Notice of Default in release of first part (50%) of retention

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 release of first part (50%) of retention.

Reference:  a) xxx dated 15 February xxxx

Dear Sir,

We are writing to notify you that you are in blatant default of your obligations under the Work Order No. xxx as you have failed to certify and pay the first part (50%) of retention in accordance with the Terms of our Work Order.

As per our Work Order No. xxx, Payment Terms, clause (d): “Retention Release: 50% of the retention amount will be after project handing over or within 6 months of delivery, whichever is earlier.”

Our PODS delivery was completed on 16 February xxxx as recorded in our letter ref (a).

Accordingly, 50% of retention amount is due for release on 16 August xxxx.

Our IPA no. 13 for the first part of retention was submitted to you on 8 September xxxx (appendix 1) but till date and after more than 43 days, we did not yet receive the certification that allow us to submit the respective invoice.

This complete disregard to the contractual obligations and to our communications is not acceptable. Xxxx cannot sustain such a massive and extensive default causing undue financial damage to Xxxx and its employees.

We urge you to release our certification by 23 October xxxx COB.

In addition, you are required to release the evaluation to the variation (VTC-02) dated 08/07/xxxx submitted to you on 11 July xxxx and revised on 07 Feb xxxx which remains unevaluated and unapproved till date after more than 8 months from our discussion and revised submission.

You will be fully liable for any resulting consequence of your actions and Xxxx will not be held liable for any impact your defaults may have on the site progress and work completion. These liabilities reside with Al TASNIM.

Yours faithfully,

On behalf of  xxx LLC

xxx

Project Manager