Tiles and other Prime Cost items

Status of delivery/approval of Ancona Smoke tiles

Our Ref: xxx

Date:

To

xxx Contracting LLC

P. O. Box xxx

Dubai, U.A.E.

Attention            : Mr. xxx, Group Procurement Manager

Project                 : xxx Phase 2

Subject                 : Status of delivery/approval of Ancona Smoke tiles

Dear Sir,

We refer to our letter Ref: xxx dated 13 August xxxx

As expected and communicated in our letter above, the shipment of “Ancona Smoke” tiles has arrived to port on 29 August xxxx. The tiles have cleared customs today and we have immediately secured 6 random samples which were made available on site today.

These samples have been presented to the Main Contractor and the Engineer in presence of the supplier M/s Home Items. Images of these samples will also be issued to you separately by email.

These 6 No. samples are generally similar in tone to the multiple samples which have been submitted earlier and which have all been rejected. The initial feedback which we have received today is that these 6 No. samples also do not meet the expectations of the Engineer.

We will make an official submittal of these samples in line with the project approval process; however, based on the feedback we have received during the site meeting today, we expect that these new samples will be rejected in the same way the earlier 10 samples have been rejected.

Accordingly, we refer back to our letter reference above where we have clarified that if we have to order a new batch of tiles, the new order will require 6 to 8 weeks for delivery. 

We have done and continue to do all that we can do to ensure a smooth start to production, including engaging all our resources months prior to receiving our Sub-Contract agreement, however this issue remains completely out of our control, and based on the statements of the supplier M/s Home Items during today’s meeting we understand that this is the extent of his ability to control the tile fabrication process.

Consequently we refer back to the conclusion of our letter Ref: xxx dated 6 August xxxx and we again highlight the same available options at hand which are: Either approaching the Engineer/Client to secure approval on the new samples/delivered stock or allow for another 6 to 8 weeks for production and delivery of yet another batch from India, without any guarantee that the new batch will be an exact match to the Engineer’s expectations.

We again leave it up to you to advise on which way you would like to proceed and urge you once more to address this issue with the Client. Our production line is currently completely paralyzed due to the above and this is causing undue damages to M/s xxx (Contractor Name), for which we hold BGC fully liable.

Our rights are fully reserved.

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager

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