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: Reply: – Notice of Delay Switch Relocation, Access Panel Provision and Light Fitting Installation
References: a) xxx dated 21 January xxxx
b) xxx dated 28July xxxx
c) xxx dated 28 July xxxx
d) xxx dated 20 September xxxx
e) xxx dated 20 September xxxx
f) xxx dated 06 December xxxx
g) xxx dated 12 December xxxx
h) xxx dated 19 December xxxx
i) xxx dated 21 January 2022
j) xxx dated 26 May 2022
Dear Sir,
We are writing in response to your letter reference XXX/XXX/DTVII/CT/068 dated 26 February xxx and we categorically reject you notice of delay.
All three points listed in your letter relate to the Main Contractor’s own failures and delays.
Fabrication of all pods by Xxx was completed a year and a half ago on 02 January xxxx. Please refer to our letter reference (a) above.
All 3336 pods have been approved prior to delivery, then consequently delivered, installed on site, and approved by both the Main Contractor and the Engineer. Please refer to cotemporary signed delivery notes and WIRs.
A-Installation on site of Free Issue Materials (i.e. light fittings):
Our letter reference (a) above lists the Free Issue Material which is under the scope of the Main Contractor, and which the Main Contractor has failed to procure and deliver to the Xxx factory during the pod fabrication stage and prior to delivery.
Our letter also clearly records your instruction to deliver 3274 pods without the inclusion of the Free Issue Material which you have failed to procure and deliver to our factory in accordance with the production and delivery schedule, including the light fittings.
Xxx is an Off-site manufacturing facility, and all our installation works are done in factory. We have notified you repeatedly that failing to deliver the Free Issue Material to factory will lead to additional work required for installation out-of-factory and consequently additional cost.
With reference to your point #1 relating to Tower-3 – Lights fitting installation inside the pods from F35 to F51.
Any and all impact of the Main Contractor’s delay in supplying the Free Issue Material is on the Main Contractor’s account.
On 18 May xxxx, Xxx submitted to the Main Contractor the cost of the additional works to install these free issue light fittings out-of-factory. Refer to VTC-012 rev.0 dated 10 May xxxx (appendix 1).
Despite the fact that Xxx has been actively supporting the Main Contractor for over a year now in the installation of these light fittings on site (as and when they are procured by the Main Contractor to site), the Main contractor has been intently delaying and deferring the approval of VTC-012, and attempting to evade the cost of these additional works which are a direct consequence of his failure to procure the Free Issue Material to our factory in accordance with the terms of the Contract.
Xxx have till today supported and installed the lights up to Floor 36, and receiving such allegation of delay from the Main Contractor who has failed for 12 months now to take any reasonable action on our cost submission is appalling.
Xxx is not responsible for the Main Contractor’s failure in procuring and delivering Free Issue Materials in accordance with the Contract. The consequences of such actions are the sole responsibility of XXX.
B-Execution of Abortive Works
With reference to your point #2 Tower-3, apartment 8 pod switch relocation from F35 to F51, please note that Xxx has not received any request from the Main Contractor to relocate switches from F35 to F51.
In fact, we have received your letter ref: XXX/XXX/DTVII/TECH/063 dated 16th September xxxx, requesting for switch relocation for F5 to F33, after all pods had been approved and installed, and we have submitted the cost related to these abortive works via letter Ref: xxx dated 20th September xxxx (appendix 2) which you have also now completely disregarded for over 8 months.
Xxx has as usual supported the Main Contractor and completed the switch relocation up to Floor 33 despite the fact that the Main Contractor is still intently disregarding our submitted cost for these abortive works.
Kindly approve the submitted cost of abortive works to allow us to proceed further.
With reference to your point #3, Tower-1 – apartment 9 (Pod type 28) and apartment 6 (pod type 41) access panel cut out as per additional water heater to be completed please note the following:
We invite you to refer to our letter ref: xxx dated 20th September xxxx (appendix 3) in which we have responded to your earlier request in this regard received via letter ref: XXX/XXX/DTVII/TECH/064 dated 16th September xxxx.
For clarity, we note that your previous request was limited to pod type 28, consequently Xxx will now revise its cost to undertake these abortive works to include pod type 41.
Kindly approve the submitted cost of abortive works to allow us to proceed further.
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 the 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 and which have been recorded in certified damage reports.
We further refer to our letter xxx dated 06 December xxxx recording your flagrant defaults and your continual bad faith in the administration of our Subcontract.
We again record that should you chose to remain in default of your obligations, unilaterally disregarding variations and cost assessments submitted by Xxx in accordance with our obligations in the Subcontract and then forcibly engage any third party including the Main Contractor’s staff or subcontractors to enter/modify/alter/damage/ or otherwise make use of the Pods delivered to site, this will be considered as a repudiation of our Subcontract Agreement by the Main Contractor and Xxx reserves its right to take any action it deems necessary in this regard, including voiding our warranties, the liability of which will reside fully with XXX.
We equally reserve our right to suspend the execution of the Sub-Contract Agreement until full payment of our outstanding dues and the release of our outstanding certification in reference to Article 247 of the UAE Civil Code. In the Same line, Xxx will not be held liable for any impact the above may have, whether direct or indirect, on the progress of works on site. These liabilities reside with XXX.
All our rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
Project manager
