NOTIFICATION OF VARIATION CLAIM

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 :     NOTIFICATION OF VARIATION CLAIM

Reference: a) xxx dated 18 August xxx

                    b) Email for the Minutes of Meeting held on site on 25 August xxx

                    c) xxx dated 29 August xxx

Dear Sir,

I’m writing to you with regards to your letter reference xxx dated 16 September xxx and would like to note the following:

We refer to our previous correspondences mentioned above and specifically in your decision to De-scope the light switches back boxes and cold drainage pipes (CDP) from the scope of M/s xxx (Contractor Name). We remind you that this scope exclusion is solely due to the inability of your team and your MEP subcontractor to provide a unified and typical provision location that works with the pod technology and mass fabrication of the 12 pod types.

M/s xxx (Contractor Name) is an offsite manufacturer, and we have no relation with your MEP subcontractor neither in contract nor in scope process. Therefore, we expressly reject your statement that deduction of cost will be based on documents or claims issued by such third party.

We are attaching herewith (appendix 1) the M/s xxx (Contractor Name) cost breakdown associated with the exclusion of the light switches back boxes and CDP pipes which have resulted from MEP design changes as noted in previous correspondences.

The total cost breakdown of M/s xxx (Contractor Name) amounts to AED xxx as highlighted in Appendix 1. M/s xxx (Contractor Name) will not accept any other breakdown or cost presented by any other party.

We are at your disposal to clarify any of the information included in our cost breakdown should you wish to do so. Please note that M/s xxx (Contractor Name) will not accept any unilateral deduction from Al Sahel over and above our attached costing totaling AED 9,953.16.

In the event that you do not agree with the above, then M/s xxx (Contractor Name) will not accept the proposed de-scoping and will proceed with the works as per the approved pod shop drawings. Any abortive works on site to realign the back boxes and CDP as per the design change requirement put forward by your MEP subcontractor will be the sole responsibility of Al Sahel.

Yours faithfully,

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

xxx

Projects Manager