Date: xxx
Ref. xxx
To : M/s xxx Trading Company
Project : 2B + G + 14 + Lower Roof Hotels Building, Plot No. xxx at Al Barsha 1st, Dubai
Subject: LPO Terms and Conditions we are attaching with our LPO
Dear Sir
With ref. to above, please find our following LPO terms and conditions for your review and confirmation:
1) The reference of the agreed scope to be attached.
2) The final completion period to be mentioned.
3) As per mail communication from the Client which dated 06.11.2016, advance payment to be released against a security cheque and not Bank Guarantee.
4) As per mail communication from the Client dated 06.11.2016, Delay Penalty clause to be included in the contract agreement.
5) Approval of design and drawing to be obtained within 15 days of signing the agreement.
6) There should be no cost variance on any comments by Dubai Municipality and other Government authority including marking and safety equipment required by Dubai Municipality.
7) Payment terms will be as agreed with the Employer.
8) Payment terms is back to back, we will receive from the client and we will forward it to you.
9) Final handing over date will be the date of the TOC issued by the main contractor to subcontractor.
9) Subcontractor to follow the Main contractor’s approved program and work schedule.
10) If any leakage happens after handing over, the rectification in all respects or replacement should be done by the subcontractor on his own.
11)The water proofing material including water proofing warranty /guarantee to be issued 20 years for the pool and equipment
12) Final payment will be released after submission of the all documentation,
guarantee /warrantee for the swimming pool and testing and commissioning.
13)10% retention will be on hold till final handing over.
14) Any comment during the civil defense inspection to be carried out as per the requirement without any additional cost.
15) Shop drawing to be submitted within 15 Days from the date of LPO. Work schedule along with delivery schedule to be submitted.
16) Site organization chart to be prepared along with the team leader who will attend the meeting at project site.
Regards,
For xxx Contracting L.L.C
