Delivery Schedule & Drawings Comments

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 Schedule & Drawings Comments

Dear Mr. Yang,

We refer to your letters dated 3^rd of October xxxx and 6^th of October xxxx subjected Delivery Schedule and Drawings Comments.

1. At a glance:
2. At the outset, we would like to express our disappointment in receiving such letters after all the efforts we did and all the hardship we bore in order to assist you.
3. Xxx purchased material in millions, tried to complete the design, reserved production slops for your project, submitted the bonds, built two mockups, and kept on following up for information and action from your end for several months.
4. In contrast, your esteemed company could not supply the necessary information to complete the design (in particular the reflected ceilings, MEP requirements, access panels,…),  could not deliver the free issue materials to enable us start production, and did not pay the advance payment.
5. These shortfalls from your end had severe impacts on our production, resources, revenues, profitability, and also disturbed the overall allocation of our production slots. 
6. Xxx reserves all the rights for an Extension of Time claim and a compensation for all the damages caused because of the cancellation of Phase 1 and potential delays on phase 2.

• Xxx follow up:
• Xxx sent, over the course of the past four months, several letters, emails, and have reminded you over and over again, in several meetings, to give us information on the design and confirmation on the delivery of the free issue material.  Still to date, these requests are unattended.

• Free Issue material:
• As of today, we still do NOT have the complete sets of free issue items to start production! no bathtubs received, no concealed mixers received, no WC received, and the list continues…
• As explained on several occasions, we need full sets of material before we can start production, otherwise the pods will be held within the production lines, stopping the sequence of other pods, bloating our factory, and disturbing the overall output of our production.

• Shop Drawings:

Xxx acted in record time when it comes to the submittal of shop drawings.

• We received the reflected ceiling plans from your side on the 15^th of September xxxx, in goodwill, and based on your request, we have submitted all 21 types by the 30^th of September xxxx (including all details and despite the lack of lots of information from your side).  Also despite receiving design changes on 17^th & 18^th of September xxxx.

• So far, we received comments only on Types 1 & 2 (please find attached the log for your quick reference).  For completeness, we note that Types 1 & 2 are the Mockup pods which started earlier than other types.  We are still waiting for your comments on the other types which did not come yet.
• For the records, we note that Xxx prepared the mockups and it was inspected on 26^th of June xxxx, it took until the 19^th of August xxxx to receive the first comments on the pods.
• In respect to C2 drawings, as explained on several occasions, these are mirror pods of C1.  The normal and healthy process is to finish and approve the drawings of C1, and then submit C2 free of potential changes and comments. Submitting C2 before finalizing the design of C1, will force both parties to go through the same drawings twice, causing waste of time and resources.

• Production:
• We reiterate that the production of pods cannot start unless we have: a/ the approved drawings and b/ the free issue materials, in sets, delivered from your side.
• For the first batch, once we receive the design approval, it will take five days to prepare the fabrication drawings, molds, programming of wall fabrication machine, and then 15 days production cycle.  Afterwards, 15 days production cycle for the second lot and onwards.
• Among many things, Xxx cannot start the production unless the ceiling drawings are final. Erecting the pod requires the ceiling to be in place.  And by ceiling drawings, we mean not only the access panel size, but also the positions of all features including MEP services (we have explained this matter several times).
• The mold fabrication capacity is two molds per day, that is why it is important to send us the approval on the drawings gradually, and not wait and give us all drawings in one shot.
• As of now, we have only Types 1 & 2 approved on 30^th of September xxxx. These are under production now.  There are around 16 pods (8 from Type 1 and 8 from Type 2) under production, however, the process stopped because of lack of free issue material.

• Conclusion:
• In conclusion, Xxx did all what can be technically done, in record time, to assist xxx.
• On the drawings, xxx could not provide Xxx the necessary information in order to complete the shop drawings until the 15^th of September xxxx.  Once the bare minimum information was received, Xxx submitted all shop drawings within two weeks.
• xxx couldn’t deliver the free issue materials necessary for production, and failed to even give a schedule of delivery until date.
• So we are wondering what delay are you referring too?!
• As a result, Xxx refutes any claim of delay on its part.  Xxx was actively chasing xxx for the past four months in an attempt to move forward with the project.  Xxx refuses to be victimized by any party trying to cover its shortfalls.

We kindly ask you to withdraw your above mentioned letters, and work with us hand in hand, in a positive manner, in order to complete the project.

We remain at your disposal and promise you to do our utmost efforts to assist you with your project. However, we need to agree on what is reasonably achievable and what is technically impossible.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager