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 in Delivery of PODs
Dear Sir,
We refer to your letter ref: xxx dated 12 January xxxx and respond as follows:
In reply to section 1
Your statements are completely erroneous and unfounded.
The program of works is issued by M/s xxx (Contractor Name) is under letter Ref: xxx dated 15th September xxxx (Appendix 1). This schedule includes a sequence of deliveries with the following milestone: “The approval for the Programme of Works must be received by BGC by 16 Sep xxxx.”
BGC has delayed the approval to the program of works until 24 September xxxx.
The sequence of deliveries was disrupted by BGC, not by M/s xxx (Contractor Name). Even with your delay in approving the program, M/s xxx (Contractor Name) still succeeded in completing deliveries by 26 November xxxx.
Additionally, the email referenced in your attachment A is dated 19 July xxxx and is irrelevant to the program issued above and is intentionally misleading.
In reply to section 2
Point 1
Please refer to section 1 for our reply to the alleged disruption of sequence of deliveries.
We acknowledge your confirmation that your platforms were not ready to receive the pods.
Marble approval did not have any impact on the sequence of deliveries, and deliveries were completed on the 26 November xxxx.
Please refer to letter xxx for our reply on the marble approval issues.
Point 2
Your statement is incorrect and unsubstantiated. Please refer to our referenced letter xxx dated 24th November xxxx (Appendix 2).
Point 3
Your reply is an attempt to deflect from the subject at hand and has no relation to the sequence of deliveries. The fact stands that BGC has failed to provide us with any MEP clearance in any building on any floor to allow us to install the pods at their final locations.
Please issue a copy of such clearances in any further reply if you deem our comment inaccurate.
Please refer to letter xxx for our reply on the marble approval issues.
Point 4
Your acknowledgement of your delay is noted. We are maintaining contemporary records of such delays and we reserve our right to claim for Extension of Time (EOT) in accordance with the terms of our Subcontract.
Contractor’s default on advance payment.
In relation to our advance payment, we hereby again give you notice that you are in default of your contractual obligations. Your delay in releasing our advance payment is now in excess of 73 days.
In relation to progress payments, the subcontract terms are clear:
The Payment shall be released vide confirmed letter of credit L/C – 120 days from IPA. L/C documents shall be released within 15 days from the date of IPA. Certification shall occur within a maximum of 15 days from MIR submission/approval.
You have defaulted on all of the above.
In relation to your email communication referenced under your attachment D, we record again that there is categorically no approval whatsoever on the part of M/s xxx (Contractor Name) to change our payment terms.
You are unilaterally forcing a change of the contract terms by exerting financial pressure on M/s xxx (Contractor Name) and attempting to pay the advance payment at 150 days while alleging agreement by M/s xxx (Contractor Name) on such change. Advance payment would therefore be received on 30 May xxxx instead of the due 04 November xxxx. This would be an overall delay of 7 months in the release of our advance payment.
We have noted all discrepancies and deviations you are unilaterally imposing to the Subcontract payment terms within your delayed L/C in our letter reference xxx (Appendix 3).
Finally, and referring to the above, we find this behavior dubious and unbecoming of a Main Contractor as well as blatant breach of your contractual obligations.
Your deliberate intent to systematically delay due payments to M/s xxx (Contractor Name) is blatantly obvious.
Accordingly, M/s xxx (Contractor Name) will not be liable for any delay to the works caused by the above such delays are on account of BGC acts. In addition, we reserve our rights under the terms of our Sub-Contract agreement for and Extension of Time (EOT) equivalent to the same number of days by which our advance payment is now delayed (73), in addition to the number of days you are intentionally delaying the release of the L/C and L/C documents that are compliant with our payment terms.
In the same line, M/s xxx (Contractor Name) will not be held liable for the impact of the above on the works, or for any direct or indirect impact on the site progress.
We further reserve our rights to claim for any and all damages resulting from your direct actions and your recurring evidenced bad faith in the execution of the Subcontract Agreement.
All rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager
