Delivery of 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:                 Delivery of Pods

Dear Mr. Yang,

We refer to your letter Ref: xxx dated 4^th November xxxx related to Delivery of Pods.

At the outset, we would like to assure you that we are doing all what is technically and realistically possible to deliver pods as fast as possible.  However, as anticipated in advance and explained under our previous letters, many factors have pushed the schedule forward.  Please see below the main factors explained once again for your quick reference:

1. The basis of the Programme
2. The programme you are referring to, which is showing the start of delivery on 24^th Oct-19, was conceived on a fundamental assumption that approvals on all drawings will be sent to Xxxx by 3^rd Oct-19 (please see our letter Ref: xxx dated 1^st Oct-19 and the notes mentioned on the programme).
3. In reality, we got only Types 1 & 2 before that date, and all the rest of the approvals between 7^th Oct-19 and 24^th Oct-19 (Type 30L is still pending till date).
4. Hence, Types 1 & 2 were already delivered to site (please find attached a table showing the approval dates of the drawings).

• Production Cycle
• As explained on many occasions, particularly our letter Ref: xxx dated 7^th Oct-19, we will need from the drawings approval five (5) days to prepare the production drawings, molds, programming of machines, ordering of vanity tops, vanities, etc. and then 15 days production cycle.
• This cycle cannot be compressed by any means as this is the minimum time required to complete the pod.
• Accordingly, if we got an approval on a certain type/drawing on 24^th Oct-19, it is impossible to deliver this pod before 17^th Nov-19.

• Design Modifications

The below was communicated to you via our letter Ref: xxx dated 23^rd Oct-19.

• Vanity Color
• We received instructions on the vanity color on 22^nd Oct-19. 
• We secured the necessary paint by 26^th Oct-19. 
• Please note that the cabinet is installed on/around the 10^th day in the production cycle, which means we will need 4-5 days after the cabinet to be able to complete the pods and ship it (as the basin, top, back splash, MEP of basin, mixers, mirror, etc. etc, are all installed after the cabinet).

• Change in Door Structural Opening
• Revised Shop Drawings
  • We received the instruction to change the door sizes on 22^nd October xxxx.
  • Reissuing the fabrication drawings, modifying the molds, reprogramming the wall machine, etc. will take about five days.

• Revised electrical GI Box switch locations
• We got the locations as per the drawings received on 21^st October xxxx
• Modifying the pods under production, drawings…took about five (5) days.

As you can see from the above, it was impossible technically to start delivering on 24^th Oct-19.

• Delay in receiving the Advance Payment
• Please refer to our letter Ref: xxx dated 4^th Nov-19 and all previous correspondence in this regard.

• Revised Production schedule
• Attached you will find a revised delivery schedule taking into account the dates of drawings approvals and time impact on the design modification.  This revised schedule does not account for the delay in receiving the advance payment as there is no clarity yet on the expected date to receive the same.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager