Our Ref: xxx
Date:
To
xxx Contracting LLC
P. O. Box xxx
Dubai, U.A.E.
Attention : Mr. xxx, Group Procurement Manager
Project : : xxx Tower, Dubai – U.A.E.
Subject : Notice of delay in establishing the Letter of Credit
Dear Sir,
We are writing to you after several follow up emails (Appendix A) to notify you that you have not opened till date the Letter of Credit (L/C) which was due at the latest on 06 December xxx.
We remind you again that as per our Sub-Contract Agreement, Clause 16, payment, the payment for the certified amount shall be processed from date of submission of monthly payment application, (b) 75% value of BOQ amount based on progress of works at site through Letter of Credit (100 days credit).
We have received the payment certificate P.C. No.2 (Appendix B) against the progress of work for the month of November xxx on 30 December xxx and P.C. No. 3 (Appendix C) against the progress work for the month of December xxx on 21 January 2022 and accordingly, we have submitted our TAX Invoices xxx (Appendix D) on 03 January 2022 & 21 January 2022 respectively.
By failing establishing the Letter of Credit (L/C) in accordance with our Sub-Contract you are withholding due payments amounting to over 2 million Dirhams from M/s xxx (Contractor Name) for work done and certified.
Accordingly, please note that if the L/C is not opened as per the comments given by M/s xxx (Contractor Name) on your draft L/C (Appendix E) at the latest by close of business on 25 January 2022, M/s xxx (Contractor Name) reserves its rights to take any action it deems necessary including stopping of production and deliveries of pods until such time as the Main Contractor releases payment in accordance with the terms of our Sub-Contract.
M/s xxx (Contractor Name) will not be liable for any delay caused by your default on your contractual liabilities, as such delays are on account on ASCC acts. In addition we reserve our rights under the Terms of our Sub-Contract Agreement for an Extension of Time (EOT) equivalent to the same number of days by which our progress payments are delayed.
This is for your information & necessary action.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager
