Response to Contractor’s 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 :     Response to Contractor’s allegations of delay

References: a) xxx dated 21 June xxx

                      b) xxx dated 06 July xxx

Dear Sir,

We refer to your letter ref: xxx Dated 20 October xxx and again and for, the last time, record our objection to your sustained and unfounded notices of delay.

We have received the signed Subcontract Agreement on 24 June xxx. The contractual commencement date of our Subcontract is the date the Subcontract is released.  The Contractor’s baseline programme which was intentionally withheld from M/s xxx (Contractor Name) until after the Subcontract was released, shows a start date of Pods of 28 April xxx.

How do you expect M/s xxx (Contractor Name) to invest millions on your job while you unilaterally delay the release of the Subcontract Agreement to M/s xxx (Contractor Name) by more than two months?

M/s xxx (Contractor Name) gave you numerous warnings that finishing items on the project are long lead items that are procured from overseas during a period of pandemic. We raised serious concerns during the month of May xxx when we noted ongoing delays in releasing the Subcontract Agreement, all of which you have chosen to ignore. You may refer to email dated 25 May xxx from our commercial team, and emails dated 27 May xxx and 9 June xxx from our Management citing the urgency of releasing the order and the risks associated with overseas supply. (Appendix 1)

You are responsible for your own actions, and no industry practice obliges a company to invest in a project without a signed Contract as you are suggesting. While we have continuously done whatever we can to support you on your project, you have chosen to continually harass us with notices of delays that lack any contractual foundation.

This evidenced bad faith in the execution of the Subcontract agreement is no longer tolerated. We therefore invite you to engage in a collaborative approach moving forward and withdraw these notices of delay to avoid the most undesirable consequence on the project moving forward.

All our rights are reserved.

Yours faithfully,

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

xxx

Projects Manager