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 : Delay in releasing progress payment
Dear Sir,
We refer to the terms of our Subcontract PART II – Clause 16.3 “Payment Due” and notify you that you are in default in releasing our progress payment against IPA for month of October xxx.
- IPA #1 for Month of October is dated 20 October xxx.
- In accordance with the Subcontract Order:
- The Payment shall be released vide confirmed letter of credit L/C – 120 days from IPAL/C documents shall be released within 15 days from the date of IPA. (due date is 4 November xxx)
- Certification shall occur within a maximum of 15 days from MIR submission/approval
As of this date, the L/C has still not yet been established by BGC to allow M/s xxx (Contractor Name) to process L/C documents, and on the other hand, the certification and L/C documents due on 4 November 2020 (15 days from IPA) have still not been released. Your delay in releasing the progress payment L/C documents, including certification, is now 19 days.
Accordingly, we reserve our rights for an Extension of Time (EOT) equivalent to the same number of days by which the L/C documents (progress payment) is now delayed.
We have now completed more than 90% of the project without having received any payment from BGC.
This has severely impacted our cash flow and substantially affected our supply chain and our production process. You are therefore requested to immediately release overdue payments to avoid further disruptions.
All rights are reserved
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager
