Notice of delay in establishing the Letter of Credit
Our Ref: xxx
Date: xxx
To : xxx Contracting Company LLC
P. O. Box xxx, Dubai, U.A.E.
Attention : Mr. xxx, Senior Project Manager
Project : xxx Tower, Dubai – U.A.E.
Subject: Notice of delay in establishing the Letter of Credit
Dear Sir,
This is to notify the Main Contractor that he has not yet opened the Letter of Credit (L/C) which was due at the latest on 14 November xxx.
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) 80% 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.1 (Appendix A) against the progress of work for the month of September xxx on 24 November xxx and accordingly, we have submitted our TAX Invoice xxx 6 (Appendix B) on 25 November xxx.
By failing establishing the Letter of Credit (L/C) in accordance with out Sub-Contract you are withholding due payments from M/s xxx (Contractor Name) for work done and certified.
Accordingly, please note that if the L/C is not opened at the latest by close of business on 12 December xxx, M/s xxx (Contractor Name) reserves its rights to take any action it deems necessary including suspending delivery 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 xxx 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 the advance payment, certification and progress payments are delayed.
This is for your information & necessary action.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager