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 5 January xxxx
b) xxx dated 27 January xxxx
c) xxx dated 22 February xxxx
d) xxx dated 04 March xxxx
e) xxx dated 21 March xxxx
f) xxx dated 24 March xxxx
Dear Sir,
We are writing again following the receipt of the Post-dated L/C documents for January to June works and would like to note the following:
You have deliberately delayed the signing of LC documents for works done between January till June xxxx which have already been excessively delayed in being certified. We refer to previous letters on this subject and remind you the following:
In addition to having received delayed and post-dated L/C documents for the IPA#1, IPA#2, IPA#3 of the months of October, November & December xxxx as highlighted in our letters Ref. (d), (e) & (f), you have again post-dated the L/C documents for the month of January to June xxxx which have been signed with a date of 31 July xxxx.
The LC documents were submitted to your office on 15 June xxxx, after multiple reminders, you have only released to us signed LC documents on 11 July xxxx post-dated with a date of 31 July xxxx. You are again pushing the payment by another 46 days which would result in an actual payment date to 28 December xxxx instead of the contractual payment date of 13 October xxxx. (76 days delay)
We remind you again that our payment terms are 120 days from the date of our IPA (Refer to Clause 16.3 of our subcontract)
We also bring your attention to the short settlement of AED xxx by your bank towards recovery of LC issuance, amendment charges which are on account of M/s xxx (Refer to Clause 16.3 of our subcontract). This was communicated to your office by Email on 6 July xxxx and we seek immediate settlement of these charges by current dated cheque.
Your continuous and recurring actions to push back, defer and avoid payment to M/s xxx (Contractor Name) is unacceptable. You are requested to immediately remedy this situation by providing current dated L/C documents and extending the L/C expiry date as applicable to allow us to secure our due payments.
The financial damage you have caused and are still causing M/s xxx (Contractor Name) is leaving us with no other options than to submit Tax invoices based on arbitrary and short certified amounts you are indicating on your unsigned and unsubstantiated draft payment certificate documents in the hopes of securing at least some form of payment, and in contrast you are signing postdated L/C documents to further defer due payments in complete disregards to your contractual and legal obligations.
We also remind you that issuance of our Tax invoices does not infer an acceptance by M/s xxx (Contractor Name) on short-certified amounts or on the arbitrary deductions included therein, nor should it be considered as an acceptance on the part of M/s xxx (Contractor Name) on the change in payment terms that BGC is implementing in the issuance of LC and in the release of L/C documents which are in direct breach of our Subcontract Agreement. Accordingly, M/s xxx (Contractor Name) will not be liable for any delay to the works caused by your actions above. Such delays are on account of BGC acts.
We again reserve our rights for an Extension of Time (EOT) equivalent to the same number of days by which our advance payment is delayed in addition to the delays occurring in progress payments certification as listed above. 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.
All rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
project Manager
