Re: Notice to Correct – Pending Snagging works

Our Ref: xxx

Date: xxx

To                    :           xxx Middle East,

                                    P.O.Box xxx,

            Dubai – UAE.

Attention          :           Mr. xxx

                        :           Project Manager

Project             :           xxx Towers Project, Dubai

Subject:                Re: Notice to Correct – Pending Snagging works

Dear Mr xxx,

This is in response to your letter ref. xxx dated 22 June 2023 subject: “Notice to Correct – Pending Snagging works”

The Main Contractor’s Notice to Correct is rejected on the basis that it is false and unfounded. There are no pending snag works relative to our scope of works. All works under our Scope of Works have been 100% certified two years ago and have already been taken over.

Xxxx is not responsible for the snagging of non-pod bathrooms that are not within our scope of works.

Every single one of the 1092 bathroom Pods produced by Xxxx has been fully snagged in factory prior to delivery to site and has been fully inspected by the Main Contractor and the Engineer stationed in our factory during the execution of the works. Pods have also been subsequently approved and fully certified by both the Main Contractor and the Engineer on site.  All approval documents, including Pod MIRs and complete certifications are part of the project records.

Xxxx has also not received any specific snag list per individual bathroom Pod code/reference for any minor left-over snags prior to taking over. The random, undated and unlocated, images shared in your letter show apparent damaged works on site, not snags.

First, with regards to your allegations of pending snags, we formally record again that the Main Contractor and his representatives, as well as various subcontractors engaged by the Main Contractor, including MEP teams on site, have been, and still are, placing scaffoldings, ladders, and other temporary works inside completed and approved Pods, to access and work on their own incomplete works above the Pods and through the access panels. These uncontrolled activities on the Main Contractor’s project site and careless behaviour have resulted in extensive damage to the approved and certified Pods which the Main Contractor is now attempting to pass on to Xxxx as “Pending Snagging Works”. These are irrefutably damages, not snags, and are the direct result of the Main Contractor’s own actions on site.

The Main Contractor’s own negligence on site has resulted in damages to works which have been snagged, approved and certified over two years ago. Such damages range from extensive damages to paint on the ceilings and access panels, on walls, to widespread damage and dirtying of grout and silicone on the tiles, to scratches and damages to the marble vanity tops, to damages to the glass partitions and mirrors, and to various damages to installed sanitary accessories in the Pods.

Xxxx has raised multiple damage reports to the Main Contractor, all of which have been acknowledged and signed by the Main Contractor.

On 25 August xxxx, Xxxx issued to the Main Contractor letter ref (u) above which encapsulates a number of these damage reports and addresses the costs of abortive works for relevant rectifications.

The Main Contractor has intently chosen not to respond to our letter above and has chosen not to proceed with these additional works, and instead is now, after 9 months, attempting to coerce Xxxx into performing abortive works, free of cost, under the guise of a “Notice to Correct” for snags.

                Second, with regards to the deployment of additional manpower to site, we would like to remind the Main Contractor that in accordance with the Subcontract Agreement Appendix 1 Sub-Contract Particulars, the Date of Completion of our Sub-Contract is 17 June xxxx (which is the completion date of the Main Contractor for the Main Works.  Accordingly, the Main Contractor’s snagging activities should have been completed before 17 June xxxx and any minor and final snag by the Employer’s representative on Xxxx scope of works should have been raised prior to this date.

Xxxx has maintained its manpower on site for two years beyond the completion date stipulated in our Subcontract Agreement as a result of delays on the Main Contract solely attributable to the Main Contractor.

We remain at the disposal of the Main Contractor to deploy man power to site to rectify damages to certified pods, however this scope can only be initiated once there is clear visibility and agreement on the extent of such abortive works and their cost per individual Pod affected. 

Finally, we refer to all formal Notices of Default which have been issued by Xxxx to the Main Contractor including letters ref (s) and (t) above which demonstrate the blatant and deliberate defaults of the Main Contractor despite multiple Notices to correct and which remain open till today.

• The Main Contractor is intently in continuous default in the release of payment of works done and 100% certified for an amount of AED 242,592.00 against Tax Invoice LOC‐xxxx‐00012 raised against official Main Contractor certification and which has now been overdue for over two years (16 May xxxx).
• The Main Contractor is in continuous default in the release of a correct certification for fully approved and taken over works amounting to AED 12,160.00 to allow us to submit the relevant Tax Invoice to secure our due payment.   

The Main Contractor is now seemingly attempting, again, to illegally bully Xxxx into performing additional remedial and abortive works, by withholding a payment which has been due for over two years (16 May xxxx in accordance with official certification) and, in parallel, now threatening contra-charge and liquidated damages.

Such actions are deplorable and un-contractual.

All subcontract works have been fully approved and fully certified as per official project records, and all Pods have been taken over. There are currently no communicated defects or deficiencies in the subcontract works as the Main Contractor claims.  Any damages to already approved and certified Pods on site by the Main Contractor are at the Main Contractor’s sole liability.

If any defect is deemed to be observed in a Pod during the defect liability period, we request the Main Contractor to be more specific in terms of which Pod, at which location and at which time a particular defect has occurred to allow us to investigate and take the appropriate action, if any, in accordance with our Subcontract agreement.

Should the Main Contractor choose to deploy his own workforce to repair damages on his Project Site which are the result of actions of his representatives or any third party under his engagement, he does so at his own liability and responsibility. Any cost, expense, losses, and/or liability of whatsoever nature incurred and/or suffered by the Main Contractor shall be at the Main Contractor’s sole liability, including any voiding of Pod warranties which will result from works executed inside approved and certified Pods by the Main Contractor’s representatives using unapproved materials and without the prior coordination with, and clearance of Xxxx.

We again reserve our right to take any action against you until such time as our long overdue payment for completed and fully certified works has been released in full. We further reserve our right to claim for the cost of all the workforce which Xxxx was instructed to maintain on site from 17 June xxxx until the date of the taking over of the works.

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, Xxxx will not be held liable for any direct or indirect impact on the site progress and work completion. These liabilities reside with XXXX.

Should you choose to remain in default by withholding approved overdue payments and/or choose not to coordinate with Xxxx in a reasonable manner to engage additional resources to rectify damages and perform abortive works, and instead attempt to forcefully and unilaterally deduct payment due to Xxxx, we will have no choice but to proceed with taking any and all actions against you.

All our rights are reserved.         

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager