SAMPT has reviewed your subject letter no. KPSS/SA/B/AKR/14/0449 dated March 13, 2014 and has the following comments:
0.	Suspension of WORK is not automatically a valid reason to claim compensation for Standby Time. The contract mentions in para 25 of Schedule A, that “CONTRACTOR shall minimize all costs to SAUDI ARAMCO resulting from  termination or suspension" and “immediately make every reasonable effort to terminate or suspend contracts or other obligations, other than as may be required to complete those portions of the WORK not suspended or terminatedâ€. Form the unsuspended scope of work of the project it is obvious that the resources could be re-assigned to various other activities in the contract which were long pending or suffering from slow progress.
1.	In addition, ICC failed to fulfill the following conditions for a claim in compensation of Standby Time:

a.	Failed to notify immediately to SAPMT of its intention to claim compensation for Standby Time as stipulated in Paragraph 14.2 of Schedule “Aâ€
b.	Fail to submit daily time sheets, verified and confirm by SAPMT no later than the following work day as stipulated in Paragraph 14.4 of Schedule “Aâ€.
c.	Failed to demonstrate that every effort has been endeavored by ICC to minimize Standby Time by reschedule such personnel or equipment for use elsewhere as required in Paragraph 14.1 of Schedule “Aâ€.
//2.	Paragraph 21.1 and 21.2 of Schedule “Aâ€ are for compensation of cost incurred for “safeguarding the WORK and materials and equipment in transit to or at the WORK Siteâ€ and “maintenance of labor and equipment in the WORK site upon request from SAPMTâ€. SAPMT has never requested for such maintenance of labor and equipment, but had actually requested ICC to reschedule the resources to other work areas as shown in our letter ref. K&TPD/KRP&SFPD/SF/L-530/14 dated February 27, 2014.
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3.	Compensation for Standby Time, if approved, shall be paid based on verified time sheets, stating the name of the labors directly affected by the suspension of WORK, equipment and the period of standby. The time sheet should be verified and signed by SAPMT representative no later than the following work day.
SAPMT exercises the contractual right under Paragraph 14.2 of Schedule A, to reject your request for compensation for Standby Time as ICC has failed in all prerequisites of a compensation for Standby Time.

Should you have any questions, please contact Sohail Moughal, Project Engineer on Tel.  No. +966 12 422 4570
