Recommendation Report

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MEMORANDUM

DATE: 26 September 2011

TO: Muhammad Ali, CEO of Paintball Unlimited Pte Ltd

FROM: Phoebe Soh, Supervisor for construction of new premise

PROGRESS ON CONSTRUCTION OF INDOOR PAINTBALL ARENA AT LOT 25, JUSCO IPOH

As requested, we are sending you the second monthly progress report on the developments of the construction of Paintball Unlimited 2. After overcoming some initial problems, we are making good progress on the construction of our new premise in Lot 25, Jusco Ipoh.

Past Progress

During the past two months, we firstly finalized the estimated budget of our new project, the construction of Paintball Unlimited 2 at Lot 25, Jusco Ipoh. The estimated budget is at RM2.0 - RM2.5 million. We managed to secure the zoning approval to open up the premise. On confirming the location of the new premise, Lot 25 in Jusco Ipoh, which covers an area of 30,000 sq ft, we secured a two-year contract for the lease of the premise which will cost us RM240, 000 and will be paid in monthly installments of RM10, 000. Next, we hired Flooring Pte Ltd to construct the flooring required for the different sections of our premise. Painters Pte Ltd was then hired to repaint the premise as the old paint coat was peeling. The lighting for our indoor arena was contracted to Lighting Pte Ltd. However there was a three-week delay in the installation of the wall lighting which led to a delay in the painting of certain sections of the walls. We also ordered 5 thousand T-shirts, caps and key chains each, designed by Nickly Pte Ltd. as a paintball keepsake.

Current Progress

We have started on the construction of the 4 sections of our arena which will be called ‘Desert Storm’, ‘Boggy Swamp’, ‘Jungle Safari’ and ‘Night Ops’. These names reflect the environment that customers will be playing in. It will be done up in such a way that it will simulate the actual conditions of the places mentioned.

Desert Storm

Progress on this section has been halted due to some unexpected delays. The design for this section includes obstacles such as statues of camels and 3 tons of sand for sand dunes, all of which we received before the due date. We are also constructing a mini swimming pool that will be done up to resemble an oasis. However, the delay was in the procuring of the artificial cacti. This is because the company we ordered the products from is currently facing a law suit to which the outcome is uncertain to us. Besides that, the blower we ordered from General Electric to create sandstorms is currently out of stock and the company was unable to confirm a delivery date. Therefore, further completion of this section is currently being put on hold and progress on the other 3 sections of the arena has begun.

Boggy Swamp

Progress on this section of the arena is going smoothly. The fittings and the equipment such as the artificial mud, plastic mangrove trees and animals, plus other similar objects have arrived and are currently being installed. We are also in talks with the manufacturer of those products to see if we can obtain its latest product which is a type of clay which releases an odour similar to that of a swamp to enhance the experience for future customers. However, we are not able to estimate the cost of the product and therefore do not know whether it will be within our budget.

Jungle Safari

Progress on this section of the arena has faced some difficulties. Some of the products that we have purchased for this section have been found to be defective. For example, the plastic trees that we have ordered been found to have large cracks in the structures and look very flimsy. Therefore, we have doubts on whether it will be able to withstand the impact of the shots from the paintball guns. We have brought up this issue to the manufacturer but have been unsuccessful in obtaining a response from them. Besides that, some of the construction workers have been absent for a few days, slowing down...
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