Existing 2-Generators reconnection through Manual transfer switch and NEC.

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EE
At one of our customer site I have 2 existing Standby generator for use Utility power outage - G1 (800KW) & G2 (350KW) outdoors in the yard. They were added different times and they both have their own Automatic Transfer switches (ATS). Customer wanted us to add a MTS and remove the ATS of G2 and connect all building load on G1 as it is adequate to supply total building load.

Customer wants to keep the 350KW generators as backup for 800KW if for some reason it fails so instead of using a temporary roll up generator He asked us to install a MTS-Manual transfer switch to manually select G2 (350KW) as backup source if 800KW fails to start.

We are running new cables (for 800KW building load) from new MTS terminals for G2 (350KW) & G1 (800KW) and LOAD. We had to splice the MTS (LOAD) terminal cables into existing generator adding a splice box where the load cables are coming from Underground duct bank.

The contractor is refusing to do this work by saying that we are running 2 sources into G1 compartment and that is violation of code. Even though our instruction has a RED LABEL on the splice box is stating " FED FROM 2 SOURCES - BEFORE SERVICING ANY EQUIPMENT LOCKOUT & TAGOUT G1 & G2 BREAKERS"

Can anybody shed light on this controversy?
 
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