Rejection to allegations of delay

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 :     Rejection to allegations of delay

References: a) xxx dated 21 June xxx

                      b) xxx dated 06 July xxx

Dear Sir,

We are in receipt of your letter ref: xxx dated 20 September xxx and record again our objection to your statements as detailed below.

Point #1:

Please refer to our earlier reply and to the Signed Subcontract agreement released 24 June xxx.

M/s xxx (Contractor Name) shall in no way be held responsible for the Contractor’s delays in releasing the order, nor accept that agreed contractual terms be ignored stating irrelevant industry standards.

Point #2:

Your allegations of delay in material submission are unfounded and rejected.

Point #3 -Procurement

We refer to our letter (a) above and we record that we have notified the Contractor on the risks of procuring materials from abroad even before receiving the Subcontract agreement.

We have also taken necessary precautions as we have initiated discussions with suppliers prior to the receipt of the Subcontract agreement and we have consequently started releasing purchase orders immediately upon receiving the signed Subcontract Agreement from the Contractor.

As additional support to the Contractor, M/s xxx (Contractor Name) has initiated the purchase orders and made payments to suppliers before the receipt of the Advance Payment from the Contractor in accordance with the terms of the Subcontract Agreement.

Point#4

You are referring to Baseline dates which are extracted from your Baseline Programme which shows the start of pods on 28 April xxx while the actual date of commencement of our Subcontract is 24 June xxx.

M/s xxx (Contractor Name) will not take any liability on delays generated by the Contractor on his own baseline programme.

The tentative programme submitted by M/s xxx (Contractor Name) was prepared taking into consideration the expected arrival of tiles and other pending items coming from overseas, in an effort to mitigate the delay in releasing the Subcontract.

Although we will continue to extend all our efforts to improve the chances of delivering pods to site in a time frame compatible with your site requirements, you remain solely responsible for delaying the release of the Subcontract Agreement to a date almost two months beyond what is stipulated in your own baseline programme.

M/s xxx (Contractor Name) shall not hold any responsibility neither direct nor indirect for any delay to the project resulting from such actions by ASC, and we further reserve our right to claim for an Extension of Time in relation to this baseline programme of 57 days.

All rights are reserved.

Yours faithfully,

On behalf of M/s xxx (Contractor Name) LLC

xxx

Projects Manager