XXX Reply – Continuous Slow Rate of Pods Delivery

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:                XXX Reply – Continuous Slow Rate of Pods Delivery

Dear Sir,

We refer to your letter Ref. No.: xxx dated 04^th March xxxx subject “Continuous Slow Rate of Pods Delivery” and note as follows.

We again categorically reject your notice of delay which fails to take into consideration our previous correspondence and concerns specifically as communicated in our letter Ref. xxx dated 19^th December xxx and references therein.

1. Delays and EOT claims

Xxxx has recorded in our letter reference above the various facts which demonstrate the shortfalls of xxx in various aspects including unavailability of design information, delayed delivery of free issue items, design changes as well as xxx default on paying the Advance payment on the 4^th of December xxx. We have further reserved our right for EOT claims under paragraph II of the same letter.

Currently, our production of pods is in excess of the site progress with a completed stock of 89 pods which we are unable to deliver to site due to the failing of the marble approval process, which is resulting from a lack of consistency between the agreed PC rates and the Engineer’s expectations. This is a situation that is outside of xxx control and which is further described hereafter.

1. The marble selection and approval process.

We have raised our serious concern on the marble selection and approval issues in numerous emails and correspondence including our letter Ref. xxx dated 19^th December xxx paragraph III, our letter Ref.  Ref. xxx dated 20^th January xxxx  and we have notified xxx in our letter Ref. Ref. xxx dated 27^th January xxxx that our sole supplier of marble has halted production due to the abnormally high rate of rejections.

Following a visit by to Xxxx by representatives of m/s Mace and a review of the current selection and approval scheme, we have received on the 5th of March xxxx from xxx a marble approval report with instruction to proceed with the works considering this as revised benchmark for the future vanities. 

The report showed that all previously rejected tops, with one exception are now approved, which highlights the subjectivity of the approval process and the unreasonable nature of the marble rejections till date which led to our inability to deliver any of the completed pods in our stock.

While we see this as a positive step from xxx to resolve the marble issue, we still are of the opinion that a single supplier is not enough for the marble vanities of each type as this still poses a high risk towards supply.

We again urge xxx to re-evaluate the specified PC rate to allow us to source the market from more than one supplier and guarantee adequate delivery to site. We consequently notify you again that Xxxx will not be held accountable for any halt or reduction to delivery of pods resulting from the lack of reliable marble suppliers.   

1. Delayed Payments

Xxxx would like to place again on record that xxxx letter seems to be an attempt to again cover its shortfalls by shifting blame on Xxxx – a fact that we repeat we will never tolerate and shall fight with all the commercial, technical and legal resources at its disposal.

We also place on record that in addition to defaulting on the advance payment, which was delayed by nearly 3 months, xxx has now defaulted on the last three certified payments which are overdue in line with our Sub-Contract Particulars Appendix 1.

Additionally, xxx has not issued any PDC cheque against the work certification in breach of our Sub-Contract Particulars Appendix 1 “Interim Payments”

1. Schedule

Considering the above, xxx cannot reasonably expect Xxxx to provide a mitigation schedule, nor can Xxxx reasonably commit to any mitigation schedule without the ability to secure a stable supply of marble. While we are ready to cooperate and to help xxx complete its project successfully, xxx must address the PC rate of the marble and lack of supply in a serious and realistic manner.

We remain at your disposal to discuss any constructive solution moving forward and assure you of our utmost respect at all times.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager