Default on Progress Payment

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: Default on Progress Payment

Dear Ms. Lian,

This is to put on record that xxx is in blatant and flagrant default on Xxxx progress payments. Your company failed to settle our progress payments.

Our Interim Payment Application No. IPA-4 was due for payment on 26-Feb-xxxx and remains unsettled (please find copy of the certification attached). The actual due date should be 12-Feb-xxxx, but your certificate shows 26-Feb-xxxx.
Default in payment is two months.

Our Interim Payment Application No. IPA-5 was due for payment on 26-Mar-xxxx and remains unsettled (please find copy of the certification attached). The actual due date should be 14-Mar-xxxx, but your certificate shows 26-Mar-xxxx.
Default in payment is one month.

Your consistent and continuous default in settling our invoices is causing us serious cash flow issues. Xxxx cannot continue financing your project without being paid. Xxxx faced, and is increasingly facing difficulties paying its suppliers to source the necessary material for your project.
Accordingly, Xxxx will not be liable for any delay caused by your default on your contractual liabilities and reserves its rights for an Extension of Time (EOT) equivalent to the same number of days by which your payment is delayed.
As a result, the schedule of delivery is pushed by an equivalent number of days, in addition to 84 days for the default in the advance payment (please refer to our previous correspondence on this matter) and all other EOT claims related to change of design, delivery of free issue material, etc.

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

Yours faithfully,

On behalf of xxx LLC

xxx

Project Manager