M/s xxx Building Contracting LLC
PO Box xxx, Dubai, U.A.E
T: xxx | F: xxx
Email: xxx
Attention : MR. xxx
Project Manager
Project : xxx Sky Tower – Umm Ramool
Subject: Unavailability of Xxx (Name of the Subcontractor) Representative on Site and Non-Compliance to Subcontract Liabilities
Dear Sir,
We acknowledge receipt of your letter reference xxx dated 24th January xxx regarding the alleged unavailability of representative at site and to your reference to several letters regarding the Advance Payment in which we refute your statement that it was delayed due to the delayed submission of the advance payment guarantees, moreover, your statement that the advance payment will only be due on 21st January xxx is not valid as you are referring to progress payment.
Please be informed that in accordance with the Contract the advance payment is against the provision of unconditional Bank Guarantee, therefore, once the Bank Guarantee is provided the same has to be released immediately. This is in accordance with the Construction norm and being one of the well reputed company in the market, we do believe that DECC is very much aware of this contractual matters.
Further to the above, we refute your statement that Xxx (Name of the Subcontractor) Interiors is responsible for the delay, please be informed that to date there is no mutually agreed program by both parties, hence Xxx (Name of the Subcontractor) Interiors is not responsible for any delay. Please refer to Clause 10 – Contract Duration, where it was mandatorily stated that “the second party shall carry out the work and hand it over to the first party as per the mutually agreed approved Construction program…..” therefore in the absence of the mutually agreed program, Xxx (Name of the Subcontractor) Interiors cannot be responsible for any delay.
In addition, we would like to refer you to Clause 8 – Article 3 (First Party Liability), where it was stated that any delay caused by the First Party, Consultant or Client or delay in payment will entitle extension of the second party duration of Subcontract Works, hence, the delay in release of the Advance Payment entitled us for extension of time of completion of the Subcontract works.
Notwithstanding of all the above issues, due to our strong and professional relationship with DECC and despite the absence of the Advance Payment, Xxx (Name of the Subcontractor) Interiors has complied with the submission of the necessary shop drawings, material submittals and carried out the first mock-up at our own expense, however, the continuous delay in the release of the Advance Payment has affected our performance to comply with your recent requirements, and being in the market for decades, DECC should also be aware of such situation.
Meanwhile, while we await the release of the Advance Payment, we will proceed in the completion of the mock-up, however, in order to not affect further our performance in carrying out our contractual obligations, we request your assistance in the immediate release of the Advance Payment, as any further delay in the release of the same will affect our performance of our contractual obligations in which we shall not be held responsible. We reject any penalty that will be imposed on Xxx (Name of the Subcontractor) Interiors and we reserve our rights to claim for our entitlement in accordance with the Contract Agreement and the applicable laws.
This is for your information and necessary action.
Sincerely Yours,
For Xxx (Name of the Subcontractor) Interiors LLC
xxx
Commercial Manager
