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 to Restart the Production and Delivery of Pods for xxx – 4
Reference: a) M/s xxx (Contractor Name) letter xxx dated 09 December xxx
b) M/s xxx (Contractor Name) Letter xxx dated 12 December xxx
Dear Sir,
We are in receipt of your letters reference: xxx dated 19 January 2022 & xxx dated 28 January xxx and we would like to note the following:
- Tile shade & tiling status
We note your confirmation that the tile shade matter is resolved with the Engineer/Employer and the used tile shade is acceptable by them.
We also record that following your instruction received on 19 January xxx via letter ref: xxx, M/s xxx (Contractor Name) has proceeded with the remaining tiling works and currently all pods which are under production are completely tiled with the same tile shade used in previously delivered pods.
We have resubmitted all the inspection requests that were previously rejected due to tile shade since more than one week and according to your confirmation that the tile shade issue is resolved, these inspections are considered approved.
If the tile shade issue was found to be not resolved, the Main Contractor will be responsible for any abortive works for the pods delivered to site. Any change or modifications that may be required to the pods not yet delivered will have time & cost implications.
- Marble approval, delivery & certification
We note your confirmation that pods rejected due to marble will be certified and we would like to inform you that as of December xxx, 91 pods were delivered to site and the only reason of rejection is marble since the tile shade matter is resolved.
We have received on 27 January xxxx your certification for the works done till November xxx and that Payment Certificate PC#3 was holding a short certification amounting AED xxxx which is around 25% of the total amount invoiced till November xxx.
Since December xxx certificate is not released, you are requested to release the payment certificate for the 91 pods with immediate effect considering 100% the value of our IPA to revert your short certification.
We further draw your attention that we have not yet received all the marble sets required to complete the production and the sets we are receiving are not being as per the production & delivery sequence your site needs. Such delay in arrangement of the Free Issue Material and out of sequence delivery disturb the production and impact the output and affect the delivery of pods to site.
We urge you to supply us all the remaining marble sets required by 31 January xxx to allow for a stable production process.
- Letter of Credit & overdue payments
We note your confirmation that the Letter of Credit will be issued by the latest 04 February xxx . However it must be noted that there are two payments certified for October & November xxx with a total net payable of AED xxx that must be settled with a Current Dated Cheque (CDC) on immediate basis as these payments are currently overdue due to the delay in opening the Letter of Credit and cannot be covered under L/C anymore.
- Schedule
M/s xxx (Contractor Name) has resumed production and delivery of pods to site already, however the schedule you shared and which you are asking us to follow is not accepted because it does not take into consideration the shortage in the supply of marble to M/s xxx (Contractor Name).
M/s xxx (Contractor Name) production and deliveries depend on the marble arrival to our factory and pods cannot be produced unless all the materials are available. M/s xxx (Contractor Name) will continue to provide the best output possible with the current circumstances & late deliveries of Free Issue Material but we will only be able to provide you with a schedule once you deliver all the marble sets to us.
If you insist on having a detailed schedule of pods delivery, you are requested to share the estimated arrival dates of each marble set and accordingly we will prepare a tentative plan that depends on the arrival of marble dates.
- Summary
In conclusion, we urge you to release the certification for delivered pods, settle our overdue payment, supply the remaining marble sets, and open the letter of Credit before 4 February xxx and M/s xxx (Contractor Name) will do the maximum to support you with the deliveries.
However if you fail to achieve any of the above, we reserve our rights to take the action that we find suitable which may include stopping the production and delivery of pods.
M/s xxx (Contractor Name) will not be held liable for any direct or indirect impact on the site progress and work completion if it occurs due to your defaults on your financial obligations or your delay in supplying the Free Issue Material, these liabilities reside with ASCC.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager
