Default on Progress Payment

Our Ref: xxx

Date: xxx

To                    :           xxx Contracting Middle East,

                                   P.O.Box xxx,

                                   Dubai, UAE 

Attention          :           Ms. xxx

                        :           Project Director

Project             :           xxx Tower Views, Dubai

Subject                 : Default on Progress Payment

Dear Mr. Chen,

We refer to our previous letters on the subject and xxx replies’

1. Xxx letter No. xxx dated 5^th of May xxxx
2. CSCEC letter No. xxx dated 6^th of May xxxx.
3. Xxx letter No. xxx dated 11^th of May xxxx
4. CSCEC letter No. xxx dated 12^th of May xxxx.

Xxx does not agree with xxx statements and we reply to your letter as follows,

Point #1

As noted in our letters Ref. (a) and (c) above, we again put on record that xxx is in default on Xxx progress payment against IPA No.7 for the month of February xxx submitted on the 23^rd of February xxx.  Release of PDC was due on the 6^th of April xxx (43 days). 

Considering your statement in Ref. (d) that the payment has been received from the Employer, you remain in default of issuing the payment in accordance with the terms of the Subcontract agreement, and we hereby request that you issue a current dated check against IPA N0.7 as payment was due on the 23^rd of April 2020.

Point #2

We reject your statement, the terms of our subcontract are clear:

“The Employer shall certify the Main Contractor’s payment application within 28 days and pay within 15 days after certification”. As our payment application is part of the Main Contractor’s application, the time frame for certification is clearly stipulated.

Point #3

• 5% retained money for final TOC is not under debate.
• You have unilaterally short certified another 5% by stating un-completed pods. There are no un-completed pods and there is absolutely no agreement to short certify a blanket 5% across all work done. Your action is unjustified, unethical, and in blatant breach of our Subcontract agreement.

We again object to this arbitrary short certification to work done which amounts to a value of xxx AED, and we request that you certify these works fully with immediate effect.

Point #4 detention charges

Please refer to Trailer supplier terms and conditions, the trailers shall not be detained more than one day on site. You are failing to provide the necessary cranage and open areas on site to off load and release these trailers within this specified time. Therefore, you are solely responsible to pay the relevant detention charges which are claimed by the transport companies and which amount to a value of xxx AED

We again request that you settle without further delay our due payment and all un-contractual short certifications. If such delays persist it will have severe repercussions on our cash flow and on our ability to maintain our supply chain. Consequently, Xxx will not be liable for any impact this may have to pod production and delivery and we reserve our right for an Extension of Time (EOT) equivalent to the same number of days by which our progress payments are delayed.

We further reserve our rights to claim any and all costs or loss of profit associated with your unjustified retentions, and your persistent lack of certification of the due trailer detention charges.

We again urge you to settle our overdue progress payments immediately.

On behalf of xxx LLC

xxx

Project Manager