Balikpapan, September 12th, 2023
No. : 027/SS04/ETI-SKM/RDMP-JO/VII/2023
Subject : Final BoQ and R332-02 Rejection Letter Attachment : 1 (one) Lot
To : PT. ETI International (Balikpapan Project) Mr. Abdul Aziz
Dear Sir,
I am writing in response to the latest letter from JO, identified as letter number 26071-SSE004-JO-ETI-LT- 00029. In accordance with this letter, we, from ETI-RODA, will be sending our final Bill of Quantities (BoQ) calculations to JO. With this letter, we also regretfully decline to undertake the work in project area PR-332- 02.
Our decision to decline this project area is primarily due to the delayed arrival of materials in relation to the project schedule, as referenced in our previous letter to JO with reference number 025/SS04/ETI- SKM/RDMP-JO/VII/2023, which quoted: "R332-02 will be completed within the schedule if the material arrives on site not later than Week 4 of August 2023." The delay in material delivery was communicated by JO's own material team, indicating that it will reach Port Somber by September 20, 2023, or by the end of September 2023. This refusal is also based on several other factors, namely:
1. Some foundations in PR332-02 remain unfinished, with only a few having been handed over (please see Email Attachment).
2. Not all materials for R332-02, as indicated in Shipment 61, have been delivered (please see Email Attachment).
3. Our contract with ETI-RODA is valid only until September 30, 2023.
Based on these circumstances and with reference to our previous letter numbered 024/SS04/ETI- SKM/RDMP-JO/VII/2023 concerning project area PR332-02, which stated: "1) Material will arrive at the site not later than the end of August 2023. 3) If the condition on point 1 is not met, and ETI-RODA is allowed to work on that area even though the material shipment is delayed (expected in September 2023 or beyond), ETI-RODA is not obliged to continue completing the area beyond September 30, 2023, as their contract will end after that date."
Regrettably, we find ourselves compelled to adhere to the statements made in this letter and decline the execution of project area R332-02. This decision is based on the fact that it would require a minimum of 1 month from the arrival of materials to complete the area (assuming an estimated material arrival date of
September 20, 2023, would result in an estimated completion date of October 20, 2023), which would exceed the term of our contract ending on September 30, 2023. Additionally, the delay in Shipment 61 poses a hindrance to us in working on the additional area PR321-18 (PR81) due to pending Grating materials that are yet to be delivered in the respective shipment.
In addition to providing our final quantity BoQ calculations, we have attached supporting documents to justify our decision to decline R332-02. We appreciate if JO could give us a solution for this matter regarding PR332-02 and we appreciate for your understanding and timely attention to this matter.
Prepared by,
PT. Sentra Karya Mandiri
NIRWAN I. SARAGIH Project Manager
Attachment:
1. Final BoQ Quantity (Email Attachment)
2. Civil Handover notice PR332-02 (Email Attachment)
3. Difference of material BoQ and Shipment area PR332-02 (Email Attachment)
4. Chat proof for Shipment 61 arrival date from JO Material Control team.
Translation : Estimation material is coming on September 20, 2023 or end of September