Production Plan and prerequisite milestones
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 : Production Plan and prerequisite milestones
Dear Sir,
Following the ongoing coordination and discussions we had till date and based on your request to have the first in place pods delivered to site by 20-August-xxx, 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 long lead items.
We have attached an indicative overall tentative schedule (Appendix A1) to highlight the process considering the following assumptions and key milestones.
- Shop Drawings approval:
M/s xxx (Contractor Name) Engineering process and the requirement to allow us to prepare our shop drawings was explained during several discussions with your technical team. The schedule allows for a single cycle of review by the Engineer only. 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.
We kindly require an expedited review/approval process to be able to prepare the production & purchase drawings.
- Material Submittals and approval:
We have allowed a period for submittal/review/and approval of materials of 20 days which is extremely tight, however necessary to allow us to place the purchase orders at the earliest.
Based on a good will, we have started the Engineering and Material submission process prior to the signing of the Subcontract to expedite the process. However we require the approvals to be received no later than 11 July xxx for the materials and 26 July xxx for the shop drawings to meet the production deadline noted in the attached tentative programme.
If this period is for any reason extended, the procurement of long lead items (mainly tiles, glass, drain, etc.) may be delayed and will cause production to be pushed accordingly.
- Procurement:
A detailed procurement schedule can be shared upon receiving approval on all the materials which will allow us to place the necessary orders.
However as per the attached tentative schedule, we have considered a shorten period of procurement not exceeding 60 days while 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 in place at factory before mass production can start.
- Production:
Based on your site requirements we expect than on average one level per week should be delivered. This will require an average daily production of 4 pods/day. The production will follow a sequence that is shared by the Main Contractor.
Any change after the production start in the sequence required will have minimum 2 weeks impact on the production and deliveries.
- Delivery:
Produced pods will be delivered on a daily basis based on site readiness.
The loading platform has to be ready with a third party safety certificate signed prior arranging any delivery to site. Logistics on site has to be arranged by the Main Contractor to avoid detention charges due to non-offloading of pods the same day of its delivery.
- Installation:
The pods will be delivered to site and shifted into the floor based on the agreed sequence, however final installation will be conditional on obtaining the signed necessary clearances from the Main Contractors’ Civil & MEP teams.
Finally, we will keep you appraised during the various approval stages on the status of the schedule and we will mutually agree on a production plan and delivery schedule accordingly, to meet your site requirements.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager