SBR-ACEMC CP02_CO125

November 25, 2019

PROGETTA DEVELOPMENT AND CONSTRUCTION INC.

Unit 15, 3rd Floor Neth Square
Building 2 Addas Village 2
Molino 2, Molino Blvd.
Bacoor, Cavite

Attention : Engr. Gary Alviento

PDCI – Operations Manager

Thru : Ar. Rexell Reyes

PDCI - Construction Manager

Project : ACE Medical Center Palawan

Puerto Princesa, Palawan

Subject : PENDING DOCUMENTS

Gentlemen:

We are writing this letter to inform your good office that we are now experiencing imbalances with our
operation expense against actual accomplishment billing per original and active contract cost
approved that affects our project cash flow, due to accommodation of unprocessed cost involved
incurred through various CHANGE ORDER, TIME EXTENSION CLAIMS and STANDBY CHARGES.
We are supposed to bill the accomplished items using IFC plans aligned with the original contract
using BID PLANS, same with other items. Please be informed that works executed without waiting for
the approval of claims are initiated in good faith for the sake of the successful completion of the
project. However, we regret to inform you that we can no longer extend our capacity to shoulder
variation cost without proper evaluation and approval of the submitted documents. Please refer to list
of correspondence below:

1. SBR-ACEMC-CP02-c100- BID vs IFC Variation Order dated October 16, 2019

2. SBR-ACEMC-CP02-c098 – Extended overtime dated October 11, 2019
3. SBR-ACEMC-CP02-c115-Change Order 11- Backfilling works dated November 18, 2019
4. SBR-ACEMC-CP02-c108-Change Order 9-Demolition works dated November 5, 2019
5. SBR-ACEMC-CP02-c087- Standby Charges dated September 21, 2019
6. SBR-ACEMC-CP02-c034-Ready mix concrete price adjustment dated February 28, 2019

With the abovementioned, we are requesting your utmost attention and consideration to the list of
items provided. Pending evaluation and approval of said items until end of November 2019 will force
us to suspend site operation. We will resume as soon as we got proper reconciliation from your end.

For your perusal. Thank you.

Very Truly Yours,

BENEDICT DY TECKLO
PRESIDENT
SBR CENTER BUILDERS INC.