Production Plan and prerequisite milestones
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 : Production Plan and prerequisite milestones
Dear Sir,
Following the ongoing coordination and meetings we had till date, and the schedule you have issued to us on the 14 July xxxx, which shows a first delivery on 17 November xxxx, we have looked at the various phases necessary to achieve the above date and we have notable concerns on the time allowed, specifically in terms of procurement of key material.
We have attached an indicative overall schedule (Appendix A1) to highlight the process considering the following assumptions and key milestones.
- Shop Drawings approval:
Xxxx Engineering schedule was submitted via Email on 29July xxxx (Appendix A2). The schedule allows for a single cycle of review by the Main Contractor and then two submission cycles to the Engineer.
We do not expect that a longer period will be required, however completing the shop drawing approval phase within the allocated time will be critical to achieving the attached production plan.
- Material Submittals and approval:
Xxxx scope for material submittals consists of 22 items (Appendix A3). All the other items that require approval are Free Issue Items and are not under Xxxx scope for submission.
We have allowed a period for submittal/review/and approval of materials of 30 days which is extremely tight, however necessary to achieve the program you have communicated above. If this period is for any reason extended, the production will have to be pushed accordingly.
- Procurement:
A detailed procurement schedule will be shared upon receiving approval on the materials which will allow us to place the necessary orders. However as per the attached tentative schedule, to achieve your target date, the procurement has to be completed in a period not exceeding 45 to 60 days. From our experience, usually at least 90 days are required for procurement, especially in light of the current global pandemic. While we will do our best to try and compress this period, we cannot confirm at this time however that this will be achieved.
Free Issue Materials should also be received in line with our production plan, as all materials should be in place at factory before mass production can start.
Production:
Our production plan (Appendix A4) is prepared taking into consideration the site requirement received from M/s Al Tasnim and can only be achieved if the above considerations and milestones are met.
- Delivery:
We have considered 6-7 days for transportation duration from our factory in UAE to the site in Oman.
Any border closure, regulation changes or other matters that will have impact on the transportation will be advised accordingly.
Finally, we will keep you appraised in full transparency during the various approval stages on the status of the schedule and we will agree on a production plan and delivery schedule accordingly.
Yours faithfully,
On behalf of xxx LLC
xxx
Project Manager