Notice of Delay in releasing LC 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 releasing LC documents

Dear Sir,

We have submitted Tax Invoices & LC documents against PC # 2 & 3 more than three weeks ago and we have been following with you and your Finance Department for weeks to release LC documents for onward submission to bank for negotiation and collection, however till now there is still no progress from your side.

You have failed at every step to adhere to the Terms of Payment of our Subcontract. You have failed to provide us with signed Payment Certificates. Even after leaving us with no other option than to submit tax invoices and LC documents based on the arbitrary amount you have noted on your belated, unsigned, and unsubstantiated draft payment certificates, you have still failed to release our payment.

Your unilateral action of delaying the release of LC documents is totally unjustified and is preventing us from securing our payment. This is yet another blatant display of your ongoing intent not to honor due payments or comply with contractual payment terms.

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 further reserve our right to claim for an Extension of Time (EOT) equal to the cumulative number of days by which our 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.

You are requested to release the signed LC documents with immediate effect. M/s xxx (Contractor Name) will not be held responsible for any impact or consequence the above will have moving forward on the works.

All rights are reserved. 

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager