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.
Subject: Instruction to stop production of pods
Reference: a) M/s xxx (Contractor Name) Letter xxx dated 12 December xxx
b) M/s xxx (Contractor Name) letter xxx dated 12 December xxx
Dear Sir,
We are writing to you following our previous letters referenced above dated 12 December xxx to inform you that as per our understanding from your previous communications, your instruction was to stop production in the last 70 pods only, out of which 67 pods are not tiled and 3 pods are only floor tiled.
However, following our phone conversation on 15 December xxx, you have informed us that the production must stop for all pods in factory until further notice.
Accordingly please note the current status of the 261 pods for your project is as per the distribution below:
| S/N | Description | Quantity of Pods | Remarks |
| 1 | Pods delivered to site | 82 | |
| 2 | Pods in stock ready for delivery | 18 | The marble used in these pods are the same as the one that is being rejected on site by the Engineer. |
| 3 | Pods fully tiled and under production | 91 | 63 pods are completed and waiting for marble. 28 pods are in finishing stages. |
| 4 | Pods with floor tiled only | 3 | |
| 5 | Pods not yet tiled | 67 | 19 of the 67 pods are not yet casted. |
| Total | 261 |
While you have not officially communicated what are the reasons behind the instruction to stop the entire production line, we must draw your attention that M/s xxx (Contractor Name) procurement of all material is already completed, and all the material has been received in factory. (With the exception of 14 pcs of linear drain alternative material for which the submittal is currently under the Engineer’s review).
We further draw you attention that if this instruction to stop production is a prelude to any design or material change which may be requested on the pods, whether these pods are already delivered, in production or for which material is already procured, this will lead to substantial abortive works in terms of pods and in terms of procured material available in our factory.
While the impact of such abortive works, if any, may potentially be assessed by M/s xxx (Contractor Name) for pods which are currently in our production line and their feasibility and cost implications communicated to the Main Contractor as necessary, we remind you that M/s xxx (Contractor Name) is an off-site fabrication facility and not a site sub-contractor, therefore it must be made clear no abortive works can be performed on site by M/s xxx (Contractor Name) for already delivered pods.
We confirm again that as per your instruction, the production of all pods is stopped effective 15 December xxx.
M/s xxx (Contractor Name) will await your next instruction to resume production and delivery of pods to site. The impact on the programme of production and delivery will be communicated to you once your instruction to resume production is received.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager
