Inspection approval, production & delivery progress

Inspection approval, production & delivery progress

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 :     Inspection approval, production & delivery progress

Reference: xxx dated 10 August xxxx

Dear Sir,

This is in reference to our earlier correspondences, as we wish to highlight again that in accordance with our Work Order No. xxx, Other Terms & Condition, (8) Inspection, clause (e): “all pods acceptance is subjected to the inspection and approval by the consultants in supplier’s factory”.

In light of the above, kindly take note of the following status on both the residential towers and the Hotel Apartment.

A- Residential Towers

We have received a request from your team start delivery of pods and maintain delivery as per project requirement without prior approval in factory, thereby deviating from the terms of our Work Order as referenced above.

While Xxxx is willing and ready to support you in this request, please note that Xxxx produces the Pods in a factory environment following factory specific production lines and resources. Accordingly, no changes or abortive works can be executed by Xxxx on any pod outside the factory. We are therefore only able to proceed with this request if there is mutual agreement on the following:

  1. All pods leaving the factory are considered approved, and no further comments of any nature will be raised once pods are delivered. Unless these comments relate to damages which may have occurred during transportation.
  2. Any changes, resulting from such comments or new design requirements which may be raised after the pods have been produced and/or delivered will be executed by the Contractor at his discretion on site and at the cost of the Contractor. Xxxx will not accept any back charge or responsibility towards such works.
  3. ATAT will not, under any circumstances, hold and/or deduct any amount from certification or payment or retention from Xxxx account in relation to comments or new design changes received after the pods have been dispatched from our production facility in the UAE.

If you have any objection to the above, please revert back to us by COB 16 September xxxx otherwise the above will be considered as mutually agreed and binding.

Should you have any objection, Xxxx will have no other option but to be bound by the Terms & Conditions of our Work Order.

B- Hotel Apartment

We must raise our concern that first in place 8 No. of pods of the Hotel apartment were inspected on 01 August xxxx, and we are surprised that till today, after 45 days, we still have not received the official feedback on the inspection. It must be stressed that this inspection had initially been scheduled for 11 July xxxx and the pods were ready at that date more than two months ago.

We again remind you that these ongoing delays in the inspection and approval of the pods are preventing us from placing the necessary orders for key materials like solid surface and mirror cabinets or from moving forward with mass production.

Xxxx has done all it can to proceed with some activities (pod bases, walls erections, ceiling, waterproofing and tiling). This was based on your assurance in email dated 6 July xxxx(Appendix 1) that mockup inspection would be to check workmanship and finishes exclusively.

We have at you request, expedited a number of activities, and have already erected 36 pods for the Hotel Apartment prior to approval, however we cannot proceed any further until the official approval on the inspection of the first in place pods is received, as the erected pods are currently blocking our factory line.

While we will continue to extend all our efforts to expedite production and deliveries to meet your requirements, Xxxx has no control over these ongoing delays, and we are still unable to proceed with our procurement process and our fabrication. Accordingly, Xxxx shall not hold any responsibility towards any impact such delays may have on the project.

We kindly urge you to provide us with the long-awaited approvals to allow us to proceed with subsequent activities, and we look forward to your response in relation to the anticipated mutual agreement highlighted above by COB Thursday 16 September xxxx so that we can ensure a timely delivery of ready pods.

We remain at your full disposal for any clarifications you may need, and we assure you of our utmost support at all times.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager       

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