CONTRACT ADMINISTRATION

E.1 Initiating Consultancy Services

E.1.1 Upon award of contract, the McWolex Inc Management Directors will assign the Manager to administer and co-ordinate the contract.

E.1.2 The Managing Director and Manager will ensure the availability of all Geologists, Engineers and Materials to be used for the contract, Their safety certificate, training and experience will be reviewed and where necessary arrangements made for medical, safety refresher courses etc.

When confirmation of startup date is received, the Rig Engineers/Geologist will be informed and necessary arrangement made.

The Manager will arrange a meeting with client before commencement of any job as per standard practices, engineers and support staff will also be invited to attend as required.

E.2 Reporting Procedures

Reporting procedures will be carried out according into clients instructions and need. In addition the following reports will be prepared by McWolex Inc:

Monthly status reports summarizing work activities;

Monthly comparison of actual against scheduled work

Reasons for discrepancies will be reported

Monthly safety status reports which will include any accident or near miss, statistics, safety, audits, environmental audits, safety meetings, safety alerts and all safety investigations performed by McWolex Inc.

Status of problems regarding work in progress which will include the:

- Nature and cause of the problem

- How problems interfere with the work schedule

- Effect of the problems on the Work schedule

- Action advised/taken

- Subsequent revision of dates

- Personnel responsible for investigation & action

- Logistics status

E.3 Review of Operational Activities.

E.3.1 Operational activities both internally, and with clients. The Manager will arrange to client representatives on a regular basic to discuss and review operational activities with particular attention being paid to quality of service, problems encountered and their solutions.

E.3.2 Where a problem exists the McWolex Inc Manager will, if applicable, conduct a formal investigation of that problem. The Managing Director will be kept fully informed of all developments and may at any stage take over the performance of the investigation. The analysis and investigation of the problem will result in the documentation of a revised instruction of procedure to prevent re-occurrence of the problem.

E.4 Schedules for Future Requirements

The Managing Director in conjunction with the Manager will discuss on regular basic personnel requirements for specific jobs. The review of operational activity will indicate which areas, if any, may present a future problem. A plan can then be formulated incorporating local Operations, Technical and any functions and resolved these potential problems and hence provide the highest possible standard of services to client.