Marble Selection and Challenges

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:                Marble Selection and Challenges

Dear Mr. Loh,

We refer to our conversation and correspondence regarding the marble selection, in particular, our letter Ref: xxx dated 24^th November xxxx (see Appendix 1) and our subsequent emails dated 23^rd Nov-19 and 2^nd Dec-19.

As you are aware, the marble issue is still causing the project challenges despite the efforts that our team and your team (Mr. xxx) is putting to improve the quality and speed up the delivery.

The aim of this message is to re-define the problem and find a permanent solution to run the project smoothly.  As you know well, we have more than 200 pods ready in our factory, but cannot be delivered because of shortage of marble.

Background

• XXXX instructed Xxxx to use specific PC rates for the marble at the time we were negotiating the agreement.
• The above PC rates are part of our Subcontract Agreement signed and stamped by both parties (see Appendix 2).
• Evidently, these PC rates were agreed with no assurance from Xxxx that such a PC rate is enough to satisfy the expectations of the client.  Xxxx followed XXXX instruction.

The real problem

• After weeks of struggling to get the marble up to the required quality within the agreed PC rate, it is evident, at this stage, that this PC rate is not enough to secure the marble up to the expectation of the client.
• Securing high level quality tops requires one of two things:
• (a) a high level of wastage to dodge the color variation and veins
• (b) Grade A+ slabs which minimize the wastage, but the cost of the slab is much higher. 

In both scenarios, the suppliers ask for higher prices.

• The only supplier who is still working within the agreed PC rate is Eternity, however, he is not performing, and the rejection rate remains very high.  It will be just a matter of time until we lose this supplier and we will be left with no supply at all.

• Attached you will find a comparison between the agreed PC rate and the different prices we got from marble suppliers (see Appendix 3).  As you will notice, their prices are up to double the agreed PC rates.

A viable solution

• The problem cannot be resolved by Xxxx alone, as the agreed PC rate does not allow us to resolve the problem.
• The only viable solution is to appoint 2-3 different suppliers to work simultaneously so we avoid relying on only one small supplier who is already struggling to deliver.
• We seek your immediate action in approving a higher PC rate in line with the client’s expectations, and we invite you to take part in the negotiation with the suppliers listed under Appendix 3, or any supplier that XXXX prefers.

Note: Alternatively, if XXXX can secure the required quality marble through its channels, we have no problem receiving the vanity and cistern tops as a free issue item, and we shall deduct from our contract the agreed PC rate.

Intermediate solution

• In the meanwhile, and until we agree on the above permanent solution, we have been instructed by your team and the Consultant to follow a certain approval mechanism (please see our email dated 23^rd Nov-19) by which we need to submit high resolution pictures of the slabs and cutting layouts.
• We have submitted the first batch on 25^th Nov-19 for Tundra Grey and on 24^th Nov-19 for Crema Uno.
• Up till date, we did not receive any approval or rejection on the above.

In conclusion, the marble sourcing and challenges are outside of Xxxx hands to resolve alone.  Xxxx shall not take any responsibility whatsoever for any delay in sourcing the marble until a permanent solution is in place.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager