Approval

Instruction to proceed with tiling works for the remaining 70 pods.

Our Ref: xxx

Date: xxx

To                           : xxx Contracting Company LLC

                               P. O. Box xxx, Dubai, U.A.E.

Attention            : Mr. xxx, Senior Project Manager

Project                 : xxx Tower, Dubai – U.A.E.

S Subject             :              Instruction to proceed with tiling works for the remaining 70 pods.

Dear Sir,

Kindly note that in accordance with your instruction received via letter ref. xxx dated 30 November xxx, M/s xxx (Contractor Name) has put on hold the production of 70 pods which had not yet received tiling.

On 09 December xxx, we have received a new instruction by email (appendix A) to proceed with the tiling of these 70 pods and resume their production.

Accordingly, as instructed production of these pods will resume on Sunday 12 December xxx and tiling works will be executed using the same ANCONA SMOKE (60 x 30 cm) floor and wall tiles shade which has been used in all previous pods (with the exception of pods delivered to B3 level1) as per prior instruction.

We do however remind you that all pods delivered to site until today and which have made use of this particular tile shade in accordance with the Main Contractor’s instruction have been rejected by the Engineer.

Although we note the Main Contractor’s ongoing statements that he will ensure that all pods delivered to site using this tile shade will be approved (Please refer to letter xxx 14 November xxx) the ongoing lack of approvals by the Engineer of our pods is preventing M/s xxx (Contractor Name) from raising payment applications and getting certification for work done. This is putting tremendous stress on our cash flow and our financial obligations to our suppliers.

M/s xxx (Contractor Name) cannot sustain the current status quo, and we cannot finance the entire projects supply, production and delivery without monthly certifications and payment in accordance with our Subcontract.

We therefore request that the Main Contractor reasonably releases certification and payment for the delivered pods to allow M/s xxx (Contractor Name) to maintain operation until such time as the Main Contractor secures the approval of the tiles from the Engineer and the Employer.

Please note that if the Main Contractor is not willing to certify our work and the rejection of pods due to tiling remains un-addressed in the short term, M/s xxx (Contractor Name) will not be able to maintain pod deliveries.

Your urgent action in this matter is requested.

Yours faithfully,

On behalf of M/s xxx (Contractor Name) LLC

xxx

Projects Manager

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