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 : Notice of Delay in Delivery of PODs, MIR & WIR Approvals
References :
- xxx dated 15th September xxxx
Dear Sir,
We refer to your letter ref: xxx dated 12 January xxxx and respond as follows:
In reply to points 1 & 2
Your statements are wrong and misleading. 443 PODs have been delivered to site by 26 November xxxx. Refer to attached delivery notes signed by BGC.
In reply to points 3
Your statement is again intentionally incorrect and misleading. M/s xxx (Contractor Name) did not issue a revised delivery schedule.
The only schedule issued by M/s xxx (Contractor Name) is released under letter Ref: xxx dated 15th September xxxx (appendix 1). This schedule is approved by BGC on 24 September xxxx.
This schedule shows a completion of delivery on 26 November xxxx conditional on approval of the program on 16 November xxxx.
In reply to points 4
Your opinion is again misleading. MIRs are raised in accordance with the delivery schedule. M/s xxx (Contractor Name) has no control over the time expanded by the Engineer to release approvals. You should raise your concern on the review periods directly with the Engineer if you deem the period expanded for approvals exceeds your expectations.
In reply to point 5
Refer to point 3. M/s xxx (Contractor Name) did not issue a revised schedule, your allegations of delay are baseless and misleading. Your notice of delay is rejected.
In reply to point 6
Your statement is again incorrect and misleading. We 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 2).
The inaccurate and intentionally misleading contents of your letter clearly highlight your evidenced bad faith in the execution of the Subcontract Agreement.
We further remind you that you are in default of your contractual obligations in releasing our advance payment, now overdue by more than 70 days.
We also record that you are intentionally withholding the release of certification for our works in a clear attempt to further delay progress payments.
Moreover, you are unilaterally forcing a change of the contract terms by exerting financial pressure on M/s xxx (Contractor Name) and releasing 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 xxxx instead of the due 04 November xxxx. This would be an overall delay of 7 months in the release of our advance payment.
Your intent to delay due payments to M/s xxx (Contractor Name) is again blatantly obvious.
Accordingly, M/s xxx (Contractor Name) will not be liable for any delay to the works caused by the above as 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 days), 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. The liability resides with BGC.
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
