Our Ref: xxx
Date: xxx
To : xxx Middle East,
P.O.Box xxx,
Dubai – UAE.
Attention : Mr. xxx
: Project Manager
Project : xxx Towers Project, Dubai
Subject: Re: Notice of Delay – Slow down and/or no Progress at site
Letter references referred:
Dear Sir,
We are in receipt of your letter Ref. No.: xxx dated 31 May xxx and respond as follows:
Firstly, we categorically reject your unsubstantiated allegations of delay on the part of Xxxx and your completely inaccurate statement that “there is low or no show of workforce and or material has been deployed or deliveries to site which is affecting progress severely”.
With the exception of Fridays, official holidays and times of mandatory confinement imposed by the UAE Government in the fight against COVID-19, our team has been and is continuously available at site and your statement that there is low or no show of workforce is totally incorrect.
Secondly, your statement that “The continued no show and or less progress in term of reduction in workforce and the slowdown of the progress of works is being linked directly by the Subcontractor to delayed payment issues is not in accordance with the Conditions of Subcontract” is completely fabricated.
Indeed, Xxxx has at no time reduced workforce on site and has maintained till this date all necessary staff to ensure the delivery and installation of pods, in due compliance with our contractual obligations and site readiness to take and allow installation of pod units.
Thirdly, we note your clear acknowledgement of and admission of delay in the release of our certified due payments. Despite your recognized default, and against your expectations, Xxxx has never reduced its workforce, and in any event has never fell short in executing its duties.
Fourthly, we refer you to the attached pictures for Tower C1 (Appendix 1). You will see that pod delivery is up to the maximum level it can reach.
It is also worth noting that we have observed that XXXX has slowed the overall site progress as you have failed for the past two weeks to remove the back-propping of the subsequent floor and raise the platforms to allow us to install additional pods in a new floor.
Additionally, we refer you to the attached pictures of Tower C2 (Appendix 2) which clearly shows that although pods are fully installed, XXXX has failed to complete any of the additional activities which you are claiming are delayed due to lack of installation of Pods including blockwork and associated trades.
We further refer you to our previous letters Ref. (a to f) which clearly demonstrate that Xxxx is not in delay and which address in detail all factors contributing to the current schedule of delivery of pods including:
- Your instruction to change the pod color scheme and its disruption to production and impact on the schedule as noted in previous correspondence.
- Your instruction to put floors on hold and shuffle ready pods to other floors.
- Your instruction to hold the delivery of readily available pods when these do not include a single material which is the marble top, and which is due to your complete failure to address a fundamental problem affecting your own project as highlighted in previous correspondence.
- All failures of XXXX to provide the prerequisites for Pod production recorded in our letter Ref. (a) above including your default in the release of our advance payment.
Based on the foregoing, we maintain our reservation of right to claim for an Extension of Time (EOT) equivalent to the same number of days by which our progress payment is delayed as prescribed under the terms of our Sub-Contract Agreement.
As a result, (i) the schedule of delivery is pushed by the same number of days, in addition to 84 days for the default in the advance payment as recorded in previous correspondence; and (ii) Xxxx will not be held liable for any impact the above may have on the production or delivery of pods, or for any direct or indirect impact on the site progress. The liability resides with XXXX.
We also reserve our right for all other EOT claims related to change of design, delivery of free issue material, etc. as recorded in our letters referenced above.
Finally, we refer to our letter UP‐1663/LET‐1021‐xxxx/YR‐at dated 2 June, xxxxxxxx and reiterate that we reserve our right to suspend the execution of the Sub-Contract Agreement until full payment of our outstanding dues in reference to Article 247 of the UAE Civil Code and/or to terminate the Sub-Contract Agreement in view of your uncontested and unjustified default pursuant to Article 272 of the same Code.
Should you maintain in default and/or not get back to us with any reasonable suggestion or attempt to amicably settle the ongoing matters, we will have no choice but to proceed with taking any and all actions against you.
This is for your information and immediate action.
All rights are reserved.
Yours faithfully,
On behalf of xxx LLC
xxx
Project Manager
