Shop Drawings status update and impact on production.

Our Ref: xxx

Date:

To

xxx Contracting LLC

P. O. Box xxx

Dubai, U.A.E.

Attention            : Mr. xxx, Group Procurement Manager

Project                 : : xxx Tower, Dubai – U.A.E.

Subject :     Shop Drawings status update and impact on production.

References: a) xxx dated 07 March xxx

                       b) xxx dated 01 April xxx

                       c) xxx dated 28 April xxx

                       d) xxx dated 06 July xxx

                       e) xx dated 23 August xxx

Dear Sir,

We are writing to you following our previous letters referenced above which identified the various phases necessary to achieve the first delivery of pods and the subsequent meetings held on site, in particular the latest meetings held on 16 and 24 August xxx.

Until today we still have not received the Contractor’s final RCP drawings necessary to finalize our Pod drawings, nor an approval on the Pod drawings submitted with preliminary RCP information as per the Contractor’s instruction.

Accordingly, production has not started as scheduled and the target date of 3 October xxx for the first delivery of Pods is no longer achievable.

We have emphasized repeatedly, including in our letter reference (e) above that in order to meet this target date, the approval on the pod drawings should be received no later than 24 August xxx.

You have assured us repetitively that you would release your RCP drawings well ahead of this date and subsequently ensure an approval of the drawings by 24 August xxx, in full understanding of the impact any delay on the release of these drawings would have to the target date for the delivery of Pods.

We urge you again, in accordance with your statements made in the meeting made on 16 August xxx, to release to us your final approved RCP drawings at the earliest and release the approval on the latest revision of the POD drawings.

Every single day that passes without approval on the drawings past our cutoff date of 24 August xxx cannot be recovered. We are currently still unable to generate factory production drawings, or fabricate molds, which will consequently delay the start of Pod production.  This will inevitably push the delivery of the first batch of pods by the same number of days counting from 24 August xxx until receipt of Contractor’s RCP drawings and subsequent Pod approved drawings.

We again remind you that following the approval of the pod drawings, M/s xxx (Contractor Name) requires a minimum of 2 weeks to prepare factory production drawings and fabricate the molds, in addition to 18 days to produce the first batch of pods.

These ongoing delays above are out of the hands of M/s xxx (Contractor Name) and we urge you to take urgent action in this regard. We also have to voice our concern that while we hope that the Contractor’s RCP drawings will not contain any fundamental design changes from preliminary information when released, we will only be in a position to confirm any impact on the Pod design when such information is received.

This is for your information and immediate action.

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager