Our Ref: xxx
Date: xxx
To : xxx Middle East,
P.O.Box xxx,
Dubai – UAE.
Attention : Mr. xxx
: Project Manager
Project : xxx Towers Project, Dubai
Subject: Marble (Notice Letter)
Dear Sir,
Our references:
- Letter UP-LET-875 dated 4th Sep xxxx Marble selection and inspection
- Letter UP-LET-931 dated 24th Nov xxxx Serious delays in delivery of pods and poor quality of vanity marbles
- Letter UP-LET-935 dated 4th Dec xxxx Marble Selection and Challenges
- Letter UP-LET-940 dated 19th Dec xxxx Continuous delay of pods delivery
- Letter UP-LET-947 dated 20th Jan xxx Reply – Continuous Delays in Raising Material Inspections
In reference to the ongoing concerns of marble supply, we appreciate your initiative to talk to the marble suppliers and listening to their problems in your office on the 25th of February xxx . The problem as they highlighted are rejections on the approved slabs once the fabrication are completed. Based on the discussion it was decided to now do a re-inspection on the marbles which were previously delivered and rejected at the Xxxx factory without any guarantee that this will change the approval status.
As of this stage a final solution is still not reached with the Client selected suppliers (xxx MARBLES & ETERNITY MARBLES) as well as your supplier (xxx Marbles) for future marble deliveries. All the supplier strongly confirmed in the meeting that they cannot comply with the Client requirement for the natural stone especially under the agreed PC rate. So the problem is still not resolved and remains a major risk as we have pods ready in our factory which cannot be shipped due to the approval of these marbles.
Subsequently this is to notify that the m/s Eternity who had previously agreed to supply the marble tops within the PC rate given has now halted production and delivery due to the abnormally high rate of rejection on the marble.
This now puts us in a situation where there is no other supplier which can provide the marble tops at the specified PC rate, and subsequently, POD production will now be forced to a standstill.
The main problem
The agreed PC rate is not high enough to procure natural marble at the quality level required by the Engineer.
Background
Xxxx has been raising the concern of the marble material since November xxxx as noted in our letter Ref (b) above where we warned that having a high rate of rejection without an alternative supplier, will only lead to the current supplier quitting the job and leaving us without a solution.
At the time, and in an effort to find a solution, Xxxx approached multiple other suppliers, all of which apologized due to not being able to provide the required quality at the specified PC rate. As supporting documents, the same ref (b) also included quotations from 4 different suppliers, all of which were higher that the Main Contractor’s PC rate.
In early December xxxx we issued letter Ref. (c) above to again clarify the marble problem, and to attempt to find a solution before a deadlock is faced. As we saw it, was a matter of time before our single supplier Eternity would be lost, which would put the project in an extremely high risk situation. In the same letter we again attached a detailed comparison between the agreed PC rate and the different prices we got from marble suppliers showing their prices were double the agreed PC rates.
In total, eight different rates from eight different suppliers were submitted.
Ineffective Intermediate solutions
During November xxxx, we have been instructed by the Main Contractor and the Consultant to follow a certain approval mechanism Ref (c) by which we need to submit high resolution pictures of the slabs and cutting layouts. This was also offered as a solution in our letter ref (d) above.
We followed this approach and submitted as requested, but all our submissions were left unanswered.
The solution
We have been operating for the past months at an extremely elevated risk level due to our reliance on a single source of marble. It is unreasonable to be reluctant in addressing the core of the problem and aligning the PC rates of the natural marble with quality requirements of the Engineer and the Client, and then allowing us to appoint two or three different suppliers to work simultaneously on the project and maintain the necessary production level to cope with progress on site.
We have provided the Main Contractor, repeatedly, with all the necessary supporting documents to facilitate his decision in this matter and address this major risk to the project. We have also repeatedly voiced our readiness to cooperate and help the Main Contractor mitigate the risk and complete the project successful. However, till this date, no serious action has been taken in this matter and we have now reached a point where production and delivery of Pods is affected, which will in turn affect the progress on site.
Xxxx has taken all the reasonable steps to highlight this risk early to the Main Contractor, implement requested intermediary solutions, and provide alternative suppliers/sources all with price comparisons to the current PC rate. We have gone above and beyond what is necessary to resolve this situation and avoid interruption of pod delivery, all of which have seen no action from the Main Contractor appropriate to the level of risk this issue poses.
Consequently, Xxxx is left with no other option but to hereby notify the Main Contractor that due to the above circumstances and the lack of supply of natural marble tops from our sole supplier, Xxxx shall not be held liable for any production or delivery delays of pods to the site or for any consequence direct or indirect of such delays.
This is for your records and necessary action
Yours faithfully,
On behalf of xxx LLC
xxx
Project Manager
