Notice of Default – First Part (5%) of Retention

Our Ref:  xxx

Date: xxx

To                           : xxx Contracting LLC

                                  P.O. Box xxx

  Dubai, U. A. E.

Attention            : Mr. xxx

Project                 : xxx at Jumeirah First, Dubai

Project                 : MH-0080 Port de la Mer Phase 1 (plot 2), Dubai

Subject                 : Notice of Default – First Part (5%) of Retention

Dear Sir,

We are writing to you following several requests and reminders (Appendix 1) to inform you that you are in default on your obligations in settling the first part of retention in accordance with the Subcontract Agreement.

In accordance with Payment Terms of the Agreement, Clause 5.5, “all the subcontractor’s applications for interim monthly statements are subject to 10% retention, out of which 5% will be released upon issuing Taking Over Certificate.”

The Taking Over Certificate [TOC] has been issued and is dated 31 October xxx. (Appendix 2)

Consequently, we have issued to you our Tax invoice #LOC/2022/00019 amounting AED xxx for the first part (5%) of retention amount on 06 June xxx (appendix 3).

Despite multiple reminders you have failed to release this payment and your default from the date our invoice submission currently stands at 122 days.

This delay in releasing our due first part of retention payment in addition to the amount of AED xxx against Tax Invoice #LOC/2022/00018 dated 03 June xxx (appendix 4) is in direct breach of our subcontract agreement and is no longer tolerable as it is resulting in excessive damage to our company, its employees, and its supply chain.

Therefore, you are hereby notified to release the amount of AED xxx before close of business on Tuesday 11 October xxx, failing which we will have no other alternative than to differ this issue to our legal department.

Yours faithfully,

On behalf of xxx LLC

xxx

Projects Manager