Re – Notice of deduction/penalty

Our Ref: xxx

Date: xxx

To                           : xxx Contracting Company LLC

                               P. O. Box xxx, Dubai, U.A.E.

Attention            : Mr. xxx, Senior Project Manager

Project                 : xxx Tower, Dubai – U.A.E.

Subject                 : Re – Notice of deduction/penalty

References         : a) xxx dated 15 December xxxx 

  b) xxx dated 14 January xxxx 

  c) xxx dated 14 January xxxx

Dear Sir,

We are in receipt of your letter ref: xxx dated 21 February xxx, and we note that your letter is addressed to all the subcontractors and not to M/s xxx (Contractor Name) specifically.

However, we would like to note that your notice of deduction/penalty as it pertains to M/s xxx (Contractor Name) is totally and fundamentally rejected.

As per your list (appendix 1), only xxx has been issued to M/s xxx (Contractor Name), and as recorded in numerous correspondences, relates to the quality defects observed on the Free Issue material supplied by the Main Contractor to M/s xxx (Contractor Name) for installation as per the terms of the Subcontract Agreement.

These materials have been selected, procured, and delivered by the Main Contractor to M/s xxx (Contractor Name) and the quality and compliance of such material is the Main Contractor’s sole responsibility.

We invite you to refer to all our previous letters in which the root causes leading to the comments issued by the Engineer are clearly detailed and highlighted.

M/s xxx (Contractor Name) will not be responsible for the continuous reluctance of the Main Contractor to address the NCR issued by the Engineer on the Main Contractor’s own Free Issue materials or the consequence of the use of such Free Issue material by M/s xxx (Contractor Name) in all delivered Pods as instructed by the Main Contractor.

We urge you again to address constructively with the Engineer the pending NCR which relates to the tiles you have supplied for the project, and specifically tile type TL‐202.

Any attempt at Imposing a random and purely arbitrary deduction or penalty on to M/s xxx (Contractor Name) by attempting to shift the liability for the quality of the Free Issue material supplied by the Main Contractor onto M/s xxx (Contractor Name) is categorically rejected and constitutes a breach of our Subcontract Agreement for which the Main Contractor shall be solely liable.

Yours faithfully,

On behalf of M/s xxx (Contractor Name) LLC

xxx

Projects Manager