Re: Dewatering Works Delay Penalty
REF. No.: xxx/1016/SS-DOC/2022/03
Date: 1 November xxx
xxx DEWATERING & LAND DRAINING CO. L.L.C.
P.O. Box: xxx, Ras Al Khor, Dubai, UAE
Project:Proposed Residential Villa (B+G+1+R) on Plat No. xxx, Palm Jumeirah– Dubai, UAE
Client:Mr. xxx
Subject: Re: Dewatering Works Delay Penalty
Dear Mr. xxx,
This is further to your letter ref. xxx/LR/JJ/J-8218-03/2022 dated 1st November xxx, xxx stands for the following points:
1. Failure to proceed with the Site work due to xxx not being able to control the water.
2. Till date NDW is refusing to move the pumps that causing further delays.
3. All the payments have been made on time.
4. Variations are not been approved by the Client or formally written by the Consultant or Client.
“As per the Subcontractor Agreement item 1, B). Notes on Scope of Work under Article (1) scope of works which clearly states that “The Entire Scope of works Specification, Material approval, extension of time, BOQ, Variations & Payments is subject to approval & certification by the Consultant & Client (Back-to-Back basis).”
5. Non-payment can call under defamation clause.
“Pursuant to penalty clause in Subcontract Agreement Item F) under Article (1) Scope of work, xxx reserve its right to impose delay penalty and liquidity damage of AED 560375.00 (AE Dirhams Five Hundred Sixty Thousand and Three Hundred Seventy-Five) as per the given breakdown.”
This is for your information and records.
Yours Sincerely,
MCM LLC