Reply to allegations of delay in submission/approval of WIRs

Our Ref: xxx

Date:

To

xxx Contracting LLC

P. O. Box xxx

Dubai, U.A.E.

Attention            : Mr. xxx, Group Procurement Manager

Project                 : xxx Phase 2

Subject                 : Reply to allegations of delay in submission/approval of WIRs

References         :

1. xxxt dated 21^st Dec xxxx
2. xxx dated 15^th Dec xxxx

Dear Sir,

We refer to your letter ref: xxx dated 12 January xxxx and respond as follows:

1. The statement made in our letter reference (a) above stands, and your subsequent confirmation that the WIR was rejected due to your MEP works and Coring location is noted.
2. The statement made in our letter reference (a) above stands.
3. Again, we repeat our statement:
   1. WIR submission is done by BGC and not by M/s xxx (Contractor Name). Your delay in raising WIRs to the Engineer is your own responsibility.
   2. M/s xxx (Contractor Name) installs the PODs at their location upon receipt of clearance by BGC civil and BGC MEP teams. Your statement demonstrates your own delays in providing the above clearances for installation. The same is clearly reflected in the weekly report issued to you by M/s xxx (Contractor Name) which clearly shows that even today, the site is still not ready to complete installation of PODs due to ongoing MEP and Civil works by BGC (see appendix 1 report dated 9 January 2021)
   3. We further record that the WIRs for all 436 installed pods are approved. 6 Pods are still awaiting your clearance for installation as recorded in our weekly report (see appendix 1).
4. Your statement that M/s xxx (Contractor Name) has not submitted WIRs for Pod finishes is wholly rejected, so is your fabricated allegation of agreement by M/s xxx (Contractor Name). Firstly, WIRs are submitted by BGC not by M/s xxx (Contractor Name) secondly you are intentionally devising WIR processes to further delay the release of due certification of approved and installed PODs. We remind you that till now you have failed to provide us certification for the months of October xxxx, November xxxx and December xxxx.

With respect to marble top, we reject your statement that we are not confirming to quality standards. Please see our response through letter xxx dated 14 January xxx.

BGC default on advance and progress payments

In relation to our advance payment, we hereby again give you notice that you are in default of your contractual obligations. Your delay in releasing our advance payment is now in excess of 70 days.

In relation to progress payments, the subcontract terms are clear:

The Payment shall be released vide confirmed letter of credit L/C – 120 days from IPA. L/C documents shall be released within 15 days from the date of IPA. Certification shall occur within a maximum of 15 days from MIR submission/approval.

You have defaulted on all of the above.

In relation to your email communication referenced under your attachment B, we record again that there is categorically no approval whatsoever on the part of M/s xxx (Contractor Name) to change our payment terms.

You are unilaterally forcing a change of the contract terms by exerting financial pressure on M/s xxx (Contractor Name) and attempting to pay the advance payment at 150 days while alleging agreement by M/s xxx (Contractor Name) on such change. Advance payment would therefore be received on 30 May xxx instead of the due 04 November xxxx. This would be an overall delay of 7 months in the release of our advance payment.

We have noted all discrepancies and deviations you are unilaterally imposing to the Subcontract payment terms within your delayed L/C in our letter reference xxx attached (see appendix 2).

Finally, and referring to the above, we find this behavior dubious and unbecoming of a Main Contractor as well as blatant breach of your contractual obligations.

Your deliberate intent to delay due payments to M/s xxx (Contractor Name) is blatantly obvious.

Accordingly, M/s xxx (Contractor Name) will not be liable for any delay to the works caused by the above such delays are on account of BGC acts. In addition, we reserve our rights under the terms of our Sub-Contract agreement for and Extension of Time (EOT) equivalent to the same number of days by which our advance payment is now delayed (70), in addition to the number of days you are intentionally delaying the release of the L/C and L/C documents that are compliant with our payment terms.

In the same line, M/s xxx (Contractor Name) will not be held liable for the impact of the above on the works, or for any direct or indirect impact on the site progress.

We further reserve our rights to claim for any and all damages resulting from your direct actions and your recurring evidenced bad faith in the execution of the Subcontract Agreement.

All rights are reserved. 

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager