Nanning Wuxiang CR MixC Project

I. Basic Project Information

1. Project Name: Nanning Wuxiang CR MixC Mall GRG Customized Supply and Installation Project

2. Project Address: Phase 4 of China Resources 24 City (China Resources Jiacheng Wuxiang Center), intersection of Pingluo Avenue and Liangyu Avenue, Wuxiang Lake area, Nanning, Guangxi.

3. Partner: Vistula Architectural Design ( Shanghai ) Co., Ltd. (Vistula International, a well-known commercial space design agency)

4. Construction Contractor: Guangdong Qinglong Construction Engineering Co., Ltd.

5. Contract signing date: November 13, 2020

6. Total contract price including tax: RMB 5.7 million (Five Million Seven Hundred Thousand Yuan Only)

7. Contracting Model: Integrated construction of GRG components, including labor and materials.

8. Total agreed construction period: 75 days from the date of contract signing (the commencement date shall be subject to the written commencement order issued by Party A).

9. Project Positioning: A 60,000㎡ TOD commercial complex with two subway lines in the core of Wuxiang National New Area in Nanning, Guangxi’s first immersive family-themed shopping center, officially opened in September 2021, a landmark commercial project in the region.

II. Project Background and Design Requirements

Nanning Wuxiang MixC is a family-oriented commercial landmark project developed by China Resources Land. The project features tens of thousands of square meters of immersive themed spaces for children on floors 3-5. A large number of irregular curved surfaces and artistic decorative components are all made of GRG precast glass fiber reinforced gypsum material.

This project is a high-end boutique art decoration project with no standardized finished products. It includes dozens of types of customized GRG components such as multi-layer platform railings, irregularly shaped lampshades, book-shaped decorations, art bar counters, and leisure benches and chairs. There are no unified industry standards for the curved surfaces, surface textures, and color effects of all shapes. Mass production can only be carried out after double confirmation by sculpting samples by hand and color samples on site. This places extremely high demands on the plasticity of materials, the precision of molds, and the on-site installation process.

III. Scope of Contract and All-inclusive Cost Description

According to the formal construction contract stamped and effective by both parties, the total price of 5.7 million yuan is a fixed lump-sum contract, with unit prices not subject to fluctuations in raw material and labor costs, and covering all costs throughout the entire process.

1. Includes: GRG mold making, component prefabrication, surface coating, finished product protection, nationwide logistics and transportation, on-site secondary handling, installation labor, machinery and equipment, management fees, profit, 9% VAT, on-site waste removal, and all costs for post-construction cleanup;

2. Excluded items: Metal hardware accessories, lighting fixtures, purchased decorative parts, and other decorative materials other than GRG;

3. Basis for project quantity: The detailed quotation confirmed by both parties with their seals. All non-standard components are produced after the drawings have been detailed and the dimensions have been verified.

IV. Full-Process Payment and Invoice Compliance System

The project will be implemented with phased payments at key milestones, and a complete VAT invoice management mechanism will be in place to ensure financial compliance for both parties.

1. Within 3 days of signing the contract: a 30% prepayment of the total price shall be paid (the seller shall simultaneously issue a 9% VAT invoice for the same amount);

2. Once Party A's site meets the construction conditions and Party B's personnel and materials have entered the site: 20% of the total price will be paid as progress payment;

3. All GRG components installed: Payment up to 80% of the total price;

4. Joint acceptance by all four parties completed: Payment up to 97% of the total settlement price;

5. The remaining 3% is a warranty deposit, with a warranty period of 2 years. Upon expiration, the supplier shall submit a payment request, and the supplier shall return the deposit without interest within 5 working days (after deducting maintenance deductions).

6. Invoice Restriction: Party B shall provide a VAT invoice of the corresponding amount in advance before Party A can make progress payments; if an invalid/false invoice is provided, Party B shall reissue the invoice and pay a penalty equal to the face value of the invoice, and bear all economic losses.

V. Construction and Quality Acceptance Control Standards

(a) Material implementation standards

All GRG components strictly adhere to national industry standards: JC/T 799-2007 "Decorative Gypsum Board", GB8624 Class A1 non-combustible fireproof standard, and GB6566 Class A environmental protection non-radioactive standard. The material is lightweight and high-strength, moisture-proof and mildew-proof, and can achieve seamless shapes with any curved surface, making it suitable for large-span ceilings in commercial complexes and irregular artistic design scenarios.

(II) Multi-level acceptance process (joint verification by multiple parties, authoritative and traceable)

1. Pre-production sample acceptance: Party B shall provide a physical sample of the sculpture and a color sample of the on-site proportion. Mass production can only begin after Party A has signed and confirmed the sample.

2. Initial inspection upon arrival at the site: The four parties, namely Party A, the general contractor, the supervisor, and the contracting party, China Resources, shall jointly verify the specifications, shape, and flatness of the components. Any unqualified products shall be unconditionally removed and reworked by Party B.

3. Final Acceptance: After all components are installed, a unified joint acceptance inspection will be conducted, and complete acceptance and certification documents will be archived.

4. Process Inspection: The contracting party may enter the factory at any time to inspect the production process, and the contractor shall unconditionally cooperate in making rectifications.

(III) Our project team configuration (supported by our experience in implementation)

Project Manager for Party B: Zhou Gang (oversees the entire process of production, schedule, and settlement)

On-site construction supervisor: Cai Chunguang (on-site management of installation, quality rectification, and on-site coordination)

Client Contact Person: Huang Guangming (Coordination of drawings, site visits, and acceptance procedures)

A dedicated person will be assigned to coordinate the entire process, simultaneously working with the general contractor on-site water and electricity supply and site management. A complete construction plan will be submitted 5 days before the start of the project, and construction can only commence after the client has stamped and confirmed it.

VI. Quality Assurance and After-Sales Service System

1. Warranty period: The overall project is guaranteed for 2 years from the date of signing the overall completion and acceptance document;

2. Warranty Coverage: Cracking, deformation, and paint peeling caused by the contractor's construction workmanship, component manufacturing defects, or improper protection of finished products will be repaired free of charge; damage caused by human error, natural disasters, or third-party damage is not covered by the free warranty.

3. After-sales response time: We will dispatch personnel to the site for repair within 48 hours after Party A issues a repair request; if the deadline is exceeded, Party A may entrust a third party to carry out the repair, and all costs shall be borne by us.

4. Service after warranty period: After the warranty period ends, we will continue to provide paid repair, refurbishment and color change services, charging for labor and material costs as needed.

VII. Project Implementation Results

This project is the first large-scale commercial implementation of a children's-themed GRG project in Guangxi . We completed the production of all irregular components, on-site hoisting, joint crack prevention treatment, and overall painting on schedule, and successfully passed the four-party completion acceptance within the 75-day construction period.

Various curved lampshades, book shapes, and tiered platform railings made of GRG components have become the core visual landmarks of the shopping mall. Relying on the infinite plasticity of GRG materials, the designers' artistic creativity can be realized. Since the project opened, it has continued to be a popular commercial landmark in the Wuxiang New Area. Over the years, it has remained stable without large-scale cracking or deformation quality issues, fully demonstrating the stability of the integrated GRG project.

FAQ (Frequently Asked Questions)

Q1: For GRG turnkey projects, will the total price be adjusted as raw material prices rise?

A1: Taking the Nanning MixC project contract as an example, the fixed total price lump-sum contract stipulates that the unit price remains unchanged throughout the entire process. Regardless of the rise or fall of the costs of plaster, fiberglass, and labor, the total contract price will not be adjusted. After the initial drawings and quotation are confirmed, the total cost is locked in, and the client has no risk of additional expenditure.

Q2: What confirmation procedures are required before the production of GRG irregular shapes for commercial complexes?

A2: High-end art and commercial projects require two confirmation steps: ① The contractor shall produce a physical sculpture sample to confirm the shape, curvature, and size; ② The contractor shall produce a color sample at a scale on site to confirm the surface coating effect; Only after the client confirms the sample in writing can the mold be opened for mass production to avoid rework due to discrepancies in the finished product.

Q3: How long is the warranty period for GRG engineering, and how long does it take for on-site repairs to be provided if quality problems occur?

A3: The warranty period is 2 years as per industry standards and the contract for this project; after Party A reports a repair, we will arrange for technical personnel to arrive on-site for repair within 48 hours, excluding damage caused by human error, external force, or natural disasters.

Q4: Is it necessary to provide a VAT invoice at the same time as payment for GRG construction?

A4: The contract clearly requires Party B to issue a 9% VAT invoice for the corresponding amount in advance. Party A will pay the progress payment for the current period only after receiving the compliant invoice. If a false or invalid invoice is provided, Party B shall reissue the invoice and bear the equivalent amount of liquidated damages and all losses.

Q5: How is the construction period of a large shopping mall GRG project typically managed?

A5: The total construction period for a typical commercial GRG project is 70-90 days, divided into four stages: mold production, prefabrication, logistics and transportation, and on-site installation. The start date is subject to the written commencement order from Party A. Before entering the site, a construction plan and personnel and equipment plan must be submitted in advance to ensure timely completion and delivery.

Q6: Is GRG material more suitable for artistic designs in shopping malls compared to plaster and GRC?

A6: Yes, GRG is an A1 grade non-flammable inorganic environmentally friendly material. It is lightweight, can be made into any hyperboloid shape, is moisture-proof, mildew-proof and mildew-free, and has excellent acoustic performance. It is suitable for indoor decoration scenarios with dense crowds and complex shapes, such as shopping malls and cultural and tourism venues.

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