Re-DELIVERY OF ALL PODS WITHOUT MARBLE
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: Re-DELIVERY OF ALL PODS WITHOUT MARBLE
Dear Sir,
We are in receipt of your letter ref: xxx dated 05 December xxx which includes an instruction to deliver all pods without marble.
In accordance with the Subcontract Agreement scope matrix item 21, the supply of the marble to M/s xxx (Contractor Name) factory is under the responsibility of ASCC.
The marble is installed in the pods in factory as part of our production line and is a prerequisite to the installation of a number of subsequent finishing items including mirror, the washbasin, mixers, accessories, etc. which are installed in subsequent stages in the production chain. M/s xxx (Contractor Name) is an off-site manufacturing company which does not undertake subcontract works on site.
Background:
As of today, M/s xxx (Contractor Name) has delivered 72 pods to site which include marble supplied by ASCC. There is currently 80% rejection of pod finishing IR on site due to the rejection by the Engineer of this marble.
This number includes 8 pods which have been delivered since September xxx and in which ASCC has still after three months not rectified the marble.
As a consequence of ASCC’s supply of un-approved marble, M/s xxx (Contractor Name) scope of work has been severely impacted. The Main Contractor has still not rectified rejected sets, which has prevented approvals, and has disrupted our monthly payment applications, consequently delaying certification and payment of completed works by M/s xxx (Contractor Name).
As to the instruction:
The facts above notwithstanding, the Main Contractor is fully aware that delivering all balance pods without marble will directly lead to an immediate rejection by the Engineer of all balance delivered pods as incomplete.
These rejections will be compounded to the pods already delivered to site and rejected due to the comments on the installed marble.
Therefore, this instruction will most likely prevent M/s xxx (Contractor Name) from securing necessary approvals from the Engineer/Employer of all delivered pods which will consequently prevent M/s xxx (Contractor Name) from completing its scope of works under the Subcontract Agreement.
Moreover, the Main Contractor simply states that “ASCC will take care of the Supply of marble at site” and fails to address key considerations including the revised scope of works and liability pertaining to a future installation of the marble and subsequent activities on site and its implications on the warranties provided by M/s xxx (Contractor Name) all which are fundamental changes to our Subcontract Agreement.
As to the supply of marble
While we recognize that Main Contractor may be facing challenges in the supply and approval of the marble sets, we reiterate that we are ready to assist you in identifying potential suppliers which may have material that meet the expectations of the Engineer.
We do remind you however that while we have advised the Main Contractor, to the best of our ability, that past quality of supplied marble would not meet the Engineer’s expectations during pod inspection, you have elected to insist on the installation of this material resulting in the current unreasonable rejection rate of pods.
On the other hand, we have received a communication on 06 December xxx (Appendix A) from M/s Al Lailac Marble Cutting LLC stating that they are your new appointed marble supplier.
Kindly therefore confirm if M/s xxx (Contractor Name) is authorized to receive marble sets from this supplier and that this material has prior approval from the Engineer.
We again advise that you maintain delivery of approved marble sets in accordance with the Subcontract Agreement to allow M/s xxx (Contractor Name) to complete its Scope of Works.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager