Reduction to Advance Guarantee Value
Our Ref: xxx
Date: xxx
To : xxx Contracting Middle East,
P.O.Box xxx,
Dubai, UAE
Attention : Ms. xxx
: Project Director
Project : xxx Tower Views, Dubai
Subject : Reduction to Advance Guarantee Value
Dear Mr. Chen Haizhang,
We refer to your letter Ref. xxx dated xxx on the captioned subject and we reiterate that we do not agree with your interpretation of the facts and the text of our Sub Contract agreement.
We refer again to the text of Clause 24.0 (2);
“The Advance Payment Guarantee shall be progressively reduced by the amount recovered from the Sub-Contractor as indicated in the progress payment certificates.”
We refer also to the requirement of the issuing bank (please see attached) that states that the reduction to the guarantee value is subject only to the receipt of a work certification and not the actual payment.
Xxx is requesting a NOC from xxx due to your ongoing failure to:
- Issue original payment certificates duly signed and stamped
- Failure to mention advance guarantee details on work certifications.
You are intentionally and unilaterally taking a stance that is directly causing Xxx additional cost both in terms of direct costs associated with an unreduced guarantee as well as causing additional damage by blocking our financial facilities without valid reasons.
In light of the above, please issue the NOC as requested.
Should you choose to not issue this NOC, we hereby request you to immediately issue the original copy of the latest payment certification duly signed and stamped incorporating all details of advance payment guarantee to allow us to raise the same to our Bank.
We again notify xxx that all additional cost and damages resulting from the above delays which are not in accordance with the terms our Subcontract Agreement shall be claimed as additional cost to CSCEC.
On behalf of xxx LLC
xxx
Project Manager