SAPMT has reviewed the subject letter no. KPSS/SA/B/ANW/13/0191 dated November 13, 2013 and has rejected with the following comments:

1.	Payment for material not delivered to WORK site will have to be paid in accordance with paragraph 3.3 and 3.4 of Schedule-C of the Contract document. An approved Bank Guarantee in an amount not less than the invoice amount of the material shall be submitted to SAPMT before any payment can be made for material remains undelivered to the WORK site.
2.	As per Schedule-C CONTRACTOR shall invoice SAUDI ARAMCO for the Major Materials Price detailed in Pricing Attachment I upon the achievement of each of the following milestones to SAUDI ARAMCO’s satisfaction:
a.	Ten percent (10%) of the Major Materials Price allocated to each separable Major Materials item upon CONTRACTOR’s placement of SAUDI ARAMCO approved purchase order for such item and providing SAUDI ARAMCO with proof of placement and acceptance by Vendor.
b.	Seventy percent (70%) of the Major Materials Price allocated to each separable Major Materials item on shipment of such item, including all its parts, by the supplier(s) thereof to CONTRACTOR in Saudi Arabia supported by the supplier's proof of shipment from the country of origin to Saudi Arabia.
c.	Twenty percent (20%) of the Major Materials Price allocated to each separable Major Materials item on final receipt of such item, including all its startup spare parts and non-material requirements by CONTRACTOR at the WORK Site.
Should you have any questions, please contract Sohail Moughal, Project Engineer on Tel. No. +966 12 422 4570.
