Sample Covering Letter - Request for approval of Cost incurred for Acceleration

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XXXX/xyz/001

June 19, 2024

 

XXXXXXXXXXXXXXXXXXXX

xxxxxxxxxxxxxxxxxxxxxx

xxxxxx, France

 

Kind Attention:         Mr. XXXXXXXXXXXXXXXX

Project Manger

 

Mr. xxxxxxxxxxxxxx

                                Procurement Director

 

Subject:           XYZ Piping Project

                        Purchase order Nos.xxxxxxxxxxxxxxxxx

                        Request for approval of Cost incurred for Acceleration

 

Dear Sirs,

We refer to your e-mail dated May 22, 2024 as regards to our claim for the cost of incurred for accelerating the fabrication, assembly and delivery of all 54 Piping Assemblies as you requested.

Here below is our reply in the same sequence of your contentions:

 

1)  As we reported in our mail of 18 March 2024 the claimed acceleration cost is only for the Mechanical Works and it does not include painting, insulation & E&I activities, hence there is no question of any deduction in the claimed amount.

 

2)    Your alleged claim that we did not deploy the reported manpower on the job during Feb/March 2024 is totally baseless at this stage since B-XYZ did complete the job on the dates you required and YMN have already collected all the piping assemblies and material and shipped out.

 

3)    It is totally worthless to report at this point of time that B-XYZ’s price for the Project is higher than other Sub-Contractors for the following reasons:

 

a.   YMN already knew very well B-XYZ’s reputation in the market for such Contracts.

 

b.     This particular Contract was not at all well defined in all respects and we do not know how many Contractors would have risked to under-take such Contracts from Companies such as YMN with such limited information.

 

c.    It was true that B-XYZ was in need of such Projects and YMN was clever enough to take the opportunity to negotiate the Project with B-XYZ at a cost no other Contractor would have even ventured with all the high risks involved.

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