Reply to your letter about slow progress and our disagreement

Date:               xxx

Ref:                  xxx

Kind Attn         :Mr. xxx

Project:            2B + G + 14+ Lower Roof Hotel Building on Plot No. xxx at Al Barsha 1st, Dubai

Dear Sir,

With reference of the above we would like to reply in line of your communication and we disagree with the content of your communication on the base of the following:

1. As per our previous communication for performance of nominated sub contractor and they are not performing at site and delaying the project as well as our scope of work as per our communication letter ref. CC/AP/863/18.

2. We also informing you that we are bearing an additional cost for the rental equipments and multiple times for building cleaning/ housekeeping works including the re-works for the variation, etc. We will assess the cost impact and we will submit to your office.

3. We also like to intimate you that many of our sub-contractors are not performing due to some payment issue. They discuss with the Citymax officials in the meeting held on last Thursday (May 24, 2018). They have informed us directly and indirectly regarding the payment matters because most of the subcontractors are working on three projects assigned by Citymax and they have not been paid. So, they are holding our project work due to delay in Employer’s payments in other projects. This issue is faced by many subcontractors including NAFFCO, Destec, Metalu (ref. CC/METALU/034, CC/METALU/035) and other interior subcontractors.

4. There are many variations works submittals by subcontractors (Homecenter, Destec, MAKSTYLO, Denolex, Gulf Gas & BMTS, etc.) which have direct impact on our project progress and resulting in an increase in the coordination required and holding our successor activities.

5. Our legitimate variations, which was submitted in 2015, 2016, 2017 & 2018, has not been approved. We have a serous concern for multiple submissions and it might pose a high risk in future because after completion we bear the risk for endless argument, if we complete the project without approval of variation. Many of them are rejected and we disagree with the decision regarding the same.

6. They are many approvals and decisions are still pending from your end/employer. Here our written communcations as follows: CC/AP/849/18, CC/AP/870/18, CC/AP/854/18 and CC/AP/879/18.

7. There is an issue of the high cost of the sub-contractor and man-power, which is the major reason for the cost overrun. Pressure to complete the project has made the situation worse due to time restrictions, which forced to crash the schedule to meet the subcontractor requirement / late decision / approval / nomination and variations.

8. Even the progress of submission / rejection and re-submission of invoices (ref. CC/AP/873/18) is a very long process and now we are instructed to remove the full variation claimed which is non-contractual and our legitimate right being reduced for the work completed and our request for partial payment. Due to that, the cost overrun is observed in accounts and decision to be taken immediately to avoid the future argument for approval for the work completed.

9. Project extension time has not been granted till date and we have our pending claim for the time and cost variation. We will not accept any penalty in future due to decision pending.

10. Issue of the late / pending nomination of subcontractor delayed the scope awarded to subcon and our successor activities as well as delay in progress (ref. CC/AP/870/18), ( CC/AP/880/18), (CC/MAKSTYLO/21)

11. As per mutual understanding in contract for subcontractor payment and salaries of the staff members, an issue of late payment release is faced due to your office management team, which also have direct impact on high turnover and productivity rate. This has resulted in many strikes held at construction site and delaying the overall progress. 

12. Civil Defence Inspection Application being delayed because of the required certificate / document awaited from subcontractors and their work is still pending by MAKSTYLO, Metalu, Destec, NAFFCO, BMTS, Danway, etc.

So, by considering all the facts mentioned above, we are not accepting any blame of the project delay because of the many key factors influenced from the client’s end.  This has been the root cause of the project delay.

This is for your kind intimation and non- acceptance of any blame for the project delay.

Best Regards

Regards,

For xxx Contracting L.L.C.

xxx

Project Manager