Nominated Subcontractor M/S xxx Industries FZC response to the Subcontractor Agreement (Supply and Installation of Wardrobes)
Date : xxx
Ref. : xxx/P1009/UHAC/2021/13
To : M/s. xxx Architectural Consultant
P.O Box : xxx, Dubai, U.A.E
Phone : xxx, Fax : xxx
Attention : Mr. xxx – Projects Engineer
Project : Proposed Private G+1+R Villa on Plot No: xxx, At Al Barsha South First, Dubai-U.A.E. For Mr. xxx
Subject : Nominated Subcontractor M/S xxx Industries FZC response to the Subcontractor Agreement (Supply and Installation of Wardrobes)
Dear Sir,
With reference to the above-mentioned subject, please be informed that we have sent the Subcontractor Agreement to M/s xxx Industries FZC dated 11th October 2021. Following response received from Rigid against our subcontractor agreement.
“We cannot accept the payment terms and the security cheque requirement, as per our meeting with Mr.Abu Zaed, our company not accepting the security cheque, our payment team is 50% advance payment, 20% after inspection of material in factory and make the plan of delivery, 20 after finish 50% of site installation & 10% after compilation.”(clause copied from their email.)
MCM cannot entertain such terms from the Subcontractor. Our proposed payment terms are as follows.
Payment Terms:
- 10% Advance upon shop drawing and materials approval against Bank Guarantee/Security cheque upon signing of agreement (10% advance will be recovered from pro rata from each certified progressive invoice).
- 60% upon delivery materials at the site as CDC within 10 working from the date of Invoice Certification.
- 20% upon installation at the site as CDC within 10 working from the date of Invoice Certification.
- 20% upon installation of ironmongers at the site as CDC within 10 working from the date of Invoice Certification.
We seek your attention and intervention to address this issue immediately.
Thank You.
Yours Sincerely,
xxx LLC