Impact of design changes for Residential & Hotel apartment pods.
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 : Impact of design changes for Residential & Hotel apartment pods.
References: a) xxx dated 12 August xxx
b) xxx dated 15 June xxxx
c) xxx dated 10 August xxxx
d) xxx dated 15 September xxxx
e) xxx dated 17 October xxxx
Dear Sir,
We are writing to you, following our previous correspondences above to inform you on the following:
- Residential Pods
We received on 10 November xxxx a new set of drawings (appendix 1) from your team that included changes to around 45 pods drainage requirement that are not identical from a pod to another.
It must be noted that all the residential pods were already casted & erected and such changes at this stage will incur abortive works and wastages that our commercial team is currently evaluating. The cost related to the new changes will be submitted for your approval in due course.
Upon your confirmation and approval to the related additional costs, the modification works can start and the time required to complete production and resume deliveries for these pods will be advised to you at its time.
On the other hand, we remind you that we have not received all the Civil & MEP MIRs yet for Hotel & Residential buildings which was agreed to be released back to Xxxx with a final status recorded as “Approved” during the Engineer & Client visit to our factory on 07 October xxxx.
Therefore, in order to be able to resume production and deliveries, we expect to receive the formal copies of all pods Civil & MEP MIRs with an approved status within 1 week. Alternatively, please issue an official letter confirming the same which a clear statement that all the pods Civil & MEP MIRs are approved.
- Hotel Apartment
- The first in place pods were since April xxxx (with the exception of a few Free Issue Materials which you have not released to us).
- By end of April 21 new comments were received that held changes to the design and work done.
- On June xxxx again new MEP comments were received that included different changes on the design and the work done.
- The pods were then made ready for an inspection scheduled on 11 July xxxx. The hotel apartment pods inspection was conducted on 01 August xxxx and no comments were received afterwards.
- On 07 October xxxx, the Engineer & Client visited the factory and informed us that there will be new changes to the design as requested by the Operator.
- On 21 October xxxx, we received new comments via Email (appendix 2) with the instruction to resubmit the shop drawings incorporating the comments received.
- Xxxx have submitted the revised drawings on 28 October xxxx and still waiting the final approval.
Accordingly, we would like to raise our concerns regarding the delay in finalizing the design and approvals for the Hotel Apartment pods that have been trailing since almost 7 months.
Also note that all the 97 pods bases were casted and 36 pods were erected following your email confirmation received on 06 July xxxx (appendix 3) that the mockup inspection will be to check workmanship and finishes only.
The new changes will incur abortive works and wastages that our commercial team is currently evaluating and will finalize after receiving the final approved drawings and then the cost related will be submitted for your approval.
Upon your confirmation and approval to the related additional costs, the modification works and pending pods production can start noting that the new changes require additional quantities of tiles and new model of towel rings that we still require your confirmation on their ETAs to plan the production accordingly.
Additionally, we again remind you that the mirror cabinet and solid surface are customized items that can only be produced based on approved design.
Therefore we urge you to release the approved drawings at the earliest to allow us to submit our additional cost, order the pending materials and plan the production.
Conclusion:
To summarize, you are kindly requested to release the MIR approvals for Hotel and Residential (Civil & MEP) or a letter stating the same, approve the cost related to the 45 pods drainage changes, issue the final approval for the Hotel apartment pods, approve the cost related to the design changes for the Hotel apartment pods after its submission and confirm the ETA of free issue materials.
Moreover, we again request you to release the two overdue payments amounting to AED xxx million with immediate effect. These payments delay are causing massive damages to Xxxx and its supply chain.
We reserve our rights for an extension of Time (EOT) equivalent to the same number of days by which our payments and progress payment certifications are delayed. Also we reserve our right for an EOT for the changes in designs, delay in FIM, delay in release of MIRs, etc.
Xxxx will not be held liable for any impact the above may have on the delivery of pods, or for any direct or indirect impact on site progress.
These liabilities reside with Al XXXX.
This is for your information and record.
Yours faithfully,
On behalf of xxx LLC
xxx
Project Manager