Pods Delivery Schedule for Towers 1, 2 & 3
Our Ref: xxx
To : xxx Contracting Middle East,
Attention : Ms. xxx
: Project Director
Project : xxx Tower Views, Dubai
Subject : Pods Delivery Schedule for Towers 1, 2 & 3.
Dear Mr. Chen,
We refer to your letter Ref: xxx dated xxx subjected Pods Delivery Schedule for Tower 1, 2 & 3.
- At the outset, we would like to clarify and correct the information and target dates for Towers 2 & 3 mentioned in your letter.
- You are referring to a schedule sent from your side on 29th Aug xxx which was not accepted by Xxx, and is not realistically achievable.
- We have sent you the procurement and material lead time many times, and explained what is doable and what is not. Please refer to our letters Ref: xxx dated 29th Jul-19, Ref: xxx dated 21st Aug-19, and all previous emails and letters explaining about the material lead time.
- We do not see any benefit, at this stage, in referring to an obsolete schedule that no one on earth can achieve, and that was rejected by Xxx (how can we deliver pods on 21st Sep-19, as you are mentioning in your letter, when we got the contract on 4th of Oct xxx).
- Time implications on changing the gypsum boards.
- You are ignoring the time implications related to the change of the gypsum board which put our production on a total halt for a period of 12 days – from Thursday, 26th Sep-xxx to Monday 7th Oct-xx. Please refer to our letter Ref: xxx dated xxx, Ref: xxx dated xxx and your letter Ref: xxx dated xxx instructing us which board to use.
- Your statement “…delivery of Pods belongs to Tower 2 and 3 is not achieved…”
- Based on the above, it is clear that the target dates mentioned in your letter are (1) not the correct dates and (2) ignoring the time impact of changing the boards.
- Based on the agreed schedule, subject to the terms & conditions specified under our letter Ref: xxx dated xxx, the start of delivery for Tower 2 is 12th Oct-19 and for Tower 3 is 22nd Oct-19 respectively.
- Accordingly, by following the time schedule, and taking into account the 12 days impact mentioned above, the start date of deliveries will be 24th Oct-xx for Tower 2 and 4th Nov-19 for Tower 3.
- Despite the above, we have delivered already 29 pods for Tower 2, and have more than 40 pods in our factory at final stages that can be delivered in few days. Also, we have about 36 pods for Tower 3 that can be shipped gradually over the course of the coming week or two.
- Catching up on deliveries for Towers 2 & 3.
- Xxx, in good faith, is ready to increase production for Towers 2 & 3, to catch up on the schedule gradually over 2-3 weeks. However, this is subject to xxx action in regards to Xxx overdue payments and release of advance payment (please see below).
- Payment of our overdue invoices and advance payment.
- We refer you to our letter Ref: xxx dated xxx
- As explained, the delay in settling our invoices and releasing our advance payment, is of a serious concern.
- On the one hand, Xxx reached a point where it can no longer finance the project without receiving these payments.
- On the other hand, not receiving any official confirmation on the settlement (except one email from your Contracts Manager promising a payment on Thursday, 24th Oct-xx, which didn’t materialize) is raising questions about how the rest of the payments will be handled.
- We urge you to address this matter immediately in order to comfort Xxx’ concern about the payment situation, and most importantly, to enable Xxx keep on financing its operations.
Our team shall liaise with you for the inspection and delivery of the 330 pods mentioned in your letter during the coming couple of days.
On behalf of xxx LLC