Reduction to Advance Guarantee Value
Our Ref: xxx
To : xxx Contracting Middle East,
Attention : Ms. xxx
: Project Director
Project : xxx Tower Views, Dubai
Subject : Reduction to Advance Guarantee Value
Dear Mr. Siraj,
With reference to the above subject, we have requested xxx to issue the necessary NOC for reduction of advance guarantee amount vide our letter reference xxx dated xxx.
You have now delayed the issuance of this NOC for seven weeks.
We bring to your attention that clause no. 24 (2) of the contract states that the advance guarantee amount shall be progressively reduced by the amount recovered from the Sub-Contractor as indicated in Payment Certificate (refer attached).
Based on above clause we have forwarded the request to reduce the advance guarantee value by AED xxx which is the recoupment of advance as per Payment Certificate No. 8 issued for the work certification till Feb-20.
The lack of issuing of the NOC by xxx is causing additional cost to Xxx and is further blocking our bank facilities, which is having a major disruption to our financing of new projects.
We therefore 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.
We once again request you to issue the requested NOC to reduce the advance guarantee value without any further delay.
On behalf of xxx LLC