Ongoing site closures

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 :     Ongoing site closures

Dear Mr. Muthu,

I am reaching out to you based on the long and successful working relationship between M/s xxx (Contractor Name) and M/s Meraas /North 25, having completed together the Bluewater development, currently delivering the Port de la Mer six phase development as well as delivering pods on the La Vie Project in Jumairah.

Owing to this relationship and following the successful delivery of phase 1 of Port de La Mer, M/s xxx (Contractor Name) has entered into a contract with xxx Contracting to deliver pods for Phase 2, despite difficulties faced during initial discussions with this Contractor.

It is now with grave concern that I am witnessing the unfolding events with xxx as the project site has now been closed for an extended period of time with no sign of the Contractor’s personnel, and we are unable to meet any of their staff either on site or in their main office which also appears to be closed till further notice.

Despite the fact that this contractor has previously defaulted in all of his past payments, including the delayed release of the advance payment, M/s xxx (Contractor Name) has continuously provided its support and has financed the project from its start, based on our long-standing relationship and our ongoing involvement on other phases and projects.

As of today, and despite the fact that all pods have been delivered and completed on site, Bxxx is still in default of certification and payment to M/s xxx (Contractor Name) for executed works amounting to approximately AED xxx million which represents a substantial 25% of our contract value on the job.

In light of the above, we seek your urgent intervention in reaching a solution for the release, through the Engineer or any other solution you find suitable, of our pending certifications and due payments as pods are already installed on your project site under your ownership.

We also kindly request a meeting at your earliest convenience to understand what alternate measures are being put in place to reopen the site, and the mechanism by which the TOC will be finalized for the release of our retention moneys.

Yours faithfully,

On behalf of xxx LLC                                                                      

xxx

project Manager