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Requested Justification, Essay Example

Pages: 1

Words: 250

Essay

This is with regard to scaffolding service long form contract #6600028386 (SAR 12,601.129) signed on 1stDecember 2013. The contract has been active since December 1st , 2013 and will expire on 30th  November, 2016.

You will agree with me that KPG has upheld its side of the contact since its signing. However, due to some unplanned expenditure, that we have incurred, KPG seeks your kind approval to increase the authorized expenditure limit (AEL). To date KPG has already consumed 56% of the current authorized expenditure limit for the scaffolding service form contract, due to increase of the amount required to conduct backlogged UT readings, T&I activities and maintain ace activities. Therefore, there is need to increase the AEL to avoid overrun. The main attribute to this utilization include:

  1. Conduction of backlogged UT reading that was not included in the initial AEL estimate in 2012.
  2. Conducting several unplanned major T& Ls
  3. Utilized LFC for major contract activities
  4. P.G. has already utilized one million Saudi riyal and plans are under way to utilize two more two millions for the coming two years.
  5. Wasist gas plant is planning to utilize over two millions Saudi riyal in the upcoming two years.

I hereby request you to make the necessary amendment to accommodate the extra expenditure and avoid overrun. All other aspect of the agreement/contract will remain unchanged.

We would be most grateful if you could make these changes. I am available to provide additional information and clear any misunderstanding that may arise.

I regret any inconvenience in this regard. Thank you very much.

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