RE – Notice To Restart The Production and Delivery of Pods For xxx- 4

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 – Notice To Restart The Production and Delivery of Pods For PDLM – 4

Reference: a) M/s xxx (Contractor Name) Letter xxx dated 12 December xxx

                    b) M/s xxx (Contractor Name) letter xxx dated 12 December xxx

                    c) M/s xxx (Contractor Name) letter xxx dated 16 December xxx

Dear Sir,

We are in receipt of your letter reference: xxx dated 17 January xxx and we note your current instruction to resume the delivery and production of pods with the same tile shade used in previously delivered pods.

The production and delivery of pods were placed on hold based on your previous instruction via letter reference: xxx dated 12 December xxx, and we provided you the status for the remaining 179 pods following the hold in our letter (c).

We have subsequently delivered 9 pods following your further instruction in letter reference: xxx dated 21 December xxx.

The current balance of 170 pods in factory is as follows:

• 72 pods à fully produced and require marble and subsequent finishing.
• 28 pods à in various finishing stages.
• 3 pods à only floor tiled.
• 48 pods à only floor casted.
• 19 pods not yet casted.

Out of the 91 pods currently delivered more than two months ago, only 4 pods have been fully approved, which is unacceptable to say the least.

• 36 pods have been rejected due to the tile shade despite the fact that we received an earlier instruction to deliver these pods with the same tile shade.
• 51 pods have been officially rejected due to the marble supplied by the Main Contractor.

We further draw your attention that we have received 17 sets of marble on 18 January 2022 from one of your suppliers, without any approval by the Main Contractor or the Engineer on this marble, which will ultimately result in further rejection of delivered pods if this marble is installed as is.

The ongoing lack of approvals by the Engineer/Employer of our pods due both to the tile issue and to the Main Contractor’s marble is preventing M/s xxx (Contractor Name) from securing certification and raising invoices for work done, despite the fact that the 91 pods have been delivered as per the prior instruction of the Main Contractor.

You are also fully aware that resuming production and delivery of all balance pods at this time without resolving the long-standing issues of the tile and the marble which are preventing approvals of already delivered pods will only lead to further rejection by the Engineer/Employer.

Such instruction is unreasonable as it will prevent M/s xxx (Contractor Name) from securing approvals and claiming for work completed under the Subcontract Agreement. M/s xxx (Contractor Name) cannot finance your project and deliver the entire scope without receiving approvals due to issues beyond our control and without getting interim payments.

We therefore request that you release full certification and payment for the 91 delivered pods to allow M/s xxx (Contractor Name) to resume production and delivery of pods to site.

We also remind you that you have until this day failed to put in place our letter of credit in accordance with the terms of our Subcontract Agreement.

Yours faithfully,

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

xxx

Projects Manager