Notice of delay #2 in releasing Advance Payment
Our Ref: xxx
Date:
To
xxx Contracting LLC
P. O. Box xxx
Dubai, U.A.E.
Attention : Mr. xxx, Group Procurement Manager
Project : xxx Phase 2
Subject : Notice of delay #2 in releasing Advance Payment
Dear Sir,
This is to notify you that you are in default of your obligation under our Subcontract Order ref: xxx clause 2.2(a) advance payment.
We have been following up on a regular basis with BGC for more that one month on the release of our advance payment without any reasonable reply, while at the same time we have been diligently performing our obligations under our Subcontract.
In accordance with the Subcontract, “the Contractor shall issue an Advance Payment 14 days after receiving a Statement and after the Contractor receives
- The Performance Security
- An acceptable Guarantee in amounts and currencies equal to the Advance Payment.”
Both the Performance Security and the Advance Guarantee were received by your office on 21st October xxxx however our Advance Payment remains unsettled till this day.
Your delay in releasing the advance payment is now 33 days.
M/s xxx (Contractor Name) has so far fully funded the project and we have completed fabrication and delivery of the complete scope without having received any payment from BGC. This has severely impacted our cash flow and substantially affected our supply chain and our production process. You are therefore requested to immediately release overdue payments to avoid further disruptions.
In addition, we reserve our rights under the Terms of our Subcontract Order for an Extension of Time (EOT) equivalent to the same
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager