Notice of default in progress payment

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 progress payment

Dear Ms. Lian,

Please refer to our previous letters:

We are writing to put on record again that XXXX remains in blatant and flagrant default on Xxxx progress payments.  Your company has continuously failed to certify and settle our progress payments as per our Sub-Contract Agreement payment terms.

1. Our Interim Payment Application No. IPA-4 was due for payment on 26-Feb-xxxx and remains unsettled (please find attached copy of the certification).  The actual due date should be 12Feb-xxxx, but your certificate shows 26-Feb-xxxx.
   1. Default in payment is 82 days.
2. Our Interim Payment Application No. IPA-5 was due for payment on 26-Mar-xxxx and remains unsettled (please find attached copy of the certification). The actual due date should be 14Mar-xxxx, but your certificate shows 26-Mar-xxxx.
   1. Default in payment is 53 days.
3. Our Interim Payment Application No. IPA-6 was due for payment on 26-Apr-xxxx as per your certification and remains unsettled (please find attached copy of the certification).
   1. Default in payment is 22 days.
4. PDC for our Payment Application No. IPA-7 was due for release on the 13-May-xxxx and still has not been released which is in breach of the terms of our Sub-Contract Agreement.

While we have been maintaining the scheduled production and delivery ongoing despite your above defaults, Xxxx is being continuously ignored and our approaches to find resolution to our delayed payments remains un-answered.

We again give you notice that your consistent and continuous default in settling our invoices is causing us serious cash flow issues.  Xxxx cannot continue financing your project without being paid.  Xxxx faced, and is increasingly facing difficulties paying its suppliers to source the necessary material for your project.

• Accordingly, Xxxx will not be liable for any delay caused by your default on your contractual liabilities and reserves its rights for an Extension of Time (EOT) equivalent to the same number of days by which your payment is delayed.
  • As a result, the schedule of delivery is pushed by an equivalent number of days, in addition to 84 days for the default in the advance payment.
  • We further reserve our right for all other EOT claims related to change of design, delivery of free issue material, etc.

We urge you to settle all our overdue progress payments immediately. Xxxx will not be held liable for any impact the above may have on the delivery of pods or on any direct or indirect impact on site progress.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager