Ongoing defaults of the Main Contractor
Our Ref: xxx
Date: xxx
To : xxx Construction Engg. Corp. (Middle East) LLC
P. O. Box xxx
Dubai, U.A.E.
Attention : Mr. xxx
Project : xxx – Zabeeel Second, Dubai, UAE.
Subject: Ongoing defaults of the Main Contractor
References:
a) xxx dated 27 November xxxx
b) xxx dated 04 December xxxx
c) xxx dated 14 April xxxx
d) xxx dated 05 May xxxx
e) xxx dated 11 May xxxx
f) xxx dated 19 May xxxx
g) xxx dated 28 May xxxx
h) xxx dated 01 July xxxx
i) xxx dated 04 August xxxx
j) xxx dated 23 November xxxx
k) xxx dated 21 January xxxx
l) xxx dated 29 March xxxx
m) xxx dated 21 April xxxx
n) xxx dated 10 June xxxx
o) xxx dated 13 July xxxx
p) xxx dated 30 August xxxx
q) xxx dated 21 November xxxx
r) xxx dated 06 December xxxx
s) xxx dated 12 December xxxx
t) xxx dated 19 December xxxx
u) xxx dated 21 January 2022
Dear Sir,
We are receiving recently numerous misleading Emails from your site teams alleging delay on the part of Xxx for site works, whereas there are no pending works in the scope of Xxx.
Such accusations whether communicated verbally or by mail are collectively categorically rejected.
All the pods have been produced, approved, delivered, and installed in accordance with the approved shop drawings and all the Free Issue Items received in our factory within the production period were installed in the pods. We also remind you that all the pods delivered to site were approved by XXX representative and the Consultant at the factory prior to delivery.
The alleged delays for works on site are unrelated to our scope and relate to:
- Failure of the Main Contractor to deliver his free issue material prior to mass production and delivery of pods in accordance with the Subcontract.
Xxx has submitted the cost for the additional works related to installation on site of free issue material which was not delivered during factory production such as light fittings for example since more than a year via VTC-012 rev.0 dated 18 May xxxx (appendix 1) and the Main Contractor has intently disregarded our communications and failed to approve this cost till today.
We have supported the Main Contractor and installed the missing free issue items on site in Tower 1 up to level 57 for instance, however we are under no circumstances responsible for your failure in procuring and delivering these free issue materials in accordance with your obligations. Any associated delay is the sole responsibility of the Main Contractor.
- Damages and misuse of material by the Main Contractor on site and or his representatives/subcontractors
Xxx has raised a number of damage reports demonstrating observed damages to Pods which have resulted from acts by the Main Contractor and/or his representatives/Subcontractors.
Xxx has sent official communication relating to these damages which include cost estimation for the works relating to the repair of these damages.
Despite the fact that a number of damage reports are acknowledged and approved, the Main Contractor is still intently disregarding or delaying the approval of the associated additional cost submitted by Xxx.
While Xxx have maintained its support to the Main Contractor by regularly attending to such damages on site despite the lack of approval on the submitted substantiated costs, the Main Contractor complete ongoing disregard to our claims is totally unacceptable.
Ongoing defaults of Main Contractor in relation to certification and payment.
The Main Contractor has defaulted in his payment of our TAX invoice LOC/xxxx/00021 dated 29 June xxxx for an amount of AED xxx against completed and certified works, which is now unsettled for almost 11 months.
The Main Contractor has defaulted in issuing due certification for works completed in May-June xxxx as raised by Xxx in monthly payment applications.
We have attended a meeting on 01 March 2022 with the management of the Main Contractor on site, during which we were assured that delayed payments would be released within a week.
Following this meeting the Main Contractor has requested that Xxx revise format of our invoice dated 29 June xxxx two times. Each time further delaying our payment.
Still today, our due payment is still not released.
During the same meeting, it was also agreed to schedule within a week a commercial meeting which Xxx has been requesting for more than one year to conclude long overdue commercial issues relating to variations, unjustified deductions, and cost of additional works relating to damaged material on site and installation of missing free issue materials.
Yet again the Main Contractor has totally disregarded such commitment and is still refusing to attend a meeting to discuss these vital commercial issues with Xxx.
In closing,
Xxx has been sending official communication now for almost a year requesting the Main Contractor to honor his obligations under the Subcontract and release due payments and certifications.
For more than a year we have been attempting to secure a meeting with the Main Contractor to discuss and agree on Variations, as well as discuss the unilateral deductions which the Main Contractor has forced onto Xxx without a single justification.
For more than a year we have been attempting to secure a meeting with Main Contractor to discuss and agree on the additional cost submitted by Xxx in relation to the repair of damages to pods resulting from the Main Contractor’s actions on site, as well as the cost of installation of the Main Contractor’s free issue material on site.
The total disregard by the Main Contractor of professional principles is deplorable and you shall be fully liable for any resulting consequence of your actions and any impact this may have whether direct or indirect on the project schedule.
We reserve our rights to take any action against you until such time as our payment is released in full, our completed and approved works are certified and paid, and until all pending commercial issues are resolved.
We equally reserve our right to suspend the execution of the Sub‐Contract Agreement until full payment of our outstanding dues in reference to Article 247 of the UAE Civil Code and/or to terminate the Sub‐ Contract Agreement in view of your uncontested and unjustified default pursuant to Article 272 of the same Code.
In the same line, Xxx will not be held liable for any direct or indirect impact on the site progress and work completion. These liabilities reside with XXX.
Yours faithfully,
On behalf of xxx LLC
xxx
Project manager