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 : Response to allegations of delay in Delivery of PODs, MIR & WIR Approvals
References :
- xxx dated 15th September xxxx
- xxx dated 14th January xxxx
- xxx dated 14th January xxxx
- xxx dated 01st February xxxx
Dear Sir,
We refer to your letter ref: xxx dated 31 January xxxx and respond as follows:
In reply to points 1 & 2
We refer to our previous letter reference (b) and record again that your statements are wrong and misleading. 443 PODs have been delivered to site by 26 November xxxx. Please refer to signed delivery notes. All Pods are installed on site at their final locations and inspected. WIR for all 443 pods are approved.
Your ambiguous statement that in case of major comments M/s xxx (Contractor Name) shall take the pods back to the factory is irrelevant, and there are no major issues in the pods like you seem to be alleging.
The marble top is a single material in the POD which is a unit that includes over 50 approved materials, and our ongoing concerns on the marble approval process and the abnormally high rate of rejection are recorded in our letter reference (c) & (d). We also note your statement that you have facilitated M/s xxx (Contractor Name) to deliver marble separately and install on site.
Your claims of delay and impact to your progress on site from M/s xxx (Contractor Name) are rejected as inaccurate and misleading. We have already recorded that as of 17th January xxxx M/s xxx (Client Name) still had pending blockworks and electrical works which affected the installation of the PODs as factually demonstrated in the progress photos (appendix 1).
In reply to point 3
You are invited to refer again to the delivery notes signed by M/s xxx (Client Name) showing that the last POD was delivered on 26 November xxxx. Any comment issued on MIRs or WIRs raised on site after delivery are attended to in accordance with site conditions.
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 15September xxxx (appendix 2). This schedule is approved by BGC on 24 September xxxx.
In reply to point 4
Your statement is again intentionally misleading. POD MIRs are raised after delivery to site. M/s xxx (Contractor Name) has no reasonable way of predicting what comments will be made on these MIRs once the pods are delivered to site.
MIRs have been raised after each POD delivery in accordance with the delivery schedule. M/s xxx (Contractor Name) has no control over the time expanded by the Engineer to release approvals on these MIRs. 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
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: UP‐1727/LET‐1080‐20/LS‐at dated 15September xxxx (appendix 2). This schedule is approved by BGC on 24 September xxxx.
In reply to point 6
Our statements remain factual, while you are attempting to skew the facts to build your own narrative. We record again that 443 pods have been delivered by 26 November xxxx (refer to signed delivery notes) and WIRs for all 443 installed pods are approved (refer to signed WIRs).
The WIR for final approvals are issued during handing over to mark the completion of the works. Till now MEP works are pending, MEP testing and commissioning of M/s xxx (Client Name) are pending, POD doors installation and threshold (under BGC scope) is pending.
Kindly provide us with the work schedule of all other trades which interface with the installed PODs (inside and outside) so that we can inspect and record the condition of PODs before and after their work completion. Any damages to the POD will be back charged to M/s xxx (Client Name).
We further remind you that you are still in default of your contractual obligations in releasing our advance payment in accordance with the terms of our Subcontract, now overdue by more than 95 days.
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 (95 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.
While M/s xxx (Contractor Name) has done all what we can do, even without receiving a single payment, to ensure that pods are delivered and installed in accordance with the agreement made with M/s xxx (Client Name) management during our joint meeting in September xxxx, your ongoing misrepresentation of the facts in the contents of your letters highlight your unchanged and 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
