Final Account Statement
M/s xxx Construction & Investment Co. L.L.C.
P.O. Box xxx, Dubai, U.A.E.
Tel: xxx
Fax: xxx
Attention : Mr. xxx
Operations – Operations
Project : (G+7F) xxx Apartment
Consultant : xxx Engineering Consultants
Subject : Final Account Statement
Dear Sir,
We refer to the works executed by Xxx (Name of the Subcontractor) Interiors for the Akoya Golf Apartments Clusters G11, G12 & G13 for Civil Works and to the Work Order we signed with ASCON reference 0336/93 dated 2nd July xxx as well as the Work Order reference Akoya/PSM/FA/WO-170/xxx dated 17th August xxx signed between Damac and Xxx (Name of the Subcontractor) Interiors for the same scope of works of the contract with ASCON.
Please be informed that in good faith Xxx (Name of the Subcontractor) Interiors had entered to the site in April xxx even without a signed contract agreement which is contrary to Xxx (Name of the Subcontractor) Interiors common practice in any project as we considered Damac and your good self in particular as our valued Client. During the course of execution of the works, several meetings had transpired between DAMAC, ASCON & Xxx (Name of the Subcontractor) Interiors to agree on how the scope of works shall be carried out on the project, until such time that Damac has informed Xxx (Name of the Subcontractor) Interiors that it shall enter into a Subcontract agreement with ASCON.
Although, Xxx (Name of the Subcontractor) Interiors has some hesitations that time in entering into a Subcontract Agreement with ASCON while the works is continuously progressing at site, however, due to your presence at site and to your assurances that the situation of Xxx (Name of the Subcontractor) Interiors in entering into a subcontract with ASCON will not be put in jeopardy in which Xxx (Name of the Subcontractor) Interiors used as basis in agreeing to sign the Subcontract with ASCON, although there was some disagreements on the rates and terms and conditions.
As the works progresses, Xxx (Name of the Subcontractor) Interiors keeps informing you about our concerns on the terms and conditions of the agreement Xxx (Name of the Subcontractor) Interiors had with ASCON, however, as assured by you during that time, Xxx (Name of the Subcontractor) Interiors concerns will be addressed by way of Xxx (Name of the Subcontractor) Interiors’ entering into a separate Subcontract Agreement with Damac for the same scope of works with ASCON contract which Xxx (Name of the Subcontractor) Interiors was hesitant considering that the same is not a normal practice in UAE. However, as Xxx (Name of the Subcontractor) Interiors was already been working at site for more than three months and the works is not being certified by ASCON, Xxx (Name of the Subcontractor) Interiors only choice is to accept your proposal to sign a separate contract with Damac in order for us to be protected in case of ASCON defaulting on the signed agreement with Xxx (Name of the Subcontractor) Interiors.
With your interference, somehow the works carried out by Xxx (Name of the Subcontractor) Interiors had progressed and it did not face any issues in payment on the initial stage considering that Damac has been paying Xxx (Name of the Subcontractor) Interiors for the work done on the project. Nonetheless, on the later stage of the project Xxx (Name of the Subcontractor) Interiors started to suffer from receiving the certifications and payments on the work done from ASCON’s contract which was highlighted to your good self. Several meetings have taken place between ASCON, Xxx (Name of the Subcontractor) and Damac to discuss the certification, however, no fruitful commitments have been achieved until such time that you have instructed Xxx (Name of the Subcontractor) Interiors to agree with ASCON on the quantities executed and the rest will be dealt with by your office.
Consequently, Xxx (Name of the Subcontractor) Interiors again in good faith discussed and agreed with ASCON the quantities of works that have been carried out and accordingly submitted the payment application to your office as previously instructed, however, as per the last meeting between Xxx (Name of the Subcontractor) Interiors, ASCON and Damac, Xxx (Name of the Subcontractor) Interiors was advised to seek the certification from ASCON which is so frustrating on Xxx (Name of the Subcontractor) Interiors part as we have been going back and forth without any positive result and Xxx (Name of the Subcontractor) Interiors has already suffered losses on the project.
In view of the above, Xxx (Name of the Subcontractor) Interiors would like to request for your intervention in the successful conclusion of our Final Accounts for this project as we feel that though we have been meeting your team, no positive outcome has been agreed with your team despite completing the works. Moreover, your team also indicated that Xxx (Name of the Subcontractor) Interiors might be imposed with liquidated damages which Xxx (Name of the Subcontractor) Interiors totally reject.
We are re-submitting along with this letter our Final Payment Application hoping that through your intervention, we would be able to conclude this issue of certification and payments which have been dragged for several months without any positive result.
We trust that this should be given due consideration by your good self in order to avoid any arbitral and legal consequences in the future.
Kind Regards,
For Xxx (Name of the Subcontractor) Interiors LLC
xxx
Commercial Manager