Notice of Delay in release of L/C Documents
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 release of L/C Documents
References : a) xxx dated 5th January xxxx
b) xxx dated 27th January xxxx
c) xxx dated 22nd February xxxx
d) xxx dated 04th March xxxx
e) xxx dated 21st March xxxx
Dear Sir,
We are writing following the receipt of the Post-dated L/C documents for December works and would like to note the following:
- IPA#3 for month of December xxxx
In addition to having received delayed and post-dated L/C documents for the IPA#1 and IPA#2 of the months of October & November as highlighted in our letters Ref. (d) & (e), we are again appalled to find that you have once more post-dated the L/C documents for IPA# 3 (December xxxx) which have been signed with a future date of 31 May xxxx.
Not only the date of signature of these L/C documents will set the payment date as 28 October xxxx instead of the contractual payment date of 19 April xxxx (192 days delay) but you have illicitly postdated the L/C documents with a date that is one month beyond the expiry date of the L/C (30 April xxxx). Hence, you are intentionally preventing M/s xxx (Contractor Name) to submit these documents for negotiation within the validity period of the Letter of Credit. You are requested to immediately extend the validity of the LC and provide us with current dated documents.
M/s BGC is systematically: 1) delaying certification 2) arbitrarily and without justification imposing short certification and deductions 3) intentionally delaying signing L/C documents and even 4) postdating such documents to dates where M/s xxx (Contractor Name) will not be able to submit them to the bank, all in an effort to defer, delay, and reduce due payments to M/s xxx (Contractor Name).
We remind you again that we have fully financed the project and have invested the full amount of the contract, while at the same time you have failed to release our advance payment in accordance with the terms of our Subcontract, and you are now employing every means and measure to delay the release of due progress payments, including releasing L/C documents with invalid signature dates.
Your direct actions, which are in complete disregard to your contractual and legal obligations, continue to cause extreme financial damage to our company and its employees and you will be held fully liable for such actions.
We again reserve our right to claim for an Extension of Time (EOT) equivalent to the total number of days by which our advance payment and all our progress payments are delayed. 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 Sub-Contract Agreement.
Moreover, we reserve our right to suspend the execution of the Sub‐Contract Agreement in reference to Article 247 of the UAE Civil Code in view of your recurring premeditated, uncontested, and unjustified defaults. In the same line, M/s xxx (Contractor Name) will not be held liable for any direct or indirect impact on the site progress. These liabilities reside with BGC.
We urge you one more time to revise the Letter of Credit in accordance with the terms of payment stipulated under our subcontract agreement (120 days) and release current dated LC documents that will allow us to secure our due payments. Should you maintain your current stance, we will have no other choice but to proceed with taking actions against you.
All rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager