Date : xxx
Ref. No. : CC/269/CM/096
To : Mr. xxx, Chief Operating Officer xxx Hotel
Kind Attn : Mr. xxx
Project : 2B + G + 14 + Lower Roof Hotels Building
Plot No. : 373-1297 at Al Barsha, Dubai UAE
Subject : Response to your mail dt.12/06/18
Dear Mr.xxx,
We thank you for your above mail.
However we do not agree with you that we have delayed the project over 18 months as it is because of following factors, for which we are not responsible.
1. Our contractual construction period has been reduced from 16months + 3 weeks to 16 months only, without any reason. We have objected to it many times to consultants but not considered for extension of 21 days.
2. As per conditions of contract, our date of commencement should be from the last NOC received by us which was on 18/10/15. Therefore date of commencement of the project should be 18/10/15 & not 9/9/15, as fixed by consultants. (Extension for 39 days should be considered).
Therefore we are entitled for an extension of 60 days for item no. 1 & 2 above.
3. Because of faults in shoring work by M/s. SS Lootah. Dubai Municipality had stopped the work as penalty for 18 days and due to repair work done by SSL during our construction period, we were delayed by 33 days in total.
4. Nomination of most of the Sub-Contractors under P.S & P.C items were delayed between 241 days & 494 days.
5. ID details & kitchen details were issued to us in parts, between 22/03/16 & 17/10/17 ( i.e. within a period of 574 plus days) as well as additional work for gas tank and more changes after that delayed kitchen area and all day dining
6. Some of the revisions instructed to us have delayed completion of the project due to modification work as well additional work as listed below
- Dimming system at ground floor and first floor
- Addition of movable door in all day dining area
- Additional tiling works at first floor due to change in scope.
- Additional area construction for gas tank by closing opening at first floor which include all MEP and civil work.
- Issue of external signage and facade lighting also delayed our elevation work.
- Many additional work in MEP scope which include FF /FA and other MEP work
- Complete redesign and revision of Architectural, Structural and MEP at 14th floor.
All item from A to G as listed above hold our many activities due to additional work, modification with variation work as well as successor activities delayed, impact can be submitted till date if required.
7. Delay in approval of variations (more than 3.5 million Dirhams) have put us in financial problems as we are not able to claim any amount for such items despite being executed more than a year ago.
8. Many variation work which are awarded to sub-contractor, there are delay in issue the instruction or delay in approval of their variation.
9 The drainage line connection work delayed by DM and still interlock paving work and entry exit permission in progress and delayed by authority.
Please note that inspite of our many submissions for EOT claim, consultants have not approved it as they want submission in the format confirmed to us (which is in process of preparation). However, concurrent delay due to above reasons sums up to more than 20 months for which we are not responsible.
Please note that we have also suffered lot of delay due to:
I. Non contractual conditions agreed by M/s. Citymax in the nomination document approved for many of the sub-contractors.
II. Poor performance by the nominated sub-contractors, this becomes serious issue as they not only delay their scope but also delayed our successor activities and our progress impacted seriously.
We would also like to bring to your attention that we have suffered a lot due to following adverse conditions, which have also impacted progress of work.
- Despite holding Dubai Municipality permission for overtime working, we were not allowed to work in the night by police department because of complaints received by them from neighbors and additional cost for rental for site office too.
- Despite our efforts, neighbors did not spare their empty plots for temporary use for establishment of our offices, stores, workshops etc. which created lots of constraints to us.
Please note that we can submit all necessary letters/documents in support of our above claims/information, if you wish to review.
We also bring to your attention that
- Due to urgency for covering up the above delay, as much possible, we accepted deployment of labor contractors recommended by M/s. Citymax engineers in the last six to seven months for which payments are made beyond the costs we would have incurred if we had executed by our labors.
- We have executed many non BOQ items as well as under quoted items which have burdened us financially very much.
In consideration of additional preliminaries incurred by us for the delay period for which we are not responsible and extra cost of labors borne by us in the last 6-7 months, we request you to accept following:
1. Waving of any delay penalty against our EOT claim till TOC
2. Do not encash our bank guarantee due to delay by employer and authority as well changes by in approved document by employer with variation work too.
3. M/s. Citymax acceptance that VAT tax is not part of the lump sum contract amount
Please note that to honor your request and in anticipation of consideration of our request, we have decided to apply for civil defense inspection as soon as our portal is opened by DCD and also assure you to complete the project at the earliest.
We look forward to your positive response prior to application for Building Completion Certificate.
Regards
For xxx Contracting LLC
xxx
Managing Director
