 77 Coupled Pump Discharge Line
down to the 4000 elevation level (supplied and installed by
Contractor)
- 8" Sch 80, Steel Victaulic Style HP70ES Coupled Pump Discharge
Line from the 4000 elevation level to the shaft bottom (supplied
and installed by Contractor)
- 8" Steel Victaulic Future Pump Discharge Line (supplied and
installed by
<PAGE>
7-13
others in the future)
- 8" Steel Victaulic Future Pump Discharge Line (supplied and
installed by others in the future)
- 6" Sch 40, Steel Victaulic Style 70 Coupled Drain Line for the
full depth of the shaft (supplied and installed by Contractor)
Contractor to include connection with each water ring installed
in the shaft.
7.2.4 Permanent Shaft Cables
The Contractor shall supply all the material and brackets for the
installation of the permanent shaft cables. The Contractor is to tie in all
shaft permanent cables with Owner services on the surface at a distance of
no more than 250 ft from the edge of the shaft collar
The Contractor is to terminate the shaft permanent electric power cable on
each level at a 15 kV selector switch provided by the Owner. From the
selector switch, the cable is extended down the shaft to the next level.
Refer to Section 7.3 for details of the electrical tie with the selector
switch.
- 15 kV Power Cable, 3c 350 MCM armored self supporting with ground
check/pilot wires for the full depth of the shaft (supplied by
and installed by Contractor)
- 15 kV Future Power Cable, 3c 350 MCM armored self supporting with
ground check/pilot wires (supplied and installed by others in
future)
- Composite Communication/Control Cable, _________________ for the
full depth of the shaft (supplied and installed by Contractor)
- Future Composite Communication/Control Cable, _______________
(supplied and installed by others in future)
7.2.5 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation of
all utilities required for shaft sinking operations over and above what has
been provided as permanent pipes and cables. Typical utilities which might
be required are ventilation ducts and a concrete slick line.
7.2.6 Shaft Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved. The
Contractor shall excavate rock by approved methods, controlling blasting
and removal of rock to avoid shattering and splitting rock beyond specified
lines.
<PAGE>
7-14
For methods of handling and using explosives, the Contractor shall conform
to the requirements of state and federal regulations as they may apply.
Loading methods shall conform to recommendations and instructions of the
manufacturer.
The minimum line of excavation is 12 inches from the finished concrete
shaft diameter of 20 ft.
No unexcavated material of any kind will be permitted to remain between the
minimum line of excavation and the shaft finished diameter. Any overbreak
from the minimum line of excavation will be backfilled with concrete at
the Contractor's expense.
The Contractor will allow the Owner to carry out geological sampling and
mapping of the shaft bottom during mucking and/or drilling cycles.
7.2.7 Temporary Ground Support
The Contractor shall design, supply and install, to the approval of the
Owner, appropriate temporary ground support in the shaft. Such ground
support may include the following:
- Mechanical rockbolts
- Splitset rockbolts
- Resin/rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner with
justification by the Contractor as to why a revised plan is required.
7.2.8 Shaft Concrete Placement
The Contractor shall provide the shaft concrete and formwork in accordance
with applicable ASTM and ACI standards for mixing, placing, curing, and
inspection of the concrete. The concrete mix design by the Contractor is
to meet as a minimum a compressive strength of 3,000 psi at 28 days.
The minimum concrete thickness of the shaft lining is 12 inches. The
removal of any material to meet this requirement will be the responsibility
of the Contractor. CONCRETE PLACEMENT TOLERANCE SHALL BE IN ACCORDANCE WITH
ACI 301 UNLESS OTHERWISE SPECIFIED HEREIN.
PLUMBNESS TOLERANCE SHALL BE +/- 1/2-INCH IN VERTICAL LINE EXTENDING FROM
THE NOMINAL LOCATION OF THE UPPER CONSTRUCTION JOINT TO THE LOWER
CONSTRUCTION JOINT.
AT THE INSERT LOCATION, THE INSIDE FACE OF THE FINAL SHAFT LINING OUT OF
ROUNDNESS
<PAGE>
7-15
TOLERANCE I +/- 1/4-INCH OF THE INSIDE SHAFT RADIUS MEASURED FROM THE
DESIGN CENTERLINE OF THE SHAFT.
THE CENTER OF THE CONSTRUCTION JOINT VERTICAL LOCATION TOLERANCE IS +/-
1/4-INCH FROM THE NOMINAL DESIGN ELEVATION.
THE CIRCUMFERENTIAL LOCATION OF THE INSERTS IS +/- 1/4-INCH FROM LOCATION
SHOWN ON THE APPROVED CONTRACTOR'S PLAN.
7.2.9 Probe Hole Drilling and Grouting
The Contractor shall drill a probe hole ahead of the shaft bottom to check
for water zones. The probe hole will be drilled in 100 ft lengths every 50
ft of shaft advance. This will ensure that there will always be at least
50 ft of probe hole ahead of the shaft bottom at all times.
At the direction of the Owner the probe hole will be drilled through a
valved standpipe so that any major water inflows from the probe hole can be
controlled if required.
If water zones are encountered the Contractor will submit a grout plan for
the Owner's approval. Owner has the option to proceed with an alternative
to the Contractor's plan.
In anticipation of grouting, the Contractor will have available a grout
plant capable of grouting a minimum 100 ft cover for the specified shaft
diameter. This plant is to include as a minimum grout pumps and mixers.
7.2.10 Shaft Construction Pumping
In anticipation of encountering water during the shaft sinking and level
development phases of the Scope of Work, the Contractor is required to
design, supply and install a pumping system capable of pumping on a
continuous basis 2000 gpm from the shaft.
The shaft design provides shaft stations at a maximum of 500 ft increments.
Any or all of these stations will be available to the Contractor to install
construction dewatering pump stations.
As required the Contractor will extend the permanent pump column into the
shaft stations to connect up with the construction dewatering pump
stations.
The Contractor will be responsible for the design, supply and installation
of all pumps between the shaft bottom as it advances and the construction
dewatering pump stations. Intermediate pumps will be required between all
water rings below the lowest construction dewatering pump station and the
pump station.
<PAGE>
7-16
The Contractor will be responsible for the supply, installation, and
maintenance of a water flow meter to monitor the discharge from the shaft
bottom. The pumping of water from the shaft bottom which includes all
water inflow below the last water ring and shaft spray, will be monitored
by the Owner.
It is the Contractor's responsibility to not allow water from the water
rings to spill over into the shaft bottom. If the water rings are not
maintained and pumped out, any adjustment to the unit cost of sinking due
to water inflows will be difficult to validate.
7.3 SHAFT STATIONS
7.3.1 Permanent Station Pipe
The Contractor shall supply all the material and brackets for the
installation of the permanent station pipe.
- 2" Sch 40, Steel Victaulic Service Water Line with valve to be
extended into each station with a 1" service drop (non-potable
water, supplied and installed by Contractor). The pipe is to be
extended to a distance of 40 ft from the shaft centerline.
- 2" Sch 40, Steel Victaulic Compressed Air Line with valve to be
extended into the 5000 and 4500 stations with a 1" service drop
(compressed air pipe, supplied and installed by Contractor). The
pipe is to be extended to a distance of 40 ft from the shaft
centerline.
- 10" Sch 40, Steel Victaulic Compressed Air Line with valve to be
extended into the 4000, 3700 and 3400 levels with a 1" service
drop (compressed air pipe, supplied and installed by Contractor).
The pipe is to be extended to a distance of 40 ft from the shaft
centerline.
- 2" Sch 80, Steel Class 600 Flanged Diesel Fuel Line to be
extended into the 3700 station to a distance of 40 ft from the
shaft centerline. (supplied and installed by Contractor).
- 8" Sch 40, Steel Victaulic Style 77 Coupled Pump Discharge Line
to be extended into the 3700 and 3400 stations to a distance of
40 ft from the shaft centerline (supplied and installed by
Contractor). The Contractor will route the pump discharge line
into stations as required to connect with their construction
dewatering pump stations during shaft sinking and level
development.
- 8" Sch 80, Steel Victaulic Style HP70ES Coupled Pump Discharge
Line from the 4000 elevation level to the shaft bottom (supplied
and installed by Contractor). The Contractor will route the pump
discharge line into stations as required to connect with their
construction dewatering pump stations during shaft sinking and
level development.
- 8" Steel Victaulic Future Pump Discharge Line (supplied and
installed by
<PAGE>
7-17
others in the future).
- 8" Steel Victaulic Future Pump Discharge Line (supplied and
installed by others in the future).
- 6" Sch 40, Steel Victaulic Style 70 Coupled Drain Line for the
full depth of the shaft (supplied and installed by Contractor).
The Contractor will route the drain line into stations as
required to connect with their construction dewatering pump
stations during shaft sinking and level development.
7.3.2 Permanent Shaft Cables
The Contractor is responsible for designing the installation for the
Owner's permanent station 15 kV selector switch, and terminating the shaft
permanent electric power cable on each level to the selector switches.
From the selector switch, the cable is extended down the shaft to the next
level.
- 15 kV Power Cable, 3c 350 MCM armored self supporting with ground
check/pilot wires at each shaft station (supplied by and installed by
Contractor).
- 15 kV Future Power Cable, 3c 350 MCM armored self supporting with
ground check/pilot wires (supplied and installed by others in future)
7.3.3 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation of
all utilities required for shaft station construction over and above what
has been provided as permanent pipes and cables.
7.3.4 Station Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved. The
Contractor shall excavate rock by approved methods, controlling blasting
and removal of rock to avoid shattering and splitting rock beyond specified
neat line detailed on the drawings.
The Contractor will allow the Owner to carry out geological sampling and
mapping of the shaft station during mucking and/or drilling cycles.
7.3.5 Temporary Ground Support
The Contractor shall design, supply and install, to the approval of the
Owner, appropriate temporary ground support in the station, station brow
and station sill. Such ground support may include the following:
- Mechanical rockbolts
<PAGE>
7-18
- Splitset rockbolts
- Resin/Rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner with
justification by the Contractor as to why a revised plan is required.
7.3.6 Station Concrete and Shotcrete Placement
The Contractor shall provide the shaft station concrete and formwork in
accordance with applicable ASTM and ACI standards for mixing, placing,
curing, and inspection of the concrete. The concrete mix design by the
Contractor is to meet as a minimum a compressive strength of 3,000 psi at
28 days.
The Contractor shall provide the shaft station shotcrete in accordance with
applicable ASTM standards for mixing, placing, curing, and inspection of
the shotcrete.
The minimum shotcrete thickness for the shaft station is three (3) inches.
All station shotcrete is to be POLYPROPYLENE-fiber-reinforced WITH A
MINIMUM COMPRESSIVE STRENGTH OF 3,000 PSI.
<PAGE>
7-19
7.4 LEVEL DEVELOPMENT
7.4.1 Permanent Level Pipe
The Contractor shall supply all the material and rib hangers for the
installation of the permanent level pipe.
- 2" Sch 40, Steel Victaulic Service Water Line for full length of
all main drifts and ramps with 1" service drop every 150 ft
(non-potable water, supplied and installed by Contractor).
- 6" Sch 40, Steel Victaulic Compressed Air Line for full length of
all main drifts and ramps except where excluded. (compressed air
pipe, supplied and installed by Contractor). A 1" service drop is
to be provided every 150 ft.
- 10" Sch 40, Steel Victaulic Compressed Air Line to extend out
from the 4000, and 3700 stations to the #2 shaft cross cut drift
from which point a 6" compressed air line is to be installed
(compressed air pipe, supplied and installed by Contractor.
7.4.2 Permanent Shaft Cables
- No permanent cables are to be extended from the shaft stations.
All electrical power cables are to be provided for the
Contractor's requirements only.
7.4.3 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation of
all utilities required for level development over and above what has been
provided as permanent pipes. All ventilation ducting and/or bag is to be
provided by the Contractor.
7.4.4 Station Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved. The
Contractor shall excavate rock by approved methods, controlling blasting
and removal of rock to avoid shattering and splitting rock beyond specified
neat lines detailed on the drawings.
The Contractor will allow the Owner to carry out geological sampling and
mapping of the laterals and ramps during mucking and/or drilling cycles.
The Contractor is to accept the direction of the Owner as to which
materials are to be handled as ore and which as waste rock, and will make
every effort to keep the ore and waste rock separate at all times.
7.4.5 Permanent Ground Support
<PAGE>
7-20
The Contractor shall design, supply and install, to the approval of the
Owner, appropriate permanent ground support in the levels and ramps. Such
ground support may include the following:
- Mechanical rockbolts
- Splitset rockbolts
- Resin/rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner with
justification by the Contractor as to why a revised plan is required.
7.5 DRAWINGS
Drawings related to the No. 1 Shaft Construction are provided on the
following pages:
Drawing # Description
------- -----------
417-SK-001 Site Plan General Arrangement
417-SK-002 Shaft Plan and Section General Arrangement
417-SK-003 Collar Typical Section
417-SK-004 5000 L & 4500 L Temporary General Arrangement
Pump Stations Plan &
Section
417-SK-005 4000 L, 3700 L, and 3400 L General Arrangement
Stations Plan
& Sections
417-SK-006 4000 Level Development Plan
417-SK-007 3700 Level Development Plan
417-SK-008 3400 Level Development Plan & Section
<PAGE>
1-1
1.0 INSTRUCTIONS TO BIDDERS
Bidders are requested to prepare a proposal for the Turquoise Ridge
Project No. 2 Shaft Construction as described in Sections 6.0 and 7.0
of this bid package.
Bidders shall inform the Owner of their intent to submit a proposal
for the Turquoise Ridge Project by close of business on 23 February
1996. The intent to submit a proposal shall be faxed to Mr. Ralph M.
Barker at (702) 635-8015.
Three (3) copies of the Bidder's proposal shall be delivered as
described in Section 1.14 before the close of business on 01 April
1996.
In order to be considered for this work as described in Sections 6.0
and 7.0, Bidder shall submit all information requested in the format
described. This is required in order to assist evaluation of the
Bidder's proposal by FirstMiss Gold Inc., hereinafter call the
"Owner." In the event the Owner's request for information appears to
be ambiguous, Bidder shall request clarification from the Owner.
The letter of invitation to bid lists the documents enclosed
therewith. It is the responsibility of the Bidder to verify, upon
receipt, that the documents listed therewith are in fact furnished as
represented and every revision number or letter shown.
If it is discovered by Bidder that a document or an attachment thereto
is not enclosed or is not furnished in the same revision form as
represented by the invitation to bid or the relevant documents, Bidder
shall promptly notify, in writing, the Owner's Representative
designated in the letter to receive proposals.
Owner desires Bidder to submit any other information considered
necessary to fully explain and/or define its proposal. Owner expects
this information in the form of bound text and drawings, if any,
explaining and showing detail data describing what is being proposed.
Owner will give full consideration to this information.
Owner will treat all information provided by the Bidder as proprietary
until released by Bidder.
Owner may amend any document issued with the invitation to bid at any
time prior to final execution of an Agreement. Owner reserves the
right to reject any and all bids, reissue this document, or decline
award to any bidder.
<PAGE>
1-2
1.1 DESCRIPTION OF THE AGREEMENT
The Contractor whose bid is accepted by Owner will enter into an
Agreement identical to the Agreement form in these bidding documents,
except to the extent changes are made to cover clarifications made by
the Contractor in its bid and accepted by Owner.
1.2 ITEMS TO BE QUOTED BY BIDDER
1.2.1 Unit Prices
Bidder shall submit unit prices where specified in Section 2.0,
Contractor's Proposal. The unit prices shall be inclusive of labor,
supervision, permanent and expendable materials, burden, overhead, and
fee. These unit prices will be extended to an anticipated lump sum
through the use of anticipated quantities shown in Section 2.0. The
work shall be completed as described in Section 6.0, Scope of Work,
and Section 7.0, Project Specifications and Drawings of this bid
package.
1.2.2 Lump Sum Prices
Bidder shall submit lump sum prices where specified in Section 2.0.
The lump sum prices shall be inclusive of labor, supervision,
permanent and expendable materials, burden, overhead and fee. The
work shall be completed as described in Section 6.0, Scope of Work and
Section 7.0, Project Specifications and Drawings.
<PAGE>
1-3
1.2.3 Additional Work
Any additional work performed to expedite the completion of the work
described in Sections 6.0 and 7.0, such as muck bays or turnouts, and
any additional work performed to meet state or federal safety
regulations, such as rock bolt testing or refuge stations, shall be
included in unit or lump sum prices specified in Section 2.0.
1.2.4 Critical Path
Critical path items shall include all work that impedes advance
specifically including ground support systems and other mine services
that require installation at the face. Noncritical path items shall
include ground support systems and other services that may be
installed behind work at the face and do not impede advance.
1.2.5 Extra Work When Unit Prices or Lump Sum Prices Are Not Applicable
Bidder shall submit labor rates to be used as the basis of
reimbursement for additional or extra work. These rates shall be
inclusive of all fringes, subsistence, pension, vacation, payroll
taxes and insurances and are to be shown in Section 2.0, Contractor's
Proposal.
Bidder shall submit a percentage markup for profit and overhead of the
cost of materials furnished, labor rates and equipment rates for
additional or extra work. This percentage markup shall be shown in
Section 2.0, Contractor's Proposal.
Bidder shall furnish in Section 2.0, Contractor's Proposal, a list of
equipment to be used on the project for extraordinary work. Hourly
rates shall be indicated for all Contractor-owned and/or rented
equipment to be used for reimbursement of extraordinary work.
<PAGE>
1-4
1.3 CONSTRUCTION METHODS
Bidder shall furnish in Section 2.0 a detailed description of the
methods it intends to use to complete the work.
1.4 CONTRACTOR'S SCHEDULE
Bidder's proposal shall include in Section 2.0 a statement of the
number of days required to commence work on the project from the time
Bidder receives notice to proceed. Time is of the essence in this
project. The proposed schedule shall include schedule of work and
manpower.
1.5 CONTRACTOR'S CONSTRUCTION EQUIPMENT
Bidder shall furnish lists of equipment available and anticipated to
be used on this project. The lists shall include the equipment brand,
year of manufacture, model number, size, and the quantity to be used
on site of each type. This information is to be entered in Section
2.0 of the Contractor's proposal.
1.6 CONTRACTOR'S BID BOND
The Bidder will be responsible for all costs, expenses, loss, damage
and liabilities incurred as a result of, or arising out of, the
invitation to bid or out of bidding.
A bid bond of $50,000 is required to be submitted with the proposal.
The Owner will hold, without interest, all bid bonds for sixty (60)
days from the closing time for receipt of bids. The Owner will hold,
without interest, the bid bond of the Selected Bidder until the Bidder
executes the Agreement and provides the required bonds.
The penal amount of the bond of the idder shall be forfeited to the
Owner, without recourse, if the Bidder does not execute the contract
or provide the required bonds. The bid bonds of the parties not
selected shall be returned upon the expiration of the 60-day period,
or when the Selected Bidder has executed the Agreement and provided
the required bonds, whichever is earlier.
<PAGE>
1-5
1.7 INFORMATION ON KEY PERSONNEL
Bidder shall furnish in Section 2.0 an organizational chart of
supervisory, technical and management personnel to be associated with
this work. The percent of time each individual will be on the job
site shall be indicated on a separate schedule referencing the
organizational chart.
1.8 RESUMES OF PERSONNEL TO BE ASSIGNED TO THIS WORK
The Bidder shall provide in Section 2.0 the names and resumes of key
supervisory, technical and management personnel to be assigned to this
work.
Owner shall approve the assignment of each individual chosen, and
Bidder shall agree to maintain the assignment as long as the
individual remains in the employ of the Bidder and shall not reassign
the individual without Owner's approval.
1.9 EXCEPTIONS
Bidder is to include in Section 2.0 a list of any exceptions taken to
any of the terms and conditions or any documents furnished.
Qualifying statements are to be included concerning Contractor's
interpretation or insertion of clauses. If there are none, the Bidder
shall state "None."
1.10 CONTRACTOR'S SETUP PLAN
The Bidder shall include in Section 2.0 a plan of the area required
for office trailer, change room, shop materials and fuel storage. Dwg
4180-12-G-4000 illustrates the approximate area available for
Contractor's surface facilities.
<PAGE>
1-6
1.11 CONDITIONS AFFECTING THE WORK
Bidder shall visit the site and take such other steps as may be
necessary to ascertain the nature and location of the work, and the
general and local conditions which can affect mobilization, materials
and supplies, and cost thereof. Bidder shall become familiar with
local labor conditions, supply and practice, and make full and
complete investigation and evaluation of any other existing conditions
and limitations.
Bidder shall read and become thoroughly familiar with the Agreement
Documents. The failure or omission of any Bidder to do any of the
foregoing shall in no way relieve the Bidder from any obligation in
respect to its Bid.
A prebid conference will be held at the project site. Bidders will be
notified by the Owner of the date, time and location of the prebid
conference, and attendance will be required.
1.12 FORM OF BID
Bids must be submitted on the attached Contractor's Proposal Form
(Section 2.0). Blank spaces and table formats are provided and must
be filled in by the Bidder. Certain schedules described in these
bidding documents must be filled in or added by the Bidder.
Contractor's Proposal form shall bear the official company name and
business address to be used in execution of the Agreement, and all
copies of the Contractor's Proposal Form and other required items must
be signed by a duly authorized officer of the Bidder.
1.13 CLARIFICATIONS AND ALTERNATIVES TO SPECIFICATIONS
Bidder shall list in the appropriate section any clarifications to
specifications or content which the Contractor wishes to have included
in the final agreement document.
If any Bidder proposes specifications which differ from those in the
bidding documents, these differences (which may be changes or
additions) shall be classified and referred to as either
"clarification" or "alternative." Clarifications are minor deviations
which would not change the scope, nature or extent of the project, and
are therefore specific and limited in their effect on the bid.
Alternatives are major deviations in the scope or specifications and
would have a broader effect on the bid.
<PAGE>
1-7
All clarifications and alternatives must be listed separately on
additional pages attached to the proposal form. The Contractor must
clearly describe each clarification or alternative and state the
reason for it.
If a Bidder lists any clarifications, including clarifications to
Agreement terms, it will be understood that its bid is submitted on
the basis of Owner accepting and agreeing to all of the
clarifications. No modification or clarification to the Request for
Proposal requirement shall be binding upon Owner or Bidder unless in
writing and made part of the Agreement.
If a Bidder lists any unsolicited alternative, it will be understood
that its Bid is being submitted on the basis of the proposal not
including the alternative. In order to enable the Owner to determine
whether to accept an alternative, the Bidder must specify the effect
on project costs and on the schedule if Owner were to accept the
alternative. If any unsolicited alternatives are accepted by the
Owner, they will be incorporated by amendment after award of the
Agreement.
1.14 SUBMITTING THE BID
A total of three (3) copies of the Bid must be received no later than
the time shown in Section 1.0. All bids must be sealed, and the
envelopes must be marked and mailed as follows:
NO. OF COPIES ADDRESS
3 FirstMiss Gold Inc.
Attention: Ralph M. Barker, P.E.
Turquoise Ridge Mine Manager
c/o Getchell Mine
28 Miles NE of Golconda, Nevada
P.O. Box 220
Golconda NV 89414
<PAGE>
1-8
1.15 REQUEST FOR ADDITIONAL INFORMATION
If any Bidder wishes additional information concerning the project or
any item contained in these bidding documents, the request for
information must be in writing and addressed to the Owner at the
address shown on the "Invitation to Bid." Owner's written response
will be provided to all Bidders.
1.16 ACCEPTANCE AND REJECTION
The Owner may make such investigations as it deems necessary to
determine the ability of the Bidder to perform the work, and the
Bidder shall furnish to the Owner all such information and data for
this purpose as the Owner may request. The Owner reserves the right
to reject any and all Bids for any reason, or if the evidence
submitted by, or investigation of, such Bidder fails to satisfy the
Owner that such Bidder is properly qualified to carry out the
obligations of the Agreement and to complete the work contemplated, or
if Bidder has failed to follow the bid proposal format.
Any Bid may be withdrawn prior to the scheduled time for the opening
of the bids or authorized postponement thereof. Any Bid received
after the time and date specified shall not be considered. The Owner
will study Bids submitted and notify the successful bidder within
thirty (30) calendar days after the date of opening.
Owner will accept a proposal only by notifying a Bidder in writing
that it accepts the Bidder's proposal. Upon such acceptance, Owner
will notify all other bidders whose proposals were not accepted.
<PAGE>
1-9
1.16.1 Award
The selected Contractor (Bidder) will be required to execute (sign)
the Agreement and return it within fourteen (14) calendar days of its
receipt, together with properly executed certificates of insurance,
payment bond and performance bond. The Owner will determine whether
the Agreement, certificates and bonds have been properly executed as
required by the Agreement documents, and upon such determination will
make award by forwarding a fully executed copy of the Agreement to the
Contractor.
1.16.2 Notice to Proceed
It is anticipated that the Notice to Proceed will be given with the
award of the Agreement. If, however, a formal Notice to Proceed is
not given within sixty (60) days after the date of acceptance of the
Bidder's proposal, then the Contractor, at its option, may declare
this Agreement null and void.
1.17 CONFIDENTIALITY
All of the provisions of the attached form of agreement concerning
disclosure and confidentiality of specifications and materials, and
concerning information obtained directly or indirectly by the
Contractor concerning the Owner's property, plans or operations, shall
be observed by each prospective Bidder from and after the date it
receives this invitation for bid and for a period of five (5) years
thereafter. Whenever a Bidder is notified that the project has been
awarded to another Bidder, the unsuccessful Bidder receiving such
notice shall promptly return to the Owner all materials included in
the bidding documents or furnished by Owner to assist in preparation
of Bids.
<PAGE>
1-10
1.18 BONDS
The successful Bidder shall furnish a performance bond and payment
bond as outlined in Section 4.0 of this document.
1.19 PERMITS
Prior to commencing the Work, Contractor shall provide Owner with
copies of all licenses, permits and authorizations required for the
Work, except as may be otherwise provided in Section 6.0.
<PAGE>
2.0 CONTRACTOR'S PROPOSAL
Refer to the Contractor's proposal Document(s).
<PAGE>
April 1, 1996
FirstMiss Gold Inc. Contact No. 96-US-0070
c/o Getchell Mine
28 Miles NE of Golconda, NV
P.O. Box 220
Golconda, Nevada 89414
Attn: Mr. Ralph M. Barker P.E.
Turquoise Ridge Mine Manager
Re: Turquoise Ridge Project
No. 2 Shaft Construction Project
Dear Mr. Barker:
In response to the February 21, 1996 Request for Proposal, Thyssen Mining is
pleased to submit for your consideration our proposal for the No. 2 Shaft
Construction Project.
We sincerely appreciate the opportunity FirstMiss Gold Inc. has given us to
submit a response. Please be assured that if Thyssen Mining is awarded this
work the project will be completed safely, on schedule and to the satisfaction
of FirstMiss Gold.
Should you have any questions regarding our submission, please feel free to
contact me.
Sincerely,
THYSSEN MINING
Jef A. Johnson
General Manager
<PAGE>
PROPOSAL
TO
FIRSTMISS GOLD INC.
TURQUOISE RIDGE
FOR
NO. 2 SHAFT CONSTRUCTION
PROJECT
BY
THYSSEN MINING
495 IDAHO STREET, SUITE 210
ELKO, NEVADA 89801
PH: (702) 738-5588
FX: (702) 738-4307
APRIL 1, 1996
<PAGE>
BID FORM
FIRSTMISS GOLD INCORPORATED
TURQUOISE RIDGE PROJECT
NO. 2 SHAFT CONSTRUCTION
To: FirstMiss Gold Inc.
Turquoise Ridge Project
c/o Getchell Mine
P.O. Box 220
Golconda NV 89414 USA
Attention: Ralph M. Barker, P.E.
Turquoise Ridge Mine Manager
I/We, Thyssen Mining Construction of Canada Ltd.
---------------------------------------------------------------------------
(Official Name of Bidder)
495 Idaho Street, Suite 210, Elko, Nevada 89801
- --------------------------------------------------------------------------------
(Business Address)
after carefully examining the Site, the Request for Proposal letter,
Instructions to Bidders, and Agreement Documents, do hereby offer to perform the
Work described for the prices stated herein, as applicable, all in accordance
with the Scope of Work, Project Specifications and Drawings provided. Any
deviations from or exceptions to specifications, drawings, terms and conditions
and/or other documents listed must be clearly defined as required in order to be
considered for Award of a Contract.
The prices herein include all applicable taxes.
The prices are firm and not subject to escalation.
<PAGE>
I/We acknowledge receipt of Addenda Nos. 1 through 1 , both
inclusive, and that their content is reflected in my/our proposal. My/our
proposal shall remain valid up to and including sixty (60) days after the bid
closing date, after which, unless accepted by FirstMiss Gold Inc. Before that
date or extended in writing by Bidder, it will be deemed withdrawn.
BY:
<PAGE>
FIRSTMISS GOLD INCORPORATED
TURQUOISE RIDGE PROJECT
NO. 2 SHAFT CONSTRUCTION
TABLE OF CONTENTS
BID FORM
METHODOLOGY
STATEMENTS
A.1 Schedule of Items and Agreement Prices
A.2 Schedule of Unit Prices for Changes in Scope of Work
B Schedule of Labor Rates
C.1 Construction of Equipment List
C.2 Schedule of Equipment Rental Rates
D Material Markup
E Subcontract
F List of Subcontractors
G Contractor's Personnel
H Union Involvement
I Contractor's Safety Record
J Agreement Schedule
K List of Exceptions, Deviations or Qualifications to Bid
L Agreement to Bond
M.1 Mobilization -- Shaft Equipment List
M.2 Mobilization -- Level Development Equipment List
N.1 Surface Plant Setup -- Equipment List
N.2 Sinking Plant Setup -- Equipment List
O No. 2 Shaft Bid Savings
CONCLUSION
<PAGE>
THYSSEN MINING BID FORM
- --------------------------------------------------------------------------------
PRICING BASIS
The Agreement Price set forth herein is firm for the duration of the Work and
includes all Contractor's costs, expenses, overhead and profit for complete
performance of the Work.
The Agreement Price is represented in U.S. dollars.
COLLUSION OR FRAUD
The Bidder declares that this Bid is made without any connection, comparison of
figures or arrangements with, or knowledge of, any other company, firm or person
making a Bid for the same Work, and this Bid is in all respects fair and without
collusion or fraud.
The Bidder further declares that no officer or employee of the Bidder is, or
will become interested directly or indirectly as a contracting party, partner,
shareholder, surety, or otherwise, in or in the performance of the Agreement or
in the supplies, Work or business to which this Bid is related, or in any
portion of the profits thereof, or in any of the benefits to be derived
therefrom.
AGREEMENT
The Bidder agrees to execute the Agreement and to provide Certificate of
Insurance and Letter of Good Standing from the Workers' Compensation Board
within 14 days of notification of the acceptance of the Bid.
The Bidder shall furnish Contract Bond(s), if required by the Owner.
CHANGES IN THE WORK
The Owner may request, and Contractor shall provide, proposals for Scope of Work
changes (additions and deletions) which are priced, at the Owner's option, by
any one or a combination of the following methods:
a. Negotiated lump sums based upon a mutually agreed Scope of Work.
b. Applicable unit process set forth in Bid Form Statement A.2, if it is
possible to fairly classify the work under the unit price items.
c. Negotiated unit prices not established in the Agreement.
d. On a "cost plus" basis or at the labor, materials and equipment rates as
set forth in Bid Form Statement B, Statement C.1, Statement D, and
Statement E.
<PAGE>
THYSSEN MINING BID FORM
- --------------------------------------------------------------------------------
BID DEPOSITS
A bid deposit in the form of a bond or certified check or equivalent of $50,000,
and made payable to FirstMiss Gold Inc. is attached hereto.
The Bidder guarantees that if this Bid is withdrawn before the Owner shall have
considered the bids, or before or after the Bidder has been notified that this
Bid has been accepted or if the Owner does not, for any reason, receive, within
fourteen (14) days after notification in writing of acceptance of this Bid, the
Agreement executed by the Bidder and the required Contract bonds executed by the
Bidder and the surety company and the other documents required herein, the Owner
may retain the bid deposit for the use of the Owner and may accept any bid,
advertise for new bids, negotiate an Agreement, or not accept any bid, as the
Owner may deem advisable.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
INTRODUCTION 1 - 3
SITE SET UP 3
SHAFT SINKING TO 5000 FT. LEVEL 3 - 5
5000 FT. LEVEL PUMP STATION 5
5000 FT. LEVEL STATION CONSTRUCTION 6
SINKING BELOW 5000 FT. LEVEL 6
4000 FT. LEVEL EXCAVATION AND CONSTRUCTION 6
3895 LOADOUT LEVEL DEVELOPMENT 7
3700 LEVEL DEVELOPMENT 7 - 8
3400 LEVEL DEVELOPMENT 8
3295 LOADOUT LEVEL DEVELOPMENT 8
COMPLETE SINKING 8 - 9
SHAFT EQUIPPING 9
SHAFT CHANGEOVER 9 - 10
COMPLETE DEVELOPMENT 10
TEARDOWN AND DEMOBILIZATION 10
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
PROJECT METHODOLOGY
INTRODUCTION
At Thyssen Mining, we believe that a number of items will distinguish this
proposal and clearly demonstrate our intent to provide top quality workmanship,
reliability and professionalism to our clients and partners.
- - Thyssen Mining is based in Elko, Nevada to best serve the needs of the
developing mines of the Western U.S. by providing complete and responsive
local service to our clients.
- - Thyssen Mining fully understands that time is of the essence in this
project and a completion schedule has been developed that is realistic and
achievable. Project methodology, personnel and project support have all
been identified to meet this schedule.
- - Thyssen Mining will use modern, well maintained equipment to minimize
delays associated with primary equipment maintenance. The use of a modern
two boom shaft jumbo with long round drilling capability is particularly
notable.
- - Thyssen Mining will pay workers an attractive wage to ensure that the best
personnel are available for the project and to minimize turnover rates.
- - Thyssen Mining proposes the use of Magnadet caps in all shaft sinking
rounds. Although more costly than other systems, Magnadets have been shown
to provide the highest level of blast security in shaft sinking operations.
- - Should Thyssen Mining be awarded this contract, Thyssen Mining engineers
will work closely with representatives of FirstMiss Gold to discuss cost
effective changes and alternatives to the defined project scope. Thyssen
Mining brings a wealth of development expertise to this project and this
expertise can be a valuable resource to First Miss Gold.
- - Thyssen Mining is committed to the prevention of accidents involving its
employees, assets and the environment and recognizes that safety is the
direct responsibility of all supervisors and hourly employees. Thyssen
Mining has a full time Safety Coordinator based in Elko to ensure
compliance with safety and training related requirements.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
The attached procedure will describe the approach to be taken by Thyssen
Mining in constructing the FirstMiss Gold Inc. No. 2 Shaft and attendant
development. The methodology will reflect the client's desire to present the
project as a stand alone tender. Thyssen Mining has also included alternates
to the tender, see Statement K, which reflect our proposal to combine some
aspects of the No. 1 Shaft construction program with some of the No. 2 Shaft
program in order to introduce efficiencies which will result in the No. 2
Shaft coming online more rapidly than might otherwise be the case. The
alternates will recognize the need to maintain the No. 1 Shaft development as
the priority.
Thyssen Mining proposes to construct the No. 2 Shaft in a manner similar to that
proposed for the No. 1 Shaft. This includes the use of Cryderman Shaft Muckers
and an electric/hydraulic shaft drill jumbo for blasthole drilling. Thyssen
Mining will install the shaft steel sets and guides after excavation operations
are completed.
Our reasons for this approach are the following:
1. By sinking the shaft open we have the opportunity to position our
bucket wells and Cryderman openings on the stage where they may be
used to their best advantage. Installation of the steel sets would
remove this flexibility. Based on the steel design included in the
Request for Proposal the bucket wells would be offset from the
shaft centerline by a considerable distance. This would cause
problems throughout the sinking phase.
2. By sinking open, the workstage may be used as a means of emergency
egress. While this is only expected to be necessary in the event
of a power failure it does eliminate the need to have an emergency
hoist or large scale standby power onsite.
3. By eliminating the steelwork from the sinking cycle it is expected
that the overall rate of advance will be faster from start to
finish. We have found that it is preferred to sink and line to
completion and then set up to equip the shaft in its entirety
rather than carry out these tasks on a concurrent basis. There is
much to be said for the benefits of repetition in both sinking and
equipping.
4. The remaining benefit is an economic one. By sinking open and
equipping at a later date the owner is able to defer the costs of
steel purchase and manufacture. This shaft steel represents a
sizeable investment which the client may well want to defer.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
This proposal takes into account that much of the support
infrastructure is in place at the No. 1 Shaft. Thyssen Mining
purposely allowed for sufficient space within the office, shop and
changehouse to support both shaft projects. As a direct result,
our setup and site establishment costs are lower than would
otherwise be expected. A full shaft sinking crew is allowed for in
the tender, with support personnel and additional supervision,
including a site manager to oversee both shafts. A second
superintendent is included to directly monitor the No. 2 Shaft
construction.
SITE SETUP
As previously mentioned, the site setup will pertain to the erection and
installation of the shaft sinking components within the headframe as well as the
construction of the sinking winch facilities. This will include the
installation of the bucket dump doors and stationary chute, dump deck, stage
winch sheave wheels, collar safety doors, crosshead chairs, jumbo monorail and
servicing nest, Cryderman winches and sheaves, and the sinking stage winches in
a separate facility outside the headframe. To complete the setup, the sinking
stage components will be lowered into the shaft and assembled, the stage winches
will be roped up and the winch ropes attached to the stage. The main sinking
ropes will be installed and the sinking hooks and crossheads will be attached to
the headropes. All airlines and electrical components will be installed in the
headframe to allow proper operation of the dump and collar doors, the crosshead
chairs and hoist limit switches. Prior to sinking the signal system will be
installed, and the hoist and signal system will be commissioned to ensure that
all interlocks and safety systems are functional.
SHAFT SINKING TO 5000 FT LEVEL
Upon completion of the headframe and hoist preparations for shaft sinking, the
actual shaft excavation will commence. This is expected to proceed on or before
November 15, 1996. All advance will take place under the cover of probeholes
drilled ahead of the face, to discover any groundwater which might cause
problems with shaft advance if not dealt with. The probeholes will be drilled
using the shaft jumbo. Sinking will start with benching operations to provide
sufficient space below the workstage to allow the use of full bottom advance.
Initial shaft benching will be carried out using hand held sinker drills.
Conventional explosives will be used with Magnadet caps to initiate the blast.
Once sufficient depth is reached to allow full bottom rounds using a burn cut,
benching methods will be terminated and full bottom rounds using the shaft jumbo
to drill blastholes will commence. Conventional explosives and Magnadets will
continue to be used to excavate the shaft.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
Broken muck will be loaded into buckets for hoisting using Brutus Shaft Muckers.
Two units will be employed due to the shaft diameter. Ground support will be
installed as required to maintain a safe working environment on the shaft
bottom.
Concrete lining will be poured in 15 foot increments. The shaft forms will be
lowered and suspended from hanging rods cast in the concrete. Shaft set and
services insets will be installed in the curb ring pour of each successive shaft
wall pour. The pours will proceed as follows:
1. After sufficient excavation has taken place the curb ring and A
ring will be detached from the B ring and lowered, using the
sinking stage, to the approximate elevation of the next wall pour.
The form hanging rods will then be installed to suspend the curb
ring and the A ring below the previous pour.
2. The forms will then be aligned, leveled and secured in position.
The alignment is carried out using plumb lines or lazers from
surface. Cable comealongs and trench bracing jacks are used to
orient and move the forms into position. Once in position, a
scribing floor, consisting of woven wire fabric (birdscreen) and
pieces of plywood, laid on top of scribing beams installed through
pockets in the curb ring, is placed to seal the curb ring to the
excavation wall. This will prevent the loss of concrete through
gaps between the wall and the curb ring. The inserts for the shaft
steel and the various wall brackets are then bolted to the A ring.
3. After the curb ring installation is complete the shaft concrete is
then lowered by bucket and poured to fill the A ring. The trench
brace jacks and comealongs are then salvaged.
4. The workstage is then raised up to pick up the remaining form
rings. Suspension slings are attached to the forms from the stage
and the stage is raised to slightly tension the slings. The key
doors on the forms are then opened from top to bottom on the
remaining form rings. Opening the last door will allow the forms
to collapse inward against the workstage. The stage and forms are
then lowered to the top A ring where they are reattached to the A
ring. The key doors are closed from bottom to top after the A ring
and B ring are bolted together.
5. The balance of the concrete is then lowered and poured up to the base of
the previous pour. Upon completion of the pour the concreting gear is sent
to surface and the shaft service lines are extended one additional length
to maintain pace with shaft advance. Shaft bottom advance will then
resume.
Shaft advance will continue in this manner until the 5000 Level station
elevation is attained. A water ring will be installed immediately above the
level station. Advance into the station will take place as the shaft advances
through the station horizon.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
5000 FT. LEVEL PUMP STATION
The 5000 Level Pump Station will be developed full size prior to resuming
sinking operations below the level. As the shaft approaches the station
elevation the excavation diameter will be increased to allow for the transition
into the full size excavation. The beveled transition will be constructed using
a combination of shaft jumbo and hand held drilling equipment to excavate the
station to desired dimensions. The station back will be drilled using the shaft
jumbo to drill horizontal blastholes across the station crown. The sloped areas
of the transition will be drilled and blasted after the shaft is opened up below
these elevations. Once these areas are opened to desired perimeter dimensions
they will be benched down with the shaft through the station excavation. Ground
support in the form of shotcrete and rockbolts will be installed as the station
is excavated to final dimensions.
The station will be developed as a top heading and bench. The station top
heading will be drilled and blasted at a sufficient height to allow the
installation of ground support. Blast muck will be slushed back to the shaft
for loading into the shaft buckets with the shaft mucking units. The successive
faces will be slushed clean and the next round drilled and blasted. Ground
support will be installed and the cycle repeated. As the top heading advances
and sufficient space becomes available a 2 cubic yard LHD unit will be lowered
to the level to speed mucking operations. The top heading will be driven to its
furthest extent from the shaft using the LHD in concert with hand held jackleg
drills.
Once the maximum lateral extent of the station is reached the shaft will be
deepened sufficiently to allow the benching of the remainder of the station.
The LHD will initially be left on the bench until sufficient space is available
on the station floor to allow it to maneuver without getting itself muckbound or
damaged by flyrock during blasting operations. Mucking back to the shaft will
initially be carried out using a slusher and scraper. The benching operation
will be done using horizontal slash holes and lifters rather than downholes.
This results in a smoother floor and minimizes flyrock damage. The benching
operation will continue to the furthest lateral extent of the pump station and
will include the electrical switch room. Upon completion of the excavation the
LHD will be removed to surface and sinking will resume.
The pump station construction will be carried out after the shaft has advanced
sufficiently to allow the curb ring and A ring to be lowered below the station
sill. The station floor will be blown clean and concreted along with the shaft
pour. All shotcrete work in the stations will be carried out concurrent with
the station excavation operations.
5000 FT. LEVEL STATION CONSTRUCTION
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
Upon completion of the station excavation phase on the 5000 ft Level, sinking
and lining operations will resume in the shaft. Full bottom advance will
continue. The construction phase in the station will take place after the shaft
lining has advanced below the 5000 ft elevation. The station floor concreting
will take place at this time along with some of the electrical installations.
The permanent power cables will be installed in the shaft from surface to the
5000 ft Level as soon as there is no danger of flyrock damaging the cables. At
that time, the shaft dewatering pump and pump box will be installed on the level
to lift shaft water to the surface. A high lift submersible pump will be used
for this purpose. Temporary brattice panels will be installed around the shaft
to prevent falling objects entering the shaft from the level. A temporary
access drawbridge will be installed at the level to allow manpower to access the
level from the shaft bucket after the workstage has passed below the level.
SINKING BELOW 5000 FT. LEVEL
Routine sinking and lining will resume after the concrete work is completed at
and immediately below the 5000 ft Level. Shaft services lines will be installed
as the shaft advances. Routine advance will continue to the 4500 ft Level Pump
Station. Station construction will then proceed as with the 5000 ft Level
Station. Upon completion of the station excavation and construction activities
shaft sinking will resume advancing the shaft to the 4000 ft. Level.
4000 FT LEVEL EXCAVATION AND CONSTRUCTION
The initial excavation of the 4000 ft. Level Shaft Station will proceed in a
manner similar to that for the temporary pump stations on 5000 ft. and 4500 ft
Levels. Adequate space will be excavated to allow the introduction of a small
drift jumbo in addition to the LHD used in the stations previously. Once this
space is available and the jumbo and LHD may be safely stored on the level
without danger of damage from flyrock, the shaft will be deepened sufficiently
to allow the workstage to be spotted at the level so that a temporary bucket
loading arrangement may be set up on the station sill to load the shaft buckets
with level development muck. The level will then be developed to its required
extent before resumption of sinking operations. The 4000 ft Level station is
not accessible from No. 1 Shaft so there is no option available to carry out
this advance other than from the No. 2 Shaft.
After completion of the drift advance and the required level construction the
LHD, the jumbo and the loading apparatus will be hoisted to surface for
servicing and storage. Shaft advance will then resume down to the elevation of
the 3895 Loading Pocket. When it is considered safe to do so, the permanent
power cables will be extended down to the 4000 ft. Level and the temporary
pumping apparatus installed to continue the dewatering system between levels.
3895 LOADOUT LEVEL DEVELOPMENT
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
As with the 4000 ft. Level Station the 3895 Loadout Level will be advanced to
its final required extent before continuing with shaft sinking operations. This
station is isolated from the other development and as such must be developed
completely from the No. 2 Shaft. By completing the development concurrent with
sinking operations no delays will be encountered during station and shaft
equipping. The previously mentioned LHD, jumbo and loading apparatus will be
used to construct the station. In this case, the loading pocket cutout on the
side of the shaft will be excavated after loadout level development is
completed. When the level excavation is complete the mining equipment will be
removed to surface for servicing and storage.
In order to complete the pocket construction, the shaft will be deepened
sufficiently below the level, along with loading pocket slashing, to allow the
curb and A ring to be suspended at the correct elevation immediately below the
base of the loading pocket. The remaining shaft forms will then be lowered on
top of the A ring and used in conjunction with conventional forming to complete
the loading pocket concrete phase of construction. By jumping the forms upward
from the base of the loading pocket to the 3895 Loadout Level sill, the loading
pocket concrete will be completed up to the level, including the required
concrete floors on the level. Normal ground support in the station will be
installed during the excavation phase.
Sinking operations will then resume to advance the shaft to the 3700 ft. Level.
3700 LEVEL DEVELOPMENT
The level development on the 3700 ft. Level will be carried out using the same
equipment as with the previous levels. For the purposes of the Proposal it is
assumed the development will be carried out from the No. 2 Shaft. The 3700 ft.
Level has the option of being developed either from the No. 1 or the No. 2
Shaft. Several efficiencies may be introduced to the overall schedule by doing
this development from the No. 1 Shaft. This will be examined in our proposed
alternatives.
The 3700 Level station will be constructed in the same manner as with the
previous levels. The station will be advanced from the shaft with slusher and
scraper haulage until an LHD can be introduced to improve muck handling. The
station and level will be expanded to allow the introduction of the jumbo. The
shaft will then be deepened sufficiently to allow the loading apparatus to be
lowered and set up on the level after the station sill has been poured. The
level will then be driven to link up with the driveage from the No. 1 Shaft.
Upon completion of the driveage on the level the mining equipment will again be
removed to surface and sinking operations will resume to the 3400 ft Level.
Ground support will be installed as advance proceeds. Temporary brattice around
the shaft along with the pump and pump box will be installed on the level. An
access drawbridge will be installed to allow manpower access to the level for
pump maintenance etc.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
3400 LEVEL DEVELOPMENT
As with the 3700 ft. Level the development on the 3400 ft. Level will be priced
as excavated from the No. 2 Shaft. The alternative excavation from No. 1 Shaft
will be examined in the proposal alternatives. The construction sequence will
proceed as on the previous station excavations. The development would proceed
after initial station excavations were completed and the mucking system was
installed on the level. The level would be driven to breakthrough at the No. 1
Crosscut from the No. 1 Shaft. All temporary facilities would be installed as
with the other level stations.
Sinking operations will then proceed to advance the shaft to the 3295 Loadout
Level.
3295 LOADOUT LEVEL DEVELOPMENT
The development of the 3295 Loadout Level will take place in a similar manner to
that of the 3895 Loadout Level. The level will be advanced to its final extent.
In addition, the ramp system to access the bottom of the NO. 2 Shaft will be
driven from the loadout level concurrent with the advance of the shaft below the
level. The tail end of the drift will be used to store ramp waste until the
shaft sinking operations are completed and the workstage can be returned to the
level to allow the loadout of the stockpiled decline muck and muck from the
remainder of the decline accessing the shaft bottom. It is imperative that
access to the shaft bottom be available to clean up spill from the skip loading
system prior to removing the shaft mucking units and returning to surface and
beginning equipping operations.
The reminder of the ramp system will be driven from the 3295 Loadout to join up
with the No. 1 Shaft bottom decline after the completion of shaft equipping
operations in the No. 2 Shaft. This will allow the contractor to utilize the
No. 2 shaft skipping system to hoist the muck from the remainder of the ramp
system.
This approach will be used for pricing the proposal but an alternate will be
included in the proposal alternates for excavation from the 3400 Level at the
No. 1 Shaft. As with the other excavations which can be accessed from the No. 1
Shaft, substantial savings in time and costs are available by excavation from
that shaft.
COMPLETE SINKING
The shaft will be completed to depth below the 3295 Loadout Level in a similar
fashion to that used at the 3895 Loadout. The pocket slash will be excavated as
the shaft is deepened. Pocket concreting will be performed from the base of the
pocket excavation up to the Loadout Level sill. Once this work has been
completed the shaft will be deepened to final depth. The workstage will be
returned to the Loadout Level to allow the completion of the decline from the
Loadout Level to the shaft bottom. The shaft mucking units will be utilized to
clean up the spillage until the decline breaks through to the shaft
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
bottom. Once the decline is broken through drifting operations will be
suspended, the shaft muckers demobilized and equipping operations will begin.
The shaft jumbo and the Cryderman winches will be demobilized at this time.
SHAFT EQUIPPING
The shaft steel will be installed after completion of sinking operations. The
shaft vent duct will be withdrawn after sinking operations are terminated and
during the time the stage is raised to surface. All permanent electrical and
signal lines are to be installed prior to the steel installations. The
permanent shaft service lines will be installed during shaft sinking. The
sinking dump arrangement will be removed from the headframe prior to equipping
operations preceding. The Cryderman sheaves and support steel will also be
removed at this time.
The shaft furnishings will be installed from the surface downward to the bottom.
The installations will include the shaft steel sets, the shaft guides and all
brattice panels. The service cage counterweight guide tube will also be
installed at this time. Installation of the steel from the surface downward
leaves the workstage available to travel below the steel, if necessary to access
the various levels. The shaft sinking buckets will be used in the service cage
compartment to lower steel components and for manpower travel.
Station sets and loading pockets will be installed as the installations progress
to and through these elevations. Upon completion of the steel installations,
the workstage will be dismantled as the final sets are installed at the shaft
bottom. Prior to final removal of the top deck and removal of the
guide/suspension ropes, the auxiliary cage must be commissioned and operational
to allow travel within the shaft after the stage is dismantled.
SHAFT CHANGEOVER
After completion of the equipping of the shaft, the remaining items used to sink
the shaft will be removed to allow the headframe to be configured for production
operations. The stage suspension ropes will be withdrawn from the shaft and
wound onto reels for shipment. The stage sheaves will be removed from the
headframe and the winches demobilized. The sinking crossheads and chairs will
be removed, the sinking headropes will be removed from the hoist, the
headsheaves will be moved to their final positions over the service cage
compartment and the counterweight guide tube and new ropes will be installed on
the cage hoist. The counterweight rope will be socketed and attached to the
counterweight which will be suspended in its guide tube. The collar safety
doors and temporary decking will be removed prior to installing the service
cage. The cage headrope will be attached to the cage and the service cage
system will then be commissioned.
<PAGE>
THYSSEN MINING PROJECT METHODOLOGY
- --------------------------------------------------------------------------------
The production hoist will then be roped up, the production skips will be hung in
place and attached to the skip hoist ropes. This system will then be
commissioned, along with the loading pockets.
COMPLETE DEVELOPMENT
Upon successful completion of the commissioning of the hoisting systems the
remainder of the ramp construction will take place using the loading pockets and
the skip hoist to remove the muck. The remaining development will require the
joining of the No. 2 Shaft Bottom Decline with the No. 1 Shaft Bottom Decline.
Once this work is completed the mining equipment will be sent to surface and
demobilized.
TEARDOWN AND DEMOBILIZATION
The demobilization of the project will take place over the final few months of
the project as the various tasks are completed and the equipment is no longer
required onsite. The final tearout will include the office and changehouse
complex, the storage containers, the batch plant, the fuel storage and the
explosives magazines. Final site cleanup to the satisfaction of the client will
complete the project.
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS
The following Statements are to be included as part of this Bid:
A.1 Schedule of Items and Agreement Prices
A.2 Schedule of Unit Prices for Changes in Scope of Work
B Schedule of Labor Rates
C.1 Construction Equipment List
C.2 Schedule of Equipment Rental Rates
D Material Markup
E Subcontract Markup
F List of Subcontractors
G Contractor's Personnel
H Union Involvement
I Contractor's Safety Record
J Agreement Schedule
K List of Exceptions, Deviations or Qualifications to Bid
L Agreement to Bond
M.1 Mobilization -- Shaft Equipment List
M.2 Mobilization -- Level Development Equipment List
N.1 Surface Plant Setup -- Equipment List
N.2 Sinking Plant Setup -- Equipment List
O No. 2 Shaft Bid Savings
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF ITEMS AND PRICES
GENERAL
The Project Specifications and Drawings and the Agreement Documents are to be
read in conjunction with this Schedule of Items and Prices.
The Schedule of Items and Prices has not been prepared in conformity with any
standard method of measurement and this preamble shall form the only method of
measurement and basis of payment applicable to this Agreement.
General instructions and descriptions of Work and materials given in the Project
Specifications and Drawings are not necessarily repeated in this Schedule of
Items and Prices. Reference is made to the Project Specifications and Drawings
for this information.
The Schedule of Items and Prices shall be the basis on which all adjustments and
variations arising out of the performance of the Work shall be measured.
Unless otherwise stated herein, all quantities will be measured for payment, net
in place, in the completed Work.
"Net" shall mean to the neat lines shown on the Drawings, specified herein, or
in the Project Specifications and Drawings, and no allowance will be made for
bulking, shrinkage, waste and offcuts, lapping or working space unless otherwise
authorized in writing by the Owner.
Each sum price shall be the full and only amount payable by the Owner to the
Contractor for the work and all things directly or indirectly required to
complete it in accordance with the Project Specifications and Drawings, such as,
but not limited to, supplying, transporting, erecting, handling, storing,
consumable items, temporary facilities, scheduling, setting out and clean-up,
and including overheads and profit.
Each item is to be measured for payment in the unit stated in the Schedule of
Items and Prices.
All Lump Sum and Unit Prices shall be fixed prices and not subject to
escalation.
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
ITEM NO. 1.1 - BONDS
ITEM NO. 1.1.1 - BONDS -- PERFORMANCE BOND
Payment shall be the tendered amounts for the costs of a 100% Performance Bond.
ITEM NO. 1.1.2 - BONDS -- LABOR AND MATERIALS BOND
Payment shall be the tendered amounts for the costs of a 100% Labor and
Materials Bond.
ITEM NO. 1.2 - MOBILIZATION
ITEM NO. 1.2.1 - MOBILIZATION -- SHAFT
Payment shall be the total tendered amount and shall be paid in full when all
temporary works including sinking equipment, temporary facilities, and personnel
required for shaft related activities have been delivered to the Site (as such
term is defined in the General Conditions). If, in the opinion of the Owner,
all items have not been mobilized to the Site, only a proportion of the Lump Sum
amount will be certified by the Owner.
Items included in mobilization are all things required for the No. 2 Shaft Work
which are not specifically supplied by the Owner, as provided in the Scope of
Work (Part 6) provisions of the Agreement Documents.
The Contractor shall include, as Statement M.1, a detailed list of equipment
which will be mobilized to Site to perform the Work.
ITEM NO. 1.2.2 - MOBILIZATION -- LEVEL DEVELOPMENT
Payment shall be the total tendered amount and shall be paid in full when all
temporary works including sinking equipment, temporary facilities, and personnel
required for level development related activities have been delivered to the
Site. If, in the opinion of the Owner, all items have not been mobilized to the
Site, only a proportion of the Lump Sum amount will be certified by the Owner.
Items included in mobilization are all things required for the level development
off the No. 2 Shaft which are not specifically supplied by the Owner, as
provided in the Scope of Work (Part 6) provisions of the Agreement Documents.
The Contractor shall include, as Statement M.2, a detailed list of equipment
which will be mobilized to Site to perform the Work.
ITEM NO. 1.3 - NO. 2 SHAFT
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
ITEM NO. 1.3.1 - SETUP SURFACE PLANT
This item shall include all temporary facilities required for Contractor's
Project Support. This includes any shop facilities, office facilities,
electrical facilities, fuel farm, etc.
The payment shall be the total tendered amount and shall be paid in full when
the surface plant facilities have been erected or installed as required. If, in
the opinion of the Owner, all items have not been installed or erected, only a
proportion of the Lump Sum amount will be certified by the Owner.
The Contractor shall include, as Statement N.1, a detailed list of equipment
which will be set up on surface as part of the Contractor's surface plant.
ITEM NO. 1.3.2 - SETUP SHAFT SINKING PLANT
This item shall include all temporary facilities required to sink the No. 2
Shaft. These would include such items as winch installations, sinking stage
installation, sinking rope installation, bucket dump arrangement, etc.
The payment shall be the total tendered amount and shall be paid in full when
all sinking facilities have been erected or installed as required. If, in the
opinion of the Owner, all items have not been installed or erected, only a
proportion of the Lump Sum amount will be certified by the Owner.
The Contractor shall include, as Statement N.2, a detailed list of equipment
which will be required as part of the shaft sinking plant.
ITEM NO. 1.3.3 - SHAFT SINKING 24 FT DIAMETER (FROM BOTTOM OF COLLAR AT 5285 FT
TO 3185 FT EL)
Shaft sinking shall include drilling, blasting, mucking, scaling, dewatering,
concrete lining, and muck disposal by hoisting to surface. Loading and haulage
of waste rock from the headframe to an agreed upon location 250 ft from the
headframe waste dump will be by the Contractor.
In the shaft, ground support will be installed at the Contractor's discretion in
order to maintain sound rock walls and a safe working environment until the
concrete lining is poured. The costs for all temporary ground support shall not
be included in the shaft sinking price. The cost of temporary ground support
will be provided by prices presented in Statement A.1, Item 2.2.
The concrete lining will be constructed in accordance with the Project
Specifications and Drawings. Bidders shall provide for a minimum 12-inch thick
lining of 3000 psi concrete.
In providing prices for shaft sinking, it shall be assumed that water inflows
range from 0 to 50 gpm. Water inflows do not include service water required for
shaft sinking. For inflows which exceed this range, prices that correspond to
measured inflows will be obtained from Statement A.2.
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
The lump sum shaft sinking price shall include installation of all shaft steel,
including permanent pipelines and moveable guides in both the shaft and
headframe, in accordance with the Project Specifications and Drawings. The
design and supply of all shaft steel and guides will be the responsibility of
the Owner. The supply and installation of permanent pipelines will be the
responsibility of the Contractor. All temporary services required to sink the
No. 2 Shaft are supplied and installed at the discretion of the Contractor and
shall be included in the lump sum price for this item. All temporary services
used for shaft sinking will be removed prior to the Contractor demobilizing from
the site.
The Contractor will be responsible for the routine design, supply and
installation of all permanent pipes in the shaft subcollar.
The Contractor will be responsible for the installation of fixed and moveable
guides in the shaft collar and shaft headframe as supplied by the Owner and in
accordance with the Project Specifications and Drawings.
The Contractor shall be responsible for the routine design, supply and
installation of permanent power and communication lines and in accordance with
the Project Specifications and Drawings. These permanent facilities may be used
by the Contractor during shaft sinking.
The Contractor shall be responsible to have a grout plant on site at all times
during sinking operations. Any grouting programs shall be approved by the Owner
prior to commencement. The prices for grouting shall be provided in writing in
Statement A.2, Item 2.3; GROUTING. Costs for grouting shall not be included in
the lump sum price for shaft sinking.
The Contractor shall be responsible to carry a probe hole from 50 ft to 100 ft
ahead of the shaft bottom at all times during sinking. The cost of this probe
hole shall be included in the lump sum cost of shaft sinking.
Two test holes have been diamond drilled near the shaft site. Rock quality data
from the log of the holes are summarized in Appendix A and Appendix B of the
Request for Proposal. Cores from all the holes are available for inspection on
site.
ITEM NOS. 1.3.4.1, 1.3.5.1, 1.3.6.1, 1.3.8.1, AND 1.3.9.1 - TEMPORARY PUMP
STATION AND SHAFT STATION EXCAVATION AND SUPPORT
Rock excavation shall include drilling, blasting, dewatering, scaling, mucking
and disposal of waste rock by hoisting to surface. Loading and haulage of rock
from the headframe to a location 250 ft from the headframe or an agreed upon
location will be by the Contractor and included in the lump sum prices.
Overbreak beyond the neat lines shall not be included in the measured advance or
volume for payment.
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
Included in the lump sum price shall be a 3-inch thick layer of fiber-reinforced
shotcrete on the ribs and back of the shaft stations and temporary pump stations
to the limits shown on the Project Specifications and Drawings. The lump sum
price shall include shotcreting to the sill of each station, across the brow of
each station, and over the walkaround of each station. The placement of fiber-
reinforced shotcrete beyond the limits shown on the Project Specifications and
Drawings, or beyond the limits described above for the lump sum price will be
paid at the unit prices provided in Statement A.1, Item 2.0. Additional
shotcreting must be approved by the Owner prior to commencing the Work.
Not included in the lump sum prices will be temporary ground support (e.g.,
rockbolts and screen). The prices presented in Statement A.1, Item 2.2 shall be
applied as the ground conditions dictate.
ITEM NOS. 1.3.4.2, 1.3.5.2, 1.3.6.2, 1.3.8.2 AND 1.3.9.2 - TEMPORARY PUMP
STATION AND SHAFT STATION CONSTRUCTION
The Contractor shall construct the temporary pump stations and shaft station in
accordance with the Project Specifications and Drawings. Included in this item
shall be the installation of all permanent piping and services as supplied by
the Owner. Floors of the shaft stations shall be concreted, with a ditch formed
near one rib.
The Contractor shall install an electrical breaker and associated electrics in
accordance with Project Specifications and Drawings. Electrical breaker is
supplied by the Owner.
The design, construction and installation of a temporary level development waste
handling system is the responsibility of the Contractor. Any costs associated
with this Work shall be included in the appropriate station construction, as
presented in Statement A.1.
ITEM NOS. 1.3.7.1 AND 1.3.10.1 - LOADOUT STATION EXCAVATION AND SUPPORT
Rock excavation shall include drilling, blasting, dewatering, scaling, mucking
and disposal of waste rock by hoisting to surface. Loading and haulage of rock
from the headframe to a location 250 ft from the headframe or an agreed upon
location will be by the Contractor and included in the lump sum prices.
Overbreak beyond the neat lines shall not be included in the measured advance or
volume for payment.
Included in the lump sum price shall be a 3-inch thick layer of fiber-reinforced
shotcrete on the ribs and back of the shaft stations and temporary pump stations
to the limits shown on the Project Specifications and Drawings. The lump sum
price shall include shotcreting to the sill of each station, across the brow of
each station, and over the walkaround of each station. The placement of fiber-
reinforced shotcrete beyond the limits shown on the Project Specifications and
Drawings, or beyond the limits described
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
above for the lump sum price will be paid at the unit prices provided in
Statement A.1, Item 2.0. Additional shotcreting must be approved by the Owner
prior to commencing the Work.
Not included in the lump sum prices will be temporary ground support (e.g.,
rockbolts and screen). The prices presented in Statement A.1, Item 2.2 shall be
applied as the ground conditions dictate.
ITEM NOS. 1.3.7.3 AND 1.3.10.3 - LOADING POCKET CONSTRUCTION
This item includes the mechanical and electrical installation of a double
loading pocket arrangement in accordance with the Project Specifications and
Drawings. The supply of the loading pocket is the responsibility of the Owner.
The loading pocket hardware will be made available to the Contractor based on an
agreed upon construction schedule.
The Contractor will be responsible to supply all construction materials required
to construct and install the loading pocket arrangement (e.g. concrete, rebar,
anchor bolts, etc.)
ITEM NO. 1.3.11 - WATER RING
This item includes the supply and installation of five (5) water rings in
accordance with the Project Specifications and Drawings. The water rings will
be cast into the shaft lining above each temporary pump station and shaft
station, with connections made to the shaft drain line.
ITEM NO. 1.3.12 - PERMANENT SHAFT SERVICES ENGINEERING
The Contractor will be responsible to provide detail engineering for the
permanent shaft services, hangers, water ring design, and connections, and power
and communication hangers. The general arrangement of these items is included
in the drawings provided.
ITEM NO. 1.3.13 - NO. 2 SHAFT CHANGEOVER
This item is for the removal of the Contractor's sinking plant (e.g. sinking
stage, crossheads, buckets, etc.), the restoration of the headframe to its
permanent condition, and the installation of following items:
- production ropes and rope attachments
- permanent sheaves
- main cage
- auxiliary cage
- skips (2)
- scroll plates
- conveyance arresting devices
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
The Contractor shall install and commission this equipment in accordance with
the Project Specifications and Drawings.
These items will be supplied by the Owner and will be made available to the
Contractor based on the agreed upon construction schedule.
ITEM NO. 1.4 - LEVEL DEVELOPMENT
ITEM NOS. 1.4.1, 1.4.2, 1.4.3, 1.4.4 AND 1.4.5 - LEVEL ACCESS DRIFT, RAMP AND
SHAFT STATION SLASHING
This part of the Work may be accessed from, and mucked via, the No. 2 Shaft.
The order, direction, equipment, mucking system and entire methodology of
development is at the Contractor's discretion, subject to the approval of the
Owner. Each Bidder is required to submit a description of the methodology
proposed for the Work in order to assist the Owner in assessing the technical
merits of the Bids.
The drifts and ramps are to be paid by the linear foot based on the lump sum
prices corresponding to the units provided in the description. Any revision to
these quantities shall be paid based on prices provided in Statement A.2.
Permanent and temporary ground support shall not be included in the lump sum
prices for these items. Prices provided in Statement A.2 will be used to
compensate the Contractor for ground support installed.
ITEM NO. 1.5 - DEMOBILIZATION
Payment shall be the total tendered amount and shall be paid in full when all
temporary items have been removed from the Work Site. If, in the opinion of the
Owner, all items have not been demobilized from the Site, only a proportion of
the Lump Sum amount will be certified by the Owner. Payment shall also include
removal of all rubbish, debris and surplus material and removal of foundations
from the Site and restoring all sites to existing grades with proper compacted
material as approved by the Owner upon completion of the Work.
ITEM NO. 2.2 - GROUND SUPPORT
This item is intended to cover ground support which may be required during level
development, shaft sinking, and shaft station excavation. Payment will be made
only for support which was considered necessary and authorized by the Owner.
<PAGE>
THYSSEN MINING STATEMENTS
- --------------------------------------------------------------------------------
OVERHEAD COSTS
Bidders should provide, on the Statement A.1 summary, the following costs:
a) The amount of overhead (as defined in Statement B) and profit which is
included in the total
estimated amount tendered,
b) the per diem fixed cost which would be incurred during a total Work
suspension, including overheads as above, standby rates on equipment, and
continued operation of temporary construction pumps and fans, and,
c) the applicable taxes which are included in the total estimated amount
tendered (provided in the form of State and local taxes).
<PAGE>
Thyssen Mining Statements
- --------------------------------------------------------------------------------
STATEMENT A.1
SCHEDULE OF ITEMS & AGREEMENT PRICES
AGREEMENT PRICE: Full compensation to Contractor for full and complete
performance by Contractor of the Work, compliance with all terms and conditions
of this Agreement, and for Contractor's payment of all obligations incurred in,
or applicable to, performance of the Work shall be determined in accordance with
the following all-inclusive prices:
1.0 LUMP SUM PRICE
Full compensation for the Lump Sum Price portion of Work as set forth in Section
6.0, Scope of Work to this Request for Proposal and designated as the "Lump Sum
Portion of Work," shall be the total Lump Sum Price of: FIFTEEN MILLION
FOURHUNDRED TWENTY FIVE THOUSAND FIVE HUNDRED SIXTY ONE
0
($15,425,561.)
- --------------------------------------------------------------------------------
The Lump Sum Price is broken down as follows:
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- --------------------
<S> <C> <C>
1.1 BONDS
1.1.1 100% Performance Bond $ 102,076
------------
1.1.2 100% Material & Labor Bond $ 102,076
------------
Subtotal $ 204,152
------------
1.2 MOBILIZATION
1.2.1 Recruiting and Move to Site, Shaft Personnel & Equipment $ 288,396
------------
1.2.2 Recruiting and Move to Site, Level Development Personnel
& Equipment $ 19,125
------------
Subtotal $ 307,521
------------
</TABLE>
<PAGE>
STATEMENT A.1 SCHEDULE OF ITEMS & AGREEMENT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- --------------------- --------------------
<S> <C> <C>
1.3 NO. 2 SHAFT
1.3.1 Setup Surface Plant $ 37,278
-----------
1.3.2 Setup Shaft Sinking Plant $ 1,306,580
-----------
1.3.3 Shaft Sinking 24' diameter from 5285' el
to 3185' el, including all temporary and
permanent services and concrete lining;
assuming inflows of 0-50 gpm (2100.0 ft) $ 6,577,967
-----------
1.3.4 5000 L Temporary Pump Level
1.3.4.1 Station Excavation and Support (1800 cu yd) $ 305,572
-----------
1.3.4.2 Station Construction $ 105,906
-----------
1.3.5 4500 L Temporary Pump Level
1.3.5.1 Station Excavation and Support (1800 cu yd) $ 305,572
-----------
1.3.5.2 Station Construction $ 105,906
-----------
1.3.6 4000 L Shaft Station
1.3.6.1 Station Excavation and Support (925 cu yd) $ 160,971
-----------
1.3.6.2 Station Construction $ 109,444
-----------
1.3.7 3895 L Loadout Station
1.3.7.1 Station and Pocket Excavation and Support (1835 cu yd) $ 310,235
-----------
1.3.7.2 Station Construction $ 43,398
-----------
1.3.7.3 Loading Pocket Construction $ 327,318
-----------
1.3.8 3700 L Shaft Station
1.3.8.1 Station Excavation and Support (925 cu yd) $ 160,971
-----------
1.3.8.2 Station Construction $ 115,340
-----------
1.3.9 3400 L Shaft Station
1.3.9.1 Station Excavation and Support (925 cu yd) $ 160,971
-----------
1.3.9.2 Station Construction $ 115,340
-----------
</TABLE>
<PAGE>
STATEMENT A.1 SCHEDULE OF ITEMS & AGREEMENT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- --------------------
<S> <C> <C>
1.3.10 3295 L Loadout Station
1.3.10.1 Station and Pocket Excavation and Support (1835 cu yd) $ 310,235
-----------
1.3.10.2 Station Construction $ 43,398
-----------
1.3.10.3 Loading Pocket Construction $ 327,318
-----------
1.3.11 Water Rings (5) -- Supply and Install $ 61,953
-----------
-----------
-----------
1.3.12 Permanent Shaft Services Engineering $ 4,500
-----------
-----------
1.3.13 No. 2 Shaft Changeover $ 235,508
-----------
Subtotal $11,231,681
-----------
1.4 LEVEL DEVELOPMENT
(inclusive of mucking and all service installations)
1.4.1 4000 Level
1.4.1.1 No. 1 Crosscut (15'x15'x160') $ 200,019
-----------
-----------
1.4.1.2 Shaft Station Slashing (320 cu yd) $ 68,622
-----------
1.4.2 3895 Level
1.4.2.1 Loadout Drift (15'x15'x251') $ 318,126
-----------
1.4.3 3700 Level
1.4.3.1 No. 1 Crosscut (15'x15'x284') $ 330,341
-----------
1.4.3.2 Shaft Station Slashing (320 cu yd) $ 69,256
-----------
1.4.4 3400 Level
1.4.4.1 No. 1 Crosscut (15'x15'x810') $ 779,874
-----------
-----------
1.4.4.2 Ramp to Shaft Bottom (12'x12'x1451') $ 1,363,075
-----------
1.4.4.3 Shaft Station Slashing (320 cu yd) $ 68,622
-----------
-----------
1.4.5 3295 Level
1.4.5.1 Loadout Drift (15'x15'x251') $ 318,126
-----------
Subtotal $ 3,516,061
-----------
</TABLE>
<PAGE>
STATEMENT A.1 SCHEDULE OF ITEMS & AGREEMENT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item No. Description Lump Sum Price (US$)
- -------- ----------- --------------------
<S> <C> <C>
1.5 DEMOBILIZATION
1.5.1 Teardown Surface Plant & Cleanup $ 101,636
----------
1.5.2 Demobilize Equipment and Personnel $ 64,510
----------
Subtotal $ 166,146
----------
</TABLE>
<PAGE>
STATEMENT A.1 SCHEDULE OF ITEMS & AGREEMENT PRICES (Cont'd)
SUMMARY OF LUMP SUM PRICES
<TABLE>
<CAPTION>
Estimated
Item No. Description Amount (US$)
- -------- ----------- ------------
<S> <C> <C>
1.1 BONDS $ 204,152
------------
1.2 MOBILIZATION $ 307,521
------------
1.3 NO. 2 SHAFT $ 11,231,681
------------
1.4 LEVEL DEVELOPMENT $ 3,516,061
------------
1.5 DEMOBILIZATION $ 166,146
------------
TOTAL ESTIMATED AMOUNT $ 15,425,561
------------
------------
a) Overhead and Profit included in the above amount $ 1,582,996
------------
------------
b) Per diem Fixed Cost during an unplanned work stoppage $ 5929 /day
------------
------------
c) Total taxes included in the above amount:
State $ 0
------------
------------
Local $ 256,547
------------
------------
</TABLE>
<PAGE>
2.0 UNIT PRICES
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES
<TABLE>
<CAPTION>
Total
Item Unit Price
No. Description Unit (US$)
- ---- ----------- ---- ----------
<S> <C> <C> <C> <C> <C>
2.1 WASTE HAULING
0' to 1500' cu yd $ 2.62
----------
1501' to 3000' cu yd $ 4.35
----------
3001' to 5000' cu yd $ 5.72
----------
2.2 GROUND SUPPORT Shaft Sinking Level Development
(supply & install) (supply & install)
2.2.1 Mechanical Rockbolts (incl. 6"X6" plate) Critical Non Critical
5/8" x 5' ea $ 34.20 $ 41.60 $ 21.00
------- ------- -------
5/8" x 6' ea $ 35.10 $ 42.60 $ 22.00
------- ------- -------
5/8" x 7' ea $ 41.20 $ 48.60 $ 28.00
------- ------- -------
5/8" x 8' ea $ 42.80 $ 50.20 $ 29.50
------- ------- -------
2.2.2 Resin / Rebar (threaded incl. 6"X6" plate)
3/4" x 5' ea $ 45.70 $ 53.20 $ 32.50
------- ------- -------
3/4" x 6' ea $ 49.00 $ 56.40 $ 35.70
------- ------- -------
3/4" x 7' ea $ 57.20 $ 64.60 $ 43.90
------- ------- -------
3/4" x 8' ea $ 59.60 $ 67.00 $ 46.40
------- ------- -------
3/4" x 10' ea $ 79.30 $ 86.80 $ 66.10
------- ------- -------
2.2.3 Resin / Rebar (forged incl. 6"x6" plate)
3/4" x 5' ea $ 48.10 $ 55.50 $ 34.80
------- ------- -------
3/4" x 6' ea $ 50.50 $ 58.00 $ 37.30
------- ------- -------
3/4" x 7' ea $ 59.00 $ 66.50 $ 45.80
------- ------- -------
3/4" x 8' ea $ 61.50 $ 68.90 $ 48.20
------- ------- -------
3/4" x 10' ea $ 81.90 $ 89.30 $ 68.60
------- ------- -------
</TABLE>
<PAGE>
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES (Cont'd)
<TABLE>
<CAPTION>
Total
Item Unit Price
No. Description Unit (US$)
- ---- ----------- ---- ----------
<S> <C> <C> <C> <C>
2.2 GROUND SUPPORT Shaft Sinking Level Development
(cont'd) (supply & install) (supply & install)
2.2.4 Split Set
-Registered Trademark-
Bolts Critical Non Critical
5' ea $ 36.00 $ 43.50 $ 22.80
------- ------- -------
6' ea $ 39.20 $ 46.70 $ 26.00
------- ------- -------
7' ea $ 43.60 $ 51.00 $ 30.40
------- ------- -------
8' ea $ 45.50 $ 52.90 $ 32.20
------- ------- -------
2.2.5 Swellex
-Registered Trademark-
Bolts
5' ea $ 47.50 $ 57.70 $ 37.00
------- ------- -------
6' ea $ 52.10 $ 59.60 $ 38.90
------- ------- -------
7' ea $ 58.50 $ 69.10 $ 48.40
------- ------- -------
8' ea $ 64.00 $ 71.70 $ 51.00
------- ------- -------
2.2.6 Screen
No.6 Welded
Wire (4"x4") ft(2) $ 2.10 $ 2.65 $ 2.10
------- ------- -------
No.9 Chain Link
(2"x2") ft(2) $ 1.92 $ 2.53 $ 1.98
------- ------- -------
2.2.7 Shotcrete (3" thick)
Fiber Reinforced ft(2) $ 4.80 $ 4.75 $ 4.28
------- ------- -------
Non Reinforced ft(2) $ 4.43 $ 4.38 $ 3.91
------- ------- -------
2.2.8 Mats
4' ea $ 18.25 $ 28.35 $ 18.25
------- ------- -------
------- ------- -------
6' ea $ 20.35 $ 30.60 $ 20.35
------- ------- -------
------- ------- -------
9' ea $ 23.65 $ 33.90 $ 23.65
------- ------- -------
</TABLE>
<PAGE>
STATEMENT A.1
SCHEDULE OF ITEMS & UNIT PRICES (Cont'd)
<TABLE>
<CAPTION>
Item
No. Description Unit
- ---- ----------- ----
<S> <C> <C> <C>
2.3 GROUTING Shaft Sinking Level Development
(supply & install) (supply & install)
*2.3.1 Drilling drilled ft $ 6.30 $ 5.40
--------- ---------
2.3.2 Setup/Teardown ea $ 285.00 $ 227.00
--------- ---------
2.3.3 Packer Installation ea $ 855.00 $ 680.00
--------- ---------
**2.3.4 Bag Pumped ea $ 67.00 $ 2.4
--------- ---------
SLASHING cu yd $ 135.00 $ 86.00
--------- ---------
***2.5 PROBE HOLE drilled ft Not Applicable
DRILLING $ 5.40
---------
</TABLE>
* Based on 2 Booms Drilling
** Based on 8 Bags/hour Injection Rate
Please see Statement K. Re: Grouting
*** Drilling Only - Setup and Teardown not Included
- Add Setups and Teardowns per 2.3.2
<PAGE>
STATEMENT A.2
SCHEDULE OF UNIT PRICES FOR CHANGES IN SCOPE OF WORK
The following are prices for additions or deletions to the Work which may be
required at the option of the Owner. All prices for additions to the Work shall
be full compensation to the Contractor for full and complete performance of the
additional work. All prices for deletions from the Work shall be full credit to
the Owner for the deletion. Any changes to the scope of work on a unit price
basis shall be supplied and installed in accordance with the specifications and
drawings. Any equipment and material supplied by the Owner as indicated in the
Scope of Work shall be reflected in the unit price.
All pricing shall be inclusive of mucking and all services installations (air,
water and power) shall be exclusive of waste hauling.
Owner reserves the right to delete, in their entirety, any number of pay items
and obtain 100% full bid credit to a maximum of 10% of the total Agreement lump
sum award value.
<TABLE>
<CAPTION>
Add-On Deduct
Item No. Description Unit Unit Price (US$) Unit Price (US$)
- -------- ----------- ---- ---------------- ----------------
<S> <C> <C> <C> <C>
1.1 BONDS
1.1.1 100% Performance Bond Not Applicable
1.1.2 100% Materials & Labor Bond Not Applicable
1.2 MOBILIZATION
1.2.1 Recruiting & Move to Site, Shaft
Personnel & Equipment Not Applicable
1.3 NO. 2 SHAFT
1.3.1 Setup Surface Plant Not Applicable
1.3.2 Setup Shaft Sinking Plant Not Applicable
</TABLE>
<PAGE>
STATEMENT A.2 -- SCHEDULE OF UNIT PRICES FOR CHANGES IN SCOPE OF WORK
<TABLE>
<CAPTION>
Add-On Deduct
Item No. Description Unit Unit Price (US$) Unit Price (US$)
- -------- ----------- ---- ---------------- ----------------
<S> <C> <C> <C> <C>
1.3.3 Shaft Sinking 24' diameter
from to 5285' el to 3185' el,
including all temporary and
permanent services and
concrete lining:
0-50 gpm inflow Lin ft $ 3133.00 $ 2663
---------- --------
51-75 gpm inflow Lin ft $ 3290.00 $ 2797
---------- --------
76-100 gpm inflow Lin ft $ 3487.00 $ 2964
---------- --------
101-150 gpm inflow Lin ft $ 3731.00 $ 3171
---------- --------
1.3.4 5000 L Temporary Pump Level
1.3.4.1 Station Exc. & Support cu yd $ 170 $ 145
---------- --------
1.3.4.2 Station Construction Not Applicable
1.3.5 4500 L Temporary Pump Level
1.3.5.1 Station Exc. & Support cu yd $ 170 $ 145
---------- --------
1.3.5.2 Station Construction Not Applicable
1.3.6 4000 L Shaft Station
1.3.6.1 Station Exc. & Support cu yd $ 174 $ 148
---------- --------
---------- --------
1.3.6.2 Station Construction Not Applicable
1.3.7 3895 L Loadout Station
1.3.7.1 Station and Pocket
Excavation & Support cu yd $ 169 $ 144
---------- --------
1.3.7.2 Station Construction Not Applicable
1.3.7.3 Loading Pocket Construction Not Applicable
1.3.8 3700 L Shaft Station
1.3.8.1 Station Exc. & Support cu yd $ 174 $ 148
---------- --------
1.3.8.2 Station Construction Not Applicable
1.3.9 3400 L Shaft Station
1.3.9.1 Station Exc. & Support cu yd $ 174 $ 148
---------- --------
1.3.9.2 Station Construction Not Applicable
</TABLE>
<PAGE>
STATEMENT A.2 -- SCHEDULE OF UNIT PRICES FOR CHANGES IN SCOPE OF WORK
(Cont'd)
<TABLE>
<CAPTION>
Add-On Deduct
Item No. Description Unit Unit Price (US$) Unit Price (US$)
- -------- ----------- ---- ---------------- ----------------
<S> <C> <C> <C> <C>
1.3.10 3295 L Loadout Station
1.3.10.1 Station and Pocket
Excavation & Support cu yd $ 169 $ 144
---------- ----------
1.3.10.2 Station Construction Not Applicable
1.3.10.3 Loading Pocket Construction Not Applicable
1.3.11 Water Rings
(supply & install) ea $ 12391 $ 10532
---------- ----------
1.3.12 Permanent Shaft Services
Engineering Not Applicable
1.3.13 No. 2 Shaft Changeover Not Applicable
1.4 LEVEL DEVELOPMENT
1.4.1 4000 Level
1.4.1.1 No. 1 Crosscut (15'x15') Lin ft $ 1,251 $ 1062
---------- ----------
---------- ----------
1.4.1.2 Shaft Station Slashing cu yd $ 215 $ 183
---------- ----------
1.4.2 3895 Level
1.4.2.1 Loadout Drift (15'x15') Lin ft $ 1,267 $ 1076
1.4.3 3700 Level
1.4.3.1 No. 1 Crosscut (15'x15') Lin ft $ 1164 $ 990
---------- ----------
1.4.3.2 Shaft Station Slashing cu yd $ 217 $ 185
---------- ----------
1.4.4 3400 Level
1.4.4.1 No. 1 Crosscut (15'x15') Lin ft $ 963 $ 819
---------- ----------
1.4.4.2 Ramp to Shaft Bottom
(12'x12') Lin ft $ 940 $ 799
----------
1.4.4.3 Shaft Station Slashing cu yd $ 215 $ 183
---------- ----------
</TABLE>
<PAGE>
STATEMENT A.2 -- SCHEDULE OF UNIT PRICES FOR CHANGES IN SCOPE OF WORK
(Cont'd)
<TABLE>
<CAPTION>
Add-On Deduct
Item No. Description Unit Unit Price (US$) Unit Price (US$)
- -------- ----------- ---- ---------------- ----------------
<S> <C> <C> <C> <C>
1.4.5 3295 Level
1.4.5.1 Loadout Drift (15'x15') Lin ft $ 1268 $ 1078
---------- ----------
1.5 DEMOBILIZATION
1.5.1 Teardown Surface Plan
& Cleanup Not Applicable
1.5.2 Demobilize Equipment
& Personnel Not Applicable
</TABLE>
<PAGE>
STATEMENT B
SCHEDULE OF LABOR RATES
1. VACATION: Includes vacations, statutory holidays, sick and other leave
with pay.
2. ALLOWANCES: Includes workers' compensation, unemployment insurance, and
other taxes and insurances measured by payroll, established employee
benefits such as pension, health and life insurances, bonus programs, union
assessments (if any), training funds and industry and administration funds.
3. SMALL TOOLS: Replacement value of less than $1,000.
EXPENDABLES: Consumable items not forming part of the permanent work.
4. OVERHEAD AND PROFIT: Calculated on the base rate. Overhead includes:
- On-site supervisory personnel above the level of General Foreman.
- Outside support personnel such as clerks, estimators, timekeepers,
secretarial staff, purchasing, warehouse personnel and project
manager.
- On-site facilities and office expenses.
- General home office overhead.
5. ALL INCLUSIVE RATE: Based on 40 hours per week on three shifts.
6. OVERTIME (for hours worked in excess of 40 hrs per week): The overtime
rate per hour shall be limited to the actual cost to Contractor of the
premium portion only of all applicable wages, craft fringe benefits and
payroll burdens imposed by any governmental authority and measured by the
compensation payable to employees. To establish the amount of payment,
Contractor shall submit supporting documents satisfactory in form and
content to Owner for its verification and approval. (If only one overtime
rate is shown, it shall be applicable for all overtime hours.)
Labor Rates entered in rate. Statement B shall be based on labor
agreements (if any), and rates in effect on the effective date of the
Agreement unless otherwise noted. The quoted labor rates may be adjusted
as approved by Owner to reflect subsequent changes in labor agreements or
rates if applicable.
7. No Charges will be accepted by Owner for labor not listed in Statement B.
8. Contractor shall not invoice for field staff/supervisory personnel assigned
to a change in the Scope of Work if the change does not extend the time
such personnel are required on site by the original Scope of Work.
<PAGE>
STATEMENT B
ALL INCLUSIVE LABOR RATES (per hour)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Small Tools Calculated All Inclusive All Inclusive
Trade or Base and on Base Rate Rate Overtime Rate
Classification Rate Vacation Allowances Expendables Subtotal Overhead Profit Based on 40 hour Time & Double
work week Half Time
(1) (2) (3) (1)+(2)+(3)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Leader 24.22 0.89 8.52 2.50 36.13 1.21 2.42 39.73 53.70 67.62
Cryderman 23.90 0.88 8.52 2.50 35.80 1.20 2.40 39.40 53.12 66.87
Operator
Shaftman 23.25 0.86 8.52 2.50 35.13 1.16 2.32 38.61 51.98 65.38
Hoistman 23.25 0.86 7.27 2.50 33.88 1.16 2.32 37.36 50.73 64.13
Top Lander 21.32 0.79 7.27 2.50 31.88 1.07 2.14 35.09 47.33 59.58
Mechanic 23.25 0.86 7.27 2.50 33.88 1.16 2.32 37.36 50.73 64.13
Electrician 23.25 0.86 7.27 2.50 33.88 1.16 2.32 37.36 50.73 64.13
ELECTRICAL
Apprentice 15.82 0.89 9.00 0.36 22.07 6.78 2.65 35.50 47.50 67.00
Journeyman 17.60 0.99 9.00 0.40 23.99 7.56 2.95 39.50 42.00 73.00
Foreman 20.28 1.15 9.00 0.46 26.89 8.71 3.40 43.00 59.00 82.00
Superintendent 23.27 1.31 9.00 0.53 30.20 9.90 3.90 48.00 65.50 92.00
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
NOTE: THE OVERHEAD (5%) AND PROFIT (10%) IS CALCULATED
UTILIZING THE "BASE RATE".
<PAGE>
STATEMENT C.1
CONSTRUCTION EQUIPMENT LIST
The following lists equipment that shall be provided for the Work by the
Contractor.
Should the equipment listed be found to be inadequate, unsuitable or
unsatisfactory in any other way during the course of the Work, then adequate
suitable satisfactory equipment shall be promptly provided by the Contractor,
without additional payment.
<TABLE>
<CAPTION>
ITEM SIZE/
NO. QTY DESCRIPTION MAKE MODEL CAPACITY OWNERSHIP YEAR
- --- --- ----------- ---- ----- -------- --------- ----
<S> <C> <C> <C> <C> <C> <C> <C>
1 1 Shaft Jumbo Tamrock SDRH 205T Thyssen 1993
2 2 Muckers Cryderman Brutis Thyssen New
3 2 Cross Heads O.J. Industries Site Specific Thyssen New
4 Buckets O.J. Industries Site Specific 160 ft(3) Thyssen New
5 Forms O.J. Industries Site Specific Thyssen New
6 1 Work Stage O.J. Industries Site Specific Thyssen New
7 4 Galloway Winches 20 ton Thyssen
8 1 Loader/Fork Lift Caterpillar 950 Thyssen
9 1 Standby Generator 250 KW Rental
10 Fans As required Thyssen
11 2 Main Pumps Flygt 140 hp Thyssen
12 2 Cryderman Winches Thyssen
13 2 Bottom Pumps Flygt 13 hp Thyssen
14 1 Crane or Boom Truck As req'd Rental
15 4 Sideline Winches Thyssen
16 2 Concrete Buckets 3 yd(3) Thyssen
17 4 Dump and Collar Doors Site Specific Thyssen
18 2 2 Boom Jumbos Tamrock H206/H206 Thyssen 1993
19 2 LHD Units Tamrock EJC ECJ 210 6yd(3) Thyssen 1993/
1991
20 2 Scissor Lifts Dux SLHD Thyssen 1981
21 2 Trucks Tamrock-EJC JDT 416 16 ton Thyssen 1994
22 Tamrock-EJC JDT 415 Thyssen 1988
23 2 Shotcrete Machines Aleva Thyssen
24 2 Small LHD's Eimco 913 3 yd(3) Thyssen
Tamrock-EJC EJC 130 3 yd(3) Thyssen
25 2 3 drum Slushers
26 as req'd Jacklegs & Stopers Secan
27 as req'd Sinkers
28 6 Air Tuggers 10 hp
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
29 3 Personnel Vans
30 3 Pickup Trucks
31 1 Flatbed Truck
</TABLE>
PROVISION OF EQUIPMENT, MATERIALS AND SERVICES
Thyssen Mining will provide equipment, materials and tools necessary to
effectively perform the work as outlined. A list of the major equipment planned
for use on the FirstMiss Project is shown above. Provision of the equipment
includes insurance, major overhaul allowance, fuel, lubricants, tire wear,
maintenance parts, and other costs incidental to the operation of the equipment.
In general the equipment fleet is relatively new with improved systems
incorporated into mature gear as it is reconditioned.
Thyssen Mining endeavors to operate within a controlled preventative maintenance
program. In between projects, and prior to being mobilized, each piece of
company owned equipment is reviewed and reconditioned as necessary. These two
functions provide the project with maximum equipment availability.
Equipment leased will be new or in "like new" condition. During operation this
equipment is placed on the same maintenance schedule as the contractor's. In
general, it is Thyssen's policy to provide adequate back up equipment to avoid
production down time due to equipment failure.
<PAGE>
STATEMENT C.2
SCHEDULE OF EQUIPMENT RENTAL RATES
Contractor proposes the following equipment rental rates shall apply, in the
event the equipment is used for additional Work performed on a cost plus basis.
The Item Nos. correspond with the Item Nos. in the Construction Equipment List
(Statement C.1).
Rental rates for equipment not included below and not owned by Contractor shall
not exceed 110% of acceptable published rental rates.
The applicable double shift rate shall apply to equipment, such as generators,
lighting plants, pumps, heaters, etc., which is used continuously.
<TABLE>
<CAPTION>
Working Rate per
------------------------------------------------------------------------------------------
Item No. Hour Day Week Month Standby/Month
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1* ea $ 188.00 $ 1,505.00 $ 7,530.00 $ 22,600.00 $ 10,000.00
2 ea 25.00 200.00 1,000.00 3,000.00 3,000.00
3 NO CHARGE
4 NO CHARGE
5 NO CHARGE
6 NO CHARGE
7 ea 9.00 70.00 340.00 1,030.00 1,000.00
8 90.00 720.00 3,248.00 12,800.00 4,400.00
9 81.00 645.00 3,230.00 9,700.00 6,100.00
10 ea 2.00 15.00 70.00 200.00 200.00
11 ea 22.00 175.00 880.00 2,650.00 1,500.00
12 9.00 70.00 340.00 1,030.00 1,000.00
13 18.00 140.00 710.00 2,120.00 400.00
14 OUTSIDE RENTAL + 8.5%
15 NO CHARGE
16 NO CHARGE
17 NO CHARGE
18*ea 170.00 1,360.00 6,800.00 20,400.00 9,000.00
19 ea 127.00 1,015.00 5,070.00 15,210.00 9,000.00
20 ea 25.00 195.00 980.00 2,940.00 1,500.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Working Rate per
Item No. Hour Day Week Month Standby/Month
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
21 ea $ 102.00 $ 815.00 $ 4,070.00 $ 12,200.00 $ 8,000.00
22 ea 102.00 815.00 4,070.00 12,200.00 8,000.00
23 ea 51.00 405.00 2,030.00 6,100.00 2,500.00
24 ea 85.00 680.00 3,400.00 10,200.00 6,000.00
25 ea 9.00 75.00 370.00 1,100.00 500.00
26 ea 32.00 255.00 1,280.00 3,850.00 250.00
27 ea 32.00 255.00 1,280.00 3,850.00 250.00
28 ea 5.00 35.00 180.00 550.00 250.00
29 ea 26.00 210.00 1,050.00 3,160.00 1,000.00
30 ea 26.00 210.00 1,050.00 3,160.00 1,000.00
31 ea 40.00 320.00 1,610.00 4,820.00 500.00
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* add $0.80 per foot drilled to allow for bit and steel costs.
<PAGE>
STATEMENT C.2 (Cont'd)
1. The equipment rental rates, as tabulated, shall apply for Work performed by
Contractor as specifically authorized by the Owner in accordance with the
terms and conditions of the Agreement.
2. Only equipment having a capital cost, or replacement value, of $1,000 or
more is chargeable.
3. Equipment rental rates shall be inclusive of:
- Fuels, lubricants, expendables and consumables
- Support equipment
- Depreciation, interest, and overhead
- Obsolescence, corrosion, storage and painting
- Overhaul and major repairs
- Normal wear and tear
- Damage by misuse
- Minor field preventive maintenance
- Special maintenance tools
- All necessary insurances, licenses and taxes
- Loss or damage due to fire or other casualty
4. Equipment rental rates do not include:
- Operators
- Maintenance Labor
5. If the equipment is not available on Site, approval by the Owner is
required before such equipment is brought onto Site.
6. The Owner shall pay rental for the actual rental period, and on the
following basis:
- At established hourly, daily, weekly or monthly rental rates.
- The rental rates stipulated shall apply when the number of hours the
equipment is operated does not exceed 175 hours in any one month, or
does not exceed 40 hours in any one week, or does not exceed 8 hours
in any one day. If operated in excess of these stated maximums, the
charge for the excess will be at 66-2/3% of applicable rental rates.
7. Where equipment is subcontracted from another Contractor, leasing company
or third party, the applicable rate charged will be Cost Plus 8 1/2 %.
8. Contractor shall be responsible for delivery to Site and return to rental
source of all equipment used.
9. All rental rates shall be firm for the duration of the Agreement.
<PAGE>
STATEMENT C.2 (Cont'd)
10. Standby rates for motorized equipment shall not be 100% as the working
rates for these items include allowance for fuel consumption, lubricants,
wear and tear, etc. The standby rates shall be expressed as a percentage
(%) of the equipment working rate. Neither the standby rate, working rate,
nor operator will be payable while the equipment is being serviced/
maintained/ repaired and/or when the equipment is otherwise neither working
nor ready to work. Standby rates will not be payable outside the normal
working hours stated herein, except when and to the extent specifically
requested by the Owner in each instance.
11. If an item of equipment is on Site for a longer period than three months,
the rental rate for that equipment will automatically reduce to the lower
rate applicable to monthly long term. Rental rates will then become
retroactive to the date the equipment was first brought onto Site. Monthly
short term shall mean a rental period of up to three months. Monthly long
term shall mean a rental period of over three months.
12. All equipment is subject to the Owner's review, with respect to condition,
safe operation and suitability.
13. Any equipment supplied by Subcontractors of the Contractor shall be subject
to the above conditions, including those relating to percentage markup on
equipment.
<PAGE>
STATEMENT D
MATERIAL MARKUP
Contractor shall supply material as authorized by the Owner at:
Actual Cost to Contractor as supported by invoices showing applicable
quantities, discounts, taxes, etc.
Plus 8 1/2% to cover all cost of handling, profit, etc.
-------
MATERIALS
Compensation to Contractor for materials supplied by Contractor for
incorporation into the permanent facility (excluding consumables, expendables,
and small tools which cost Contractor less than $1,000 per item) shall be of
actual invoiced cost to Contractor (exclusive of tax), including transportation
to site, as substantiated by invoices certified "paid" or by such documentation
as may be required by Owner, plus a markup, for all profit and overhead expense
of Contractor thereon.
Owner reserves the right to provide, at no cost to Contractor, materials,
equipment, services, supplies or incidentals required to perform the Work. All
refunds, trade discounts, rebates on materials, equipment, supplies and
services, and all moneys obtained from the disposal of surplus materials,
equipment or supplies shall accrue to the Owner.
<PAGE>
STATEMENT E
SUBCONTRACT MARKUP
Contractor shall subcontract work as authorized by the Owner at:
Actual Cost to Contractor, as supported by invoices showing applicable
quantities, discounts, taxes, etc.
Plus 8 1/2% to cover all cost of handling, profit, etc.
-------
<PAGE>
STATEMENT F
LIST OF SUBCONTRACTORS
The following is a list of all the Subcontractors proposed for the Work.
Once approved, the Subcontractors and corresponding scopes listed below shall
not be changed, except with the Owner's written approval.
Enter "Own Forces" if work is to be performed by Contractor.
Name and Address Scope and Value of Subcontract
Thyssen Mining typically provides the majority of contracting services for
a project of this nature. However, certain phases of the electrical
installation may require the use of a subcontractor. The following
contractor has been contacted regarding the potential for the provision of
services.
- Murray Electrical Contractors, Inc.
680 W. Cedar Street
Elko, Nevada 89801
Nevada Contractor's License No.: 0035916
Nevada Sales Tax ID No.: 001087008
MSHA ID No.: FQE
SIIS No.: 191890.5
Two concrete suppliers have been contacted. This will provide a primary
and backup supply.
- Humbolt Ready Mix
- Hunewill Construction Inc.
<PAGE>
STATEMENT G
CONTRACTOR'S PERSONNEL
Contractor hereby submits the following detailed summary of education,
experience and qualifications of the principals and key personnel who will be
associated with the Work.
HEAD OFFICE KEY PERSONNEL
Thyssen Mining has focused their resources on developing a comprehensive and
experienced personnel resource base. This base is used to staff the
professional and technical positions for underground assignments.
The Corporate office in Regina, Saskatchewan is prepared to provide corporate
signatures, project financing, approve large internal purchases, monitor
technical developments and provide coordination of equipment distribution
immediately upon receipt of the Letter of Intent.
Principals and Key Personnel from the corporate office are listed below:
Name and Details Position
---------------- --------
Peter Kuhn President
Ken Piasta Vice President of Finance
Andy Fearn Area Manager
Pierre Rancourt Area Manager
Volker Ebert Area Manager
Jerzy Konopka Chief Engineer
Glenn Blachford Chief Estimator
Ken Selinger Systems Communication Coordinator
Larry Zasitko CAD/Computer Support
<PAGE>
ELKO OFFICE KEY PERSONNEL
The Elko, Nevada office will have direct responsibility for the management and
operation of the project. The individuals responsible for implementation of the
Safety Program, Engineering and Design Development, and Contract Administration
are located here. In general, these individuals will visit the project to
maintain open communications with Thyssen Mining supervision and their FirstMiss
Gold counterparts. They will also monitor construction activities, schedules
and reports, and finalize and approve monthly project billing. It will be their
responsibility to see that the project is properly equipped and supported so as
to function at an optimum level to allow site management to focus their efforts
on productivity.
An outline of the staff is as follows.
Name and Details Position
---------------- --------
Jef Johnson General Manager
Scott Herr Manager of Projects
Toby Pearson Safety and Personnel Coordinator
Star Thomson Controller/Office Manager
SITE KEY PERSONNEL
In principle, Thyssen Mining will make the project as self sufficient as
possible. To do so will require the services of several qualified individuals
experienced in similar work. Thyssen Mining maintains a pool of such
individuals. It is obvious that it is not possible to have all of them employed
on this project, however, they are to be considered and used as a very
significant and valuable resource to draw from as the details of specialized
developments are carried out.
Should Thyssen Mining be awarded the No. 2 Shaft Construction Project the site
organization would be expanded. The position of Project Manager would be added.
Candidates for this position are noted below. Mr. Jay Stone would be named as
the Project Superintendent. The project would continue to receive Contract
Administrative and engineering support from Ms. Christine Hrytsak, and
engineering backing from both Mr. Chuck Ranstrom and an as yet unnamed
individual. Review is noted below.
<PAGE>
Name and Details Position
---------------- --------
Martin Reading Project Manager Candidate
Gordon Reed Project Manager Candidate
Name Unpublished Project Manager Candidate
Howard Last Project Superintendent No. 1 Shaft
Christine Hrytsak Contract Administrator
Jay Stone Project Superintendent No. 2 Shaft
Chuck Ranstrom Mine Engineer
Candidate to be Named Mine Engineer
Thyssen Mining will assure that all labor used for the work will be qualified.
In particular, Thyssen uses trained and experienced miners and specialized
equipment operators. Each miner will have the MSHA forty (40) hour training
with refresher courses as required. The Project Safety Officer is certified to
instruct and maintain the miner's certification. Certification documents will
be maintained on site. A copy of Thyssen Mining's MSHA approved Western
District Training Plan has been provided for the first project. Refer to
statement I for details.
An organization Chart is provided on the following page.
Resumes of Key Personnel follow on the next several pages.
<PAGE>
STATEMENT H
UNION INVOLVEMENT
TRADE UNION INVOLVEMENT
Working members of the following Trade Union Organizations will be involved in
the Work of this Agreement, and Contractor is signatory to all agreements
listed.
State "non-union", if not affiliated.
Expiry Date of
Trade Organizations Local No. Agreements Current Agreement
- ------------------- --------- ---------- -----------------
Thyssen Mining is Non - Union
<PAGE>
STATEMENT I
CONTRACTOR'S SAFETY RECORD
Contractor is to submit an up-to-date copy of his injury frequency and cost
records and his most recent copy of the Workers' Compensation Board calculation
form.
Similar information is required for each Subcontractor proposed for the Work.
Contractor shall submit with the bid his full safety program for review by the
Owner.
Early in 1993, Thyssen Mining entered into a Joint Venture with Centennial
Development Company to develop two underground projects for Independence Mining,
north of Elko Nevada. The following figures, although some are listed under
Centennial's name for 1993 and 1994, represent the combined work of the TMCD
Joint Venture. No other work was performed in the United States by Thyssen
Mining during this period.
For your review the following information is provided.
- 1993 Annual Safety Summary
- 1994 Annual Safety Summary
- 1993 - 1996 Safety Summary
- Nevada State Industrial Insurance System Employer's Policy Reports
- MSHA 7000 - 2 forms
- Thyssen Mining's Safety Policy
Thyssen Mining has a comprehensive training and safety program. The MSHA
approved training plan and Company Procedure and Policy Manual are on file with
FirstMiss. Additional copies can be provided upon request.
Thyssen Mining shares FirstMiss Gold's high safety standards and will fully
comply with MSHA regulations, FirstMiss Gold's rules of safety and conduct, as
well as our own Safety Policy.
The potential sub-contractors, identified in Statement F, will provide their own
Insurance carrier and current MSHA training documentation. Site specific
hazard training shall be scheduled through Thyssen Mining, thus insuring
verification and documentation.
<PAGE>
STATEMENT J
AGREEMENT SCHEDULE
Bidder shall complete and submit a milestone schedule and bar chart schedule
based on the format contained herein. The bar chart schedule shall show the
planned duration and completion time for major activities. Unit durations shall
be provided for each applicable item in order to determine changes in schedule
due to changes in the Scope of Work. Assume 24 hours per day, 60 minutes per
hour.
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. Date Date (working days)
- ----- ---- ---- --------------
<S> <C> <C> <C> <C>
1.1 BONDS
1.1.1 100% Performance Bond N/A N/A N/A
1.1.2 100% Material & Labor Bond N/A N/A N/A
1.2 MOBILIZATION
1.2.1 Recruiting and Move to Site, Shaft Personnel 07/01/96 07/31/96 N/A
& Equipment -------- --------
1.2.2 Recruiting and Move to Site, Level 01/01/98 03/19/98 N/A
Development Personnel & Equipment -------- --------
1.3 NO. 2 SHAFT
1.3.1 Setup Surface Plant 07/01/96 07/31/96 N/A
-------- --------
1.3.2 Setup Shaft Sinking Plant 09/21/96 10/22/96 N/A
-------- --------
1.3.3 Shaft Sinking 24' dia. from 5285' 10/22/96 03/19/98 222
el to 3185'el, incl. all temp and perm -------- -------- ---
services and concrete lining; assuming
inflows of 0-50 gpm
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. Date Date (working days)
- ----- ---- ---- --------------
<S> <C> <C> <C> <C>
1.3.4 5000 L Temporary Pump Level
1.3.4.1 Station Excavation & Support (1800 cu yd) 12/01/96 12/23/96 22
-------- -------- --
1.3.4.2 Station Construction 12/23/96 12/31/96 N/A
-------- --------
1.3.5 4500 L Temporary Pump Level
1.3.5.1 Station Excavation & Support (1800 cu yd) 02/20/97 03/14/97 22
-------- -------- --
1.3.5.2 Station Construction 03/14/97 03/21/97 N/A
-------- --------
1.3.6 4000 L Shaft Station
1.3.6.1 Station Excavation & Support (925 cu yd) 05/10/97 05/21/97 11
-------- -------- --
1.3.6.2 Station Construction 05/21/97 05/25/97 N/A
-------- -------- ---
1.3.7 3895 L Loadout Station
1.3.7.1 Station and Pocket Excavation & Support
(1835 cu yd) 06/29/97 07/23/97 23
-------- -------- --
1.3.7.2 Station Construction 07/23/97 07/30/97 N/A
-------- --------
1.3.7.2 Loading Pocket Construction 05/28/98 06/18/98 N/A
------- --------
1.3.8 3700 L Shaft Station
1.3.8.1 Station Excavation & Support(925 cu yd) 09/10/97 09/21/97 11
-------- -------- --
1.3.8.2 Station Construction 09/25/97 10/02/97 N/A
-------- --------
1.3.9 3400 L Shaft Station
1.3.9.1 Station Excavation & Support (925 cu yd) 11/01/97 11/12/97 11
-------- -------- --
1.3.9.2 Station Construction 11/16/97 11/23/97 N/A
-------- --------
1.3.10 3295 L Loadout Station
1.3.10.1 Station and Pocket Excavation & Support
(1835 cu yd) 12/05/97 12/29/97 23
-------- -------- --
1.3.10.2 Station Construction 12/29/97 01/06/98 N/A
-------- --------
1.3.10.2 Loading Pocket Construction 06/23/98 07/16/98 N/A
-------- --------
1.3.11 Water Rings (5) - Supply & Install 12/01/96 10/02/97 05
-------- -------- --
1.3.12 Permanent Shaft Services Engineering 05/07/98 08/20/98 N/A
-------- --------
1.3.13 No. 2 Shaft Changeover 03/19/98 03/24/98 N/A
-------- --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Unit
Item Description Start Completion Duration
No. Date Date (working days)
- ----- ---- ---- --------------
<S> <C> <C> <C> <C>
1.4 LEVEL DEVELOPMENT
(inclusive of mucking and all
service installations)
1.4.1 4000 Level
1.4.1.1 No. 1 Crosscut (15'x15'x160') 06/02/97 06/18/97 16
-------- -------- --
1.4.1.2 Shaft Station Slashing (320 cu yd) 05/21/97 05/25/97 04
-------- -------- --
1.4.2 3895 Level
1.4.2.1 Loadout Drift (15'x15'x251') 07/30/97 08/20/97 21
-------- -------- --
1.4.3 3700 Level
1.4.3.1 No. 1 Crosscut (15'x15'x284') 03/24/98 04/07/98 14
-------- -------- --
1.4.3.2 Shaft Station Slashing (320 cu yd) 09/21/97 09/25/97 04
-------- -------- --
1.4.4 3400 Level
1.4.4.1 No. 1 Crosscut (15'x15'x810') 03/24/98 05/04/98 41
-------- -------- --
1.4.4.2 Ramp to Shaft Bottom (12'x12'x1451') 01/27/97 09/27/98 77
-------- -------- --
1.4.4.3 Shaft Station Slashing (320 cu yd) 11/12/97 11/16/97 04
-------- -------- --
1.4.5 3295 Level
1.4.5.1 Loadout Drift (15'x15'x251') 01/06/97 01/27/97 21
-------- -------- --
1.6 DEMOBILIZATION
1.6.1 Teardown Surface Plant & Cleanup 10/01/98 10/11/98 NA
-------- --------
1.6.2 Demobilize Equipment and Personnel 05/04/98 10/13/98 N/A
-------- --------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shaft Sinking Level Development
Item Unit Duration Unit Duration
No. Description (working days) (working days)
--- ----------- -------------- --------------
<S> <C> <C> <C>
2.1 WASTE HAULING
0' to 1500' N/A NA/
1501' to 3000' N/A NA/
3001' to 5000' N/A N/A
2.2 GROUND SUPPORT
2.2.1 Mechanical Rockbolts (incl. 6" x 6" plate)
5/8" x 5' 10 min 10 min
------ ------
5/8" x 6' 12 min 12 min
------ ------
5/8" x 7' 13 min 13 min
------ ------
5/8" x 8 15 min 15 min
------ ------
2.2.2 Resin/Rebar (threaded incl. 6" x 6" plate)
3/4" x 5' 15 min 15 min
------ ------
3/4" x 6' 17 min 17 min
------ ------
3/4" x 7' 18 min 18 min
------ ------
3/4" x 8' 20 min 20 min
------ ------
3/4" x 10' 25 min 25 min
------ ------
2.2.3 Resin / Rebar (forged incl. 6" x 6" plate)
3/4" x 5' 15 min 15 min
------ ------
3/4" x 6' 17 min 17 min
------ ------
3/4" x 7' 18 min 18 min
------ ------
3/4" x 8' 20 min 20 min
------ ------
3/4" x 10' 25 min 25 min
------ ------
2.2.4 Split Set-Registered Trademark- Bolts
3' 10 min 10 min
------ ------
5' 10 min 10 min
------ ------
6' 12 min 12 min
------ ------
7' 15 min 15 min
------ ------
8' 20 min 20 min
------ ------
2.2.5 Swellex-Registered Trademark- Bolts
5' 10 min 10 min
------ ------
6' 12 min 12 min
------ ------
7' 14 min 14 min
------ ------
8' 15 min 15 min
------ ------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Shaft Sinking Level Development
Item Unit Duration Unit Duration
No. Description (working days) (working days)
--- ----------- -------------- --------------
<S> <C> <C> <C>
2.2.6 Screen
No. 6 Welded Wire (4" x 4") w/3' split sets 2.0 min/yd(2) 2.4 min/yd(2) w/5' split sets
------------- -----------------------------
No. 9 Chain Link (2" x 2") w/3' split sets 1.5 min/yd(2) 2.4 min/yd(2) w/5' split sets
------------- -----------------------------
2.2.7 Shotcrete (3" thick)
Reinforced 20 min/yd(3) 25 min/yd(3)
------------ ------------
Non Reinforced 20 min/yd(3) 25 min/yd(3)
------------ ------------
2.2.8 Mats
5' 5 min 5 min
----- -----
7' 5 min 5 min
----- -----
9' 5 min 5 min
----- -----
2.3 GROUTING
2.3.1 Drilling 0.9 min/Ft. 0.9 min/Ft.
----------- -----------
2.3.2 Setup/Teardown 1 hour 1 hour
------ ------
2.3.3 Packer Installation 30 min 30 min
------ ------
2.3.4 Bag Pumped 10 min 10 min
------ ------
2.4 SLASHING 7.5 yd(3)/hr 7.5 yd(3)/hr
------------ ------------
</TABLE>
<PAGE>
STATEMENT K
LIST OF EXCEPTIONS, DEVIATIONS, OR QUALIFICATIONS TO BID
Contractor to list exceptions, deviations, alternatives and qualifications to
any of the Agreement Documents.
EXCEPTIONS: NONE
DEVIATIONS: NONE
ALTERNATIVES:
ALTERNATIVE 1
The following methodology describes the alternative proposed by Thyssen Mining
to complete parts of the overall shaft sinking and development included in the
No. 2 Shaft Scope of Work, in conjunction with and as an extension of, the
development program carried on from the No. 1 Shaft. The enclosed schedule
illustrates the potential savings in time. We feel that the saving in time to
be realized with the alternative approach will allow FirstMiss Gold considerable
flexibility in planning to bring the overall shaft system on line well in
advance of originally expected completion dates.
INTRODUCTION
The alternate, as developed, concentrates on completing the shaft sinking and
equipping as quickly as possible to allow early commissioning of the permanent
hoisting system. In order to accomplish this objective Thyssen Mining proposes
to complete all the proposed 3400 Level and 3700 Level development from the No.
1 Shaft. On the attached schedule the development is shown as beginning
immediately after completion of the development included in the No. 1 Shaft
program. As a practical matter it may be considered advantageous to complete
some of this development prior to completion of the No. 1 Shaft development
program. This will allow the contractor to advance as required to meet the
long term scheduling requirements of FirstMiss. This would also eliminate the
need for additional loading facilities on the 3400 Level and 3700 Level at the
No. 2 Shaft.
<PAGE>
CONSTRUCTION ACTIVITIES
The construction sequence for the No. 2 shaft and the initial development will
proceed as with the base bid proposal until the development reaches the 3700
Level. At that point the station development will entail collaring out the
station only. If the development has proceeded as planned from the No. 1 Shaft,
the station development off the No. 2 Shaft will break into the level
development which has advanced from the No. 1 Shaft to complete the 3700 Level.
The station excavations will be completed.
Shaft sinking operations will then resume down to the 3400 Level. Once again
the station development will advance to collar the station and break into the
drift developed from the No. 1 Shaft. After completion of the station
construction requirements, sinking operations will resume down to the 3295 Level
Loading Pocket Station.
On reaching the 3295 Level, the station portion of the excavation will be
completed from the shaft. The remainder of the level will be developed as the
No. 2 Shaft Bottom Access decline advances from the No. 1 Shaft Bottom Access
decline. It is expected that the 3295 Loadout Drift will be completed prior to
the shaft reaching the Loadout elevation. The level and ramp development
program from the No. 1 Shaft side will then advance the decline to the No. 2
shaft bottom. It is expected that the shaft station will break into the
previously excavated decline.
This will complete the lateral development program from the No. 1 Shaft. This
shaft would then become available for additional development to take place as
required while the equipping and commissioning of the No. 2 Shaft progresses.
This approach will allow the development to be carried out from the previously
excavated No. 1 Shaft and allows the No. 2 Shaft crews to concentrate on
sinking, lining and equipping operations while avoiding less efficient lateral
development operations out of the shaft stations.
FINANCIAL AND CHRONOLOGICAL ADVANTAGES
By implementing this alternative Thyssen Mining feels a saving of approximately
120 days could be realized in comparison with the base bid. In addition, a
financial savings of $650,000 could be attained when compared with the base bid.
The savings in time are self-explanatory while the monetary savings are the
result of the shorter schedule reducing plant rentals and supervisory costs.
Overall labor costs are similar in each case since the No. 1 Shaft operation
remains active for a longer time in the alternative proposal.
<PAGE>
ALTERNATIVE 2
Probe Hole Drilling and Grouting
Thyssen Mining suggests some alternatives to the Probe hole drilling and
grouting programs as outlined in the tender documents.
1. Probe Hole Drilling
Rather than drilling a single test hole ahead of the shaft excavation we
would suggest drilling probe holes on the four (4) cardinal compass points
to a depth of 200 feet ahead of the shaft bottom outside the excavation
perimeters.
The holes are to be drilled at a steep dip starting at the edge of the
shaft excavation and looking outward slightly. This will increase the
chances of detecting water in the strata surrounding the proposed
excavation. This is the water which would be most likely to cause
difficulties with the sinking operation. This type of procedure has given
good results on other projects where water has proven to be a problem.
2. Grouting
The unit prices submitted for grouting represent a defined contractor
performance. Due to the variables encountered while grouting, application
of the unit price may not provide for effective grout coverage. Therefore,
we request that FirstMiss Gold approve the provision of grouting services
on a cost plus basis.
Drilling and grouting within the excavation limits will not result in as
great a degree of penetration of the peripheral strata and as a result, the
water will not be as greatly restricted from entering the shaft excavation.
Peripheral drill holes, in multiples, allow grout penetration and
connection between grout holes. In addition, the shaft perimeter area is
grouted rather than the shaft center.
In other programs, grouting has generally been initiated if the probe holes
produce in excess of 5 gpm. Shaft advance is adversely affected by water
inflow. Any water which can be excluded from the excavation will result in
enhanced advance rates. As a result, the effort is generally directed
toward water inflow prevention as opposed to water pumping. The advantages
to grouting include reduced pumping and treatment costs as well as improved
advance.
<PAGE>
Cost plus allows the grouting to proceed under controlled conditions. The
objective of any grouting program should be to achieve the maximum penetration
of the strata by the grouting fluid in order to manage the exclusion of the
groundwater from the future excavations. If done on a unit price basis grouting
can proceed too quickly with an emphasis on grout quantity. This may reduce the
effectiveness of the program, minimizing the restriction of water inflow.
With a cost plus grouting program FirstMiss Gold controls the start and end of
the program based on results. If it is felt, FirstMiss Gold, that grouting is
not effective, the program can be terminated and sinking resumed.
The contractor will then be compensated on a time and materials basis at a
previously agreed upon rate. The owner's risk is reduced along with that of the
contractor.
ALTERNATIVE 3
Thyssen Mining has provided for top wages for its employees working on this
project. This approach was taken to ensure that high quality personnel were
dedicated to the job and to reduce problems associated with employee turnover.
Should these rates be deemed excessive by FirstMiss Gold, Thyssen Mining would
be willing to negotiate changes to the contract forms that might be impacted by
a wage reduction.
<PAGE>
QUALIFICATIONS TO BID
NEVADA CONTRACTOR'S LICENSE
Thyssen Mining currently holds a Nevada contractor's license, Number
0035386.
NEVADA SALES AND USE TAX PERMIT
Thyssen Mining's Sales and Use Tax Permit Number for the state of Nevada is
12318172.
Thyssen Mining has a 30 Year history of timely paying sales and use taxes
in full.
MSHA IDENTIFICATION NUMBER
Thyssen Mining's MSHA identification number is NEV.
STATEMENT OF JOB QUALITY AND PERFORMANCE STANDARDS
We at Thyssen Mining depend largely on our good name and reputation for
most of our bidding opportunities and strive to be fair and reasonable in
all of our dealings. Our employees produce quality work, on time and
maintain good relationships with our clients, their representatives, and
our suppliers. Thyssen provides their employees with opportunities which
promote growth, challenge and compensation for better than expected
performance.
Thyssen Mining is dedicated to a high quality of performance and we make
every effort to employ individuals who are trained and experienced in the
tasks they are assigned. Field personnel receive full support from the
head office, especially in promoting our safety and environmental programs.
INSURANCE STATEMENT
The current limits provided under our existing insurance policy meet or
exceed our present contracted obligations. If awarded the No.2 Shaft
Construction Project, Thyssen Mining will provide and maintain in force at
all times relevant to the project, insurance of the type and coverage
limits as required. Certificates of Insurance will be provided to
FirstMiss Gold to document evidence that required coverages are in effect.
Policies will not be canceled or changed by insurer without giving thirty
(30) days prior notice.
<PAGE>
QUALIFICATIONS TO BID
NEVADA CONTRACTOR'S LICENSE
Thyssen Mining currently holds a Nevada contractor's license, Number
0035386.
NEVADA SALES AND USE TAX PERMIT
Thyssen Mining's Sales and Use Tax Permit Number for the state of Nevada is
12318172.
Thyssen Mining has a 30 Year history of timely paying sales and use taxes
in full.
MSHA IDENTIFICATION NUMBER
Thyssen Mining's MSHA identification number is NEV.
STATEMENT OF JOB QUALITY AND PERFORMANCE STANDARDS
We at Thyssen Mining depend largely on our good name and reputation for
most of our bidding opportunities and strive to be fair and reasonable in
all of our dealings. Our employees produce quality work, on time and
maintain good relationships with our clients, their representatives, and
our suppliers. Thyssen provides their employees with opportunities which
promote growth, challenge and compensation for better than expected
performance.
Thyssen Mining is dedicated to a high quality of performance and we make
every effort to employ individuals who are trained and experienced in the
tasks they are assigned. Field personnel receive full support from the
head office, especially in promoting our safety and environmental programs.
INSURANCE STATEMENT
The current limits provided under our existing insurance policy meet or
exceed our present contracted obligations. If awarded the #1 Shaft
Construction Project, Thyssen Mining will provide and maintain in force at
all times relevant to the project, insurance of the type and coverage
limits as required. Certificates of Insurance will be provided to
FirstMiss Gold to document evidence that required coverages are in effect.
Policies will not be canceled or changed by insurer without giving thirty
(30) days prior notice.
<PAGE>
STATEMENT L
AGREEMENT TO BOND
Bonding Statement
Thyssen Mining has been able to meet the individual bonding requirements for all
projects tendered to date. This capability includes obtaining payment,
performance and bid bonding to cover the entire amount of the contract when
required. Thyssen Mining has never been refused a bond and recently obtained a
confirmation of bonding capability for a U.S. mine project with a contract value
in excess of $120,000,000.
<PAGE>
STATEMENT L
AGREEMENT TO BOND
Should it be required, we, the undersigned Surety Company, do hereby consent and
agree to become bound as sureties in an approved Agreement Performance Bond in
any amount equal to 100% of the Agreement Price and approved Agreement Labor and
Material Payment Bond for an amount equal to 100% of the Agreement Price for the
fulfillment of the Agreement for the Works named in the annexed Bid Documents
which may be awarded to:
-----------------------------------------------------------------
-----------------------------------------------------------------
at the Agreement/Bid Prices set forth in the Bid. And we hereby further declare
that our Company is legally entitled to do business in the State of
________________________, USA.
Value of Performance Bond: $
----------------------------------
Cost of this Performance Bond: $
-----------------------------
Value of Labor and Material Bond: $
-----------------------------
Cost of this Labor and Material Bond: $
------------------------
Name of Bonding/Surety Company:
- ----------------------------------------------------------------------
Signatures of Company:
----------------------------------------
----------------------------------------
<PAGE>
STATEMENT M.1
MOBILIZATION OF SHAFT RELATED EQUIPMENT
Contractor shall provide a detailed list of equipment to be mobilized to site.
<TABLE>
<CAPTION>
Mobilization of Shaft Related Equipment M.1
QTY Description Make Model
- --- ----------- ---- -----
<S> <C> <C> <C>
1 Shaft Jumbo Tamrock SDRH 205T
2 Muckers Cryderman Brutus
2 Cross Heads O.J. Industries Site Specific
Buckets O.J. Industries Site Specific
Forms O.J. Industries Site Specific
1 Work Stage O.J. Industries Site Specific
4 Galloway Winches
1 Loader/Fork Lift Caterpillar 950
1 Standby Generator 250 KW
Fans As Required
2 Main Pumps Flygt
2 Cryderman Winches
2 Bottom Pumps Flygt
1 Crane As Required
4 Sideline Winches
2 Concrete Buckets
Dump and Collar Doors Site Specific
As req'd Sinkers
</TABLE>
<PAGE>
STATEMENT M.2
MOBILIZATION of LEVEL DEVELOPMENT RELATED EQUIPMENT
Contractor shall provide a detailed list of equipment to be mobilized to site.
Mobilization of Level Development Related Equipment M.2
<TABLE>
<CAPTION>
Quantity Description Make Model
- -------- ----------- ---- -----
<S> <C> <C> <C>
2 2 Boom Jumbos Tamrock H206/H206D
2 LHD Units Tamrock -EJC ECJ 210
Scissor Lifts Dux SLHD
2 Trucks Tamrock-EJC JDT 416
Tamrock-EJC JDT 415
2 Shotcrete Machines Aleva
2 Small LHD's Eimco 913
Tamrock- EJC EJC 130
2 3 Drum Slushers
As req'd Jacklegs & Stopers
6 Air Tuggers
</TABLE>
<PAGE>
STATEMENT N.1
SETUP OF CONTRACTOR'S SURFACE PLANT
Contractor shall provide a detailed list of equipment to be setup on surface as
part of the surface support plant.
Description Quantity
----------- --------
Office Trailer 1
Standby Generator 1
Temporary Compressor 1
Winch House 1
Electrical Transformers
and Switch Gear 1
<PAGE>
STATEMENT N.2
SETUP OF CONTRACTOR'S SHAFT SINKING PLANT
Contractor shall provide a detailed list of equipment to be set up on surface as
part of the shaft sinking plant.
Description Quantity
----------- --------
Office Trailer 1
Standby Generator 1
Temporary Compressor 1
Winch House 1
Electrical Transformers
and Switch Gear 1
<PAGE>
STATEMENT O
NO. 2 SHAFT BID SAVINGS
This statement is applicable to Contractors submitting the "No. 2 Shaft
Headframe and Collar Construction".
Contractor shall provide the total lump sum cost and schedule savings associated
with the award of both the "No 2 Headframe and Collar Construction" Agreement
and the "No. 2 Shaft" Agreement.
TOTAL COST SAVINGS (Lump Sum) $ 0
--------------------
TOTAL SCHEDULE SAVINGS (Working Days) 0
--------------------
<PAGE>
3-1
3.0 FORM OF AGREEMENT
FORM OF AGREEMENT
BETWEEN CONTRACTOR AND OWNER
THIS AGREEMENT made in triplicate as of the 1 day of May, 1996,
"the Effective Date",
Between Thyssen Mining
495 Idaho St. Suite 210
Elko, NV 89801
Hereinafter called the "CONTRACTOR"
And FirstMiss Gold Inc.
C/o Getchell Mine
P.O. Box 220
Golconda, Nevada USA 89414
Hereinafter called the "OWNER"
WITNESSETH: that the "CONTRACTOR" and the "OWNER" in consideration of
their respective promises and obligations herein set forth covenant and
agree with each other as follows:
3.1 DEFINITIONS
In this Agreement, the following terms will have the following meaning:
3.1.1 "OWNER" shall mean FirstMiss Gold Inc.
3.1.2 CONTRACTOR" shall mean Thyssen Mining, a branch of Thyssen Mining
Construction of Canada, Ltd., a limited liability company incorporated
in the Province of Sasketchewan, country of Canada, and duly organized
and in good standing under the laws of the state of Nevada, USA; and
also shall include such subcontractors and other parties which shall be
subject to prior acceptance and written authorization by the "OWNER."
<PAGE>
3-2
<PAGE>
3-3
3.1.3 "PROJECT" shall mean the No. 1 Shaft Construction program at the Site of
the Turquoise Ridge Mine as described within the "Agreement Documents"
(as such terms are defined in the General Conditions).
3.1.4 "AUTHORIZED REPRESENTATIVE" shall mean a person, or persons who are
designated from time to time, in writing, by the "OWNER" and by the
"CONTRACTOR", to have authority on their behalf to received and issue
notices, instructions and other communication hereunder. "OWNER'S
REPRESENTATIVE" and "CONTRACTOR'S REPRESENTATIVE" shall also mean
"AUTHORIZED REPRESENTATIVE."
3.2 SCOPE OF THE WORK AND SERVICES
3.2.1 The "CONTRACTOR" shall supply construction services for the "PROJECT,"
together with other related services, equipment, and materials that may
be required by the Agreement Documents. All services shall be
performed, and all equipment and materials provided, in accordance with
the highest professional standards for a similar assignment in
compliance with applicable laws, codes, regulations and practices having
jurisdiction at the Project Site, and generally in cooperation with the
"OWNER'S REPRESENTATIVE."
3.2.2 The "OWNER" shall determine the areas and type of services to be
performed by the "CONTRACTOR" for the "PROJECT" and the "CONTRACTOR"
shall provide sufficient qualified personnel and professional judgment
to carry out the requested services.
3.2.3 The Work (as such term is defined in the General Conditions) and
services which may be required will include, but will not necessarily be
limited to, the following which are defined in detail in Sections 1.0,
2.0, 5.0, 6.0 and 7.0 (and their related subsections111).
3.3 GENERAL CONDITIONS
3.3.1 All the Work shall be carried out in accordance with the General
Conditions forming Section 4.0 of this Agreement.
3.4 TERMS OF PAYMENT
3.4.1 In full compensation for all Work performed by the "CONTRACTOR" pursuant
to this Agreement, the "OWNER" shall pay the "CONTRACTOR" in accordance
with applicable schedules in the Contractor's Proposal which forms
Section 2.0 of this Agreement.
<PAGE>
3-4
3.4.2 The "OWNER" will:
(i) Pay to the "CONTRACTOR" for and in respect of the Work and the
performance and observance by the "CONTRACTOR" of the provisions
of this Agreement in lawful money in US Dollars all subject to
such additions and deductions as may properly be made under the
terms of this Agreement;
(ii) Make interim progress payments in accordance with Section 4.20 of
the Agreement upon the approved progress payment certificate for
the Work (as provided for in the General Conditions) completed up
to and including the last day of the month preceding the date of
the certificate, less the aggregate of previous payments.
3.4.3 Provided that the "CONTRACTOR" complies with the conditions of the
Agreement, the "OWNER" will issue the progress payment certificate
within fifteen (15) calendar days after receipt by him of the
"CONTRACTOR" progress billing and all supporting evidence, and the
"OWNER" will pay the "CONTRACTOR" one hundred percent (100%) of
undisputed amounts within twenty (20) calendar days of the date of the
certificate.
3.5 THE AGREEMENT DOCUMENTS
3.5.1 The "Agreement Documents" consist of this Agreement and the documents
described in Section 4.1.2 of the General Conditions together with
amendments thereto made pursuant to the provisions of the Agreement and
agreed upon in writing between the parties.
3.5.2 The Agreement Documents are complementary and each shall be read in
conjunction with the other documents to explain each other and to make
the whole consistent. However, in the event of a conflict, such
conflict shall be resolved as set forth in Section 4.2 of the General
Conditions.
3.6 ASSIGNMENT OF AGREEMENT
The "CONTRACTOR" shall not make any assignment of this Agreement without
the written consent of the "OWNER." The "CONTRACTOR" shall not assign
any part or the whole of any moneys due or to become due under the
provisions of this Agreement without written consent of the "OWNER."
"OWNER'S" consent to allow "CONTRACTOR" to make assignment of this
Agreement, or of moneys due or to become due can be withheld for any
reason, or no reason at all.
<PAGE>
3-5
3.7 ORAL AGREEMENTS
No oral agreements or conversations between any of the officers, agents
or employees of either of the parties to the Agreement shall affect or
modify any of the terms or obligations contained in the Agreement.
3.8 IMPLIED OBLIGATION
No implied obligation of any kind on, or on behalf of, the "OWNER,"
shall arise or be implied from anything contained in the Agreement
Documents, not from any position or situation of the parties at any
time. The express covenants and agreements contained herein made by
"OWNER," shall be the only covenants and agreements upon which any
rights against the "OWNER" may be founded.
3.9 CHOICE OF LAW
The "OWNER" and the "CONTRACTOR" accept the laws of the State of Nevada
as the proper law of the Agreement and submit to the exclusive
jurisdiction of the courts of Nevada and venue shall be in the county in
which the Project is located.
<PAGE>
3-6
3.10 COMMUNICATIONS
All communications in writing between the parties shall include
reference to the Agreement Number and shall be deemed to have been
received by the addressee if delivered to the individual or to a member
of the firm or to an officer of the corporation for whom they are
intended or if sent by facsimile addressed as follows:
The "CONTRACTOR" at: Thyssen Mining
495 Idaho St. Suite 210
Elko, NV 89801
Attention: Jef Johnson
Telephone: (702) 738-5588
Facsimile: (702) 738-4307
The "OWNER" at: FirstMiss Gold Inc.
C/o Getchell Mine
P.O. Box 220
Golconda NV 89414
Attention: Ralph M. Barker, P.E.
Turquoise Ridge Mine Manager
Telephone: (800) 405-4946
Facsimile: (702) 635-8015
Copies of any official notice and/or communications pertaining to
material matters of this Agreement including, but not limited to such
affecting costs, time schedules, claims, industrial and labor relations,
etc., are to be forwarded directly to Ralph M. Barker, P.E. at:
FirstMiss Gold Inc.
c/o Getchell Mine
28 Miles NE of Golconda NV
P.O. Box 220
Golconda NV 89414 USA
<PAGE>
3-7
3.11 SIGNATURES
This Agreement is not valid until signed by persons duly authorized in
that behalf by the "CONTRACTOR" and the "OWNER."
Signed for on behalf of: Thyssen Muning
-----------------------------------------------
/s/ Peter Kuhn President 5/16/96
------------------------------------ ------------------- ---------
Being Duly Authorized in That Behalf Title Date
Signed for on behalf of FirstMiss Gold Incorporated:
/s/ David Russell VP & COO 5/28/96
------------------------------------ ------------------- ---------
David Russell--Being Duly Authorized Title Date
in That Behalf
<PAGE>
4-1
4.0 GENERAL CONDITIONS
4.1 DEFINITIONS
4.1.1 In the Agreement Documents (as hereinafter defined), unless the
context otherwise requires, "Owner" and "Contractor" shall mean the
persons, firms or corporations respectively named as such in the main
body of the Agreement, which is Part 3 of the Agreement Documents.
4.1.2 "Agreement Documents" shall mean the main body of the Agreement and
all documents referred to therein including but not limited to the
Instruction to Bidders, the Contractor's Proposal, these General
Conditions, Supplementary Conditions, the Agreement Drawings, the
Project Specifications and Drawings, the Scope of Work, the
Construction Schedule, and such modifications, revisions and addenda
thereto as are stipulated in the Agreement.
4.1.3 "Owner's Representative" shall have the meaning set forth in Section
3.1.4 of the Agreement.
4.1.4 "Project" shall have the meaning set forth in Section 3.1.3 of the
Agreement.
4.1.5 "Work" shall mean everything expressly or implicitly required to be
done or furnished by the Contractor under the Agreement as shown or
described in any of the Agreement Documents and shall include such
extra Work as may be required by the Owner.
4.1.6 "Site" shall mean the area of land owned or controlled by the Owner on
or through which the Work is to be performed.
4.1.7 "Site of the Work" shall mean the particular location or locations on
the Site where the Work is to be performed.
4.1.8 "Subcontractor" shall mean any person, firm or corporation having an
agreement directly or indirectly with the Contractor for the supply of
labor at the Site of the Work, or the furnishing of material called
for under the Agreement and worked specially to a design shown on the
drawings or described in the specifications, but shall not include
suppliers of materials not so worked.
<PAGE>
4-2
4.1.9 "Other Contractor" shall mean any person, firm, or corporation
employed by or having an agreement, directly or indirectly, with the
Owner otherwise than through the Contractor.
4.1.10 "Final Acceptance" shall mean the written final acceptance of the Work
issued by Owner following 100% completion of the Work by the
Contractor and inspection by the Owner.
4.1.11 "Agreement Sum" shall mean any payment provided to be made to
Contractor pursuant to the Agreement Documents.
4.1.12 "Construction Schedule" shall mean the schedule attached as Statement
J to the Contractor's Proposal.
4.2 AGREEMENT DOCUMENTS
4.2.1 The Agreement Documents shall be interpreted as a whole, and the
intent of the whole, rather than the interpretation of any special
part, shall govern.
4.2.2 The Agreement Documents are complementary, and what is called for in
any one shall be as binding as if called for by all.
4.2.3 The Agreement Documents do not indicate every part of detail of the
Work. However, it is the intent of the Agreement that everything
necessary for the proper and complete execution and finish of the Work
shall be provided, that all materials and workmanship shall be of the
highest professional standards for a similar assignment and that the
Work shall be complete in every detail.
4.2.4 Should an error or inconsistency appear in the Agreement Documents,
the Contractor, before proceeding with the Work shall bring it to the
attention of the Owner's Representative who will decide the intent and
arrange for the necessary correction(s).
4.2.5 In case of conflict between these General Conditions and the
Supplementary Conditions, the latter shall govern.
4.2.6 In case of conflict between the Project Drawings and the Project
Specifications, the latter shall govern.
<PAGE>
4-3
4.2.7 In case of conflict or discrepancies between the Drawings, those of
larger scale shall govern, those of later date shall govern.
4.2.8 Drawings and Specifications shall be interpreted in conformity with
the General Conditions and Supplementary Conditions.
4.2.9 The Agreement Drawings are in sufficient detail to define the Work,
but are not necessarily final drawings of the Work to be carried out.
The Owner reserves the right to issue for construction purposes
revised or additional drawings, or both, to show greater detail or to
clarify the meaning of the Agreement Drawings.
4.2.10 The Agreement Documents shall be signed in triplicate for
identification purposes by a representative of the Owner and a
representative of the Contractor at the time the Agreement is
executed.
4.3 INTERPRETATION
4.3.1 The Owner or Owner's Representative is in the first instance the
interpreter of the Agreement and judge of performance under the
Agreement. He shall use his powers under the Agreement to enforce its
faithful performance by both parties hereto.
4.3.2 Words used in describing materials or work which, when so applied,
have a well recognized technical or trade meaning shall be deemed to
have such meaning.
4.3.3 If any party to the Agreement consists of more than one person, firm
or corporation, their obligations under the Agreement shall be joint
and several.
4.3.4 If any term, condition or provision of the Agreement is held to be
illegal or unenforceable, the same shall be considered severed and the
remainder of the Agreement shall remain in force and be binding upon
the parties as if such illegal or unenforceable term, condition or
provision had never been included therein.
<PAGE>
4-4
4.4 POWERS OF OWNER OR OWNER'S REPRESENTATIVE
4.4.1 The Owner or Owner's Representative shall, without hereby limiting any
other powers stipulated in or implied by the Agreement, have the power
to:
a) Interpret the Agreement and to define its intent and meaning.
b) Determine whether the Work performed and the materials furnished
are in accordance with the terms of the Agreement, including the
right to audit all charges to Owner.
c) Make decisions on all matters relating to the execution and the
progress of the Work.
d) Coordinate the Work of the Contractor with the work and services
of Other Contractors.
e) Stop the Work whenever, in its opinion, such stoppage may be
necessary to ensure the proper execution thereof.
f) Order the issuance of reports, data and information as deemed
necessary.
g) Order the attendance to meetings and request assistance and
cooperation on matters pertaining to the Work.
h) Order the temporary discontinuance of any Work which, in its
opinion may be injuriously affected by weather conditions.
I) Determine the amount payable to the Contractor for Work done
under the Agreement.
j) Determine amounts for deduction and extras and the time to be
allowed for extra Work.
4.4.2 If the Contractor considers that any decision or instruction of the
Owner or Owner's Representative is at variance with the Agreement
Documents or involves changes in Work already built, fixed, ordered or
in hand that are in excess of the Work contemplated by the Agreement,
or is given in error, the Contractor shall notify the Owner's
Representative in writing before proceeding to carry out such
instruction. If the Owner and the Contractor fail to agree as to such
excess or errors and the Owner decides to carry out such disputed
Work, the Contractor shall proceed in accordance with such decision.
Any dispute as to increased cost due to the aforesaid shall be decided
in the manner hereinafter provide in Section 4.52, Disputes.
4.4.3 The Contractor shall not make any alterations or variations in, or
deviation or omission from the Work without the written authority of
the Owner's Representative. If any alteration, variation, deviation
or omission is required to comply with local conditions, the
requirements of any governmental or other body having jurisdiction or
authority, the exigencies of the Work or of the Site of the Work, or
for any other reason, the Contractor shall immediately inform the
<PAGE>
4-5
Owner's Representative of such circumstances. The Contractor shall
obtain and comply with the written instructions of the Owner or
Owner's Representative thereon.
4.5 CONTRACTOR , INDEPENDENT AND RESPONSIBLE
4.5.1 The Contractor shall be an independent contractor in all respects and,
except as explicitly provided in the Agreement, shall be free of
controls and supervision by the Owner or Owner's Representative as to
the means and methods of performing the Work, and shall have complete
control of its organization, and shall exercise direct supervision of
the Work being carried out by its forces.
4.5.2 Unless otherwise explicitly stipulated in the Agreement Documents, the
Contractor shall perform all its obligations under the Agreement at
its own expense and shall provide and pay for everything necessary for
the execution of the Work which, without limiting the generality of
the foregoing, shall include permits, inspection fees, materials,
supplies, labor, supervision, transportation charges for materials,
equipment and personnel, cost of living allowances and camp
accommodation for personnel, falsework, all safety measures, tools,
plant, equipment, temporary buildings and facilities, water, light,
fuel, power, overhead, insurance, taxes, customs duties and government
levies, whether federal, state or municipal, providing and maintenance
of own access roads, and storage areas (including removal of ice and
snow, dewatering, etc.), providing own security.
4.5.3 The Contractor is solely responsible for the provision of First Aid
services for its own forces and those of its Subcontractors at all
times, 24 hours per day, 7 days per week, for the full duration period
of the Agreement. Furthermore, the Contractor is solely responsible
at all times, 24 hours per day, 7 days per week, in all locations for
security, especially within the area of the Site of the Work and other
designated areas for all equipment, installations, tools, buildings
directly or indirectly pertaining to the scope of the Agreement until
accepted and taken over by the Owner.
4.6 CONTRACTOR'S SUPERINTENDENT AND WORK FORCE
4.6.1 Before commencing the Work, the Contractor shall provide the Owner
with a chart of its organization showing how he proposes to organize
and supervise the Work.
4.6.2 The Contractor shall keep on the Work, throughout its progress, a
competent superintendent (manager) or appointed representative and the
necessary assistants, qualified to properly coordinate and supervise
the trades involved in the Work. The superintendent, appointed
<PAGE>
4-6
representative, or any of his principal assistants shall not be
changed except with the consent of the Owner unless they cease to be
in the Contractor's employ. The superintendent (manager) or appointed
representative shall represent the Contractor in his absence and
directions given to him shall be as binding as if given to the
Contractor. Important directions shall be confirmed in writing to the
Contractor. Other directions shall be so confirmed on written request
in each case. The Contractor shall enforce proper discipline and good
order among its employees.
4.6.3 Only competent and qualified workers shall be employed to perform the
Work under this Agreement. Should the Owner or Owner's Representative
deem anyone employed on the Work to be incompetent, unqualified,
careless or unfit for his duties and so certify, the Contractor shall
remove him immediately and he shall not be employed again on the Work
without the Owner's written permission.
4.6.4 Subject to the foregoing, the Contractor shall have complete control
of its organization.
4.6.5 No one shall be employed by the Contractor who is an employee of the
Owner, or who has within ninety (90) days been in the employ of the
Owner except with the express consent of the Owner, or unless the
individual was laid off by the Owner. The Owner shall also be bound
by these restrictions, in respect to employees of the Contractor.
4.7 INSURANCE
4.7.1 Insurance to be provided by the Owner:
The Owner will provide and maintain during the continuance of the
Agreement, insurance in an amount to be decided by the Owner against
"All Risks" of physical loss or damage on all property which will
enter into or form part of the completed permanent surface facilities.
The insurance will cover such property whether at the Site, in transit
thereto, and while temporarily stored at premises other than the Site
of the Work.
The insurance shall include the interests of the Contractors and
Subcontractors in the property, but the term property as used herein
shall not include temporary structures, tools, equipment and
apparatus, the ownership of which remains with the Contractors and
Subcontractors.
The insurance shall also include the interests in the property of the
consulting engineers, architects, and Other Contractors who are
engaged directly by the Owner, but the term "property" as used herein
shall not include temporary structures, tools, equipment and
<PAGE>
4-7
apparatus the ownership of which remains with the consulting
engineers, architects and Other Contractors.
A deductible of $25,000 will apply to each and every loss. Such
deductible shall be borne by the Contractor, Subcontractor, consulting
engineer or other party causing such loss.
In the event of loss, the Owner will work with the insurer on the loss
adjustment. The "All Risks" insurance will be subject to the
exclusions usually applicable to such policies and will exclude, among
others, the following:
(I) Flood and earthquake, subsidence or other earth movement.
(ii) Cost of making good any faulty workmanship, material,
construction or design.
4.7.2 Insurance to be provided by the Contractor, Subcontractors, consulting
engineers, architects and other parties to the venture:
Such parties will obtain and maintain, at their own expense, the
following:
Automobile Insurance
Statutory Motor Vehicle Liability Insurance covering their owned
and/or leased vehicles. Minimum limits are to be $1,000,000 inclusive
per occurrence.
Insurance on Equipment and Temporary Buildings
"All Risks" insurance covering their owned and/or leased equipment and
temporary structures, including mechanical and electrical breakdown
coverage, with a minimum deductible of $25,000. Each party shall
arrange for such insurance policy to contain a waiver of subrogation
(by the insurer) against the Owner.
Comprehensive General Liability Insurance
Comprehensive General Liability Insurance, including the Owner as a
named insured, covering Bodily Injury and Property Damage and
including, but not limited to, the following:
a) Products and completed operations. Complete operations to be
insured for a period of one (1) year after Final Acceptance by
the Owner.
b) Contingent liability with respect to Subcontractors.
c) Blanket written contractual coverage.
d) Non-owned automobile coverage.
e) Personal injury coverage.
<PAGE>
4-8
f) Occurrence property damage coverage.
g) Employers liability coverage.
h) Cross liability clause.
I) Liability arising out of unlicensed equipment.
j) Contractor's policy must include an endorsement stating that
Contractor's policy is primary to any other policy.
k) The Contractor unconditionally agrees to indemnify and save
harmless the Owner from and against all losses, liabilities, cost
charges, claims, damages, demands, suits, expenses or liens which
may arise as a consequence of any failure by the Contractor or
any Subcontractor or other person employed by the Contractor to
comply fully with the provisions of this section, or which may
arise as a consequence of any injury, illness or death of any
employee of the Contractor or any employee of any Subcontractor
engaged for or participating in the performance of the Work to be
performed under this Agreement.
NOTE: Minimum limits are to be $10,000,000 inclusive Bodily Injury
and Property Damage.
The Contractor shall provide proof of its insurance coverage as
required under the terms of the Agreement to the satisfaction of the
Owner (see Contractor's Proposal). A certificate of insurance showing
the coverages as required under this Agreement shall be presented to
FirstMiss Gold before the work begins.
4.8 WORKERS' COMPENSATION ACT, SAFETY, FIRST AID
4.8.1 In addition to the requirements of Section 4.5.3, the Contractor shall
register under, abide by, and comply with all provisions of the
Workers' Compensation Act of the state in which the Work is being
performed and all regulations passed thereunder and any other
industrial insurance laws of said state and shall report wages of
workers as required for assessment, and shall carry compensation
insurance, insuring against any claim or liability which may arise
under the provision of said laws.
4.8.2 The Contractor shall deliver to the Owner before the Work is started
satisfactory evidence and certification showing compliance by the
Contractor of said laws.
4.8.3 The Contractor unconditionally guarantees to the Owner full compliance
with said provisions, regulations and laws by any Subcontractor or
other person employed by the Contractor, or with whom the Contractor
may make any agreement for the performance of any of the Work
thereunder.
<PAGE>
4-9
4.8.4 The Contractor unconditionally agrees to indemnify and save harmless
the Owner from and against all losses, liabilities, cost charges,
claims, damages, demands, suits, expenses or liens which may arise as
a consequence of any failure by the Contractor or any Subcontractor or
other person employed by the Contractor to comply fully with the
provisions of this section, or which may arise as a consequence of any
injury, illness or death of any employee of the Contractor or any
employee of any Subcontractor engaged for or participating in the
performance of the Work to be performed under this Agreement.
4.8.5 The Contractor shall provide all first aid personnel, facilities,
equipment and supplies required by law or by any regulation, order or
direction made pursuant to the relevant Workers' Compensation Act or
other relevant statute.
4.8.6 The Contractor shall comply with all the safety rules and regulations
of any relevant Workers' Compensation or Industrial Insurance Act or
safety statutes, rules, regulations, and practices required by
applicable construction safety legislation governing at the site of
the Work, as well as any safety rules and regulations established by
the Owner for its own employees.
4.8.7 The Owner will perform, solely for Owner's benefit, safety inspections
of the Site of the Work used by the Contractor at any time.
4.8.8 Contractor agrees to comply with all safety provisions put into effect
for the Work by Owner, and with all requirements and regulations of
the Mine Safety and Health Administration (MSHA) and applicable state
statutes and regulations relating to control of health and safety on
construction, exploration or mining projects. Such compliance
includes, but is not limited to, approve MSHA training for all
Contractor personnel on the Site for more than seven (7) working days.
4.8.9 In the event of a situation in which life or valuable property are in
apparent imminent danger, Contractor is hereby authorized, without
further special instructions from Owner's Representative, to act at
its own discretion to prevent injury to persons or damage to property.
4.8.10 Owner will not provide or maintain any required toilet facilities for
field personnel or supervisors unless required facilities are already
available at a particular Site and Owner agrees in advance, in
writing, for their use by Contractor.
4.8.11 Contractor shall furnish to Owner's Representative a detailed written
report of all injuries, other than those requiring only first aid
treatment. In addition, Owner's Representative shall be given copies
of all such reports sent by Contractor to its insurer.
<PAGE>
4-10
4.8.12 Contractor bears the sole responsibility imposed by law for safety of
its own personnel employed in the Work and for persons entering a Site
as agents or visitors of the Contractor.
4.8.13 Contractor shall comply with the Federal Mine Safety and Health Act of
1977 and with all regulations and health and safety standards
promulgated pursuant thereto (all of which are described hereinafter
as "the Act"). Any citation, fine, withdrawal order, abatement
notice, or other action by MSHA arising in connection with
Contractor's performance under the Agreement, which may affect Owner's
operations, shall constitute a breach of the Agreement and shall be
sufficient cause for termination of the Agreement by Owner at its sole
option and without limiting any other rights or remedies Owner may
have.
Contractor shall immediately take any and all actions necessary to
obtain MSHA identification, including applying for and securing from
appropriate MSHA regional office an identification number. Upon
successfully securing identification or upon denial of such
identification by MSHA, Contractor shall immediately notify Owner's
Representative in writing.
If Contractor is identified by MSHA, Contractor agrees at its sole
cost, to take whatever steps are necessary to comply with any and all
orders, directives, citation and notices issued to it by MSHA pursuant
to the Act and to abate any conditions cited or noted therein.
In event that MSHA refuses to identify Contractor for purposes of MSHA
liability, or in event that, regardless of whether Contractor is
identified, Owner receives any order, directive, citation, notice or
instruction as a result of Contractor's failure to comply with the Act
or related to any operation or condition under Contractor's control,
Contractor agrees to the following:
Contractor shall immediately notify Owner's Representative of any and
all inspections, notices of violation, citations, orders or other
instructions or actions of MSHA and shall immediately submit to
Owner's Representative a detailed description of same in writing.
Contractor shall either immediately comply or shall prepare and submit
to the Owner's Representative a written plan, which sets forth in
detail measures to be taken by Contractor to remedy such violations
and/or comply with such instructions, together with dates for
completion of each measure. Contractor, at its sole cost, shall take
whatever steps are necessary to comply with such orders, directives,
citations and notices, failing which Owner may do so and charge off
such cost against and payments then due or thereafter becoming due to
Contractor. Should Owner deem it necessary to contest or appeal any
such order, directive, citation, notice or instructions, Owner may
prosecute such contest or appeal to extend necessary in its sole
opinion, and may
<PAGE>
4-11
do so without limiting or waiving any other rights or remedies it may
have. Contractor shall cooperate in all ways with Owner in the
prosecution of any contest or appeal.
Neither Contractor's compliance with the Act nor any supervision by
Owner which may be required as provided above shall derogate
Contractor's status as an independent contractor otherwise created in
the Agreement.
4.8.14 Contractor agrees to indemnify and save harmless Owner for all costs
(including attorney's fees and costs) or financial loss incurred as
result of violations or alleged violations of the Act and MSHA
statutes and regulations related to any operation or condition under
Contractor's control or control of Contractor's employees or agents,
for any costs or financial loss incurred in payment of agents, for any
cost or financial loss incurred in payment of civil penalties, in
abating cited conditions, as result of issuance of withdrawal orders,
or in pursuing or defending any legal action arising from Contractor's
duties or obligations thereunder, or in enforcing terms of this
Section 4.8.
4.9 INDEMNITY AND HOLD HARMLESS
4.9.1 The Contractor shall indemnify the Owner and Owner's Representative
and their respective agents, employees and affiliates for all damage,
losses and expenses, including attorney fees, which they may suffer or
incur, and hold them harmless from and against all claims, demands and
actions brought against them, arising out of or resulting from the
performance of the Work, provided that any such claim, damage, loss or
expense is:
a) Attributable to personal injury, sickness, disease or death, or
to injury to or destruction of property, including the loss of
use resulting therefrom;
b) Caused in whole or in part by any intentional act, negligent act
or omission of the Contractor or Subcontractor, anyone directly
or indirectly employed by any of them or anyone for whose acts
any of them may be liable, regardless of whether or not it is
caused in part by a party indemnified thereunder;
c) The non-payment of Worker's Compensation, income taxes, United
States withholding taxes, and other similar taxes and
assessments; or
d) The breach of any representation, warranty, covenant, condition
or agreement or Contractor pursuant to the Agreement Documents.
4.9.2 The obligation of the Contractor to indemnify the Owner and Owner's
Representative and their respective agents, employees, and affiliates
as set forth in Section 4.9.1 shall not be affected or limited by the
Contractor's insurance pursuant to Section 4.7 or fact that the law
prohibits or
<PAGE>
4-12
limits a direct recourse against the Contractor or any Subcontractor
as employer of a person affected by injury, sickness, disease or
death.
4.10 BONDS , PERFORMANCE, LABOR AND MATERIAL
4.10.1 The Owner requires the Contractor to furnish a performance and payment
bond for the total amount of the Work, guaranteeing the faithful
performance of the provisions of the Agreement and the payment of the
Contractor's creditors, both those directly connected with the
execution of the Agreement and those arising out of the responsibility
of the Contractor.
4.11 FINAL ACCEPTANCE OF THE WORK AND GUARANTEE
4.11.1 Final Acceptance of the Work will be confirmed by a letter of
acceptance issued by Owner promptly after Owner is satisfied that all
requirements of the Agreement have been met with regard to the
following, as applicable: performance of the Work; equipment
performance warranties; delivery of material, equipment and spare
parts; submittal of schedules, estimates, drawings and specifications
and calculations; submittal of final records of cost-plus Work (if
any); and, presentation of a final release of claims form (including
passage of sufficient time, pursuant to applicable statutes,
regulations and case law, to ensure that the Work, Site(s), and all
other property of Owner is free and clear of all liens, claims,
encumbrances, and demands arising from or that may arise from the
Work).
4.11.2 Contractor agrees that until Final Acceptance, Owner may retain final
payment and/or the retained percentage provided for in the Agreement
in the full or partial amount thereof as considered by Owner to be
reasonable in order to assure full compliance by Contractor with the
Agreement.
4.11.3 The Work performed thereunder may be accepted as a whole or in
separately defined parts, in which case any funds retained will be
reduced in accordance with the pro-rata value of those accepted parts.
In the event the letter of acceptance covers all of the Work, the
letter will state All work under Contract is accepted." In the event,
however, the letter of acceptance includes only part of the Work, the
letter will clearly define and limit acceptance to the part(s),
section(s), or item(s) which is accepted at that time. In addition,
it will be numbered "Acceptance Letter No. 1" and subsequent letters
will be numbered consecutively until the last part of the Work is
accepted and the letter is marked "Final Acceptance."
<PAGE>
4-13
4.11.4 The Contractor guarantees the Work against defects in material or
workmanship which appear within a period of three (3) years from the
date of Final Acceptance by the Owner, or within such longer period as
may be stipulated elsewhere in the Agreement Documents, and the
Contractor shall at its own expense remedy such defect promptly and
shall indemnify the Owner for any damage resulting therefrom which
appears within such a period.
4.11.5 The Contractor shall secure from its Subcontractors and vendors of
equipment or materials written guarantees in conformity with the
foregoing and shall transmit same to the Owner or Owner's
Representative prior to presentation of its claim for final payment.
4.11.6 The Owner shall give notice of observed defects with reasonable
promptness. Neither inspection nor approval of any samples of any
part of the Work, nor Final Acceptance of the Work, nor any payment by
the Owner shall relieve the Contractor of responsibility for faulty
materials or workmanship.
4.11.7 Nothing herein contained shall diminish any more extended liability
for faulty materials or workmanship which is created by the laws of
the country or state in which the Site is located.
4.12 PERMITS AND LICENSES
4.12.1 Unless otherwise stipulated, the Contractor at its own expense shall:
a) Procure all permits, certificates and licenses required that are
not already supplied by Owner,
b) Issue all necessary legal notices and observe and abide by all
applicable laws, regulations, ordinances and rules of all duly
constituted public authorities bearing on the Work, and pay all
fees and other expenses in connection therewith, and
c) Hold the Owner harmless from any liability or penalty which may
result from a violation of such laws, regulations, ordinances and
rules.
Upon completion of the Work, the Contractor shall deliver to the Owner
a "Permit of Occupancy," should such a document be required to be
issued by city, county, or state authorities.
4.13 ROYALTIES AND PATENTS
4.13.1 The Contractor shall indemnify the Owner against claims, actions,
suits and proceedings for the infringement or use of any patent based
upon the use of any invention protected by such
<PAGE>
4-14
patent in carrying out the Agreement, and for royalties or other
payments resulting therefrom which may be payable in connection with
the Agreement only provided, however, that in respect of the Agreement
only, the Owner shall indemnify the Contractor against all such
claims, actions, suits or proceedings in respect of anything for which
the mode, plan or design shall have been supplied to the Contractor by
or on behalf of the Owner.
4.13.2 The Party required thereunder to indemnify the other Party shall be
entitled to conduct the defense of such claims, actions, suits or
proceedings so long as such defense is diligently conducted, and each
Party shall keep the other Party promptly and fully informed of the
bringing of such claims, actions, suits or proceedings and of the
steps taken or which ought to be taken in the prosecution or defense
thereof accordingly.
4.14 TAXES AND CUSTOMS DUTIES
4.14.1 Unless otherwise stipulated in the Agreement Documents, the Contractor
shall pay all federal, state, county or municipal taxes and duties
whatsoever payable in respect of the Work, but not on material or
equipment, if any, supplied free of charge to the Contractor by the
Owner.
4.15 SUBCONTRACTS
4.15.1 The Contractor shall not sublet any portion of the Work unless, before
signing of the Agreement, he has notified the Owner in writing of the
names of the Subcontractors proposed for the principal part of the
Work, or the Owner has given his written consent subsequent to the
signing of the Agreement. The Contractor shall not employ any
Subcontractors to whom the Owner may reasonably object.
4.15.2 In subcontracting for any part of the Work, the Contractor shall make
an agreement with the Subcontractor wherein the latter shall expressly
agree to be bound by the term of this Agreement, including these
General Conditions, and the Project Specifications and Drawings
insofar as they are applicable, and the Contractor shall exact from
every Subcontractor strict compliance therewith. Subcontractor shall
be responsible to the Contractor for unsatisfactory Work and for
damage done in removing and replacing defective work or materials and
for other damage done by them or their employees.
4.15.3 The Contractor alone shall be fully responsible to the Owner for the
acts and omission of its Subcontractors and of persons employed by
them, and he shall not be relieved from responsibility if Work that is
sublet is not performed to the satisfaction of the Owner. In view of
this responsibility for the acts and omissions of its Subcontractors,
the Contractor shall not
<PAGE>
4-15
be obliged to employ as a Subcontractor any person or firm to whom he
reasonably objects. Nothing contained in the Agreement Documents
shall create any contractual relation between any Subcontractor and
the Owner.
4.15.4 The Owner reserves the right, at any time during the Work, to have the
Contractor remove from the job and the Site any Subcontractor whose
work does not meet the Owner's approval.
4.16 OTHER CONTRACTORS
4.16.1 The Owner reserves the right to perform work with his own forces and
to let other agreements in connection with the undertaking of which
the Work is a part, even if of like trades and character as those
already let. Notice shall be given to the Contractor of such other
agreements.
The Contractor shall afford the Owner and any such Other Contractors
reasonable opportunity for the introduction and storage of their
materials and the execution of their work. The Contractor shall work
in conjunction with the Owner and these Other Contractors to
coordinate and connect properly their work with the several parts of
the Work. The Contractor shall not commit or permit any act which
will interfere with the performance of the work of the Owner or Other
Contractors.
4.16.2 Where the Contractor's Work adjoins the work of the Owner or Other
Contractors, Contractor shall confer with them as required and so
arrange its Work that there shall be no discrepancies between the work
of the Owner or Other Contractors and the Contractor's Work when both
are completed.
4.16.3 If the Contractor fails to cooperate with or coordinate the Work with
the work of the Owner or Other Contractors, he shall not make any
claims founded on delays which have resulted from such failure and he
shall save the Owner harmless from all claims made by Other
Contractors, which are founded on delays caused by such failure.
4.16.4 If any part of the Work depends for its proper execution or result
upon the work of Other Contractors, the Contractor shall report
promptly in writing to the Owner's Representative any defects in the
work of such Other Contractors that interfere with the proper
execution of the Work.
4.16.5 Copies of drawings and specifications relating to another agreement
will be furnished to the Contractor on request, for its information in
carrying out the above provisions. The Contractor
<PAGE>
4-16
shall be responsible for any and all damages caused by its negligence
or failure to coordinate its Work with that of the Owner or Other
Contractors and any additional expenses arising therefrom.
4.16.6 If Contractor sustains damage or loss through any delay, default, act
or omission of any Other Contractor, subcontractors, or their agents
or employees, Owner shall not be liable; but nothing in the Agreement
shall be construed to limit Contractor from pursuing its legal
remedies against such Other Contractor or subcontractors, or their
agents or employees.
4.16.7 Contractor shall have no claim against Owner for damage or loss by
reasons of delay, default, act or omission of Other Contractors,
subcontractors or their agents or employees, but nothing in the
Agreement shall limit any rights of Contractor to recover therefor
against such Other Contractors, subcontractors or their agents or
employees. If Contractor by any default, negligence or misconduct on
its part damages any other subcontractor or contractor, it hereby
agrees to be directly responsible to such other subcontractor or
contractor for any such damage and to hold Owner harmless for all such
damages.
4.17 CHANGES IN THE WORK
4.17.1 The Owner or Owner's Representative may make changes by altering,
adding to or deducting from the Work without invalidating the
Agreement.
4.17.2 However, except as provided in Section 4.27, Emergencies, no change
shall be made to the Work unless in pursuance of a written order or a
drawing from the Owner or Owner's Representative, and no claim for a
change to the construction schedule or to the completion date or for
an addition to the Agreement Sum will be considered or allowed unless
so ordered.
4.17.3 Any such changes shall be carried out under the terms and conditions
of the Agreement and the adjustment, if any, that thereby results to
the Agreement Sum, the construction schedule and the completion date
for the Work shall be made as set forth in this section.
4.17.4 Any claim for an extension of time in regard to the Construction
Schedule or the completion date shall be dealt with pursuant to
Section 4.25, Delays at the time such changes are ordered.
4.17.5 If the Owner or Owner's Representative decides that a change in the
Work shortens the period required for completion of the Work, he shall
so notify the Contractor and state the number of days by which such
period is to be shortened, and the Construction Schedule or the
completion date or both, shall be amended accordingly by the Owner or
Owner's Representative.
<PAGE>
4-17
4.17.6 If a change in the Work, or any other circumstances arising during the
course of the Work, except those provided for in Section 4.25, Delays,
Section 4.27, Emergencies, and Section 4.46, Use of Completed Portions
by the Owner, justifies, in the opinion of the Contractor, a claim for
an addition to the Agreement Sum, the Contractor shall present its
claim in writing to the Owner within seven (7) days of the date on
which such other circumstances arise, and if the claim is not
presented to the Owner within such time, the Contractor shall not be
entitled to compensation from the Owner. Upon receipt of such a
claim, the Owner or Owner's Representative will decide whether the
claim is valid and the basis and amount of payment, if any, pursuant
to Section 4.18, Valuation of Changes in the Work.
4.17.7 If the Contractor disputes a decision of the Owner or Owner's
Representative as to whether a change in the Work will result in an
addition to the Agreement Sum, the Contractor shall nonetheless
perform the Work and the performance of the Work shall not prejudice
any remedies that the Contractor may have, provided the Contractor
gives the Owner, before commencing the Work, a further written notice
that he is performing the disputed Work under protest.
4.17.8 If the Owner or Owner's Representative decides that a change in the
Work results in a decrease in the cost of carrying out the Work, the
Owner or Owner's Representative shall decide the amount that is to be
deducted from the Agreement Sum. In such event the Contractor shall
not be entitled to any compensation for loss of anticipated profits.
4.17.9 All claims resulting from changes in the Work submitted by the
Contractor shall be accompanied by a list of the changes and a
detailed estimate of the cost of each change, together with references
to the drawings or other documents involved.
4.18 VALUATION OF CHANGES IN THE WORK
4.18.1 If, in the opinion of the Owner or Owner's Representative, a change in
the Work or other circumstances pursuant to Section 4.17, Changes in
the Work, result in a valid claim for an addition to the Agreement
Sum, such addition shall be valued on either a lump sum basis as
mutually agreed upon by the Parties hereto, or
4.18.2 If such lump sum basis cannot be mutually agreed upon, the valuation
shall be determined by the unit prices, if any, shown in the Agreement
Documents where, in the opinion of the Owner or Owner's
Representative, they are applicable or where these unit prices are not
deemed applicable by the Owner or Owner's Representative, by such
other unit prices as may be mutually agreed upon by the parties
hereto, or
<PAGE>
4-18
4.18.3 If neither a lump sum nor a unit price basis for payment can be agreed
upon, the change in the Work shall be carried out on a cost plus
basis, as follows:
a) For laborers, tradesmen, operators, foremen and supervisors
wholly engaged on the Change in Work, the Contractor shall be
reimbursed according to the terms of the Agreement Documents, or
if such is not covered in the said documents, Contractor shall
receive the current local rate of wages, the cost of vacation
pay, Workers' Compensation Insurance, unemployment insurance, and
any other labor additives required by law, but excluding premium
wages for overtime work.
b) For material or subcontracted work purchased by the Contractor
and actually used in the Change in the Work, the Contractor shall
receive the actual cost of such materials, transportation
charges, and of such subcontracted work, as shown by invoices or
other records of payment satisfactory to the Owner.
c) To the labor, materials and subcontract costs as specified above,
shall be added the percentages for labor, material and
subcontracted work respectively, set forth in the Agreement to
cover profit, overhead, tools, and all other general expenses.
d) For living allowances and cost of board and lodging for employees
wholly engaged on the Change in the Work, and other costs not
included above which form part of such employees' terms of
employment, the Contractor shall receive that portion of the
actual cost of such items as is attributable on a pro rata basis,
to the amount of time such employees are engaged on the Change in
the Work. No percentage shall be added to this sum.
e) No other allowance shall be made for general supervision, or for
foremen, or for overhead or the use of tools.
f) For any construction equipment (other than tools) required for
the Change in the Work, approved by the Owner, the Contractor
shall receive a rental price to be approved in writing by the
Owner before the Work is begun. Such rental price, unless
otherwise stipulated, shall include at the expense of the
Contractor, fuel, lubricants, supplies, spare parts, and repairs
and shall apply only to actual operating time. No percentages
will be added to this rental sum.
g) Tools shall include all tools and items of equipment which have
individual replacement values under $1,000. Construction
equipment shall include all items of equipment having an
individual replacement value of $1,000 or more.
h) At the end of each day the Contractor shall submit in duplicate
to the Owner or Owner's Representative for certification a list
of the men and the equipment employed on the Change in the Work
and the hours worked, together with invoices for any materials
used during the day. These daily certified lists and invoices
shall be submitted to the Owner with relevant application for
payment.
<PAGE>
4-19
4.19 SCHEDULE OF RATES
4.19.1 Before making first application for payment under the Agreement, the
Contractor shall submit for the Owner's approval a schedule of rates
of the various parts of the Work and totaling the full amount of the
Agreement Sum. This schedule, when approved by the Owner or Owner's
Representative, shall be used as the basis for applications for
payment.
4.19.2 The schedule of rates shall be set out and divided in a manner which
is consistent with the Owner's accounting codes for the various parts
of the Work.
4.20 APPLICATION FOR PAYMENT AND VALUATION OF WORK FOR PROGRESS PAYMENTS
4.20.1 Within thirty (30) calendar days following a month in which Work has
been performed by the Contractor, the Contractor shall submit to the
Owner or Owner's Representative an application for payment for the
value of the amount of the Work and changes in the Work performed
during the preceding month.
The Owner will not be required to approve any application for payment
or make any such payment until such time as the Contractor has signed
and executed the Agreement and furnished all required performance
bonds, and required labor and material payment bonds and insurances,
and complied with all provisions of the Workers' Compensation Act,
Mine Health and Safety Act, and other such requirements of the
Agreement.
The applications shall be made in the form prescribed by the Owner.
The application for final payment shall be submitted at the later of
either sixty (60) calendar days after the completion of the Work, or
at the expiry of the lien period, if applicable.
4.20.2 When the Work, or Change in the Work is being performed on a lump sum
basis, the value of the amount of the Work performed shall be based on
the percentage of the Work performed by the Contractor and, subject to
the following limitations, shall include the value of materials
delivered to the Site, but not yet incorporated into the Work:
a) The amount of material so claimed shall not, in the opinion of
the Owner or Owner's Representative, be unreasonably large in
relation to the amount of Work scheduled for the succeeding
month; and
<PAGE>
4-20
b) For the second and subsequent claims, the value of material
delivered to the Site, but not incorporated in the Work, shall
not be included in the claim unless eighty-five percent (85%) or
more of the material so claimed in the previous claim has been
paid for by the Contractor.
4.20.3 When the Work, or Change in the Work is being performed on a unit
price basis, the value of the amount of Work performed shall be the
number of fully completed units of the Work measured as described in
the Agreement Documents. Unless otherwise stated in the Agreement
Documents, the value of the amount of Work shall not include materials
delivered to the Site, but not yet incorporated into the Work.
4.20.4 When a Change in the Work is being performed on a cost plus a
percentage basis or on a cost plus a fixed fee basis, the value of the
Work performed pertaining to such Change in the Work shall be based on
payments that the Contractor has made as substantiated by invoices,
payrolls, or other records, including evidence of payment by the
Contractor satisfactory to the Owner, plus the percentages, or in the
case of a fixed fee, plus a proportion of the fee equivalent to the
proportion of such Change in the Work as has been completed.
4.20.5 If the Owner or Owner's Representative approves the value of the
amount of Work and Changes in the Work set forth in the Contractor's
application for payment and the amount calculated by the Contractor to
be due and payable for such Work, the Owner's Representative shall
certify that such application for payment is correct. If the Owner or
Owner's Representative does not approve the application for payment he
shall determine the value of Work and Changes in the Work performed by
the Contractor during the preceding month and shall certify such
calculated value. The certification of value shall be issued by the
Owner within a period of not more than fifteen (15) calendar days
after he received the Contractor's application for payment.
4.20.6 When making an application for the final payment, the Contractor shall
submit with the application a declaration, satisfactory to Owner,
stating that the Work and the Site are, and will continue to be, free
and clear of liens and claims for wages, services, Workers'
Compensation assessment, materials or otherwise that are the
responsibility of Contractor, and that the time for filing of liens
has expired. The Contractor shall also obtain and submit with the
application for final payment a declaration, satisfactory to Owner,
from each of the Subcontractors identified by name in the tender form
and such other Subcontractors as the Owner may designate, stating that
as far as its subcontract is concerned, the Work and the Site are, and
will continue to be, free and clear of liens and claims for wages,
services, Workers' Compensation assessments, materials or otherwise,
and that the time for filing of liens has expired.
<PAGE>
4-21
4.20.7 When making application that the Work has been substantially
completed, the Contractor shall send its final invoice for the Work
stating any and all claims, charges, etc., and a written declaration
to the Owner stating he has substantially completed the Work and
executed all duties and obligations under the Agreement except those
deficiencies in the Work as may exist at that time. At such time as
the Work is substantially completed, the Contractor or the Owner may
request that the Work be deemed to be complete subject to downward
adjustment of the Agreement Sum by the appropriate amount to
compensate for such deficiencies in the Work as may exist at that
time.
If such request is agreed to by the Owner or Owner's Representative,
the Contractor shall prepare a list of such deficiencies, including
any remaining cleanup operations, with an estimate of the value of
each, for approval of negotiation by the Owner and the Contractor.
4.21 PAYMENTS BY THE CONTRACTOR AND LIENS
4.21.1 To protect the Owner's property from liens, the Contractor shall pay
promptly for all materials, equipment, and labor used on the Work, and
all taxes, duties, assessments, and costs in respect of the materials,
equipment and labor to be used, and shall pay promptly all
Subcontractors doing portions of the Work and shall require each
Subcontractor to make such payments promptly in respect of the
subcontracted work, and if the Subcontractor does not make such
payments when due, the Contractor shall forthwith make such payments
on behalf of the Subcontractor.
4.21.2 Neither the final payment by the Owner nor any part thereof shall
become due until the Contractor, if required by the Owner or Owner's
Representative, has obtained and delivered to the Owner a complete
release of all liens arising out of the Work and has caused each such
lien to be canceled and discharged.
4.21.3 If any lien remains unsatisfied, or any amount owed by the Contractor
remains unpaid, or if any additional assessments are made by any
governmental authority in respect of the Work, either before or after
the Contractor has received the final payment from the Owner, and if
the Owner discharges such lien, makes such payment or pays such
assessment, then the Contractor shall reimburse the Owner on demand
for all costs incurred in discharging such lien, or paying such
assessment or amount, including any legal fees thereby incurred.
4.21.4 The Owner shall have the right at any time to pay and to discharge any
liens placed on Owner's property as a result of the Work, whether or
not such liens constitute valid claims, and to deduct the costs of
discharging the lien from the amount due the Contractor provided the
<PAGE>
4-22
Contractor wishes to dispute the validity of any such claim and such
dispute shall not, in the opinion of the Owner, unduly prejudice or
inconvenience the Owner, the Contractor may proceed to dispute such
claim upon first furnishing the Owner with a good and sufficient bond
in an amount approved by the Owner and of a bonding company authorized
to carry on business in the state or country in which the Work is
being performed and approved by the Owner, indemnifying the Owner
against such claim and any loss or damage which may be caused thereby.
4.21.5 The Owner retains the right to audit any and all expenditures made in
support of the Work by the Contractor, or the Contractors employees,
agents or affiliates, including sub-contractors, for a period not to
exceed one year after the date of completion of the Project.
4.22 CONSTRUCTION SCHEDULE, METHODS AND EQUIPMENT
4.22.1 Not later than one (1) week after the award of an Agreement to the
Contractor, the Contractor shall furnish to the Owner for his approval
a schedule which shall conform to the Construction Schedule mutually
agreed upon at award of Agreement, but shall show in such greater
detail as may be required by the Owner, the proposed starting and
completion dates for the various divisions and subdivisions and types
and classes of Work. If the Owner so requires, such schedule shall be
prepared in such manner as to facilitate "Critical Path Method"
planning. After approval by the Owner, the Contractor shall furnish
to the Owner a copy of the approved schedule.
4.22.2 The Contractor shall complete each portion of the Work on or before
the date set forth in the approved Construction Schedule. Of
immediate importance to the Owner is the completion of the shaft
mobilization. Failure to complete the mobilization as planned may
result in the Owner exercising its right to terminate this Agreement,
as outlined in Section 4.48, Owner's Right to Terminate Agreement.
Such schedule must show earliest and latest possible starting and
completion dates "Float."
4.22.3 If at any time before the commencement or during the progress of the
Work any part of the construction plant or equipment, or any of the
Contractor's methods of executing the Work appear to the Owner to be
unsafe, inefficient, or inadequate, or should the Contractor not be
proceeding with the Work with sufficient diligence to satisfy the
Owner, or in the opinion of the Owner, with sufficient force to ensure
its progress and completion in accordance with terms of the Agreement
relating thereto, the Owner may order and direct the Contractor to
increase or improve the plant or equipment, as the case may be, or to
improve its methods, or to increase and employ such additional force,
or to perform such night work or such overtime
<PAGE>
4-23
work as shall be, in the judgment of the Owner, necessary to ensure
the safety, efficiency and adequacy of the construction plant and
equipment and the completion of the Work, on the particular portion
thereof affected, within the specified time. The Contractor shall
comply with the Owner's instructions in this respect within a
reasonable time of the receipt of said instructions in writing.
4.22.4 Neither compliance with such instructions nor the failure of the Owner
to issue such instructions shall relieve the Contractor of its
obligations to secure the degree of safety quality of Work and the
rate of progress required under the terms of the Agreement. The
Contractor shall be responsible for the safety, adequacy and
efficiency of the plant and equipment at the Site of the Work and for
construction methods, and for the provision of sufficient force. The
Contractor shall cause its employees and the employees of any of its
Subcontractors to comply in all respects with rules and regulations
issued from time to time in writing by the Owner governing the conduct
of such employees, and shall conduct its Work in such manner as not
willfully to hinder, impede or injure the operation of the Owner's
plant or affiliated plants.
4.22.5 The Contractor shall not remove any equipment form the Site of the
Work without written approval of the Owner.
4.23 PREVAILING WAGES
4.23.1 The Contractor shall ensure that the labor conditions and wage rates
affecting its employees meet the standards prevailing for labor in the
construction industry in the area in which the Work is performed. In
any area in which prevailing wages (as opposed to minimum wages) are
fixed by government decree, regulation or ordinance, the Contractor
shall conform in particular to any such decree, regulation or
ordinance and the Owner may withhold from the Contractor an amount
equivalent to any deficiency in the wages paid to the Contractor's
employees, without prejudice to the Owner's other rights and
recourses.
4.24 LABOR RELATIONS
4.24.1 The Contractor shall conduct its operations in full compliance with
applicable laws and regulations of the USA and of the state where the
Work is being performed.
4.24.2 The Owner reserves the right to terminate the Agreement in accordance
with the provisions of Section 4.48, Owner's Right to Terminate
Agreement and to claim reimbursement from the Contractor for any
additional costs that may be incurred, in the event that a labor
dispute arises affecting other trades or labor employed by the Owner
or Other Contractor or Subcontractor as
<PAGE>
4-24
a result of the Contractor's assignment of labor to the Work and
handling of labor forces and industrial relations.
4.24.3 Settlement of any and all labor disputes including jurisdictional
disputes shall in no way alter the terms, conditions, and prices as
covered by the subject tenders and subsequent purchase orders.
4.24.4 The Contractor shall provide all labor forces required for the
efficient execution of the Work.
4.24.5 The Contractor will supply the Owner or Owner's Representative with
copy of each of its collective agreements which may be relevant to
the Work at the Site of the Work together with relevant collective
agreements of its Subcontractors and any and all other relevant
correspondence or agreements between the Contractor or its
Subcontractors and the union(s).
4.24.6 The Contractor shall deal with all matters pertaining to industrial
relations within the limits of its organization and to the full extent
of its Work. Where deemed necessary for the efficient and smooth
implementation of the Work, the Contractor shall be obliged to hold
and arrange for pre-job conferences with all parties concerned and/or
send a representative to any and all pre-job conferences and/or
regular or emergency meetings called for the purpose of discussing
industrial relations matters. Copies of minutes of such meetings are
to be issued at once to the Owner or Owner's Representative.
4.24.7 The Contractor shall keep the Owner or Owner's Representative fully
advised on a regular basis with respect to all labor relation matters
relevant to the Work on the Project Site.
4.24.8 The Contractor is to cooperate fully with the Owner's efforts and that
of Other Contractors on the Site. Any information and data relating
to industrial labor relations of its Work is to be communicated in a
timely manner to the Owner or Owner's Representative.
4.24.9 The Contractor shall take any and all steps that may be available for
the resolution of violations of collective bargaining agreements and
jurisdictional disputes, including without limitation, the filing of
appropriate process with any court or administrative agency having
jurisdiction to settle, enjoin or to award damages resulting from
violations of collective bargaining agreements of jurisdictional
disputes, and failing which shall be liable to the Owner for all
losses incurred by the Owner as a result of the aforesaid violations
of collective bargaining agreements or jurisdictional disputes.
4.25 DELAYS
<PAGE>
4-25
4.25.1 The Contractor shall immediately notify the Owner in writing of any
occurrence which, in the opinion of the Contractor, has caused or
which he anticipates may cause a substantial delay which will affect
the performance of the Work according to the Construction Schedule or
the completion date for the entire Work, and in any event shall notify
the Owner, in writing, not later than seven (7) days after the
occurrence which caused the alleged delay or gave rise to the
anticipated delay.
4.25.2 In addition to submitting the above notice, if the Contractor claims
that any alleged delay was occasioned through force majeure,
including, but not limited to, labor disputes, strikes, lockouts,
fire, unusual delay by common carriers or unavoidable casualties, or
by any cause of any kind whatsoever beyond the Contractor's control,
then he may also submit a claim to the Owner for a revision of the
Construction Schedule and for an extension of the time for completing
the Work, and at no extra cost to the Owner.
4.25.3 If the Contractor considers that the alleged delay was the direct
result of the act or neglect of the Owner or Owner's Representative,
then the Contractor may also submit a written claim to the Owner for
approval of the reimbursement of the Contractor's additional field
overhead costs which can be shown to be the result of the delay due to
such act or neglect.
4.25.4 Notwithstanding the remedies prescribed in Section 4.25.2 and Section
4.25.3, no claim shall be made or allowed to the Contractor against
the Owner or Owner against the Contractor for any damages, losses or
liabilities which may arise out of any delay caused by force majeure,
including, but not limited to, labor disputes of any kind, legal
strikes, work stoppages, lockouts, act of God, acts of civil or
military authority, floods, epidemics, riots or any cause of any kind
whatsoever beyond the Owner's or Contractor's control.
4.25.5 Time shall be deemed to be material and of the essence of the
Agreement.
4.25.6 The Contractor strictly agrees to diligently and expeditiously perform
the Work and to execute any and all available items of Work at the
earliest available opportunity.
4.25.7 The Owner will not be obligated to consider any claim for delay and/or
additional moneys unless the Contractor can demonstrate that it has
complied with the provisions of Section 4.25.6.
4.25.8 Any delay or work stoppage of one (1) hour or less in any twenty-four
(24) hour period shall not be considered a delay for the purpose of
the Agreement Documents.
<PAGE>
4-26
4.26 ACCELERATION OF THE WORK
4.26.1 If the Contractor fails to complete any part of the Work in the time
specified in the Construction Schedule, or if it becomes apparent to
the Owner that the Work will not be completed in the time specified,
and if such failure is due to fault on the part of the Contractor, the
Owner may require that the Contractor expedite the Work, and should it
become necessary to work overtime, to add additional shifts, to employ
additional men, or to provide additional equipment to accomplish this.
The premium for such overtime and for such additional shifts, the cost
of employing additional men or providing additional equipment,
together with any other additional costs thereby incurred shall be at
the Contractor's sole expense.
4.26.2 The Owner shall have the right to require the Contractor to complete
the Work or any part thereof before the date set forth in the
Construction Schedule, or to require the Contractor to complete the
Work according to the Construction Schedule when Contractor's claim
for a delay has been ruled valid by the Owner or Owner's
Representative.
4.26.3 The Contractor may submit a claim for reimbursement for its additional
costs that can be shown to be the direct result of the acceleration
provided for in Section 4.26.2, including the costs of additional
shifts or overtime if the Contractor is required by a labor agreement
to pay a premium over and above normal wage rates for such Work. The
premium shall include the actual extra labor costs over the rate for
regular time and shall also include any mandatory labor additives. If
approved by the Owner, the premium shall also apply to the
Contractor's supervisory and clerical staff where the payment of
overtime is required under the terms of their employment. Time slips
covering ordered overtime or additional shifts will be submitted daily
to the Owner or Owner's Representative for checking and approval.
4.27 EMERGENCIES
4.27.1 If, in the opinion of the Owner or Owner's Representative, the manner
in which the Work is being performed affects or threatens to affect
the safety of life or the safety of any part of the Work or any
adjoining property, or if any emergency arises which affects or
threatens to affect the safety of life or the safety of any part of
the Work or of any adjoining property, then the Owner or Owner's
Representative may stop the Work or may give whatever instructions are
necessary in their opinion to relieve the circumstances, in which
event the Owner or Owner's Representative shall determine whether the
Contractor is entitled to an extension of time or to extra
compensation pursuant to Section 4.25, Delays.
4.28 CONTRACTOR'S FAMILIARITY WITH SITE
<PAGE>
4-27
4.28.1 The Contractor acknowledges having examined the Site and the adjoining
premises and areas before entering into the Agreement and having made
its own evaluation of the applicable laws, rules, regulations,
facilities available and the difficulties attending the Work.
4.29 SUBSURFACE CONDITIONS
4.29.1 Where the Owner has made investigations of the soils or other
conditions in the area where the Work is to be performed under the
Agreement, such investigations are made only for the purpose of
Owner's study and design. The records of such investigations are not
part of the Agreement and are furnished to Contractor solely for the
convenience of the Contractor. It is expressly understood and agreed
that the Owner assumes no responsibility whatsoever in respect to the
sufficiency or accuracy of the investigations thus made and the
records thereof, and the same shall not relieve the Contractor from
its obligations under this section.
4.29.2 The Contractor acknowledges that it has not relied upon any
information given or statements made to it by the Owner in connection
with, and shall not claim at any time after tendering that there was
any misunderstanding in regard to the matters referred to in this
section.
4.30 SURVEYS, LINES AND LEVELS
4.30.1 The Owner's Representative will furnish a basic reference line and a
bench mark and may at his discretion furnish other reference lines and
bench marks. The Contractor shall furnish other reference lines and
bench marks. The Contractor shall furnish from such reference lines
and bench marks such other points and elevations as may be required
for the execution of the Work.
4.30.2 The Contractor shall keep proper records in connection with the
establishment of such other points and elevations. The data books,
sketches and other records pertaining thereto shall be available for
examination by the Owner's Representative upon request.
4.30.3 The Contractor shall protect all bench marks, survey pegs and
monuments from damage or movement. If any of these are moved or
disturbed, they shall be relocated and replaced by the Owner's
Representative at the Contractor's expense.
4.30.4 The Contractor shall be responsible for the entire cost of rectifying
work improperly installed due to such bench marks, survey pegs and
monuments having been removed without authorization, or failure to
protect and maintain same.
<PAGE>
4-28
4.30.5 The Contractor shall be responsible for any survey work performed by
its Subcontractors.
4.30.6 If, at any time during the progress of the Work, an error shall appear
or arise in the position, levels, dimensions, or alignment of any part
of the Work, the Contractor shall, on being required to do so by the
Owner and at its own expense, rectify such error to the satisfaction
of the Owner, unless such error is based on incorrect data supplied in
writing by the Owner.
4.31 AGREEMENT DOCUMENTS ISSUED FOR CONSTRUCTION
4.31.1 Unless otherwise stipulated, following execution of the Agreement, two
(2) sets of the Agreement Documents, excluding the Drawings, will be
issued to the Contractor to be used for construction purposes.
4.31.2 The Contractor shall supply three (3) copies of all Drawings and
Specifications to the Owner or Owner's Representative for approval and
shall not proceed with any work prior to receipt of approval by the
Owner or Owner's Representative in writing. Upon receipt of such
approval the Contractor shall issue three (3) copies of the approved
Specifications and Drawings marked "Released for Construction" to the
Owner or Owner's Representative for his records.
4.31.3 If, in the Contractor's opinion, changes requested by the Owner to the
Drawings and Specifications, call for Work more costly than called for
by the Agreement or adversely affected the scheduling of the Work, the
Contractor shall give written notice to such effect within seven (7)
calendar days after the same are delivered. If the Owner or Owner's
Representative concurs, the Drawings and Specifications shall be
amended or additional compensation for time, or both shall be
negotiated to cover the increased cost of the Work or the increased
time required to complete same.
4.32 REVISIONS OF DRAWINGS AND SPECIFICATIONS
4.32.1 The Drawings and Specifications may require revisions or amplification
from time to time. The Contractor shall supply three (3) copies of
such Drawings or Specifications clearly marked as to the requested
revision to the Owner or Owner's Representative for approval. No
revision shall be implemented without the written approval of the
Owner. Upon receipt of such approval, the Contractor shall re-issue
such Drawings or Specifications marked "Released for Construction" as
provided in Section 4.31.2.
4.32.2 If, in the Contractor's opinion, changes requested by the Owner to the
Project Specifications and Drawings, call for Work more costly than
called for by the Agreement or adversely affect
<PAGE>
4-29
the scheduling of the Work, the Contractor shall give written notice
to such effect to the Owner within seven (7) calendars days after the
same are delivered. If the Owner or Owner's Representative concurs,
the Project Specifications and Drawings, employees shall be amended or
additional compensation for time, or both shall be negotiated to cover
the increased cost of the Work or the increased time required to
complete same.
4.33 SHOP DRAWINGS
4.33.1 The Contractor shall furnish to the Owner, at proper times, such shop
and setting drawings or diagrams as the Owner or Owner's
Representative may deem necessary in order to clarify the details of
the Work. The Contractor shall make any changes in such drawings or
diagrams which the Owner or Owner's Representative may require,
consistent with the Agreement, and shall submit sufficient copies (as
specified by the Owner or Owner's Representative) of the revised
prints to the Owner for approval. After approval, one (1) copy shall
be returned to the Contractor.
4.33.2 When submitting such shop and setting drawings, the Contractor shall
notify the Owner in writing of any discrepancies between such drawings
and the Owner's or Owner's Representative's approval of such drawings
or of the revised drawings shall not relieve the Contractor of
responsibility for errors made by the Contractor therein or for
deviations from the Owner's and Owner's Representative's drawings or
specifications not covered by the Contractor's written notification to
the Owner.
4.33.3 The Owner is entitled to timely receipt of shop and certified vendor
drawings and will decide in each case if he wishes to review such data
or not.
4.34 RECORD DRAWINGS "AS-BUILT"
4.34.1 As the work progresses, the Contractor shall mark on one (1) set of
the construction drawings in reproducible form (see Section 4.31,
Agreement Documents Issued for Construction), all changes and
deviations from the construction drawings for all elements and parts
of the Work, covering such items as changes in size, location and
elevation.
4.34.2 At the completion of the Work, or such parts of the Work, the
Contractor shall update and deliver to the Owner or Owner's
Representative one (1) set of construction drawings in reproducible
form clearly marked "As-Built."
4.35 SAMPLES AND MANUFACTURER'S SPECIFICATIONS
<PAGE>
4-30
4.35.1 If requested by the Owner, the Contractor shall state the source of
any material it proposes to use in the Work. The Contractor at its
own expense shall furnish to the Owner for the Owner's or Owner's
Representative's approval such samples and manufacturer's
specifications as are called for by the Agreement Documents and such
additional samples and specifications as the Owner or Owner's
Representative may require, the Work shall conform to the samples and
manufacturer's specifications approved in writing by the Owner or
Owner's Representative, but no such approval shall prevent the
subsequent rejection by the Owner or Owner's Representative of all or
any portion thereof which may turn out to be unsound or unfit for use.
4.36 MATERIAL AND WORKMANSHIP
4.36.1 Where reference is made to standard specifications, the latest edition
thereof shall be understood to apply, unless otherwise stipulated.
4.36.2 Materials and workmanship of all items supplied shall be new and of
highest quality, unless otherwise approved by the Owner or Owner's
Representative in writing.
4.37 HANDLING AND STORAGE OF EQUIPMENT AND MATERIALS
4.37.1 The Contractor shall, at its own expense, receive and check, off-load,
handle on the Site and store in area to be designated by the Owner,
all equipment and material supplied by the Owner for the Work, which
arrives on the Site during the time the Contractor is to be on the
Site, according to the Construction Schedule.
4.37.2 If equipment or material that the Contractor is responsible for
receiving and checking, off-loading, handling and storing is off-
loaded, handled or stored by the Owner, the expense incurred shall be
payable by the Contractor on demand or may be deducted by the Owner
from money due to the Contractor.
4.37.3 The Contractor shall take all appropriate precautions against loss,
theft or damage of equipment or material delivered to the site for the
purpose of the Work, whether such equipment or material is the
property of the Owner, the Contractor, or Subcontractors.
4.37.4 The Contractor shall be completely responsible for the safekeeping for
all its tools and equipment and for those of its employees while on
the Site and shall provide all necessary facilities and services for
such safekeeping. The Owner will not accept any claims from the
Contractor or Subcontractor for the loss or damage of such tools and
equipment.
<PAGE>
4-31
4.37.5 No tools, equipment, material or other articles may be removed from
the Site, unless the person removing such article can clearly identify
each article and establish his ownership and his right to remove it
from the Site.
4.37.6 The Owner or Owner's Representative will assign to the Contractor a
specific storage area near the Work. Additional space, if desired by
the Contractor, shall be furnished by the Contractor at its own
expense.
All materials, which will become a permanent part of the Work, shall
be stored in a manner which will preserve their original conditions
and fitness for the Work. Materials requiring indoor or special
storage, or preparation for storage, shall be so prepared and stored.
The manufacturer's instructions for storage and handling of its
products shall be followed in full. The Contractor shall provide all
storage facilities.
4.37.7 For materials and equipment designated in this specification as
"supplied by others," the Contractor shall immediately upon receipt of
the materials and equipment, inspect them for quality, condition, and
quantity and shall report any damage or omission to the Owner without
delay. The Contractor will thereafter be held responsible for the
safekeeping of the materials and will be required to make good, at its
own expense, any subsequent damage or loss. All such materials and
equipment shall be located so as to facilitate ready inspection.
4.38 INSPECTION AND TESTS
4.38.1 In order to inspect the Work and the progress thereof, the Owner or
Owner's Representative shall at all times have access to the Work,
both at the Site of the Work and in the premises of the Contractor and
its Subcontractors, or other places where any part of the Work is
being performed, fabricated or manufactured, and the Contractor shall
facilitate such inspections and arrange access.
4.38.2 If the Agreement Documents, the Owner's or Owner's Representative's
instructions, laws, ordinances, or any public authority require any
part of the Work to be inspected, tested or approved, the Contractor
shall give the Owner or Owner's Representative advance notice of its
readiness for inspection, and if the inspection is by an authority
other than the Owner or Owner's Representative, the Contractor shall
notify such authority and the Owner that the Work is ready for
inspection. If any such part of the Work is covered up without the
approval or consent of the Owner or Owner's Representative, it may be
uncovered for inspection and made good at the Contractor's expense.
<PAGE>
4-32
4.38.3 Inspection or re-inspection of any portion of the Work may be ordered
by the Owner or Owner's Representative at any time during the Work and
until the end of the guarantee period specified in Section 4.11, Final
Acceptance of the Work and Guarantee. The Contractor shall uncover or
otherwise expose the questioned Work for inspection. If such part of
the Work is found to be in accordance with the Agreement, the Owner
shall pay the costs of exposing the questioned Work of the inspection,
re-inspection and restoration. If such Work is found to be not in
accordance with the Agreement, the Contractor shall pay such costs
unless it is proven conclusively that the defect in the Work was
caused by the Owner or another Contractor, in which case the Owner
shall bear the cost of uncovering, rectification and replacement.
4.38.4 The Contractor shall provide proper facilities for such inspections
and for the taking of such samples of materials as may be required,
without charge, and shall pay for the packaging and delivering of the
samples to the testing laboratory. Materials, workmanship or
installed part of the Work that is certified by the testing laboratory
to the Owner as not conforming to the Agreement Documents shall, upon
written notice to the Contractor by the Owner, be removed, replaced or
made good to the satisfaction of the Owner at the Contractor's
expense.
4.38.5 Notwithstanding the above, inspection, testing and operation at design
capacity under full operating conditions of the Work for compliance
with the Agreement shall be the responsibility of the Contractor.
4.38.6 Inspection and acceptance by Owner's Representative does not relieve
Contractor of liabilities including guarantees and warranties under
the Agreement.
4.38.7 The Owner will not be required to accept handing over of any
equipment, systems and installations until total completion to the
Owner's Final Acceptance of the total Work of the Agreement and only
then in strict accordance with the provisions of the Agreement
providing, however, that the Owner may at his own discretion elect to
accept an earlier staged/phased handing over of such portions of the
Work as he may choose.
4.39 REJECTED MATERIALS AND WORK
4.39.1 The Contractor shall promptly remove from the Site all materials
furnished by it and rejected by the Owner or Owner's Representative as
failing to conform to the Agreement, and the Contractor shall promptly
replace them with materials conforming to the Agreement and without
expense to the Owner.
<PAGE>
4-33
4.39.2 If the Contractor does not remove such rejected materials promptly,
the Owner may remove and store them at the expense of the Contractor,
and in addition to any other remedies the Owner may have, the cost of
such removal and storage by the Owner may be deducted by the Owner
from moneys due the Contractor.
4.39.3 The Contractor shall promptly remove and re-execute all Work rejected
by the Owner or Owner's Representative as failing to conform to the
Agreement, without expense to the Owner, and shall bear the expense of
making good all other work destroyed or damaged by such removal and
re-execution.
4.39.4 If the Contractor does not promptly remove and re-execute such
rejected Work, the Owner may cause such removal and re-execution to be
carried out by its own forces, or by Other Contractors, in accordance
with the provisions of Section 4.47, Owner's Right To Do Work.
4.39.5 The Owner shall have the option to allow defective or improper Work to
stand and deduct from the payment to the Contractor a sum of money
equivalent to the difference between the value of the Work as actually
performed and its value if performed as specified in the Agreement
Documents.
4.40 RESPONSIBILITY FOR DEFECTIVE WORK AFTER FINAL PAYMENT
4.40.1 Neither the final certificate nor the final payment nor any provision
in the Agreement Document shall relieve the Contractor of
responsibility for faulty materials or workmanship appearing within
the guarantee period specified in Section 4.11, Final Acceptance of
the Work and Guarantee.
4.41 USE OF SITE BY CONTRACTORS
4.41.1 Subject to Section 4.42, Temporary Structures and Protection of Work
and Property, the Contractor shall confine its equipment, the storage
of materials and the operations of its workers to the limits indicated
by laws, ordinances, permits or directions of the Owner, and shall not
unreasonably encumber the Site of the Work with its materials.
4.41.2 The Contractor's employees shall be restricted to the areas on the
Site in which they are employed, and shall not leave those areas.
4.41.3 Passenger vehicles will not be permitted in the construction area and
shall be parked in an area to be designated by the Owner.
<PAGE>
4-34
4.41.4 Vehicles required for the Work may, at the option of the Owner, be
provided with an identification card by the Owner, which shall be
displayed on the vehicle windshield. Vehicles may, at the option of
the Owner, be checked on and off the Site at the gate by the Owner.
4.41.5 Commercial carriers will be permitted to enter the Site only while
transporting equipment and materials to and from the Site of the Work.
4.41.6 The Contractor is to be responsible for the safety and security for
all men, Work materials and equipment installations, including
personal properties, directly or indirectly pertaining to the scope of
its Work until accepted and taken over by the Owner.
4.41.7 The Contractor shall observe and enforce the Owner's instructions
regarding signs, advertisements, fires, smoking, security regulations
and traffic regulations.
4.41.8 The Contractor shall be responsible for conducting its operations and
those of its Subcontractors in such a manner as will, in the opinion
of the Owner, prevent the creation or existence of fire hazards and
facilitate the extinguishing of any fires that may occur and, to this
end, shall take all precautionary measures as required by applicable
laws and ordinances, the relevant insurance inspection authority and
common prudence. The Contractor shall have portable approved fire
extinguishers near every worksite. The Contractor shall cooperate
with formation and maintenance of local fire brigade, designate
manpower for such, attend meetings and drills, all without extra cost
of compensation.
4.41.9 The Contractor shall not permit any fires to be built or open
salamanders to be used in any part of the Work, except for such
facilities, approved by the Owner, as may be required during winter
weather, and then only under the Contractor's continuous supervision.
The Contractor shall furnish, mount for emergency use and maintain the
necessary equipment, all of approved types, as required by the above
authorities, as shown in Section 4.41.8.
4.41.10 Flammable fluids shall be brought onto the Site in safety containers,
and shall be stored in and dispensed from a storage area designated by
the Owner, and smoking shall be prohibited in that area.
4.41.11 Storage and handling of explosives shall conform to the requirements
of applicable laws and regulations either federal or state.
4.41.12 The Contractor may supply and erect a construction sign. The type of
sign and place of erection are subject to approval by the Owner.
<PAGE>
4-35
4.41.13 Compliance in design and function with the requirements of applicable
federal, state and local health, safety, environmental protection
regulations, public land administration laws and regulations and the
toxic and hazardous material control acts and regulations of the U.S.
Government Agencies (such as EPA, MSHA, NRC, BLM, USFS and DOT) is a
mandatory requirement of the Agreement.
4.41.14 Labels and Safety Data Sheets for all toxic or hazardous materials
must be provided by Contractor to Owner's Representative in a timely
manner. Contractor's failure to conform to any of above requirements
in any respect shall be corrected promptly by Contractor upon notice
thereof, and the cost of such correction(s) as well as any related
costs arising out of any action brought by a governmental agency in
connection with such failure shall be for the account of Contractor.
4.42 TEMPORARY STRUCTURES AND PROTECTION OF WORK AND PROPERTY
4.42.1 The Contractor shall take precaution to ensure that shoring,
construction equipment, materials, or any of its operations or those
of its Subcontractors, or forces of nature, which apply loads to any
part of the Work shall not damage the Work.
4.42.2 All shoring, falsework and similar temporary structures shall be
designed by an engineer authorized to practice in the country and
state in which the Work is being performed and all drawings,
specifications and instructions related thereto must bear his seal and
signature, and copies shall be furnished to the Owner or Owner's
Representative upon request.
4.42.3 Without prejudice to Section 4.9, Indemnity and Hold Harmless, the
Contractor shall, as the Owner may direct, promptly repair or replace
at its own expense any portion of the Work, any property of the Owner
and any property of others that is lost, damaged, destroyed or injured
in any way as a result of the performance of the Work.
4.42.4 The Contractor shall carry out the Work by means and in a manner to
safeguard all persons, property and rights. The Contractor shall
provide adequate protection against accidents, injuries and/or damage
to all persons and property. It shall be responsible for making good
any damage to the Work and/or the Owner's property and the property of
any third party as may arise out of its operations at its own expense.
4.42.5 The Contractor shall provide all barriers, barricades, fencing,
warning signs, fire watch, security, lights and other protection for
the personnel on the Site and the general public, shall ensure that
all personnel directly or indirectly in its employ are provided with
and wear hard
<PAGE>
4-36
hats and other safety accessories required in the performance of their
part of the Work while on the Site, and provide all other safety
measures necessary in conformity with the requirements of this section
and laws, bylaws, rules and regulations of industrial and labor
department government, labor and construction safety organizations
having jurisdiction and as directed by the Owner.
4.43 TEMPORARY USE OF EQUIPMENT
4.43.1 Equipment which is part of the Work shall not be put to temporary use
during construction, unless specifically authorized by the Owner.
4.44 SANITARY ARRANGEMENTS
4.44.1 Unless otherwise expressly stipulated in the Special Conditions, the
Contractor shall provide and maintain, in accordance with all
applicable statutory requirements, temporary sanitary facilities on
the Site for the use of all persons connected with the Work, and shall
remove them and their contents on completion of the Work.
4.44.2 The Contractor shall keep the Site of the Work in a clean and sanitary
condition. The Contractor shall post notices and take such other
measures as may be necessary to keep the area clean, and shall remove
any excrement deposited and do any cleaning that may be directed by
the Owner.
4.45 CLEANING UP
4.45.1 The Contractor shall at all times keep the Site neat, clean and free
from accumulation of waste materials and rubbish which arise out of
the performance of the Work.
4.45.2 On completion of the Work, the Contractor shall remove from the Site
all of its waste materials and rubbish, temporary buildings,
facilities, tools, plant, equipment and surplus materials and shall
leave the working area clean.
4.45.3 If the Contractor fails to perform any of his obligations under
Section 4.45.1 and 4.45.2, the Owner may arrange to have any Work
necessary to correct such default performed by others, and the Owner
will deduct the cost thereof, as determined by the Owner or Owner's
Representative, from the amount due the Contractor under the
Agreement.
<PAGE>
4-37
4.45.4 If at the time the Contractor has substantially completed this Work,
including removal of temporary buildings and equipment, the weather
conditions are such that, in the opinion of the Owner or Owner's
Representative, it is impracticable for the Contractor to carry out
the remainder of the cleaning up operations effectively, or are such
as to make it impossible for the Owner or Owner's Representative to
properly inspect the conditions of the Site, then Owner may retain
from payments due to the Contractor any amount sufficient to cover the
cost of such cleaning up as a guarantee that the Contractor will carry
out the remainder of the cleaning up operations as soon as weather
conditions permit this work to be performed effectively and the
conditions of the Site to be inspected properly.
4.45.5 Burning of refuse at the Site shall be in full compliance with all
relevant regulations and as directed and approved by the Owner's
Representative.
4.46 USE OF COMPLETED PORTIONS BY THE OWNER
4.46.1 The Owner shall have the right to take possession of and use any
completed or partially completed portions of the Work, notwithstanding
that the period of time for completing the Work, or such portion
thereof, may not have expired. Such taking possession of and use
shall not be deemed an acceptance of any of the Work not carried out
in accordance with the Agreement Documents. If such prior use should
increase the cost or delay the completion of the Work, the Owner or
Owner's Representative shall determine whether the Contractor is
entitled to extra compensation or extension of time, or both, subject
and pursuant to Section 4.25, Delays.
4.47 OWNER'S RIGHT TO DO WORK
4.47.1 If the Contractor fails to comply with any provision of the Agreement
Documents including, but not limited to failure to perform properly
any portion of the Work or to comply with any direction of the Owner,
or if it fails to perform any of the Work in the time specified in the
Construction Schedule or to comply with the Owner's direction to
accelerate the Work pursuant to Section 4.26, Acceleration of the
Work, and if the Owner wishes to make good such failure with his own
forces or to employ Other Contractors to make good such failure, the
Owner may, three (3) calendar days after giving written notice to the
Contractor and without prejudice to any other rights that he may have
under the Agreement, delete portions of the Work, notwithstanding
which the Contractor shall continue to perform the balance of the Work
under the terms of the Agreement.
<PAGE>
4-38
4.47.2 The Contractor, on receiving such notice, shall promptly vacate those
areas in which it is no longer required to perform the Work, and shall
fully cooperate with and coordinate the balance of the Work with the
Owner or Other Contractors employed to make good the Work.
4.47.3 All additional costs, as determined by the Owner or Owner's
Representative, that the Owner incurs as a result of action being
taken under this Section 4.47, including any excess costs of
completion over and above that which would have been paid to the
Contractor, shall be paid by the Contractor to the Owner on demand,
and in addition to any other rights the Owner may have, such cost may
be deducted from any payment then or thereafter due to the Contractor,
and any such payment may be withheld until such costs are determined.
4.47.4 The payment, if any, that the Contractor shall be entitled to receive
for the Work he has performed up to or after the date of the entry of
the Owner's forces, or forces employed by the Owner, shall be decided
by the Owner or Owner's Representative.
4.48 OWNER'S RIGHT TO TERMINATE AGREEMENT
4.48.1.1 The Owner shall have the right to terminate the Work in whole or in
part FOR ITS CONVENIENCE at any time by written notice to the
Contractor stating the extent and effective date of such termination.
4.48.1.2 In the event of termination pursuant to Section 4.48.1.1, the Owner
shall pay the Contractor for all Work executed in accordance with the
terms of the Agreement Documents, including relocation costs, but not
for any anticipated profit on unexecuted work.
No other payout of any sort or kind whatsoever shall be due Contractor
in the event of Contract termination by Owner including, without
limitation: (a) any lost or anticipated profits, (b) any direct,
indirect, special, consequential or other form of damages, -C-
expenses of Contractor, its subcontractors or vendors or others due to
failure of Contractor, its subcontractors or vendors or others to
discontinuance of the Work at or after the effective date of
termination; (d) losses or open contracts, agreements or arrangements
however arising; or (e) any other cost, loss or expense of Contractor,
its subcontractors or vendors or person or from any other source
whatsoever, whether arising directly or indirectly under or from this
Agreement.
4.48.1.3 The Owner shall be entitled to withhold from the amount due the
Contractor the amount of any costs of damages, as determined by the
Owner or Owner's Representative, incurred by the Owner as a result of
any default of the Contractor.
<PAGE>
4-39
4.48.2.1 If the Contractor has failed to commence Work within the time
stipulated in the Agreement or to diligently execute and complete the
Work or any portion thereof in accordance with established time and
progress schedules and to the satisfaction of the Owner or if the
Contractor is adjudged bankrupt, or if it makes a general assignment
for the benefit of its creditors, or if a receiver is appointed for
the Contractor on account of its insolvency, or if it persistently or
repeatedly refuses or fails to supply enough properly skilled workers
or proper plant or materials, or if it fails to pay Subcontractors or
suppliers promptly, or if he fails to adequately protect property or
persons, so as to ensure the completion of the Work within the time
specified, or if it abandons the Work or unreasonably delays its
progress or completion, or fails promptly to adjust labor
difficulties, or persistently disregards laws, ordinances or the
instructions of Owner or Owner's Representative or otherwise is guilty
of a substantial violation of any provisions of the Agreement, then
the Owner, upon the certificate of the Owner or Owner's Representative
that sufficient cause exists to justify such action, may, without
prejudice to any other right or remedy and by giving the Contractor
written notice, forthwith terminate the employment of the Contractor
and take possession of the premises and the Work, and of all materials
for the Work and tools, plant, appliances and equipment and temporary
construction used in connection therewith, and finish the Work by
whatever method he may deem expedient at the expense of the
Contractor. (Original last sentence deleted).
4.48.2.2 If the unpaid balance of the amount of the Agreement according to the
terms of the Agreement Documents exceeds the expense for additional
engineering and administrative services, such excess shall be paid to
the Contractor. If such expense exceeds such unpaid balance, the
Contractor shall pay the difference to the Owner.
4.48.2.3 If the Contractor fails to pay the Owner the amount due him as
certified by the Owner or Owner's Representative, as aforesaid, within
ten (10) calendar days after written notice to do so, the Owner shall
have the right to sell the whole or any part of the said materials,
tools, plant, appliances, equipment and temporary structures at public
or private sale at any time or times thereafter without further notice
to the Contractor, and to transfer and deliver the same. The Owner
shall have the right to become the purchaser at such sale or sales
(free and discharged of any equity of redemption) and after deducting
all legal and other costs, attorneys' fees and expense of sale and
delivery, shall apply the balance, if any, of the proceeds of such
sale or sales so made, to pay the Owner's claims as aforesaid. The
Owner shall pay the surplus if any, to the Contractor and the
Contractor shall pay any deficiency to the Owner on demand.
<PAGE>
4-40
4.48.2.4 The amount payable by the Owner to the Contractor for the Work
performed under the Agreement, the expense incurred by the Owner as
herein provided, the damage incurred through the Contractor's default
and the amount payable by either Party to the other shall be
determined by the Owner or Owner's Representative.
4.48.2.5 The Contractor is not entitled to money or claims for damages, lost
opportunity and similar causes.
4.49 CONTRACTOR'S RIGHT TO STOP WORK OR TERMINATE AGREEMENT
4.49.1 The Contractor shall be entitled to stop the Work or terminate the
Agreement by notice in writing to the Owner or Owner's Representative
--
a) Without prior notice, if Work should be stopped permanently, or
for a period of one (1) month, under an order of any court or
other public authority of competent jurisdiction through no act
or fault of the Contractor or of anyone employed by it, or
b) Fourteen (14) calendar days after giving written notice to the
Owner or Owner's Representative should the Owner or Owner's
Representative fail to issue a certificate in accordance with
Section 4.20, Application for Payment and Valuation of Work for
Progress Payments, or should the Owner fail to pay the Contractor
any sum due and payable as specified in the Owner's or Owner's
Representative's certificate within a period of thirty (30) days
of the due date of payment, unless within such fourteen (14) days
the Owner or Owner's Representative issues the required
certificate or the Owner pays the sum due, as the case may be.
4.49.2 After termination of the Agreement pursuant to this Section 4.49, the
Contractor shall be entitled to recover from the Owner payment for all
the Work executed with a reasonable allowance for profit, and for any
loss sustained upon any plant, equipment, material or key personnel,
including relocation costs, but not for any anticipated profit on
unexecuted Work, all as determined by the Owner or Owner's
Representative.
4.49.3 The Contractor's right to stop Work or terminate the Agreement
pursuant to this Section 4.49 shall be subject to the Owner's right to
withhold money owing to the Owner by the Contractor.
4.50 ASSERTION OF RIGHTS
<PAGE>
4-41
4.50.1 Failure of the Owner to assert any of his rights under the Agreement
shall not be construed as a waiver thereof.
4.51 ASSIGNMENT AND BANKRUPTCY
4.51.1 This Agreement shall bind and inure to the benefit of the Parties
hereto and their respective heirs, executors, administrators,
successors and assigns. The Contractor, however, shall not make any
assignment of this Agreement without the written consent of the
"OWNER." The "CONTRACTOR" shall not assign any part or the whole of
any moneys due or to become due under the provisions of this Agreement
without written consent of the "OWNER." "OWNER'S" consent to allow
"CONTRACTOR" to make assignment of this Agreement, or of moneys due or
to become due can be withheld for any reason, or no reason at all.
4.51.2 The Agreement shall not be or be deemed to be an asset in the
bankruptcy of the Contractor.
4.52 DISPUTES
4.52.1 It is the general intention of Owner and Contractor that any dispute
relating to the Agreement involving a matter or question of law or
fact common to them or parties thereto shall be settled, to the extent
feasible, in the first instance by Owner and Contractor and failing
such settlement within 48 hours of the onset of the dispute, in the
second instance by Owner and Contractor exploring the possibility of
submitting the dispute to mediation. In the event that a dispute
cannot be settled by direct negotiations between Owner and Contractor
or Owner and Contractor have failed to agree to mediate the dispute or
having agreed to mediate, the dispute has not been resolved by
mediation within five (5) calendar days, Owner, at its option, may
elect to refer the dispute to binding arbitration, in accordance with
the rules of the American Arbitration Association. Arbitrators shall
be selected as follows: one to be selected by Owner, one to be
selected by Contractor, and the third to be selected by the other two
arbitrators. Their decision shall be binding on all parties.
4.52.2 In the event Owner does not decide to settle such disputes by
arbitration, either party may apply to a court of competent
jurisdiction to have such disputes settled.
4.52.3 The parties hereby consent to such settlement of disputes and agree to
submit themselves to the applicable jurisdiction.
<PAGE>
4-42
4.52.4 In the event either party has initiated any other action to settle a
dispute prior to the initiation of procedures provided for in this
Section 4.52, such party agrees to stay such action upon initiation by
either party of the procedures provided for in this Section 4.52.
4.52.5 In the event of any dispute or claim by Contractor, Contractor shall
continue the Work in accordance with the Agreement Documents and its
sole remedy shall be to pursue the remedies set forth in this Section
4.52. In addition, payments to Contractor shall be made in the same
manner as prior to the dispute. After a dispute has been finally
resolved by Contractor and Owner, such restitution shall be made as
may be required under the terms of resolution.
4.53 RECORDS
4.53.1 Contractor shall keep a complete set of accounts and records on a cost
accounting basis, conforming to accepted accounting principles and
showing all expenditures under this Agreement. If this Agreement
provides for compensation on a cost basis, or if Contractor claims
compensation from Owner under the "Changes," "Suspension of Work," or
"Termination for Convenience" sections of these General Conditions, or
otherwise, as a condition precedent to any obligation of Owner to make
payment therefore, Owner shall be afforded the rights to inspect,
audit and verify such accounts and records.
4.53.2 Contractor's invoices to the Owner are to be submitted with any
necessary breakdown as may be required by the Owner to accommodate the
Owner's cost accounting system.
4.54 PROPRIETARY INFORMATION, PLANS AND PROPERTY
4.54.1 For purpose of the Agreement, the term "Proprietary Information" shall
mean:
a) All information of any nature whatsoever in respect of the Work
revealed to Contractor or its officers or representatives, in
written material or written communications, by Owner or its
officers or representatives.
b) All plans, drawings, models, descriptions, specifications,
reports, formulae, flowsheets, recommendations, processes,
inventions, devices or procedures, or applications of procedures,
devices, inventions, information with respect to business
opportunities, exploration and mining activities, mining and
mineral processing techniques, mineral discoveries, information
of third parties which has been provided to Contractor on a
confidential basis, and other data, information and trade secrets
produced by
<PAGE>
4-43
Contractor for Owner with respect to the Work, or developed by or
for Contractor in connection with the Agreement.
4.54.2 Notwithstanding anything herein to the contrary, Proprietary
Information shall not include:
a) Information which was in the possession of Contractor or its
officers or representatives prior to Effective Date of this
Agreement, which was not acquired, either directly or indirectly,
from Owner;
b) Information which is hereafter disclosed to Contractor or its
officers or representatives by third parties who have the right
to so disclose such information free of confidentiality
restrictions imposed by Owner; or
c) Information which is or becomes generally available to the public
unless such public disclosure results from the breach of
obligations of Contractor under the Agreement.
4.54.3 Contractor agrees for a period of ten (10) years from date of
termination of the Agreement or from the date of Final Acceptance,
whichever shall first occur, to:
a) Refrain from making commercial use of Proprietary Information,
and
b) Use of its best efforts to prevent disclosure to third parties of
any Proprietary
Information and to restrict disclosure within Contractor to employees,
consultants or agents who have a need to know such Information for the
purposes of conducting the Work and such employees, consultants and
agents shall be bound to keep such information and data secret to the
same extent that Contractor is hereby so obligated. Contractor agrees
to be responsible for any breach of the non-use/non-disclosure
obligations contained in the Agreement by any of Contractor's
employees, consultants or agents.
4.54.4 Contractor shall promptly disclose to Owner any and all inventions,
discoveries, improvements, technology, and "know-how", whether or not
patentable, relating in any way to the Work which is to be used by
Owner, conceived, originated, developed or actually or constructively
reduced to practice by Contractor or its employee in performance of
the Work (such inventions, discoveries, improvement, technology, and
"know-how" being hereinafter called "Inventions").
4.54.5 Contractor agrees to assign or cause its employees, agents, and
subcontractors to assign to Owner the entire right, title and interest
in and to any and all Inventions. Contractor further agrees to
execute or cause to be executed any papers necessary to transfer to
Owner any Inventions; and, should Owner decide to patent any
Inventions, Contractor agrees at Owner's
<PAGE>
4-44
cost to assist in the preparation of patent applications, to execute
and assign such patent applications and to execute such other
documents as Owner may request in connection therewith.
4.54.6 All Inventions and all drawings, plans, and specifications developed
by Contractor under the Contract and other items referred in Section
4.54.1 shall become the property of Owner and shall be delivered to
Owner upon completion or earlier termination of the Work. Contractor
may retain one (1) copy of such documents for its own records, subject
to restrictions on their use and disclosure to others as may be
acceptable to Owner.
4.55 AGREEMENT EXECUTION
4.55.1 The Owner will prepare the Agreement Documents and submit three (3)
copies of same to the Contractor for its execution.
4.55.2 The Contractor shall execute and return the formal Agreement Document
to the Owner within fourteen (14) calendar days from the date the
Contractor receives same.
<PAGE>
5-1
5.0 SUPPLEMENTARY CONDITIONS
5.1 ENVIRONMENTAL COMPLIANCE
The Contractor shall comply with all applicable environmental laws, rules,
and regulations governing the Contractor's activities concerned with
completion of the Work. The Contractor agrees to periodic inspections by
the Owner's staff environmental manager, and will comply immediately with
Owner-recommended remediation of any instances of environmental non-
compliance discovered during these inspections.
<PAGE>
6-1
6.0 SCOPE OF WORK
6.0.1 The Scope of Work defines the Contractor's responsibilities for the
construction of the Turquoise Ridge No. 2 Shaft below the shaft
collar, the shaft stations, and the limited lateral development on
three separate mine levels and two shaft loading levels.
6.0.2 The Turquoise Ridge No. 2 Shaft is a circular concrete lined shaft
with a finished inside diameter of 24 ft. The shaft will be used for
both production and service hoisting along with intake ventilation for
the Turquoise Ridge Mine. The collar of the shaft will be constructed
by others, therefore as a part of this Scope of Work the shaft will be
sunk from the 5285 ft elevation to the 3185 ft elevation for a total
depth of 2,100 ft.
6.0.3 As a part of this Scope of Work, the shaft will be equipped with
permanent shaft steel, conveyance guides, pipes, power cables, and
communication cables required for permanent mine operations. The
installation of the conveyance guides in the headframe and collar is
included in this Scope of Work even though the actual shaft
construction begins below the collar.
Upon completion of the shaft construction the Contractor will install
the permanent wire ropes on the three No. 2 shaft hoists, install the
permanent conveyances, and the installation and alignment of the
permanent sheaves. The installation of the headframe skip scroll
plates is included in this Scope of Work. The commissioning of the
loading facilities and the headframe dump bins is not included in
this Scope of Work.
6.0.4 A total of seven stations will be excavated off the shaft. The first
two stations located at the 5010 and 4495 ft elevations will serve as
temporary pump stations during shaft construction if required. The
three main mine levels located at the 4015, 3715, and 3415 ft
elevations will be used to complete a portion of the mine development
under this Scope of Work and for future mine production levels. The
two shaft loading levels located at the 3895 and 3295 ft elevations
will be partially constructed as a part of this Scope of Work.
6.0.5 This Scope of Work includes lateral development on all three mine
production levels, lateral development on both shaft loading levels,
and the construction of a ramp from the No. 1 shaft bottom to the
bottom of the No. 2 shaft. The breakdown of lateral and ramp
development is as follows:
<PAGE>
6-2
4000 Level (4015 ft el.) 160 ft of lateral development
3895 Loading Level (3895 ft el.) 251 ft of lateral development
3700 Level (3715 ft el.) 284 ft of lateral development
3400 Level (3415 ft el.) 810 ft of lateral development
3295 Loading Level (3295 ft el.) 251 ft of lateral development
No. 1 Shaft to No. 2 Shaft Bottom Ramp 1451 ft of ramp development
6.1 SPECIFIC CONTRACT WORK
6.1.1 The Contractor shall be responsible for providing all items required
for the execution of the shaft construction and underground
development work, except for those items specifically identified in
Section 6.1.7 as being supplied by the Owner. The Contractor's
responsibility is to supply, install, properly maintain and remove all
temporary construction facilities, equipment, and utilities necessary
for full and complete performance of the Scope of Work. Such items
shall include those listed in the following sections. The type of
facilities, move-in and move-out dates, and locations on the site
shall be subject to and in accordance with the review and approval of
the Owner. A more detailed account of the Work required along with
drawings is provided in Section 7.0, Project Specifications and
Drawings.
6.1.2 General Items
In general, the items for which the Contractor is responsible (except
where excluded) will include:
- Detailed engineering and design of the routing and support of the
permanent pipes and power/communication cables
- Detailed engineering and design for temporary construction
facilities, construction methodology, and shaft and lateral
ground support
- Quality control of materials, excavation and installations
associated with the Scope of Work
- Provision of bonds and insurances
- Mobilization and demobilization of all items related to the Scope
of Work
- Survey of surface and underground project-related facilities
subject to Owner review and approval
- All safety and first aid for Contractor Scope of Work, except for
Owner-supplied ambulance
- Permits and licenses EXCEPT THOSE PROVIDED BY OWNER to include:
- State industrial insurance number or certificate of self-
insurance
<PAGE>
6-3
- Sales and use license
- Contractor's license
- Explosives and blasting permit
- MSHA registration number
- Any other federal, state or local requirement
- Maintenance and operation of all temporary facilities, services
and power distribution
- Preparation and provision of as-built drawings
- Compliance with all applicable codes, standards, mining laws/acts
and all other pertinent statutory requirements
- Transportation for all Contractor's personnel onto, off of and
while on the Owner's property
- One Contractor individual per shift for Owner's Mine Rescue Team
6.1.3 Surface Facilities
The Contractor is responsible for the detailed engineering, supply and
installation of the temporary construction surface facilities except
were excluded. This work is to include the following:
- Temporary facilities including the sinking hoist if the
Contractor chooses not to use the Owner's supplied hoist
- Modifications for shaft sinking requirements to the headframe as
supplied by the Owner.
- Collar equipment required for sinking such as:
- Dump door(s)
- Dump chute(s) and retaining wall
- Safety door(s)
- Winches, winch ropes, sinking rope(s) and sheave(s)
- All necessary air and/or electrical controls and signals
- Surface haulage of hoisted rock to Owner specified location
- Project first aid and safety facilities
- Mine development ventilation fans and air heating as required
- Explosives and cap magazine(s) installed as per regulations
- Change house, office facility, and shop facility for Contractor's
requirements
- On-site concrete batch plant and approved backup source of
concrete
- Surface distribution of permanent utilities as specified by Owner
- Surface distribution of Contractor's utilities
<PAGE>
6-4
The Contractor is responsible for the removal and disposal of all the
temporary surface facilities installed under this Section 6.1.3 and
the restoration of the headframe back to its condition prior to the
Contractor's modifications.
6.1.4 Shaft and Station Work
The Contractor is responsible for the supply and construction of the
shaft and stations except where excluded. This work is to include the
following:
- Excavation and temporary ground support for total shaft depth
- Placement of shaft concrete lining based on Owner's
specifications
- Drilling of shaft probe hole as specified by Owner
- Water ring details and locations including where specifically
shown on Owner's drawings
- Placement of shaft grout covers as approved by Owner
- Design, supply and install all shaft permanent pipes and cables
as specified by Owner
- Installation of shaft permanent support steel and conveyance
guides as specified and supplied by Owner
- All Contractor required temporary pipe(s) and ventilation ducting
- All shaft sinking equipment such as:
- Workstage
- Shaft mucking machine
- Drills and shaft jumbo as required by Contractor
- Crossheads
- Sinking buckets
- Shaft bottom pumps and intermediate lift pumps
- Ventilation fans and ducts
- Shaft bottom construction pumps as per Owner specifications
- Station excavation and ground support
- Placement of station shotcrete and sill concrete as per Owner
specification
- Installation of permanent station steel, gates, and brattice as
provided by Owner
- Station lip pocket for loading of development rock into buckets
from levels as required by Contractor to hoist rock
- Placement of permanent shaft loading pockets and structural steel
as provided by Owner
- Design, supply and install all station permanent pipes and cables
as specified by Owner
- Installation and grounding of station permanent electrical
breakers provided by Owner as per applicable code
- Portable substations as required by the Contractor's electrical
loads
<PAGE>
6-5
The Contractor is responsible for the removal and disposal of the
following items:
- Contractor-required temporary shaft pipe and ventilation ducting
except for a slick line if installed by Contractor
- Waste rock spilled in bottom of shaft during development rock
hoisting
- Contractor's shaft and level development equipment as listed in
the installation portion of the this Section 6.1.4.
6.1.5 Lateral and Ramp Development
The Contractor is responsible for the construction of and supply of
materials associated with the underground lateral and ramp development
as per the Owner's design. This work is to include the following:
- Excavation and ground support of drifts and ramps
- Excavation and ground support of muckbays as required by
Contractor
- All lateral and ramp permanent pipes as specified by Owner
- All Contractor required temporary pipe, ventilation ducting, and
power cables
- All rubber-tired drift equipment such as:
- Jumbo(s)
- LHD(s) mucking machines
- Trucks
- Mobile maintenance equipment
- Utility vehicles
- Special ground support equipment as per Contractor
requirements
- All fixed ancillary equipment such as:
- Fixed maintenance equipment
- Portable substations
- Ventilation fans
- Face dewatering pumps
The Contractor is responsible for the removal and disposal of the
following items:
- Contractor-required temporary level pipe
- Contractor level development equipment as listed in the
installation portion of this Section 6.1.5.
<PAGE>
6-6
6.1.6 Miscellaneous Temporary Construction Equipment
The Contractor is responsible for the supply of miscellaneous
materials and equipment associated with the overall Scope of Work
unless specifically provided by Owner.
The Contractor-supplied items are to include the following:
- All hat lamps, batteries and chargers
- Drill bits, steel and other related equipment
- All small tools and all Contractor's shop equipment
- Adequate weather and secure storage of materials, tools and
equipment
- Establishment, maintenance, repair and restoration of any
required Contractor's roads, laydown, storage or equipment
maintenance area or Work areas not specifically provided by Owner
- All certified cranes and other necessary equipment for handling,
hauling, unloading and receiving Contractor's supplied materials,
tools, and equipment
- Snow removal and frost protection for any required surface
facilities of the Contractor
- All small tools, rags, gloves, and work-related clothing
- Containers and services for hauling, removal and disposal of
construction debris to designated areas
- All lubricants and oils
- All office consumables, telephone, fax, photocopies, etc.
- All safety equipment as required by regulations
- Security of Contractor's equipment and materials
- Fuel and fuel storage
- Explosives and detonator caps, explosives and cap magazines
- Shaft permanent pipes
- Station and level permanent pipes
- Shaft permanent power and communication cables
- Station and level permanent power and communication cables
6.1.7 Owner Supplied Items
The Owner shall supply or cause to be supplied the following permanent
materials for the construction of the shaft.
- Shaft steel and guides
- Station steel, brattice and gates
- Loading pockets
<PAGE>
6-7
The Owner shall supply or cause to be supplied the following temporary
construction facilities, services and utilities to the Contractor,
without cost to the Contractor, for or in connection with his work.
- Approval of Contractor's design, construction and fabrication
drawings related to the permanent facilities
- Owner review and approval of Contractor's survey
- Owner review and approval of Contractor's modifications to the
Owner-supplied facilities to include but not limited to the
headframe, hoist, hoist building, collar/subcollar, and permanent
utilities
- Owner-supplied permits and licenses:
- Shaft excavation
- All water discharge
- Sewage disposal
- Potable water tap
- Air quality not to include air quality permits for any diesel
power plant or plants rated at 500 horsepower or more.
- Power line
- Station permanent electrical breaker
- Electrical power at a specific voltage and location specified by
the Owner after 01 July 1996. Prior to this date, the Contractor
shall provide all the electrical power to meet his requirements.
- Service water (nonpotable) at a location specified by the Owner
- Potable water supply
- Compressed air at a location specified by the Owner after 01 July
1996. Prior to this date the Contractor shall provide all the
compressed air to meet his requirements.
- Sewage disposal at a location specified by the Owner
- Treatment and storage facilities for mine drainage water (the
point of discharge by the Contractor is specified by the Owner)
- Owner-supplied ambulance
- Owner-supplied Mine Rescue Team and Equipment
- Disposal of Contractor's waste oil
- Disposal of Contractor's garbage
In addition to the permanent equipment and material the owner is
supplying, the Owner shall supply or cause to be supplied a limited
number of consumable items the Contractor chooses to purchase from
the Owner so long as the items are from the list contained in Appendix
F,
<PAGE>
6-8
FMG Supplies List. For these items, the Contractor will be charged at
the Owner's discount rate. The Contractor is responsible for
notifying the Owner of items he will purchase and for providing a
schedule of usage so the Owner can maintain an adequate inventory.
<PAGE>
7-1
7.0 PROJECT SPECIFICATIONS AND DRAWINGS
7.1 GENERAL
These project specifications define the Contractor's responsibilities
for the work described in Section 6, Scope of Work of this document.
These specifications are to serve as a minimum requirement for the
Scope of Work.
The Contractor shall comply with the terms and conditions of these
specifications and conform with all local, state and federal laws,
regulations and codes pertaining to the work covered by these
specifications.
7.1.1 Detailed Engineering and Design Services
The Contractor shall provide detailed engineering design services
related to the temporary surface facilities required by the
Contractor. The detailed design of the permanent underground
facilities which the Contractor is to construct shall be provided by
the Owner except for the installation of the permanent piping and
cables.
The Contractor shall provide the detail design of the routing,
brackets and anchors for all permanent pipes and cables to be
installed in the subcollar, shaft, stations and levels.
The Contractor shall submit to the Owner, for review, all layout
drawings, detail fabrication or construction drawings, design data and
other pertinent information which the Contractor is providing.
The Contractor's engineering related to temporary facilities or to the
methodology for execution of the Work shall conform to the
specifications included in this section, and shall be based on the
general arrangement drawings provided by the Owner as a guideline
where applicable.
The Contractor shall submit to the Owner, for review, all layout
drawings, detailed fabrication or construction drawings, design data
and other pertinent information related to the modification of any of
the Owner's permanent facilities.
<PAGE>
7-2
The general scope of the engineering and design services is summarized
as follows:
Contractor's Surface Facilities
Modifications to the Owner's headframe to meet shaft construction
requirements
Headframe dump and retaining wall
Site routing of temporary utilities
Owner's Permanent Surface Facilities
Site and subcollar routing of permanent utilities
Shaft power electrical tie-in to Owner-supplied pull box
Contractor Shaft Facilities
All shaft sinking equipment
Contractor's temporary utilities and shaft wall brackets
Drill and blast procedures
Ventilation design for sinking and lateral development only
Shaft temporary lip loading pockets
Shaft bottom pumping facilities
Owner's Shaft Facilities
Temporary ground support for the changing conditions
Shaft wall brackets for Owner's permanent utilities power cable
tie-in to station breakers
Water ring location and design
Grout covers
7.1.2 Field Engineering
It is the responsibility of the Contractor to provide all field
engineering for the Scope of Work outlined in Section 6.0. This
engineering is to include but is not limited to:
- Surveying of temporary surface facilities, the shaft, and the
underground level development
- Contractor's own quality control related with the excavation,
permanent materials, and construction. Included in the
Contractor's quality control will be the testing of all
permanent concrete placed
<PAGE>
7-3
The Contractor's survey responsibility will include providing the
appropriate labor and equipment to ensure the required line, grade and
location is maintained for all the work.
The Contractor will provide upon the Owner's request all survey data
for review. The Owner will provide one bench mark on the surface
along with two reference points.
The Owner shall be allowed access to any part of the Contractor's
surface plant, the shaft, level stations, miscellaneous excavations,
or level development workings at any time in order to conduct check
surveys.
The Contractor will provide the quality control of the work he
performs. This includes performing all tests and inspections required
to ensure the Work complies with all applicable codes and standards,
and the Contract which includes but is not limited to:
- Inspection of all fabricated items received from the Owner.
- Taking samples and testing concrete placed in permanent
structures.
- Inspection and certifIcation of all permanent materials before
their placement.
7.1.3 Mobilization
The Contractor shall supply and mobilize to the site all labor,
materials and equipment required to perform the Scope of Work,
excluding items provided by the Owner.
As a function of mobilizing, the Contractor shall provide and install
temporary surface facilities, which shall be removed upon completion
of the Work defined in the Contract.
The mobilization is to be in two phases. The first phase is to
include all labor, equipment and materials required for the
establishment of the temporary surface facilities and to support the
sinking of the shaft. The second phase is to include all labor,
equipment and materials required to perform the level development.
<PAGE>
7-4
The items mobilized shall include the following facilities and
equipment:
SURFACE FACILITY, SHAFT MOBILIZATION, AND CONTRACTOR'S OFFICE
- Project shop and warehouse
- Change house
- Concrete batch plant
- Sinking equipment
- Surface mobile equipment
- Permanent and temporary utilities (pipe and power cables)
LEVEL DEVELOPMENT
- Underground mobile equipment
- Permanent and temporary utilities (pipe and power cables)
- Permanent materials
- Consumable supplies
7.1.4 Site Access Road
The Owner will provide an access road from the main pit haulage road
to the shaft site. Any specific access road requirements by the
Contractor, which are not provided by the access road as viewed during
the site visit, must be conveyed to the Owner in writing upon award of
the Contract.
7.1.5 Site Preparation
The site will be prepared by the Owner. The extent of the site
preparation is shown on Dwg 4180-12-G-4000. The general area around
the shaft site contains the permanent hoist building and headframe.
The area set aside for the Contractor's use measures approximately 300
ft x 500 ft and will be constructed in such a manner as to provide a
level, stable, and drained working area.
Based on current information, the bedrock below the presumed finished
site grade is between 15 to 30 ft. The Bidder shall include in his
Bid a sufficient sum to cover such additional site investigation work
that he deems necessary to carry out detailed design of the
foundations for temporary facilities.
<PAGE>
7-5
7.1.6 Shaft Sinking Hoist
The hoist required for the sinking of the No. 2 Shaft will be provided
by the Owner at his expense. The hoist will be maintained by the
Owner. All repairs, maintenance, or adjustments to the hoist will be
performed by the Owner. The Contractor will schedule two (2) hours
per week for the Owner to perform maintenance on the hoist. If the
Contractor requires a change to this schedule, he must notify the
Owner at least eight (8) hours prior to the scheduled maintenance
period. Otherwise, the Owner has the authority to shut down and work
on the hoist as originally scheduled. If by the end of the Work week
the Contractor has not made the hoist available for the Owner's
maintenance, the Owner has the authority to shut the hoist down at his
discretion.
The Owner has the authority to restrict the Contractor's use of the
hoist if the Contractor's method of operation is determined to be
abusing the equipment. If the Owner is required to shut the hoist
down for maintenance or to restrict the hoist operation due to the
Contractor's method of operation, the Owner will not be liable for
additional costs or delay charges.
The size, configuration, and electrical equipment of the hoist is
summarized below:
Drum diameter 12 ft double drum
Clutches Toothed clutch on each drum
Brakes Post brakes on each drum with an additional brake
on motor
Drive MG set 2500 hp synchronous drive
2250 hp DC motor directly coupled to drum shaft
Drive Control Modern electronic
Maximum speed 2250 fpm
Line pull 62,000 lb
Rope diameter 1.75 inch
A detailed description of the hoist and its controls will be issued by
the Owner as an addendum to these specifications.
The operation of the hoist and associated equipment must conform with
the requirements of MSHA and the State of Nevada, and the Contractor
shall obtain any required variances as specified by regulations.
<PAGE>
7-6
7.1.7 Hoisthouse
The hoisthouse required for the sinking of the No. 2 Shaft shall be
provided by the Owner and made available for the Contractor's use.
7.1.8 Headframe
The headframe required for the sinking and permanent operation of the
No. 2 Shaft shall be installed prior to the Shaft Contractor's
mobilization to the site. The size and configuration of the headframe
is detailed in a separate RFP for the headframe and collar/subcollar
construction which is available to the Shaft Construction Contractor.
The Contractor is required to provide in his shaft setup the cost of
modifying the headframe for his sinking requirements. The Contractor
is responsible for returning the headframe to its original condition
upon completing this Scope of Work.
7.1.9 Shaft Collar
The shaft collar and subcollar shall be provided by the Owner prior to
the Shaft Contractor's mobilization to the site. The size and
configuration of the collar and subcollar is detailed in a separate
RFP for the headframe and collar/subcollar construction which is
available to the Shaft Construction Contractor.
The Contractor is required to provide in his shaft setup the cost of
modifying the collar and subcollar for his sinking requirements. The
Contractor is responsible for returning the collar and subcollar to
its original condition upon completing this Scope of Work.
7.1.10 Concrete Batch Plant
The concrete batch plant and a backup source of concrete are the
responsibility of the Contractor along with the delivery and storage
of the cement and aggregate. The size and placement of the plant will
be determined by the Contractor.
<PAGE>
7-7
7.1.11 Shop and Changehouse
The design, supply, installation and maintenance of the temporary shop
and changehouse is the responsibility of the Contractor. The size and
placement of these facilities will be determined by the Contractor
with the placement subject to the Owner's approval.
7.1.12 Office
The Owner will NOT provide office space for the Contractor's use. It
is the Contractor's responsibility to provide all office-related
equipment and supplies for his office.
7.1.13 First Aid and Safety Facilities
The design, supply, installation and maintenance of a first aid
facility is the responsibility of the Contractor, except for the
Owner-supplied ambulance.
The supply of all fire protection equipment is the responsibility of
the Contractor.
7.1.14 Ventilation
The Contractor is responsible for the design, supply and installation
of a ventilation system adequate for ventilating the shaft and all
levels developed as a part of the Scope of Work.
The volume of air provided must meet as a minimum all state and
federal regulations relating to dust control, gases, and to provide a
safe working environment.
7.1.15 Surface Disposal of Excavated Rock
Excavated waste rock shall be hoisted to the surface and dumped on the
ground by the Contractor at an approved location not more than 250 ft
from the shaft collar. The Owner will be responsible for removing the
material from the approved dump area.
Any ore excavated during the level development will be hoisted
separately from the waste rock and dumped at a separate location by
the Contractor. The ore dump area will be approved by the Owner and
will not be any further than 250 ft from the shaft collar.
<PAGE>
7-8
7.1.16 Incoming Electrical Power
The Owner will provide electrical power to the shaft site at a voltage
of 13.8 kV after 01 July 1996. Prior to this date, the Contractor
shall provide all the electrical power to meet his requirements. The
incoming powerline will terminate at a point within 250 ft of the
shaft. The exact location of the electrical interface between the
Owner and the Contractor will be finalized upon the award of the
Contract.
The Contractor shall supply with the Bid a summary of the anticipated
electrical required for the Scope of Work. The Owner will ensure that
the electrical power supply is sufficient for the Contractor's
requirements.
The Contractor shall supply and install the permanent shaft power
cable from the Owner's electrical pull box through the subcollar and
then down the shaft. The permanent shaft cable will consist of a
single 3c 350 MCM armored self supporting cable with ground
check/pilot wires. The cable shall be installed by the Contractor
from the pull box to the collar/subcollar in conduit previously
installed by the Owner.
7.1.17 Electric Power/Lighting Cables
All surface power/lighting cables related to the change house, batch
plant, and Contractor's shop, shall be sized, supplied and installed
by the Contractor. The Owner does not require any permanent lighting
by the Contractor.
7.1.18 Compressed Air
The Owner will supply compressed air to within 250 ft of the shaft
collar after 01 July 1996. Prior to this date, the Contractor shall
provide all the compressed air to meet his requirements. The exact
location of the compressed air interface between the Owner and the
Contractor will be the turn down elbow at the edge of the shaft.
The Contractor shall design, lay out, supply and install the
compressed air pipe to the shaft and to the Contractor's temporary
surface facilities. The permanent compressed air line will consist of
a 10" Sch 40 steel pipe connected with Style 77 Victaulic couplings.
A single butterfly valve will be provided by the Owner at a pipe box
near the shaft for the Contractor to connect to.
<PAGE>
7-9
The Contractor shall supply with the Bid a summary of the anticipated
compressed air requirements for the Scope of Work. The Owner will
ensure that the compressed air supply is sufficient for the
Contractor's requirements.
7.1.19 Water Supply
The Owner will supply service water to the shaft collar. The exact
location of the service water interface between the Owner and the
Contractor will be the turn down elbow at the edge of the shaft.
The Contractor shall design, lay out, supply and install the service
water pipe to the shaft and to the Contractor's temporary surface
facilities. The permanent service water pipe will consist of a 3" Sch
40 steel pipe connected with Style 77 Victaulic couplings. A single
butterfly valve will be provided near the shaft collar for the
Contractor to connect to.
The service water supplied by the Owner is not potable. A separate
potable water supply will be provided by the Owner to the Contractor
for his facilities. The incoming potable water pipe supplied by the
Owner will terminate at a point within 250 ft of the shaft. The exact
location of the potable water interface between the Owner and the
Contractor will be finalized upon the award of the Contract.
7.1.20 Sewage Disposal
The Contractor shall supply, install, and operate a temporary sewage
disposal system for the sole use of the Contractor's employees, agents
or affiliates that conforms to the requirements of the local health
and environmental regulations. The Contractor shall provide this
temporary sewage disposal until 01 July 1996, or until the Owner's
permanent sewage treatment system becomes available, whichever comes
first.
The Contractor shall connect to the Owner's sewage disposal pipeline
at a distance of 250 ft from the shaft. The exact location of the
sewage disposal interface between the Owner and the Contractor will be
finalized upon the award of the Contract.
<PAGE>
7-10
7.1.21 Mine Discharge Water
The Owner will provide for the drainage of mine discharge water from
the shaft collar. The exact location of the mine dewatering discharge
pipes interface between the Owner and the Contractor will be at a
joint within 250 ft of the shaft.
The Contractor shall design, lay out, supply and install the mine
dewatering discharge pipes down the shaft from the Owner's pipe. The
permanent discharge pipes will consist of two 12" Sch 40 steel pipe
connected with Style 77 Victaulic couplings.
7.1.22 Communication System
The Contractor shall supply a radio phone link or other alternate
communication network for off-site phone calls and fax transmittals.
The Owner does not have available telephone lines to the shaft site,
and the installation of an upgraded telephone line is not anticipated
in the near future.
7.1.23 Explosives and Cap Storage
The Contractor shall supply and store all explosives required for the
Scope of Work. The storage facilities shall comply with all local,
state, and federal regulations as to the storage of explosives.
7.1.24 Fuel Storage
The Contractor shall supply all fuel for the required Scope of Work.
The Contractor is required to provide fuel storage facility which
complies with all local, state, and federal regulations.
<PAGE>
7-11
7.1.25 Transportation
The Contractor shall supply his personnel transportation to and from
the Owner's property and transportation around the Site and the Site
of the Work as required. Private vehicles of the Contractor's
personnel will not be allowed on site of the Work.
Only limited parking is available at the Contractor's security gate
for the parking of the Contractor's employees private vehicles. The
parking area at the Owner's security gate will not be available to the
Contractor's employees for parking of private vehicles. The Owner
encourages the Contractor to provide transportation for his employees
to the mine site from an offsite area at his choosing.
7.1.26 Gates
The Contractor will be provided with a security gate, designed and
built by the Owner, for the Contractor's use, and the use of the
Contractor's non-union employees, agents, and affiliates to access the
Site of the Work. Owner access to the Site of Work will be limited to
those persons or groups approved in writing, by the Owner's
Representative. The Contractor will be given a list of Owner's
persons or groups duly authorized to use the Contractor's gate.
The Contractor shall notify the Owner, in writing, of the Contractor's
intent to employ organized labor on the Site of the Work. This
notification must by made at least two weeks prior to the scheduled
arrival of the organized labor group or groups onto the Site of the
Work. The Owner will provide a "union gate" for each distinct
organized trade or craft group to be employed on the Site of the Work.
The "union gates" shall be separate from the Contractor's primary
access to the Site of the Work.
<PAGE>
7-12
7.2 SHAFT SINKING
7.2.1 Installation of Sinking Equipment
The Contractor shall design, supply, and install all equipment
required to sink the shaft. The supply and installation of the
sinking equipment shall include the following:
- Dump door(s)
- Dump chute(s) and retaining wall
- Crosshead(s)
- Sinking buckets
- Safety door(s)
- Sinking rope(s) and sheave(s)
- Winches
- Shaft bottom pumps
- Portable substations as required for Contractor's construction
- All necessary air and/or electrical controls and signals
7.2.2 Miscellaneous Shaft Furnishing Items
The Contractor shall design, detail, specify, supply and install the
following, at appropriate locations and/or as required:
- Water rings as per Owner's Dwg 4180-07-G-4125
- Hanging rods for shaft concrete pours
- Installation only of all shaft brackets and clamps for permanent
pipes and cables as per Owner's Dwg 4180-07-G-4100
- Installation only of all shaft permanent steel and guides as per
Owner's applicable drawings.
- Installation only of collar/subcollar and headframe conveyance
guides.
- All shaft brackets and clamps for Contractor's additional
services as per his requirements
<PAGE>
7-13
7.2.3 Permanent Shaft Pipe
The Contractor shall design, detail, specify, supply and install the
permanent shaft pipe. The Contractor is to tie in all shaft permanent
pipe with Owner services on the surface at the edge of the shaft
collar.
All pipe will be supplied by the Contractor in lengths of 15 ft.
Refer to Section 7.3 for details of permanent piping on shaft
stations.
- 3" Sch 40, Steel Victaulic Service Water Line for the full length
of the shaft (non-potable water, supplied and installed by
Contractor) Contractor is to install 1" service outlets evenly
spaced between shaft stations at a maximum distance apart of 150
ft and at least 100 ft from the station.
- 10" Sch 40, Steel Victaulic Compressed Air Line for the full
length of the shaft (supplied and installed by Contractor)
Contractor is to install 1" service outlets evenly spaced between
shaft stations at a maximum distance apart of 150 ft and at least
100 ft from the station.
- Two each 12" Sch 40, Steel Victaulic Style 77 Coupled Pump
Discharge Line down to the 4000 elevation level (supplied by
Owner and installed by Contractor)
- Two each 12" Sch 80, Steel Victaulic Style HP70ES Coupled Pump
Discharge Line from the 4000 elevation level to the shaft bottom
(supplied by the Owner and installed by Contractor)
- 6" Sch 40, Steel Victaulic Style 70 Coupled Drain Line for the
full depth of the shaft (supplied by Owner and installed by
Contractor). Contractor is to include connection with each water
ring installed in the shaft.
<PAGE>
7-14
7.2.4 Permanent Shaft Cables
The Contractor shall design, detail, specify, supply and install the
permanent shaft cables and brackets. The Contractor is to tie in all
shaft permanent cables with Owner services on the surface at the shaft
collar.
The Contractor is to terminate the shaft permanent electric power
cable on each level at a 15 kV breaker provided by the Owner. From
the selector switch, the cable is extended down the shaft to the next
level. Refer to Section 7.3 for details of the electrical tie with
the selector switch.
- 15 kV Power Cable, 3c 350 MCM armored self supporting with
ground check/pilot wires for the full depth of the shaft
(supplied and installed by Contractor)
- 15 kV Future Power Cable, 3c 350 MCM armored self supporting
with ground check/pilot wires (Supplied and installed by
others in future)
- Composite Communication/Control Cable, _________________ for
the full depth of the shaft (supplied and installed by
Contractor)
- Future Composite Communication/Control Cable,
_______________ (supplied and installed by others in future)
7.2.5 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation
of all utilities required for shaft sinking operations over and above
what has been provided as permanent pipes and cables. Typical
utilities which might be required are ventilation ducts and a concrete
slick line.
7.2.6 Shaft Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved.
The Contractor shall excavate rock by approved methods, controlling
blasting and removal of rock to avoid shattering and splitting rock
beyond specified lines.
<PAGE>
7-15
For methods of handling and using explosives, the Contractor shall
conform to the requirements of state and federal regulations as they
may apply. Loading methods shall conform to recommendations and
instructions of the manufacturer.
The minimum line of excavation is 12 inches from the finished concrete
shaft diameter of 24 ft.
No unexcavated material of any kind will be permitted to remain
between the minimum line of excavation and the shaft finished
diameter. Any overbreak from the minimum line of excavation will be
backfilled with concrete at the Contractor's expense.
The Contractor will allow the Owner to carry out geological sampling
and mapping of the shaft bottom during mucking and/or drilling cycles.
7.2.7 Temporary Ground Support
The Contractor shall design, supply and install, to the approval of
the Owner, appropriate temporary ground support in the shaft. Such
ground support may include but not limited to the following:
- Mechanical rockbolts
- Splitset rockbolts
- Resin/rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner
with justification by the Contractor as to why a revised plan is
required.
<PAGE>
7-16
7.2.8 Shaft Concrete Placement
The Contractor shall provide the shaft concrete and formwork in
accordance with the attached applicable detailed specification
"Section 03310 -- Shaft Concrete". In summary, the concrete mix
design by the Contractor is to meet as a minimum a compressive
strength of 3,000 psi at 28 days.
The minimum concrete thickness of the shaft lining is 12 inches. The
removal of any material to meet this requirement will be the
responsibility of the Contractor.
7.2.9 Probe Hole Drilling and Grouting
The Contractor shall drill a probe hole ahead of the shaft bottom to
check for water zones. The probe hole will be drilled in 100 ft
lengths every 50 ft of shaft advance. This will ensure that there
will always be at least 50 ft of probe hole ahead of the shaft bottom
at all times.
At the direction of the Owner the probe hole will be drilled through a
valved standpipe so that any major water inflows from the probe hole
can be controlled if required.
If water zones are encountered the Contractor will submit a grout plan
for the Owner's approval. Owner has the option to proceed with an
alternative to the Contractor's plan.
In anticipation of grouting, the Contractor will have available a
grout plant capable of grouting a minimum 100 ft cover for the
specified shaft diameter. This plant is to include as a minimum grout
pumps, mixers, and miscellaneous grouting equipment for a grout cover.
The Contractor will have available a minimum of six (6) grout packers
on site.
7.2.10 Shaft Construction Pumping
In anticipation of encountering water during the shaft sinking and
level development phases of the Scope of Work, the Contractor is
required to design, supply and install a shaft bottom pumping system
capable of pumping on a continuous basis 500 gpm from the shaft bottom
up to the closest station or dewatering pump station. Intermediate
pumps will be required between all water rings below the lowest
construction dewatering pump station and the pump station.
<PAGE>
7-17
The Owner will provide all pumps and associated electrics for the
pumping of water to the surface from the shaft station closest to the
shaft bottom.
As required, the Contractor will extend the permanent pump column into
the shaft stations to connect with the Owner's construction dewatering
pump stations.
The Contractor will be responsible for the supply, installation, and
maintenance of a water flow meter to monitor the discharge from the
shaft bottom to the closest pump station. The pumping of water from
the shaft bottom, which includes all water inflow below the last water
ring and shaft spray, will be monitored by the Owner.
It is the Contractor's responsibility to not allow water from the
water rings to spill over into the shaft bottom. If the water rings
are not maintained and pumped out, any adjustment to the unit cost of
sinking due to water inflows will be difficult to validate.
7.3 SHAFT STATIONS
7.3.1 Permanent Station Pipe
The Contractor supplies and installs all the pipes, valves and
brackets for the permanent station pipe.
- 2" Sch 40, Steel Victaulic Service Water Line with valve to be
extended into each station with a 1" service drop (non-potable
water, supplied and installed by Contractor). The pipe is to be
extended to a distance of 40 ft from the shaft centerline.
- 2" Sch 40, Steel Victaulic Compressed Air Line with valve to be
extended into the 5000 and 4500 stations with a 1" service drop
(compressed air pipe, supplied and installed by Contractor). The
pipe is to be extended to a distance of 40 ft from the shaft
centerline.
- 10" Sch 40, Steel Victaulic Compressed Air Line with valve to be
extended into the 4000, 3700 and 3400 levels with a 1" service
drop (compressed air pipe, installed by Contractor as supplied by
Owner). The pipe is to be extended to a distance of 40 ft from
the shaft centerline.
- Two each 12" Sch 40, Steel Victaulic Style 77 Coupled Pump
Discharge Line to be extended into the 3700 and 3400 stations to
a distance of 40 ft from the shaft centerline (supplied and
installed by Contractor). The Contractor will route the pump
<PAGE>
7-18
discharge line into stations as required to connect with their
construction dewatering pump stations during shaft sinking and
level development.
- Two each 12" Sch 80, Steel Victaulic Style HP70ES Coupled Pump
Discharge Line from the 4000 elevation level to the shaft bottom
(supplied and installed by Contractor). The Contractor will
route the pump discharge line into stations as required to
connect with their construction dewatering pump stations during
shaft sinking and level development.
- 6" Sch 40, Steel Victaulic Style 70 Coupled Drain Line for the
full depth of the shaft (supplied and installed by Contractor).
The Contractor will route the drain line into stations as
required to connect with their construction dewatering pump
stations during shaft sinking and level development.
7.3.2 Permanent Shaft Cables
The Contractor is responsible for designing the installation for the
Owner's permanent station 15 kV selector switch, and terminating the
shaft permanent electric power cable on each level to the selector
switches. From the selector switch, the cable is extended down the
shaft to the next level.
- 15 kV Power Cable, 3c 350 MCM armored self supporting with ground
check/pilot wires at each shaft station (supplied and installed
by Contractor)
- 15 kV Future Power Cable, 3c 350 MCM armored self supporting with
ground check/pilot wires (supplied and installed by others in
future)
7.3.3 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation
of all utilities required for shaft station construction over and
above what has been provided as permanent pipes and cables.
7.3.4 Station Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved.
The Contractor shall excavate rock by approved methods, controlling
blasting and removal of rock to avoid shattering and splitting rock
beyond specified neat line detailed on the drawings.
<PAGE>
7-19
The Contractor will allow the Owner to carry out geological sampling
and mapping of the shaft station during mucking and/or drilling
cycles.
7.3.5 Temporary Ground Support
The Contractor shall design, supply and install, to the approval of
the Owner, appropriate temporary ground support in the station,
station brow and station sill. Such ground support may include but
not limited to the following:
- Mechanical rockbolts
- Splitset rockbolts
- Resin/Rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner
with justification by the Contractor as to why a revised plan is
required.
7.3.6 Station Concrete and Shotcrete Placement
The Contractor shall provide the shaft station concrete and formwork
in accordance with applicable ASTM and ACI standards for mixing,
placing, curing, and inspection of the concrete. The concrete mix
design by the Contractor is to meet as a minimum a compressive
strength of 3,000 psi at 28 days.
The Contractor shall provide the shaft station shotcrete in accordance
with applicable ASTM standards for mixing, placing, curing, and
inspection of the shotcrete.
The minimum shotcrete thickness for the shaft station is three (3)
inches. All station shotcrete is to be polypropylene-fiber reinforced
with a minimum compressive strength of 3,000 psi.
<PAGE>
7-20
7.4 LEVEL DEVELOPMENT
7.4.1 Permanent Level Pipe
The Contractor shall supply all the material and rib hangers for the
installation of the permanent level pipe.
- 2" Sch 40, Steel Victaulic Service Water Line for full length of
all main drifts and ramps with 1" service drop every 150 ft (non-
potable water, supplied and installed by Contractor).
- 6" Sch 40, Steel Victaulic Compressed Air Line for full length of
all main drifts and ramps except where excluded (compressed air
pipe, supplied and installed by Contractor). A 1" service drop
is to be provided every 150 ft.
- 10" Sch 40, Steel Victaulic Compressed Air Line to extend out
from the 4000, and 3700 stations to the #2 shaft cross cut drift
from which point a 6" compressed air line is to be installed
(compressed air pipe, supplied and installed by Contractor).
7.4.2 Permanent Shaft Cables
- No permanent cables are to be extended from the shaft stations.
All electrical power cables are to be provided for the
Contractor's requirements only.
7.4.3 Contractor Temporary Utilities
The Contractor is responsible for the design, supply and installation
of all utilities required for level development over and above what
has been provided as permanent pipes. All ventilation ducting and/or
bag is to be provided by the Contractor.
7.4.4 Station Rock Excavation and Blasting
The Contractor is responsible for the design and execution of the
excavation methods so that the excavation tolerances are achieved.
The Contractor shall excavate rock by approved methods, controlling
blasting and removal of rock to avoid shattering and splitting rock
beyond specified neat lines detailed on the drawings.
The Contractor will allow the Owner to carry out geological sampling
and mapping of the laterals and ramps during mucking and/or drilling
cycles. The Contractor is to accept the
<PAGE>
7-21
direction of the Owner as to which materials are to be handled as ore
and which as waste rock, and will make every effort to keep the ore
and waste rock separate at all times.
7.4.5 Permanent Ground Support
The Contractor shall design, supply and install, to the approval of
the Owner, appropriate permanent ground support in the levels and
ramps. Such ground support may include but not limited to the
following:
- Mechanical rockbolts
- Splitset rockbolts
- Resin/rebar rockbolts
- Chainlink wiremesh
- Shotcrete
Any changes to the ground support plan must be approved by the Owner
with justification by the Contractor as to why a revised plan is
required.
7.5 DETAILED SPECIFICATIONS
The following pages contain detailed specifications for the
construction of the shaft, shaft stations, and the equipping of the
shaft steel. These specifications are as follows:
- SECTION 05120 STRUCTURAL STEEL (ERECTION)
- SECTION 05131 MINE SHAFT STEEL
- SECTION 03300 CAST-IN-PLACE CONCRETE
- SECTION 03310 SHAFT CONCRETE
<PAGE>
7-22
SECTION 05120
STRUCTURAL STEEL (ERECTION)
PART 1 GENERAL
1.1 SECTION INCLUDES
A. The work in this specification includes furnishing all materials,
tools, equipment, and labor to install the structural steel
framing members, support members, sag rods, struts, supports,
bolts, base plates, anchor bolts, and any miscellaneous
structural steel and welding shown on the approved shop drawings.
1.2 RELATED SECTIONS
A. Section 05131 - Mine Shaft Steel.
1.3 REFERENCES
A. AISC Code of Standard Practice - Manual of Steel Construction -
Allowable Stress Design (ASD).
B. ASTM A36/A36M - Standard Specification for Carbon Structural
Steel
C. ASTM A307 - Standard Specification for Carbon Steel Externally
Threaded Standard Fasteners and Anchor Bolts.
D. ASTM A325 - High Standard Specification for Strength Bolts for
Structural Steel Joints.
E. ASTM A436 - High Standard Specification for Carbon and Alloy
Steel Washers.
F. ASTM A500 - Standard Specification for Cold-formed Welded and
Seamless Carbon Steel Structural Tubing in Round Shapes.
G. ASTM A563 - Carbon and Alloy Steel Nuts.
H. ASTM A514/A514M - Standard Specification for High Strength,
Quenched and Tempered Alloy Steel Plate, Suitable for Welding.
I. AWS B2.1 - Welding Procedure and Performance Qualification.
AWS D1.1 - Structural Welding Code, Steel.
05120, Structural Steel (Erection)
<PAGE>
7-23
J. Steel Structures Paining Council (SSPC)
1) SSPC SP2 - Hand Tool Cleaning
2) SSPC SP3 - Power Tool Cleaning
3) SSPC PA1 - Paint Application Specifications
K. ASTM A852/A852M - Standard Specification for Quenched and
Tempered Low Alloy Structural Steel Plate with 70 ksi a Minimum
Yield Strength.
L. National Association of Architectural Manufacturers (NAAMM)
1) MBG 531-88 - Standard Specification for Metal Grating and
Metal BarGrating Treads.
M. Statutory:
1) 30 CFR 56 and 57, Federal Metal and Nonmetallic Mine Safety
and Health.
2) 29 CFR Code of Federal Regulation - Occupational Safety and
Health Standards.
1.4 SUBMITTALS FOR REVIEW
A. Materials and Connection Substitutions: With the exception of
the guides and _____________ sets, alternate materials and
connections may be substituted for those shown on the drawings,
provided the section and material properties meet or exceed those
shown on the drawings. Any material and connection substitutions
for those shown on the drawings shall be submitted to the Owner's
Engineering Representative for review.
B. The Owner's Quality Control Personnel shall submit a Quality
Control Plan to the Owner's Engineering Representative.
C. Shop Drawings:
1) Indicate profiles, sizes, spacing, and locations of
structural members, including openings, attachments, and
fasteners.
2) Indicate welded connections with AWS welding symbols.
Indicate net weld lengths.
3) Where detailed design activities add to the existing major
structural steel, show new and existing steel and additions
with sufficient details to clearly show all details of the
Work.
05120, Structural Steel (Erection)
<PAGE>
7-24
4) Identify bolted connections clearly indicating the type,
number, size, and location of all bolts.
5) Show all temporary supports and bracing on the erection
drawings.
6) Show location of structural members on erection drawings
with details of field welding, procedures and construction
sequence.
7) Connections:
a) Ensure standard connection details and typical
calculations, applicable to connections related to the
Work, are prepared and signed by a registered
professional engineer retained by the steel fabricator.
b) Ensure connection substitutions are prepared and signed
by a registered professional engineer retained by the
steel fabricator.
1.5 SUBMITTALS FOR INFORMATION
A. The Contractor shall submit certification of welders employed on
the job to the Owner's Engineering Representative. This
certification should verify the welder's qualifications in
accordance with AWS B2.1.
B. All quality control test information shall be submitted by the
Owner's Engineering Representative to the Contractor within 24
hours after receipt.
C. The Contractor shall submit a manufacturer's mill certificate to
the Owner's Engineering Representative showing the materials meet
or exceed the specified requirements.
1.6 SUBMITTALS AT PROJECT CLOSEOUT
A. All "as built" drawings shall be submitted by the Contractor to
the Owner's Engineering Representative.
1.7 QUALITY ASSURANCE
A. Install structural steel members in accordance with AISC Code of
Standard practice and approved shop drawings.
B. All fabricated steel and connections shall be examined by the
Owner's Engineering Representative prior to delivery to mine
site.
1.8 DEFINITIONS
A. Owner's Engineering Representative: Professional civil or
structural engineer retained by the Owner for the purpose of
enforcing the provision of the specification and shop drawings.
05120, Structural Steel (Erection)
<PAGE>
7-25
B. Shop Drawing or Drawings: Fabricator drawings approved for
construction by Owner's Engineering Representative which show the
location, character and details of the work.
C. Quality Control Personnel: Individuals retained by the Owner to
provide on-site quality control services to ensure the
construction procedures are in accordance with the referenced
codes and standards.
D. Quality Control Plan: A written protocol for field construction
quality control activities.
E. Shaft Steel Sets: Structural steel shapes located in the shaft
which include the main bunton and manway dividers.
F. Shaft Steel Guides: Structural steel shapes with a nominal
unspliced length of 30 ft. These shapes are used to guide the
conveyance within the shaft.
G. Manway Steel: All miscellaneous steel which comprises the manway
within the shaft.
H. Station Steel: All structural steel within the shaft station
area in excess of thesteel sets and shaft guides. This may
include brow steel, sill steel, station columns, brattice, and
miscellaneous steel.
I. Brattice Panel: Removable item consisting of expanded metal
framed by structural angles used to isolate the shaft from areas
where personnel may be.
PART 2 PRODUCTS
2.1 MATERIALS
A. Material Substitutions: With the exception of the guides and
buntons, alternate materials may be substituted for those shown
on the drawings, provided the section and material properties
meet or exceed those shown on the drawings. Any material or
section substitutions for those shown on the drawings shall be
transmitted to the Owner's Engineering Representative for review.
B. Rolled Structural Steel:
1) Conform to ASTM A36/A36M.
2) As shown on the approved shop drawings.
C. Pipe: ASTM A53, Grade B.
D. Structural Tube: ASTM A500, Grade B.
E. Base Plates: ASTM A36/A36M, Minimum yield strength of 36 ksi.
05120, Structural Steel (Erection)
<PAGE>
7-26
F. Chute Liner Plate: ASTM A852/A852M.
G. Bolts, Nuts, and Washers: ASTM A325 bolts, ASTM A563 nuts, ASTM
A435 Type 1 washers.
H. Anchor Bolts: Field drilled or cast-in-place to concrete. ASTM
A307 - Non-Galvanized, and Resin Encapsulated. Size and length
as specified on the drawings.
I. Welding Materials: AWS 1.5A - E70XX or E70XT.
J. Chute Liner Plate: ASTM A852/A852M.
K. Miscellaneous pins, metals, bearing plates, carriage bolts: As
specified on shop drawings.
L. Paint: Contractor shall be responsible for using compatible
paint systems appropriate for intended service and method of
application.
2.2 FINISH
A. Prepare structural component surfaces in accordance with SSPC SP
10.
B. Connections designed as slip critical shall not be painted until
the connections are made in the field. Prior to making
connections in the field, the slip critical connection areas
shall be cleaned of all dirt, corrosion, and grease.
PART 3 EXECUTION
3.1 EXAMINATION
A. Prior to commencing with installation, the Contractor shall
thoroughly examine steel upon which the work is dependent.
Report any deficiencies to the Owner's Engineering Representative
and propose adjustments. Obtain written authorization from Owner
before proceeding.
B. The Contractor shall perform visual and dimensional examination
that the position of anchor bolt holes have been drilled in
accordance with the shop drawings prior the installation location
of steel underground.
C. All field connections shall be visually examined by the Owner's
Engineering Representative.
05120, Structural Steel (Erection)
<PAGE>
7-27
3.2 FIELD PREPARATION
A. Clean and strip primed steel items to bare metal where field
welding is required.
3.3 ERECTION
A. Allow for erection loads, and for sufficient temporary bracing to
maintain structure safe, plumb, and in true alignment until
completion of erection and installation of permanent bracing.
B. Field weld components as indicated on the approved shop drawings.
C. Field connect members with specified threaded fasteners.
D. Do not field cut or alter structural members without approval of
the Owner's Engineering Representative.
E. After erection, prime welds, abrasions, exposed surface of anchor
bolts, and surfaces not shop primed, except surfaces to be in
contact with concrete.
F. The erection shall be as specified on the erection drawings and
shall be in accordance with the AISC Specification for Design,
Fabrication, and Erection of Structural Steel for Buildings.
G. All steel framework shall be carried up true and plumb in
accordance with the AISC Code of Standard Practice.
H. The Contractor shall furnish and install all temporary bracing
required during the erection period in accordance with AISC Code
of Standard Practice.
I. As erection progresses, the work shall be securely bolted or
welded to support all dead, wind and erection loads.
J. No bolting or welding shall be performed until as much of the
structure as will be stiffened thereby has been properly aligned.
K. Field bolting shall be performed in accordance with AISC Code of
Standard Practice.
L. Field welding shall be performed in accordance with AWS D1.1 and
AWS B2.1.
M. Grout under base plates completely. Trowel grouted surface
smooth, splay neatly to 45 degrees.
05120, Structural Steel (Erection)
<PAGE>
7-28
3.4 ERECTION TOLERANCES
A. Maximum Variation From Plumb: 1:400 inch up to a maximum of 1/2
inch.
B. Maximum Offset From True Alignment: 1/4 inch.
C. Others to AISC tolerances.
END OF SECTION 05120
05120, Structural Steel (Erection)
<PAGE>
7-29
CONCLUSION
During the bid compilation process Thyssen Mining has relied on methodology that
promotes safety, utilizes advanced mining technics and improved practices. We
realize this may have varying degrees of impact on the project and your
evaluation of our proposal. In an effort to satisfy FirstMiss Gold's actual
needs, we are willing to discuss or clarify of these areas at your convenience.
Feel free to contact us at our Elko office if adjustments or clarifications are
required.
SECTION 05131
MINE SHAFT STEEL
PART 1 GENERAL
1.1 SECTION INCLUDES
A. The work under this specification section describes the
requirements for the furnishing of materials, tools, and labor
for the fabrication and installation of structural steel sets and
guides, station steel, brackets, shim plates and miscellaneous
steel as indicated on the drawings.
1.2 RELATED SECTIONS
A. None.
1.3 REFERENCES
A. AISC - Code of Standard Practice - Manual of Steel Construction -
Allowable Stress Design (ASD), Ninth Edition.
B. ASTM A36/A36M - Standard Specification for Carbon Structural
Steel.
C. ASTM A307 - Standard Specification for Carbon Steel Externally
Threaded Standard Fasteners and Anchor Bolts.
D. ASTM A325 - Standard Specification for High Strength Bolts for
Structural Steel Joints.
E. ASTM A436 - Standard Specification for Carbon and Alloy Steel
Washers.
F. ASTM A500 - Standard Specification for Cold-formed Welded and
Seamless Carbon Steel Structural Tubing in Round and Shapes.
G. ASTM A563 - Standard Specification for Carbon and Alloy Steel
Nuts.
H. ASTM A514/A514M - Standard Specification for High-Yield Strength,
Quenched and Tempered Alloy Steel Plate, Suitable for Welding.
I. AWS B2.1 - Welding Procedure and Performance Qualification.
AWS D1.1 - Structural Welding Code, Steel.
J. Steel Structures Painting Council (SSPC)
1. SSPC SP2 - Hand Tool Cleaning
2. SSPC SP3 - Power Tool Cleaning
3. SSPC PA1 - Paint Application Specifications
05131, Mine Shaft Steel
<PAGE>
7-30
K. ASTM A852/A852M - Quenched and Tempered Low Alloy Structural
Steel Plate with 70 ksi a Minimum Yield Strength.
L. National Association of Architectural Manufacturers (NAAMM)
1. MBG 531-88 - Standard Specification
Metal Grating and Metal for Bar Grating Treads
M. Statutory:
30 CFR 56 and 57, Federal Metal and Nonmetallic Mine Safety and
Health.
1.4 SUBMITTALS FOR REVIEW
A. Material and Connection Substitutions: With the exception of the
shaft guides and sets, alternate materials and connections may be
substituted for those shown on the drawings, provided the section
and material properties meet or exceed those shown on the
drawings. Any material and connection substitutions for those
shown on the drawings shall be submitted to the Owner's
Engineering Representative for review.
B. The Owner's Quality Control Personnel shall submit a Quality
Control Plan to the Owner's Engineering Representative.
C. Shop Drawings:
1) Indicate profiles, sizes, spacing, and locations of
structural members, including openings, attachments, and
fasteners.
2) Indicate welded connections with AWS welding symbols.
Indicate net weld lengths.
3) Where detailed design activities add to the existing major
structural steel, show new and existing steel and additions
with sufficient details to clearly show all details of the
Work.
4) Identify bolted connections clearly indicating the type,
number, size, and location of all bolts.
5) Show all temporary supports and bracing's on the erection
drawings.
6) Show location of structural members on erection drawings
with details of field welding, procedures and construction
sequence.
7) Connections:
(a) Ensure standard connection details and typical
calculations, applicable to connections related to the
Work,
05131, Mine Shaft Steel
<PAGE>
7-31
are prepared and signed by a registered professional
engineer retained by the steel fabricator.
(b) Ensure connection substitutions are prepared and signed
by a registered professional engineer retained by the
steel fabricator.
1.5 SUBMITTALS FOR INFORMATION
A. The contractor shall submit certification of welders employed on
the job to the Owner's Engineering Representative and Quality
Control Personnel. This certification should verify the welder's
qualifications in accordance with AWS B2.1.
B. All quality control test information shall be submitted by the
Contractor to the Owner's Engineering Representative within 24
hours after receipt. The Owner's Engineering Representative
shall approve or disapprove the test results within 48 hours
after receipt.
C. The Contractor shall submit a manufacturer's mill certificate to
the Owner's Engineering Representative showing the materials meet
or exceed the specified requirements.
1.6 SUBMITTALS AT PROJECT CLOSEOUT
A. All "as built" drawings shall be submitted by the Contractor to
the Owner and Owner's Engineering Representative.
1.7 QUALITY ASSURANCE
A. Install structural steel members in accordance with AISC Code of
Standard Practice and approved shop drawings.
B. All fabricated steel and connections shall be examined by the
Owner's Quality Control Personnel or Owner's Engineering
Representative prior to delivery to mine site.
1.8 DEFINITIONS
A. Owner's Engineering Representative: Professional civil or
structural engineer retained by the owner for the purpose of
enforcing the provision of the specification and shop drawings.
B. Shop Drawing or Drawings: Fabricator drawings approved for
construction by Owner's Engineering Representative which show the
location, character and details of the work.
C. Quality Control Personnel: Individuals retained by the Owner to
provide on-site quality control services to ensure the
construction procedures are in accordance with the referenced
codes and standards.
05131, Mine Shaft Steel
<PAGE>
7-32
D. Quality Control Plan: A written protocol formulated by the
Quality Control Personnel for field construction quality control
activities. This Plan shall include on-site testing plans and
field construction inspection plans.
E. Shaft Steel Sets: Structural steel shapes located in the shaft
which include the main bunton and manway dividers.
F. Shaft Steel Guides: Structural steel shapes with a nominal
unspliced length of 30 ft. These shapes are used to guide the
conveyance within the shaft.
G. Station Steel: All structural steel within the shaft station
area in excess of the steel sets and shaft guides. This may
include brow steel, sill steel, station columns, brattice, and
miscellaneous steel.
H. Brattice Panel: Removable item consisting of expanded metal
framed by structural angles used to isolate the shaft from areas
where personnel may be.
PART 2 PRODUCTS
2.1 MATERIALS
A. Material Substitutions: With the exception of the shaft guides
and sets, alternate materials may be substituted for those shown
on the drawings, provided the section and material properties
meet or exceed those shown on the drawings. Any material or
section substitutions for those shown on the drawings shall be
transmitted to the Owner's Engineering Representative for review.
B. Rolled Structural Steel:
1) Conform to ASTM A36/A36M.
2) As shown on the approved shop drawings.
C. Pipe: ASTM A53, Grade B.
D. Milled Structural Tubing: Milling tolerances shall conform to
ASTM A500, Grade B.
E. Base Plates: ASTM A36/A36M, Minimum yield strength of 36 ksi.
F. Chute Liner Plate: ASTM A852/A852M.
G. Bolts, Nuts, and Washers: ASTM A325 bolts, ASTM A563 nuts, ASTM
A435 Type I washers.
05131, Mine Shaft Steel
<PAGE>
7-33
H. Anchor Bolts: Field drilled or cast-in-place to concrete. ASTM
A307 - Non-Galvanized, and Resin Encapsulated. Size and length
as specified on the drawings.
I. Welding Materials: AWS 1.5A - E70XX or E70XT.
J. Miscellaneous pins, metals, bearing plates, carriage bolts: As
specified on shop drawings.
K. Shop and Touch-Up Primer: SSPC 15, Type 1, red oxide.
L. Checkered Plates: ASTM - A36
M. Grating: MBG 531-08
N. Paint: Contractor shall be responsible for using compatible
paint systems appropriate for intended service and method of
application.
2.2 MANUFACTURE
A. Structural Tubing
1) Structural tubing for shaft guides shall be rolled and cut
in one run in accordance with standard milling practice.
Cuts shall be 30 ft length (nominal).
2) The trailing end of each structural tube guide shall be
stamped on one side only. The side stamped shall coincide
with the same side stamped for the previous and following
pieces of structural tube. The stamp should be located at
least 1 ft but not more than 2 ft from the trailing cut
location. The stamp shall be a number corresponding to the
order in which the guides have been milled and shall be
pronounced enough (1/16 inch) to allow distinction after
painting.
3) Structural tubing shall be firmly tied in bundles with steel
band strapping for shipment from the mill to the mine site.
2.3 FABRICATION
A. Conform to AWS D1.1 and AWS B2.1.
B. Fabricate in accordance with AISC Code of Standard Practice for
Structural Steel.
C. Fabricate Work true, square, straight, plumb and accurate to
required dimensions. Jig all shaft sets including guides in the
shop. Any members found to be improperly fabricated shall be
corrected by the fabricator prior to shipping. The jig will be
made available for inspection
05131, Mine Shaft Steel
<PAGE>
7-34
by the Owner's Quality Control Personnel or the Owner's
Engineering Representative prior to its use.
D. Shop assemble a minimum of two steel sets together with guides,
brattice panels, and ladders for shop inspection by the Owner's
Quality Control Personnel or the Owner's Engineering
Representative. A temporary support system may be required to
assemble these items. Upon approval by the Owner's Engineering
Representative, dismantle only to the extent required for
shipping and installation. Deliver these approved sets promptly
to the site. The Contractor will reassemble one of the steel
sets on site for use as a pattern template in his pre-assembly
jig.
E. Connections: Design steel connections in accordance with AISC:
Allowable Stress Design (ASD), Ninth Edition.
1) Use bearing type bolted connections for all bolted
connections except when shown on the drawings.
2) Use bolted field connections unless otherwise shown on the
drawings.
3) Where connecting new steel to existing, use loose header
angles at least on one end of the member.
4) Use not less than the equivalent of two bolts in each
connection, unless otherwise noted on drawing.
5) All welding shall be in accordance with AWS D1.1 and AWS
B2.1.
F. Identification of Parts
1) Clearly mark pieces by stamping to prevent obliteration
during shipping and handling.
2) Identify individual pieces, in accordance with
identification schedules used on the shop drawings, to
clearly indicate the location of each piece in the Work for
installation.
G. Fabrication Tolerance
2.4 FINISH
1) No primer or finish paint on surfaces and edges to be field
welded, surfaces to be encased in concrete and machine finished
surfaces.
2) Connections designed as slip critical shall not be painted until
the connections are made in the field. Prior to making
connections in the field, the slip critical connection areas
shall be cleaned of all dirt, corrosion, and grease.
05131, Mine Shaft Steel
<PAGE>
7-35
3) Steel grating, unless specified as galvanized, shall be painted
with one coat of manufacturer's standard paint, applied in
accordance with paint supplier's standard practice.
4) Surface Preparation: Remove loose mill scale and loose rust to
the degree defined, and completely remove oil, grease, and
foreign matter, in accordance with SSPC SP-2 and/or SSPC SP-3.
5) Shop Painting: When clean and dry, surfaces shall be painted in
accordance with SSPC PA-1 and paint manufacturer's
recommendations. Apply specified paint by brush, spray, or
roller in a manner to cover entire surface smoothly, thoroughly,
and uniformly. Apply at proper coverage rate to provide average
dry film thickness (dft) or 2 mils.
6) Fabricator shall be required to recoat any areas where the dft is
less than 1-1/2 mils.
2.5 PRODUCT DELIVERY, STORAGE AND HANDLING
A. Store the steel and guides on heavy timbers, clear of the ground,
contaminants, and muddy areas.
B. Prevent impact when members are being handled and transported.
C. Store bolts, fastenings and welding materials in their original
containers, in storage sheds. Protect electrodes from moisture
in opened containers.
PART 3 EXECUTION
3.1 EXAMINATION
A. Prior to commencing with installation, the Contractor shall
thoroughly examine steel upon which the work is dependent.
Report any deficiencies to the Owner's Engineering Representative
and propose adjustments. Obtain written authorization from Owner
before proceeding.
B. The Contractor shall perform visual and dimensional examination
that the position of anchor bolt holes have been drilled in
accordance with the shop drawings prior the installation location
of steel underground.
C. All field connections shall be visually examined by the Owner's
Engineering Representative.
3.2 FIELD PREPARATION
A. Clean and strip primed steel items to bare metal where field
welding is required.
05131, Mine Shaft Steel
<PAGE>
7-36
3.3 ERECTION
A. Allow for erection loads, and for sufficient temporary bracing to
maintain structure safe, plumb, and in true alignment until
completion of erection and installation of permanent bracing.
B. Field weld components as indicated on the approved shop drawings.
C. Field connect members with specified threaded fasteners.
D. Do not field cut or alter structural members without approval of
the Owner's Engineering Representative.
E. After erection, prime welds, abrasions, exposed surface of anchor
bolts, and surfaces not shop primed, except surfaces to be in
contact with concrete.
F. The erection shall be as specified on the erection drawings and
shall be in accordance with the AISC Specification for Design,
Fabrication, and Erection of Structural Steel for Buildings.
G. All steel framework shall be installed plumb in accordance with
the AISC Code of Standard Practice.
H. The Contractor shall furnish and install all temporary bracing
required during the erection period in accordance with AISC Code
of Standard Practice.
I. As erection progresses, the work shall be securely bolted or
welded to support all dead, wind, and erection loads.
J. No bolting or welding shall be performed until as much of the
structure as will be stiffened thereby has been properly aligned.
K. Field bolting shall be performed in accordance with AISC Code of
Standard Practice.
L. Field welding shall be performed in accordance with AWS D1.1 and
AWS B2.1.
M. Grout under base plates completely. Trowel grouted surface
smooth, splay neatly to 45 degrees.
N. Leave work free from dirt, weld spatter, grease and oil. Coat
field connection bolts, welds, and damaged areas of shop-supplied
paint with the same brand and kind of paint used for shop
painting to form an unbroken coating. No spray application shall
be permitted in the shaft. Paint shall be applied by brush or
mitt. Before touching up, thoroughly clean areas to be painted
of loose scale, rust, and foreign substances by
05131, Mine Shaft Steel
<PAGE>
7-37
SSPC SP-2 or SSPC SP-3. Apply at proper coverage rate to provide
average dft of 2 mils. Recoat any areas where dft is less than
1-1/2 mils.
3.4 INSTALLATION TOLERANCES
A. Shaft Sets
Shaft buntons and dividers shall be placed within +/- 1/8 inch in
any direction.
B. Shaft Guides
TS steel guides shall be placed within +/- 1/16 inch in both
horizontal directions and +/- 1/8 inch vertical plumb for one set
spacing, in both directions.
The ends of steel guides are to be not less than 1/8 inch or more
than 3/16 inch apart vertically.
C. Shims
Provide shim plates for buntons and guides connections at
locations indicated on the drawings.
END OF SECTION 05131
<PAGE>
7-38
SECTION 03300
CAST-IN-PLACE CONCRETE
PART 1 GENERAL
1.1 SECTION INCLUDES
The Work under this specification section includes furnishing all
materials, tools, equipment, and labor necessary to mix, transport,
place, finish, and cure concrete for shaft collar, subcollar,
foundations and walls as indicated on the approved shop drawings.
1.2 RELATED SECTIONS
A. Section 03310 - Shaft Concrete
1.3 REFERENCES
A. ACI 211.1 - Standard Practice for Selecting Proportions for
Normal, Heavyweight, and Mass Concrete.
B. ACI 302 - Guide for Concrete Floor and Slab Construction.
C. ACI 318 - Building Code Requirements for Reinforced Concrete.
D. ACI 304 - Recommended Practice for Measuring, Mixing,
Transporting and Placing Concrete.
E. ACI 305R - Hot Weather Concreting.
F. ACI 306R - Cold Weather Concreting
G. ACI 308 - Standard Practice for Curing Concrete.
H. ACI 301 - Specifications for Structural Concrete for Building.
I. ACI 318 - Building Code Requirements for Reinforced Concrete.
J. ASTM C31 - Test Methods of Making and Curing Concrete Test
Specimens in the Field.
K. ASTM C33 - Standard Specification for Concrete Aggregates.
L. ASTM C39 - Standard Specification for Test for Compressive
Strength of Cylindrical Concrete Specimens.
M. ASTM C94 - Standard Specification for Ready-Mixed Concrete.
03300, Cast-in-Place Concrete
<PAGE>
7-39
N. ASTM C143 - Test for Slump of Portland Cement Concrete.
O. ASTM C150 - Portland Cement.
P. ASTM C171 - Polyethylene Sheeting
Q. ASTM C260 - Standard Specification for Air Entraining Admixtures
for Concrete.
R. ASTM C309 - Liquid Membrane Compound.
S. ASTM C494 - Standard Specification for Chemical Admixtures for
Concrete.
T. ASTM A615 - Standard Specification for Deformed and Plain Billet
- Steel Bars for Concrete Reinforcement.
U. ASTM C1064 -Test Methods for Field Measurement of Temperature.
V. ASTM C231 - Standard Test Method for Air Content of Freshly Mixed
Concrete
W. Statutory:
- 30 CFR 56 and 57 - Federal Metal and Nonmetallic Mine Safety
and Health Regulations.
- 29 CFR - Code of Federal Regulation - Occupational Safety
and Health Standards.
1.4 SUBMITTALS FOR REVIEW
A. Concrete Mix Designs to be Submitted by Contractor to Owner's
Engineering Representative.
B. The Contractor shall submit certificates of compliance from the
material suppliers for all items incorporated in the concrete
work to the Owner's Engineering Representative and Quality
Control Personnel.
C. The Contractor shall submit all data on products such as
admixtures, joint sealers, joint devices, and accessories are to
be submitted to the Owner's Engineering Representative and
Quality Control Personnel.
D. The Owner's Quality Control Personnel shall submit a Quality
Control Plan to the Owner's Engineering Representative for
review. This Quality Control Plan shall be adopted by the
Contractor and Materials Testing Laboratory.
03300, Cast-in-Place Concrete
<PAGE>
7-40
1.5 SUBMITTALS FOR INFORMATION
A. All quality control test information shall be submitted by the
Contractor to the Owner or Owner's Engineering Representative
within 24 hours after receipt. The Owner or Owner's Engineering
Representative shall approve or disapprove the test results
within 48 hours after receipt.
1.6 SUBMITTALS AT PROJECT CLOSEOUT
A. All "as-built" drawings shall be submitted by the Contractor to
the Owner and Owner's Engineering Representative.
1.7 QUALITY ASSURANCE
A. Concrete construction tolerance shall be in accordance with ACI
301.
B. Acquire cement and aggregate from same source for all Work.
C. Conform to ACI 305R when concreting during hot weather.
D. Conform to ACI 306R when concreting during cold weather.
E. Mix design shall be performed by the concrete vendor and shall be
overviewed by the Owner's Quality Control Personnel and the
Owner's Engineering Representative.
F. Concrete testing shall be performed by a Materials Testing
Laboratory and shall be overviewed by Owner's Quality Control
Personnel.
1.8 DEFINITIONS
A. Owner's Engineering Representative: Professional civil or
structural engineer retained by the Owner for the purpose of
enforcing the provision of the specification and drawings.
B. Shop Drawing or Drawings: Shop drawings approved for
construction by Owner's Engineering Representative which show the
location, character and details of the work.
C. Materials Testing Laboratory: The persons or laboratory retained
by the Contractor to provide construction materials testing
services.
D. Quality Control Personnel: Individuals retained by the Owner to
provide on-site quality control services to ensure the materials
testing and construction procedures are in accordance with the
referenced codes and standards.
03300, Cast-in-Place Concrete
<PAGE>
7-41
E. Quality Control Plan: A written protocol formulated by the
Quality Control Personnel for field construction quality control
activities. This plan shall include material testing plans and
field construction inspection plans.
PART 2 PRODUCTS
2.1 CONCRETE MATERIALS
A. Cement: ASTM C150, Type IA or Type II.
B. Fine and Coarse Aggregates: ASTM C33.
C. Mixing Water: ACI 318 or ASTM C94.
D. Admixtures:
1) Air entraining admixtures (AEA) - ASTM C260.
2) Water reducing admixture: ASTM C494, Type A or D.
E. Curing Material:
1) Polyethylene Sheeting: ASTM C171.
2) Liquid Membrane Compound: ASTM C309 Class A, Type 1-D or
Type 2
F. Reinforcing Bars: ASTM A615 and in accordance with the approved
shop drawings.
2.2 ACCESSORIES
A. Non-Shrink Grout: Premixed compound consisting of non-metallic
aggregate, cement, water reducing and plasticizing agents;
capable of developing minimum compressive strength of 1700 psi in
48 hours and 3000 psi in 28 days.
2.3 JOINT DEVICES AND FILLER MATERIALS
A. Joint Filler: Asphalt impregnated fiberboard or felt, 1/2 inch
thick or as designated on the contract drawings.
B. Construction Joint Devices: Any device designated on the
contract drawings.
C. Expansion and Contraction Joint Devices: Any device designated
on the contract drawings.
03300, Cast-in-Place Concrete
<PAGE>
7-42
2.4 CONCRETE MIX DESIGN
A. Mix Design: Shall be provided by the concrete vendor and shall
be in accordance with ACI 211.1, Alternative No. 3, and ASTM C94,
Option A.
B. Select aggregate proportions for normal weight concrete in
accordance with ACI 211.1 and ASTM C94.
C. Provide concrete to the following criteria:
UNIT MEASUREMENT
Compressive Strength (7 day) (minimum) 2000 psi
Compressive Strength (28 day) (minimum) 3000 psi
Aggregate Size (maximum) 1 inch
PART 3 EXECUTION
3.1 REGULATORY GUIDELINES
A. All activities involved in the execution of Work shall be in
strict accordance with the 30 CFR 56 and 57, and 29 CFR.
3.2 EXAMINATION
A. Check the ground conditions, forms, reinforcing steel and
previously placed concrete to ensure that they are placed in
satisfactory condition for the Work of this section.
3.3 PREPARATION
A. Prepare previously placed non-plastic concrete by cleaning with
steel brush and applying bonding agent in accordance with
manufacturer's instructions.
B. In locations where new concrete is doweled to existing work,
drill holes in existing concrete, insert steel dowels and pack
solid with non-shrink grout.
C. Coordinate the placement of joint devices with erection of
concrete formwork and placement of form accessories.
3.4 PLACING CONCRETE
A. Place concrete in accordance with ACI 318.
B. The Contractor shall notify Owner's Engineering Representative,
Quality Control Personnel, and Materials Testing Laboratory a
minimum 24 hours prior to commencement of operations.
03300, Cast-in-Place Concrete
<PAGE>
7-43
C. Ensure reinforcement, inserts, embedded parts, formed expansion
and contraction joints are not disturbed during concrete
placement.
D. Install joint devices in accordance with manufacturer's
instructions.
E. Concrete shall be mechanically vibrated to full consolidation.
Over-consolidation, under-consolidation, and the movement of
concrete by the use of vibrators will not be permitted.
F. Concrete shall be evenly distributed throughout the pour without
moving the concrete during post-pour activities.
G. The height of permissible concrete free-fall during placement
shall be 15 ft. If the free-fall height is in excess of the
maximum, a method of remixing the concrete is required.
3.5 CONCRETE FINISHING
A. Steel trowel surfaces which are scheduled to be exposed. Broom
finish, square to the direction of travel, concrete surfaces
which will be subjected to traffic.
B. In areas with drainage grading, maintain floor elevation at
walls; pitch surfaces uniformly as designated on the contract
drawings.
3.6 CURING AND PROTECTION
A. Use of curing compounds will be considered only if the projects
meet the requirements of ACI 309.
B. Provide provisions to protect concrete from any damage prior to
reaching its design strength.
3.7 FIELD TEST AND QUALITY CONTROL
A. Provide free access to Work and cooperate with Quality Control
Personnel. The Quality Control Personnel are responsible for
scheduling of all field quality control activities. The
Contractor is responsible for scheduling of all field and
laboratory materials testing.
B. The concrete vendor shall submit the proposed concrete mix design
to the Owner's Engineering Representative and Quality Control
Personnel a minimum of eight days prior to commencement of Work.
C. The Quality Control Plan shall provide, as a minimum, four
compressive strength cylinder specimens for each 100 cu yd or
fraction thereof for each day's placement shall be provided.
03300, Cast-in-Place Concrete
<PAGE>
7-44
<TABLE>
<CAPTION>
<S><C>
For example:
Day's placement -- 100 cu yd: 4 specimens
Day's placement -- 110 cu yd: 4 specimens for first 100 cu yd
4 specimens for balance of 10 cu yd
Day's placement -- 220 cu yd: 4 specimens first 100 cu yd
4 specimens second 100 cu yd
4 specimens for balance of 20 cu yd
</TABLE>
D. Two compression tests will be performed in accordance with ASTM
C39 at seven days after sampling. If both samples produce the
minimum required seven day compressive strength, the remaining
test samples in that specific sample lot are not required to be
tested. If either of the two compression test samples does not
meet the minimum required seven day compressive strength, the
remaining two samples should be allowed to cure to 28 days and
tested for their 28 day minimum compressive strength. The
Contractor shall notify the Engineer immediately if a compression
strength test failure is encountered at the seven or 28 day
compression test.
E. Proportion for concrete mix shall be in accordance with the ACI
211.1 and may include water reducing admixtures (WRP) complying
with the requirements of ASTM C494, Type A or Type D.
3.8 PATCHING
A. Allow field Quality Control Personnel and Owner's Engineering
Representative to inspect concrete surfaces immediately upon
removal of forms.
B. Visible voids exceeding 1/2 inch deep, cracks open to the surface
which exceed 3/16 inch in width, or embedded debris in concrete
are not acceptable. The Quality Control Personnel shall notify
the Owner's Engineering Representative upon discovery.
3.9 DEFECTIVE CONCRETE
A. Defective Concrete: Concrete not conforming to required lines,
details, dimensions, tolerances or specified requirements.
B. Repair or replacement of defective concrete will be recommended
by the Owner's Engineering Representative and determined by the
Owner.
C. Do not patch, fill, touch-up, or repair concrete without written
approval from the Owner's Engineering Representative.
END OF SECTION 03300
<PAGE>
7-45
SECTION 03310
SHAFT CONCRETE
PART 1 GENERAL
1.1 SECTION INCLUDES
A. The Work under this specification section includes furnishing all
materials, tools, equipment, and labor necessary to mix,
transport, place, finish, and cure shaft concrete as indicated on
the drawings.
1.2 RELATED SECTIONS
A. Section 03300 - Cast-In-Place Concrete
1.3 REFERENCES
A. ACI 211.1 - Standard Practice for Selecting Proportions for
Normal, Heavyweight, and Mass Concrete.
B. ACI 302 - Guide for Concrete Floor and Slab Construction.
C. ACI 318 - Building Code Requirements for Reinforced Concrete.
D. ACI 304 - Recommended Practice for Measuring, Mixing,
Transporting and Placing Concrete.
E. ACI 305R - Hot Weather Concreting.
F. ACI 306R - Cold Weather Concreting
G. ACI 308 - Standard Practice for Curing Concrete.
H. ACI 301 - Specifications for Structural Concrete for
Building.
I. ACI 318 - Building Code Requirements for Reinforced Concrete.
J. ASTM C31 - Test Methods of Making and Curing Concrete Test
Specimens in the Field.
K. ASTM C33 - Standard Specification for Concrete Aggregates.
L. ASTM C39 - Standard Specification for Test for Compressive
Strength of Cylindrical Concrete Specimens.
03310, Shaft Concrete
<PAGE>
7-46
M. ASTM C94 - Standard Specification for Ready-Mixed Concrete.
N. ASTM C143 - Test for Slump of Portland Cement Concrete.
O. ASTM C150 - Portland Cement.
P. ASTM C171 - Polyethylene Sheeting
Q. ASTM C260 - Standard Specification for Air Entraining Admixtures
for Concrete.
R. ASTM C494 - Standard Specification for Chemical Admixtures for
Concrete.
S. ASTM C309 - Liquid Membrane Compound.
T. ASTM A615 - Standard Specification for Deformed and Plain Billet
- Steel Bars for Concrete Reinforcement.
U. ASTM C1064 -Test Methods for Field Measurement of Temperature.
V. ASTM C231 - Standard test method for air content of freshly mixed
concrete
W. Statutory:
30 CFR 56 and 57 - Federal Metal and Nonmetallic Mine Safety and
Health Regulations.
1.4 SUBMITTALS FOR REVIEW
A. Concrete Mix Designs to be Submitted by Contractor to Owner's
Engineering Representative.
B. The Contractor shall submit certificates of compliance from the
material suppliers for all items incorporated in the concrete
work to the Owner's Engineering Representative and Quality
Control Personnel.
C. The Contractor shall submit all data on products such as
admixtures, joint sealers, joint devices, and accessories are to
be submitted to the Owner's Engineering Representative and
Quality Control Personnel.
D. The Owner's Quality Control Personnel shall submit a Quality
Control Plan to the Owner's Engineering Representative for
review. This Quality Control Plan shall be adopted by the
Contractor and Materials Testing Laboratory.
03310, Shaft Concrete
<PAGE>
7-47
E. The Contractor shall submit to the Owner's Engineering
Representative and Quality Control Personnel the method of
placing concrete from point of discharge to shaft forms.
1.5 SUBMITTALS FOR INFORMATION
A. All quality control test information shall be submitted by the
Contractor to the Owner or Owner's Engineering Representative
within 24 hours after receipt. The Owner or Owner's Engineering
Representative shall approve or disapprove the test results
within 48 hours after receipt.
1.6 SUBMITTALS AT PROJECT CLOSEOUT
A. All "as-built" drawings shall be submitted by the Contractor to
the Owner and Owner's Engineering Representative.
1.7 QUALITY ASSURANCE
A. Concrete tolerances: The shaft concrete tolerances shall be in
accordance with ACI 301 unless otherwise specified herein.
1) At insert location, the inside face of final shaft lining
out of roundness tolerance: 1/4-inch of the inside shaft
radius measured from theoretical center line of shaft.
2) Plumbness tolerance: +/- 1/2 inch in 15 ft vertical line
extended from nominal location of the upper construction
joint to lower construction joint.
3) Center of construction joint vertical location tolerance:
1/4 inch. From nominal elevation.
4) Final shaft inside face shall not have irregularities
greater than 3/8 inch.
5) Circumferential location of inserts shall not be greater
than 1/4 inch from location shown on drawings.
B. Acquire cement and aggregate from same source for all Work.
C. Conform to ACI 305R when concreting during hot weather.
D. Conform to ACI 306R when concreting during cold weather.
E. Mix design shall be performed by the concrete vendor and shall be
overviewed by the Owner's Quality Control Personnel and the
Owner's Engineering Representative.
03310, Shaft Concrete
<PAGE>
7-48
F. Concrete testing shall be performed by a Materials Testing
Laboratory and shall be overviewed by the Owner's Quality Control
Personnel.
1.8 DEFINITIONS
A. Owner's Engineering Representative: Professional civil or
structural engineer retained by the Owner for the purpose of
enforcing the provision of the specification and drawings.
B. Shop Drawing or Drawings: Shop drawings approved for
construction by Owner's Engineering Representative which show the
location, character and details of the work.
C. Materials Testing Laboratory: The persons or laboratory retained
by the Contractor to provide construction materials testing
services.
D. Quality Control Personnel: Individuals retained by the Owner to
provide on-site quality control services to ensure the materials
testing and construction procedures are in accordance with the
referenced codes and standards.
E. Quality Control Plan: A written protocol formulated by the
Quality Control Personnel for field construction quality control
activities. This plan shall include material testing plans and
field construction inspection plans.
PART 2 PRODUCTS
2.1 CONCRETE MATERIALS
A. Cement: ASTM C150, Type IA or Type II.
B. Fine and Coarse Aggregates: ASTM C33.
C. Mixing Water: ACI 318 or ASTM C94.
D. Admixtures:
1) Air entraining admixtures (AEA) - ASTM C260
2) Water reducing admixture: ASTM C494, Type A or D
E. Curing Material:
1) Polyethylene Sheeting: ASTM C171.
2) Liquid Membrane Compound: ASTM C309 Class A, Type 1-D or
Type 2
03310, Shaft Concrete
<PAGE>
7-49
F. Reinforcing Bars: ASTM A615 Grade - 60 and in accordance with
the approved shop drawings.
2.2 ACCESSORIES
A. Non-Shrink Grout: Premixed compound consisting of non-metallic
aggregate, cement, water reducing and plasticizing agents;
capable of developing minimum compressive strength of 1700 psi in
48 hours and 3000 psi in 28 days.
2.3 JOINT DEVICES AND FILLER MATERIALS
A. Joint Filler: Asphalt impregnated fiberboard or felt, 1/2 inch
thick or as designated on the contract drawings.
B. Construction Joint Devices: Any device designated on the
contract drawings.
C. Expansion and Contraction Joint Devices: Any device designated
on the contract drawings.
2.4 CONCRETE MIX DESIGN AND SLICK LINE MIX DESIGN
A. Mix Design and Mix Design for Slickline Conveyance for Placement
Concrete: Shall be provided by concrete vendor and shall be in
accordance with ACI 211.1, Alternative No. 3 and ASTM C94, Option
A.
B. Selection of aggregate proportion for slick line placing of
concrete shall be done by concrete vendor.
C. Provide concrete to the following criteria:
UNIT MEASUREMENT
Compressive Strength (7 day) (minimum) 2000 psi
Compressive Strength (28 day) (minimum) 3000 psi
Aggregate Size (maximum) 1 inch
PART 3 EXECUTION
3.1 REGULATORY GUIDELINES
A. All activities involved in the execution of Work shall be in
strict accordance with the 30 CFR 56 and 57.
03310, Shaft Concrete
<PAGE>
7-50
3.2 EXAMINATION
A. Before placing any concrete, the installed concrete form work
shall be checked by the contractor to determine that inserts,
cast-in-place anchor bolts and embedded items are properly
installed and in accordance with the shop drawings.
B. Construction joints shall be located and constructed as indicated
on the drawings. Construction joints or cold joints necessitated
by unforeseeable conditions shall be reviewed by Owner's
Engineering Representative before construction.
3.3 PREPARATION
A. Prepare previously placed non-plastic concrete by cleaning with
steel brush and applying bonding agent in accordance with
manufacturer's instructions.
B. In locations where new concrete is doweled to existing work,
drill holes in existing concrete, insert steel dowels and pack
solid with non-shrink grout.
C. Coordinate the placement of joint devices with erection of
concrete formwork and placement of form accessories.
3.4 PLACING CONCRETE
A. Place concrete in accordance with reviewed contractor method of
placing concrete.
B. The Contractor shall notify the Owner's Engineering
Representative, Quality Control Personnel, and Materials Testing
Laboratory a minimum 24 hours prior to commencement of
operations.
C. Concrete shall be mechanically vibrated to full consolidation.
Over-consolidation, under-consolidation, and the movement of
concrete by the use of vibrators will not be permitted.
D. The Contractor shall maintain records of concrete placement.
Record date, location, quantity, air temperature. The Contractor
shall also record the concrete test cylinder sample numbers with
their specific record of placement.
E. Concrete shall be evenly distributed throughout the pour without
moving the concrete.
03310, Shaft Concrete
<PAGE>
7-51
F. The height of permissible concrete free-fall during placement
shall be in accordance with the method of placing concrete by
slick line that has been approved by the Owner's Engineering
Representative and Quality Control Personnel.
3.5 CONCRETE FINISHING
A. In areas with drainage grading, maintain floor elevation at
walls; pitch surfaces uniformly as designated on the contract
drawings.
3.6 CURING AND PROTECTION
A. Use of curing compounds will be considered only if the projects
meet the requirements of ACI 309.
B. Provide provisions to protect concrete from any damage prior to
reaching its design strength.
3.7 FIELD TESTS AND QUALITY CONTROL
A. Provide free access to Work and cooperate with Quality Control
Personnel. The Quality Control Personnel are responsible for
scheduling of all field quality control activities. The
Contractor is responsible for scheduling of all field and
laboratory materials testing.
B. The concrete vendor shall submit proposed mix design to the
Owner's Engineering Representative and Quality Control Personnel
a minimum of 8 days prior to commencement of Work.
C. The Quality Control Plans shall provide that, as a minimum, two
concrete test cylinders be taken by the Materials Testing
Laboratory in accordance with ASTM C31 for concrete between
construction joints or day's pour, whichever consists of the
lesser amount of concrete.
D. The amount of water and admixtures to be added in slick line
conveyance may be reviewed by the Owner's Engineering
Representative and Quality Control Personnel but is the sole
responsibility of the contractor.
E. A minimum of one concrete slump test for each two test cylinders
taken shall be performed at the point of discharge.
F. One compression test will be performed in accordance with ASTM
C39 at seven days after sampling. If a sample produces the
minimum required seven day compressive strength, the remaining
tests in that specific sample lot are not required to be tested.
If the compression test sample does not meet the minimum required
seven day compressive strength, the remaining sample should be
allowed to cure to 28 days and tested for their 28 day minimum
compressive strength. The Contractor shall notify
03310, Shaft Concrete
<PAGE>
7-52
the Engineer immediately if a compression strength test failure
is encountered at the seven or 28 day compression test.
G. Proportion for concrete mix shall be in accordance with ACI 211.1
water reducing admixtures (WRP) complying with the requirements
of ASTM C494, Type A or Type D.
3.8 REMOVAL OF FORMS & PATCHING
A. The schedule of removal of forms shall be in accordance with ACI
347R-88 Section 3.7.2.3.
B. For shaft concrete. The removal of forms and curb ring at a
lesser period than the minimum indicated on referenced standard
shall be approved by the concrete vendor which prepared the slick
line mix design.
C. Allow field Quality Control Personnel and Owner's Engineering
Representative to inspect concrete surfaces immediately upon
removal of forms.
D. Visible voids exceeding 1/2 inch deep, cracks open to the surface
which exceed 3/16 inch in width, or embedded debris in concrete
are not acceptable. The Quality Control Personnel shall notify
the Owner's Engineering Representative upon discovery.
3.9 DEFECTIVE CONCRETE
A. Defective Concrete: Concrete not conforming to required lines,
details, dimensions, tolerances or specified requirements and as
specified in paragraphs 3.8.D.
B. Repair or replacement of defective concrete will be recommended
by the Owner's Engineering Representative and determined by the
Owner.
C. Do not patch, fill, touch-up, or repair concrete without written
approval from the Owner's Engineering Representative.
END OF SECTION 03310
03310, Shaft Concrete
<PAGE>
7-53
7.6 DRAWINGS
Drawings related to the No. 2 Shaft Construction below the shaft
collar are provided on the following pages:
BASIC DESIGN - SITE GENERAL & SHAFT COLLAR
<TABLE>
<CAPTION>
<S><C>
- -------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- -------------------------------------------------------------------------------------------
1 4180-12-G-4000 NO. 2 SHAFT SURFACE FACILITIES GENERAL ARRANGEMENT
PLAN
- -------------------------------------------------------------------------------------------
BASIC DESIGN - SHAFT
- -------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- -------------------------------------------------------------------------------------------
2 4180-07-G-4100 NO. 2 SHAFT SHAFT PLAN GENERAL ARRANGEMENT
- -------------------------------------------------------------------------------------------
3 4180-07-G-4110 NO. 2 SHAFT TYPICAL SET SECTIONS
- -------------------------------------------------------------------------------------------
4 4180-07-G-4120 NO. 2 SHAFT LONGITUDINAL GENERAL ARRANGEMENT
SECTION
- -------------------------------------------------------------------------------------------
5 4180-07-G-4125 NO. 2 SHAFT WATER RINGS & SHAFT GENERAL ARRANGEMENT
DRAINAGE
- -------------------------------------------------------------------------------------------
6 4180-07-G-4130 NO. 2 SHAFT TYPICAL STATION GENERAL ARRANGEMENT
PLAN & SECTIONS
- -------------------------------------------------------------------------------------------
7 4180-07-G-4135 NO. 2 SHAFT TYPICAL STATION GENERAL ARRANGEMENT
PLAN & SECTIONS
- -------------------------------------------------------------------------------------------
8 4180-07-G-4140 NO. 2 SHAFT 5000L & 4500L GENERAL ARRANGEMENT
TEMPORARY PUMP PLAN & SECTIONS
STATIONS
- -------------------------------------------------------------------------------------------
9 4180-07-G-4160 NO. 2 SHAFT 4000L, 3700L & 3400L GENERAL ARRANGEMENT
STATIONS PLAN & SECTIONS
- -------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7-54
<TABLE>
<CAPTION>
<S><C>
BASIC DESIGN - SHAFT LOADING FACILITY
- ------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- ------------------------------------------------------------------------------------------
10 4180-07-G-4200 NO. 2 SHAFT LOADING POCKET GENERAL ARRANGEMENT
PLAN & SECTIONS
- ------------------------------------------------------------------------------------------
11 4180-07-R-4211 NO. SHAFT 3895 & 3295 LOADING EXCAVATION PLAN &
STATION SECTIONS
- ------------------------------------------------------------------------------------------
BASIC DESIGN - MINE DEVELOPMENT PLANT
- ------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- ------------------------------------------------------------------------------------------
12 4180-02-G-4215 MINE 4000 LEVEL PLAN
DEVELOPMENT
- ------------------------------------------------------------------------------------------
13 4180-02-G-4216 MINE 3700 LEVEL PLAN
DEVELOPMENT
- ------------------------------------------------------------------------------------------
14 4180-02-G-4217 MINE 3400 LEVEL PLAN & SECTION
DEVELOPMENT
- ------------------------------------------------------------------------------------------
15 4180-07-G-4220 NO. 2 SHAFT SPILL POCKET RAMP GENERAL ARRANGEMENT
PLAN & SECTIONS
- ------------------------------------------------------------------------------------------
BASIC DESIGN - ELECTRICAL POWER DISTRIBUTION
- ------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- ------------------------------------------------------------------------------------------
16 4180-15-E-6020 POWER SHAFT & U/G ONE LINE DIAGRAMS
DISTRIBUTION FACILITIES
- ------------------------------------------------------------------------------------------
BASIC DESIGN - ANCILLARY FACILITIES
- ------------------------------------------------------------------------------------------
No. DWG TITLE 1 TITLE 2 TITLE 3
- ------------------------------------------------------------------------------------------
17 4180-05-P-5050 NO. 2 SHAFT SERVICES - WATER LONG SECTION
SCHEMATIC
- ------------------------------------------------------------------------------------------
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 98,187
<SECURITIES> 0
<RECEIVABLES> 2,635
<ALLOWANCES> 0
<INVENTORY> 10,506
<CURRENT-ASSETS> 112,934
<PP&E> 182,038
<DEPRECIATION> 77,502
<TOTAL-ASSETS> 217,470
<CURRENT-LIABILITIES> 12,046
<BONDS> 43
0
0
<COMMON> 3
<OTHER-SE> 161,174
<TOTAL-LIABILITY-AND-EQUITY> 217,470
<SALES> 31,978
<TOTAL-REVENUES> 31,848
<CGS> 35,014
<TOTAL-COSTS> 35,014
<OTHER-EXPENSES> 924
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 534
<INCOME-PRETAX> (4,624)
<INCOME-TAX> (870)
<INCOME-CONTINUING> (3,754)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,754)
<EPS-PRIMARY> (0.15)
<EPS-DILUTED> (0.15)
</TABLE>
