Conditional TOC – Starting of Defects Liability Period

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:                Conditional TOC – Starting of Defects Liability Period

Dear Mr xxx,

We are in receipt of your letter No xxx dated 03 July xxx with Subject “Conditional TOC – Starting of Defects Liability Period “and we hereby record our response as follows.

It is astonishing that while this TOC is dated 02 March xxx, the Main Contractor has waited over four months to provide Xxxx information of its existence, especially considering that the release of our retention money is directly linked to the date of the TOC.

We have reviewed the contents of your letter and the contents of its attachments and Appendices D, E and F (A, B, and C are omitted by the Main Contractor), and have not found any pending actions by Xxxx. The following is a detailed summary response:

Point #1: Completion of Outstanding works.

• All Pod works by Xxxx have been approved and 100% certified. All outstanding works listed in your letter and its attachments relate to works by the Main Contractor not by Xxxx.
• Since your letter intentionally omits the Appendix A, Appendix B, and Appendix C referenced in the TOC document, we therefore understand that these Appendices include information related solely to works by the Main Contractor and are un-related to Xxxx.
• Accordingly, no action is pending by Xxxx on site.

Point #2: Summary of rectification for outstanding snags as recorded vide AQCRs/SQCRs

• There are 332 AQCR line items listed in the AQCR summary table included in the Appendix D of the TOC. None of these AQCRs relate to Pods works by Xxxx (attached printout for reference).
• There are 65 SQCR line items listed in the SQCR summary table included in the Appendix D of the TOC, none of the SQCRs relate to Pods works by Xxxx (attached printout for reference).
• All the AQCRs/SQCRs relate to the Works of the Main Contractor. Accordingly, no action is pending by Xxxx.

Point #3: Pending AQCR/SQCR approval

• As per the previous point, none of the AQCRs and SQCRs listed in Appendix D of the TOC document are related to Xxxx.
• Approval of the AQCRs/SQCRs relating to other works of the Main Contractor is not the responsibility of Xxxx.

Point #4: Submission of As-built drawings, Training Manual, and Operation & Maintenance Manual

• As built drawings have already been submitted and approved on 23 February xxx.
• The Maintenance Manual has already been submitted on 19 April xxxx.
• Our scope does not include a System Training Manual.

Point #5: Rectification and close out of all outstanding NCRs

• Xxxx does not have any open or outstanding NCRs.

Point #6: Attic stock material handover

• Xxxx does not have any attic stock in its contract BOQ.

Point #7: Schedule of the Rectification of all current defects and defects if any after taking over.

• No defects are currently recorded or listed under the issued AQCR/SQCR.
• Any defects which appear after taking over should be individually recorded and communicated by the Main Contractor to Xxxx in order to allow Xxxx to investigate and rectify, if needed, in accordance with the Subcontract Agreement.
• Defects do not include damages to pods resulting from the actions of the Main Contractor or his agents/subcontractors

Point #8: PQA Handing over of remaining Apartments to Emaar.

• The Apartments are not under the scope of Xxxx. The handover of Apartments is under the scope of the Main Contractor.
• Appendix E does not contain any information relating to pending snags by Xxxx for bathroom Pods, and no other information has been communicated to Xxxx in relation to any recorded snags for Bathroom PODs adjacent to remaining Apartments if any.

Point #9: Submission of Original Warranties.

• Original Warranties can only be issued upon the release by the Main Contractor of all overdue payments for completed works and upon verification that no works have been damaged on site by any third party after Pods have been approved and certified.

Point #10: System Maintenance (as applicable).

• Xxxx does not have any scope in the systems to be maintained Appendix F of the TOC and does not have any other System Maintenance scope.

Based on the above, there are no pending actions to be performed by Xxxx at site at this time.

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 (original completion date of the Main Works) until 02 March 2023, which is the date of the TOC.

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.

All our rights are reserved.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager