RADOSLAV MILOJEVIC, REGIONAL

MANAGER, CIS COUNTRIES, LUDWIG

PFEIFFER HOG –UND TIEFBAU GmbH

Subject: Regarding returning of the Monthly Progress Report

We have reviewed the Main Contractor’s monthly progress report of July, August and September
according to your letter No. 581 dated 25 October, 2019 and letter No. 582 dated 26 October,
2019.

As per the clause 1.6.13 of Employer’s Requirement, which is an integral part of the Contract,
indicates that the Monthly progress report shall be submitted by the 10th of the following month
to the Employer. However, the July progress report has been submitted after 78 days from the
due date, August progress report has been submitted after 48 days from the due date,
September progress report has been submitted 18 days from the due date.

As specified in Clause 18.3 of General Conditions of the Contract and Clause 1.6.13 of the
Employer’s Requirement, the main content of the Contractor’s monthly progress report must
include the implementation status of planned works for reporting month, percentage of delayed
works, causes for the delay and measures to be taken to recover the delay.

The Project Management Unit has notified that previous progress reports need to be improved
according to comments given through letter No. 107/19, 108/19 of 26 March, 2019, letter No.
161/19 of 26 April, 2019, letter No. 19/169 of 3 May, 2019, letter No. 19/201 of 28 May, 2019,
letter No. 917/19 of 9 August, 2019. However, the Contractor has not responded to mentioned
letters and it is deemed that the Contractor disregards to the Employer and its obligations under
the Contract.

One of the main reasons for the construction progress delay and the continuous incensement
of delayed works is that the Contractor has not assessed and determined the occurred delay
accurately according to the requirements of the contract and has not planned and implemented
the actions to recover it as quickly as possible until today.

Therefore, I would like to request you to re-submit the delayed monthly progress reports
incorporating the comments given through submitted official letters and fulfill the contractual
obligations.

Cc: Ministry of Construction and Urban development

T.Ganbold, Deputy governor of Darkhan-Uul aimag
MNRM, Asian Development Bank,
Loan Implementation Consultants

B.BAASAN
PROJECT COORDINATOR