Subcontract Agreement for Supply & Installation of Joinery Works; Notification for starting the delivery (Joinery)

Our Ref: xxx

Date: xxx

To                    :           xxx Construct Company Ltd.

                                    P. O. Box xxx

            Abu Dhabi – UAE.

Attention          :           Eng. xxx

                        :           Project Director

Subject: Subcontract Agreement for Supply & Installation of Joinery Works; Notification for starting the delivery (Joinery)

Dear Eng. xxx,

We regret to receive your letter Ref: xxx dated 15^th October xxx which, for a reason or another, is complicating the matter while it’s very simple.  xxx is following the programme and KPIs approved under our letter Ref: xxx dated 7^th August xxx.  Please find below our reply point by point.

Confirm the air conditioned storage tent

• xxx has no responsibility or business confirming or approving any tent, and this should not be used as a factor to decide when we start delivering.  As you well know, contractually xxx has to produce and install directly.  We were asked to store on site as a favour, which we challenged under our letter Ref: xxx dated 6^th August xxx, and on many other occasions.
• Accordingly, xxx stick to its position to manufacture and install directly.  In case xxx would like us to store on site prior to installation, xxx should do the needful and give us the green light to deliver whenever the storage tent is ready.

Provide a mock-up for all types

• There was no condition or official notification to provide mock-ups for all types prior to delivery.
• Please refer to our letter Ref: xxx dated 31^st July xxx under which a clear schedule and KPIs were agreed between the two companies.  We never heard about “stopping delivery” until we provide mock-ups for all types.
• The request for mock-ups for all types was verbally received on 3^rd of October xxx.  xxx cooperated in good faith and built the mock-ups.

Note: For the sake of completeness, a number of mock-ups were requested before, and it was not until the 3^rd of October when we heard about the additional request for mock-ups.

Issue of one or two crowns

• During the visit on the 12^th of September xxx, when the issue came up, xxx told us they will get back to us within two days, however, it took more than one month for them to get back to us.
• It was decided to go with 24 cms width for the veneer which naturally poses the question whether we use one or two crowns on shutters.
• Accordingly, xxx manufactured 236 kitchens and now we are facing the consequences.  We should have clearly asked you to sign on the sample prior to manufacturing.
• In any case, the one crown or two crowns has nothing to do with delivery, as all the carcasses remain the same, and these can be delivered immediately, instead of bloating xxx/ xxx factory.

Programme and KPIs

• xxx trying, to its best ability, to abide by the agreed KPIs mentioned under their letter of 7^th August xxx.  Hence comes xxx repetitive request to allow us to deliver whatever we produce so we have space in the factory to keep production as per the agreed KPIs.
• We note that as per the agreed programme, and KPIs, xxx should start the installation in September xxx.  We place on record that, as of today, the site is not ready.

Moving forward, Site clearance schedule

• We need a clear programme showing when the site will be ready to take our products.  So far, and despite our requests, we could not get a clear schedule.
• Once we receive the schedule, we will take the necessary action to programme the manufacturing and installation accordingly.
• We ask you, once again, to give us in writing a schedule showing building by building, floor by floor, when we are going to get site clearance to install the kitchens.

On behalf of xxx LLC

xxx

Projects Manager