Notice of default in payment release and payment certification.
Our Ref: xxx
Date: xxx
To : xxx Middle East,
P.O.Box xxx,
Dubai – UAE.
Attention : Mr. xxx
: Project Manager
Project : xxx Towers Project, Dubai
Subject : Notice of default in payment release and payment certification.
Dear Sir,
We are writing to inform you that despite our several reminders and requests by mail, Al TASNIM is still in delay on releasing our overdue certified payments of April xxx & May xxx.
We remind you that as per our Work Order No. xxx, Terms of Payment, clause (b): “payment: 75% of order value will be paid against material delivery. Payment to be made within 75 days from the date of IPA and certification to be issued by AL TASNIM within 15 days of IPA.”
Accordingly, our IPA#2 was submitted on 29 April xxx and the due date for payment is 75 days from IPA date therefore due date was 13 July xxx.
- 33 days of delay till date in the release of payment amounting to AED xxx.
Also, our IPA#3 was submitted on 30 May xxx and the due date for payment is 75 days from IPA date therefore due date was 13 August xxx.
- 2 days of delay till date in the release of payment amounting to AED xxx.
Furthermore, our IPA #5 was submitted on 31 July xx and the due date for certification is 15 days from IPA therefore due date was 15 August xxx.
- We urge you to release the July Work Certificate on time as previous two certificates for May & June xxx were released after a significant delay of 15 & 25 days respectively.
Kindly note that these recurring delays in payment and certification release are causing undue financial damage to Xxxx and we kindly urge you to release our due payments amounting of more than AED xx million and certificate with immediate effect.
We reserve our rights for an Extension of Time (EOT) equivalent to the same number of days by which our payments are delayed in addition to the delays occurring in progress payments certification as listed above.
Yours faithfully,
On behalf of xxx LLC
xxx
Project Manager