Regarding Substation Quotation and our issue of Cost

Date:                    xxx

Ref:                       CC/269/CM/04

To:                         M/s. xxx, Dubai, UAE

Kind Attn:            Mr. xxx

Project:                2B + G + 14+ Lower Roof Hotel Building on Plot No. 373-1297 at Al Barsha 1st,Dubai U.A.E.

Subject:              Regarding Substation Quotation and our issue of Cost

Dear Sir,

With reference to the above subject, we would like to inform you that for substation Aluminum work, we received an informal quotation from client against our quotation of AED 51,000/-, which include substation and LV room. After that we submitted revised quote for AED 31,000/- (approx.) and none of the quotation agreed as approved that time we were arguing.

As you intimated that you had discussion with you and Mr. Prakash Vangani   that he agreed AED 18,000/-. But Mr. Prakash Vangani  was not aware of the scope of work and he may understand only substation scope for two element only or  misunderstand the scope, furthermore now the cost of the material and the labour only without any profit of margin more than AED 25,000/- and we have substation as well as RMU room, we can’t afford to execute in AED 18,000/- because what we submitted it was non approved discussion only.

So, our minimum cost for the Aluminum work for substation and RMU room will be AED 25,000- (Twenty Five Thousand only) without any profit and it will cost to cost.,

Kindly look in to this matter and approved the realistic quotation at least 25,000/- because we cannot force the Aluminum subcontractor to accept our offer which is not covering their cost because of the heavy duty specification from DEWA.

Kindly consider and issue the work order to execute the same with minimum AED 25,000/- to support the project at least.

As PS item it is difficult to bear the loss just for support and it is specialize subcontractor work.

Regards,

For xxx Contracting L.L.C.

xxx

Project Manager