Final Notice of Default
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 : Final Notice of Default
Dear Sir,
We refer to our letters Ref: xxx dated 18 August xxxx and Ref. xxx dated 12 September xxxx.
Your project site has been closed for more than two months, and we have been informed during our meeting with the Employer representative on 01 November xxxx that BGC has been terminated as Main Contractor on Phase 2 of xxx Project. We have also been informed that the project is now being retendered to market and another Contractor would be expected to complete the Main Contract as replacement to xxx. Moreover, M/s xxx (Contractor Name) has received numerous market inquiries from various other Contractors in relation to the same scope of works that is covered under our Subcontract Agreement.
Considering the above, we are appalled that you have failed to reply to any of our earlier letters or give us any formal information or communication to explain why your site has been closed for an extended period of time, or to provide us with any official information on your current situation in relation to this project.
As of today, your project team remains unreachable, and both your site office and main office remain closed off.
The value of our Subcontract Agreement with BGC is AED xxx in addition to AED xxx of variations which amount to a total value, inclusive of VAT, of AED xxx.
As of today, even though our scope has been completed and all pods have been delivered to site, M/s xxx (Contractor Name) has only received AED xxx advance payment and AED xxx progress payments.
Accordingly, a total of Amount of AED xxx has still not been received by M/s xxx (Contractor Name) out of which AED xxx are retentions, and AED xxx are overdue progress payments which xxx have defaulted on.
Therefore, you are hereby requested to provide us, within three (3) working days, with the following:
- Official letter confirming your current status as Main Contractor on the project, including any relevant correspondence received form the Employer to that effect.
- The pending unreleased certification for work done which amounts to a net overdue certification of AED xxx as communicated in our reference letters above.
- Your comprehensive plan for the payment of the remaining due amount of AED xxx
- Your comprehensive plan for the release of the retention amount of AED xxx
Please note that until payment against our delivered pods has been received in full, all pods delivered by M/s xxx (Contractor Name) to the project site of xxx Phase 2 within the scope of our Subcontract Agreement with xxx remain the property of M/s xxx (Contractor Name).
Accordingly, until such time as payment is made in full to M/s xxx (Contractor Name), xxx are not permitted to make use of any of the PODS we have delivered to site, or hand over these PODS to any other third party, inclusive of any current project stakeholder.
If any third party enters, modifies, alters, damages, or otherwise makes use of the PODS in any way, you shall be held fully liable under the law, and you are hereby prohibited under this notice to hand over our pods to any other party.
We further notify you that you are obligated, by extension, to notify any third party, including all current project stakeholders, of the above notice. Consequently, any third party which enters, modifies, alters, damages, or otherwise makes use of the PODS, in any way, shall be immediately and irrevocably liable to M/s xxx (Contractor Name) for the full amount of our Subcontract Agreement.
If you fail to reply and/or provide the above within 3 working days from the date of this letter, M/s xxx (Contractor Name) will have no alternative but to pursue legal action against you.
Please consider this as a final notice.
All our rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager