Claim of incurred cost increase due to the KSA customs regulations

Our Ref: xxx

Date:

To

xxx Contracting LLC

P. O. Box xxx

Dubai, U.A.E.

Attention            : Mr. xxx, Group Procurement Manager

Project                 : Design and Build of Coastal Village Residential Building.

Subject                 : Claim of incurred cost increase due to the KSA customs regulations

Dear Sir,

As previously communicated in our Email dated 16^th April xxx and in reference to our letter of Claim ref: Uxxx dated 13^th May xxxx and due to the continuing closure of the KSA border to trailers and driver from the UAE resulting from the KSA customs regulations (attachment #1), we were unable to deliver our pods using the regular/standard transportation with UAE companies.

We have contacted several transport companies and none was able to meet with the Saudi Customs requirement (i.e. switching trailer head, change driver, etc.) as we previously informed in our letter Ref:  xxx dated 21^st April, xxx and further updated communications (attachment #2)

As an extraordinary measure we have involved a Saudi Transport Company (FTE Logistics) at inflated rates and very hard payment terms for dispatching the pods and avoiding any delay in deliveries. This is the only company that was able to do the job in line with the current regulations until the date of dispatching those pods.

We are attaching herewith the invoices of the first eight deliveries (attachment #3) along with the respective delivery notes (attachment #4) for your reference.

You are kindly requested to approve this cost claim of AED xxx which includes our previous claim as well for the first 2 deliveries at urgent basis to avoid any disruption in the pods delivery process.

We are currently concluding the time impact that is occurring due to the current KSA customs regulations and the unavailability of trailers on regular basis as per our requirement and this shall be addressed separately.

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager