Business Communication. Positive News Assignment: You are the director of purcha

Question

Business Communication. Positive News Assignment:

You are the director of purchasing for the City of Toronto. After a multi-year process including requests for proposals from qualified suppliers and public meetings across the city, the city has decided to hire SNC-Lavalin to design and build a high-speed rail link from Union Station in downtown Toronto to Pearson International Airport in the suburb of Mississauga. While there have been intense negotiations between the Mayor of Toronto and SNC-Lavalin for months, it looks as if an agreement has been reached. SNC-Lavalin will conduct a transit study, conduct environmental testing, and design and build the rail link and rail cars. The total budget for the services is $860 million; $90 million for the transit study, $98 million for the environmental testing, and the balance for the design and building of the link and the cars. The project is expected to take five years to complete, and the city's payments will be phased over that time period.

YOUR TASK:

As the director of purchasing for the City of Toronto, you have been instructed by city council to write an official order confirmation letter to SNC-Lavalin. Address your letter to Jim Burke, Senior Vice-President, Rail Services, SNC-Lavalin, 1075 West Georgia St., Vancouver, BC V6E3C9

Explanation / Answer

To,

Jim Burke, Senior Vice President,

Rail Services, SNC-Lavalin,

1075 West Georgia St., Vancouver, BC V6E3C9.

Sub: Confirmation letter of the contract of designing and building the high speed rail link.

Dear Sir,

This is to inform you that the contract to design and build the high speed rail link from Union Station in downtown Toronto to Pearson International Airport in the suburb of Mississauga has been confirmed with SNC Lavalin.As agreed over discussions, SNC-Lavalin will conduct a transit study, conduct environmental testing, and design and build the rail link and rail cars. The total budget for the services is $860 million; $90 million for the transit study, $98 million for the environmental testing, and the balance for the design and building of the link and the cars. The timeline for the completion of the project is five years. Payments would be done in phases as indicated in the contract terms.

Please go through the contact clauses carefully. Any deviation from the agreed terms would lead to action against SNC Lavalin

We wish to have a long lasting relationship with SNC Lavalin

Director-Purchasing,

City of Toronto

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