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 – Pod marble works
- M/s xxx (Contractor Name) letter ref: xxx dated 21 December xxxx.
- M/s xxx (Contractor Name) letter ref: xxx dated 14 January xxxx.
- M/s xxx (Contractor Name) letter ref: xxx dated 01 February xxxx.
- M/s xxx (Contractor Name) letter ref: xxx dated 04 March xxxx.
- M/s xxx (Contractor Name) letter ref: xxx dated 24 March xxxx.
Dear Sir,
We refer to your letter reference xxx dated 11 May xxxx and respond as follows.
We categorically reject your notice of delay, and we further clarify that upon receiving the instruction to proceed with the procurement and supply of marble from the two suppliers xxx Marble and Marwa Marble as listed in the Engineer’s letter, we have immediately entered in contact with both suppliers and have placed orders for marble accordingly.
We have already delivered 36 sets to site and the production of the balance sets is currently in progress.
We are exerting all the possible efforts to expedite the works at the supplier’s factory, and we have accordingly allocated staff to be present on a full-time basis at the supplier’s factory to closely monitor the progress.
On the other hand, we also urge you to expedite the approval of the delivered marble on an urgent basis since this is critical for the supplier to maintain the required level of production.
Furthermore, we once again remind you that you remain in default of your payment obligations as recorded in our letter reference (e) and references enclosed therein.
We also record that you have failed to release any payment certification from January xxxx onwards and you are consequently intentionally withholding certification for an amount of AED xxx Million on the basis that marble tops are not approved, while the entire value of marble which is not approved is xxx AED.
The marble tops account for less than 4% of the value of the certification you are withholding. Although short certifying our payment applications by the value of the rejected marble may be understandable, your deliberate action to short certify the full amount of works completed and delivered to site is completely unacceptable.
This deliberate action to short certify works delivered to site is consistent with your ongoing actions to defer, delay, and reduce due payments to M/s xxx (Contractor Name) as clearly demonstrated in our letter reference (e) and references enclosed therein.
Such 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 severely limit M/s xxx (Contractor Name) from performing its obligation towards its suppliers. M/s xxx (Contractor Name) will not bear any liability for any impact whether direct or indirect this may have on the progress of your site. These liabilities reside with BGC.
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
