Reply to Notice 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 : Reply to Notice of Delay.
Dear Mr. Wissam,
We refer to your letter ref: xxx dated 10 April xxxx and reject your Notice of Delay and the content of your letter in its entirety.
Your recorded statements are baseless, unsupported, and un-factual.
Programme and release of Contractor’s Free Issue Material
The time of first pod delivery to site and its prerequisite milestones are clearly highlighted in the mutually agreed programme which M/s xxx (Contractor Name) has submitted on 27 Dec xxxx (appendix 1). This programme clearly states that the first pod delivery to site will be 22 days from arrival of the Contractor’s Free Issue Materials to the factory, and 42 days from the approval of the pod drawings which is required prior to start of mold fabrication and prior to the order customized items.
Your statement that all Free Issue Material was received on 21 March xxxx is factually incorrect. Moreover, there is no due date of 4 April xxxx on any programme issued by M/s xxx (Contractor Name). You are unilaterally mis-reporting dates to the Client and the Engineer in the progress meeting and you are fully and solely responsible for these deliberately inaccurate statements.
Please refer to the attached sample delivery notes (appendix 2) which clearly shows that your material was received in our factory well past the stated date. Furthermore, till today, we still have not received the balance Free Issue material like washbasin mixer and bottle trap which we informed several times verbally and by emails dated 24th March, 4th, 15th & 18th April respectively (appendix 3, 4, 5 & 6) which are necessary for the completion of the pods.
We also further remind you that due to ongoing changes in the Engineer’s design, drawings were only released on 28 March xxxx by your team for Pod types 1 while for pods type 2 and 3 drawings have only been released on 15 and 18 April xxxx, respectively.
M/s xxx (Contractor Name) is not responsible for delays resulting from your own failure to deliver the Free Issue Materials in accordance with the terms of the Contract, or for the ongoing changes in the bathroom designs. Both of which are absolutely necessary for M/s xxx (Contractor Name) to start production of pods, and both of which are delayed for reasons not attributable to M/s xxx (Contractor Name). Therefore, your notice based on Clause 22.1 is void and nil.
In delaying the release of Free Issue Material you have failed to comply with your own site programme, and you are solely responsible of any consequence of such actions on your site.
Moreover, a resulting consequence of your delaying the release of the Free Issue Material and drawing approvals has pushed the expected start of production into the Holy Month of Ramadan during which our available factory capacity is limited as a result of the reduced labor hours in effect during this period.
Accordingly, we reserve our right to claim for time as stipulated under Clause 22.3.
Approvals prior to delivery
M/s xxx (Contractor Name) has provided you with all the support possible to mitigate your delays, however, moving forward, we refer you to Subcontract clause 14.1 “the subcontractor works shall be inspected and approved prior to delivery and installation on site and subsequently approval is considered final.” Therefore, we request you to inspect the pods in the factory and provide written approval prior to further deliveries.
Contractor’s default in releasing the advance payment.
We refer to our letter xxx dated 05 April xxxx and remind you that you are in default of your payment obligations in accordance with the Payment Terms – Advance Payment, stipulated in our Subcontract Agreement No. GC154-011 dated 20 December xxxx.
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