Free Issue Material Bathtub Quality Issue

Our Ref: xxx

Date: xxx

To                    :           xxx Contracting Middle East,

                                   P.O.Box xxx,

                                   Dubai, UAE 

Attention          :           Ms. xxx

                        :           Project Director

Project             :           xxx Tower Views, Dubai

Subject                 : Free Issue Material; Bathtub, Quality Issue

Dear Mr. Chen,

We refer to your letter xxx dated xxx and wish to clarify as follows.

We remind the Main Contractor, that under the terms of our Sub-Contract agreement Appendix 2 Scope of Works, item 2, the bathtubs are a Free Issue item, selected, inspected, procured and then delivered by the Main Contractor to our factory for installation.

As free issue items, the Bathtubs are not subject to Material Submittal / Approval and are immediately installed in the pods upon delivery. Therefore the statement that Xxx is using unapproved materials is incorrect.

Furthermore, Sub-Contract Agreement Clause 16 states “The Subcontractor shall be responsible for all inspection and quality control as per Main Contractor QA/QC requirements”. This is applicable when the Main Contractor has officially provided Xxx with clear QA/QC requirements as clearly stated. These QA/QC requirements have not been provided specifically because the Bathtubs are a Free Issue item.

Therefore Xxx has no reasonable way of knowing, nor is Xxx expected to assume, what quality standard the Main Contractor has selected and implemented during his procurement procedure for these items.

In line with our Sub-Contract Agreement obligations, we have notified the Main Contractor through our letter Ref: xxx of issues with the Bathtubs that we consider QA/QC concerns by industry standards, but may however be within the quality standard accepted by the Main Contractor during his procurement process.

We therefore request again that you verify that a sufficient number of delivered Bathtubs meet the quality requirement you have set during your procurement process in order not to disrupt the production and delivery cycle of the Pods.

We also request that if you wish to enforce Clause 16 on Free Issue items that you issue to us your official QA/QC requirements for all Free Issue Items in order for our quality inspectors to reasonably filter out any item that does not meet the quality standard you have defined during your procurement process.

Furthermore, as stated in our referenced letter above, for completed pods, these may (or may not) require abortive works to replace the bathtubs depending on whether your procurement quality standards for these items are met.  Should these abortive works be instructed then associated costs will be communicated.

We trust the above clarifies.

On behalf of xxx LLC

xxx

Project Manager