Reference to the “Summary of weekly progress Report #85â€ submitted by IC as of April 09, 2015, it is noticed that the negative variance in construction is growing every week despite the fact that IC had recovered by 12 March 2015 from the previous slippage in procurement totally and construction variance had reduced to -5.55%. 

Since March 12, 2015, ICC has started to slip the weekly target again which has created negative variance in procurement; and a higher slippage in construction reaching -8.66%. It has been agreed in various meetings with IC management that to complete the project as per approved schedule, ICC must achieve a weekly progress of more than 2.00%. IC is urged to meet with PMT on April 20, 2015 and provide causes of delay, effects to Project, and the proposed CONTRACTOR’s remedial measures according to Para 7.6 of the contract scope of  work, and Para 8 of SCH-A. 

The following items shall be discussed in the proposed meeting;

1.	The progress on security buildings has slipped to -65% behind schedule. 
2.	The MEP shop drawings are delayed despite confirmation by IC to expedite in previous meetings, MEP materials are not procured and MEP manpower is not available on site.
3.	Electrical works for street lights and MC cable laying have stopped due to lack of resources and conflicts with subs
4.	Works for fabrication of foundations for MIDS,  PTZ, SSD have not started
5.	Masonry Works on South island and Gate 1 have not started
6.	Earthworks have stopped
7.	Base Course works have stopped
8.	Asphalt works have stopped
9.	Processing time for change orders is very slow
10.	Installation of Security systems delayed due to lack of equipment and resources
11.	Relocation of wall and IDAS has delayed

According to Para 9.1 of SCH-A, CONTRACTOR shall prosecute WORK completion with diligence and dispatch so that the Critical Milestone Dates and Scheduled Completion Date 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; provided, however, that failure to achieve any Critical Milestone Date shall not constitute a substantial breach if CONTRACTOR promptly develops a revised WORK Schedule which SAUDI ARAMCO approves and to which CONTRACTOR conforms within seven (7) calendar days after receipt of SAUDI ARAMCO's approval (or such longer period as SAUDI ARAMCO may authorize in writing).
