IC claims in letters Nos. KPSS/SA/B/ANW15/1138 dated April 15, 2015 and KPSS/SA/B/ANW15/1132 dated April 11, 2015 cannot be accepted by PMT based on the following reasons;

1.	It is IC responsibility that activities are completed according to the approved schedule. IC has already been requested via PMT letter L-1495/15 to perform all obligations, work and services and furnish all other things which are required by the terms of this Contract or which can reasonably be inferred from the terms of this Contract as being necessary for the successful and timely completion of the work, according to Para 2.16 of SCH-A.

2.	The completion date of KAM access road was 30 November 2014 and complete installation of all 37 Package substations for the project is 19 May 2015. This implies that all package substations (at least 2 required for KAM road) should arrive on site much earlier than 19 May to complete these works. It is noted that IC has not been able to deliver a single package substation to site to date (just a month before the activity completion date) and instead the deliveries will be delayed for two months as verbally stated by IC in various meetings. 

3.	IC submitted the request for PMCC of KAM road on 04 December 2014. It was also presented by IC during the walkthrough that even though the package substations were not installed on site; the KAM road will have a power source for the lights. The generators were brought by IC on site for testing the lights and to prove the functionality during the PMCC process. There are several exception items related to the lights not closed as of date, 4 months after the PMCC request date. IC is urged to plan the PMCC request dates to ensure that exception items are closed before the schedule completion dates.

4.	IC is urged to perform works according to Saudi Aramco standards and mutually binding contractual obligations. According to para 9.1 of SCH-A, Contactor shall prosecute WORK completion with diligence and dispatch so that the Critical Milestone Dates and Scheduled Completion Dates are met and Exception Items are promptly completed or corrected. Contractor's failure to comply with Paragraph 9.1 above shall, unless otherwise excused pursuant to this Contract, constitute a substantial breach of this Contract.

5.	According to the first Para of SCH-H, SAUDI ARAMCO may, at its sole discretion, withhold any and all payments otherwise due CONTRACTOR under Paragraph 6 of Schedule "C," until such time CONTRACTOR achieves or completes the required action.

6.	The generators are deemed as temporary but necessary equipment required during construction by the Contractor to ensure that the lighting systems are working and tested according to ARAMCO standards and can be removed by IC according to Para 10 of the scope of work when the facility under PMCC is fit for purpose.

7.	The verbal instruction by PMT as highlighted by IC, to provide a source of power to test the lights and ensure that they are working as per SA standards; is a part of contractual obligation of IC; and does not create a claim. Since, IC did not have the package substations and MV cables procured or installed during the construction activities at KAM road; and thus provided a power source as necessary to fulfill the contractual requirements of the project.

8.	The PMCC for KAM road cannot be signed by the proponent if the street lights are not working and IC has to ensure the provision of a reliable power source, without which the PMCC requested by IC on AKR/14/0926 will be rejected and IC may request the PMCC again when the facility is complete and ready for handover. 

Based on the above, and if IC desires for carry on with PMCC of KAM road, IC is urged to consider that the temporary generators may be kept in operational state by IC till the permanent solution is provided by IC at no extra charge to Saudi Aramco. In such case a plan for closing the remaining "NO" items within the prescribed durations shall be provided by IC according to the GI and IC shall provide a date when the required package substations shall be procured. 
IC is also urged to expedite the alternate solution proposed by PMT for the permanent power source from the existing loop.
