Receipt of postdated Advance Payment
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 : Receipt of postdated Advance Payment.
Dear Sir,
We have submitted the Advance Payment Bank Guarantee and Tax Invoice to your head office on 02 March xx. Surprisingly, the due advance payment cheques collected from your office on 31 March xx were postdated 28 April xx (10% of Advance value) and 31 May xx (5% of the Advance value). This is not in line with the terms of our Subcontract.
In accordance with the terms of our Subcontract Agreement No. GC154-011 dated 20th December xxx, Subcontract Price & Payments, Payment terms, Advance Payment 15%, “10% upon Prequalification, Shop Drawings, Mock-up and Material Approval against Bank Guarantee issued to Al Ghurair Contracting & Engineering Works LLC & 5% before the commencement of the delivery to the site”.
The 15% advance payment is now entirely due and should be released with current dated cheques.
Consequently, M/s xxx (Contractor Name) will not be responsible for any impact the above may have on the production and delivery of pods to site, and we further reserve our rights under the Terms of our Subcontract Agreement for an Extension of Time (EOT) equivalent to the same number of days by which the full amount of advance payment is delayed.
Yours faithfully,
On behalf of M/s xxx (Contractor Name) LLC
xxx
Projects Manager