128 Notice of Suspension arising from the late payment.doc

1、DIAR DUSHANBE PROJECT PHASE 1Ref No: SHY/DDP/PE1/12/128 Date: 11th November, 2012To: Mr. Sadettin Otluoglu Resident EngineerDAR Muhendislik Musavirlik A.S.AINI Street 24a “Markazai Tijori” CJSC “S.A.S”, 3rd FloorDushanbe, Tajikistan 734012Tel: +992(44)601 92 88RE: Contract ID: 55002348 Construction

2、of Diar Dushanbe Project - Phase1Subject: Notice of Suspension Our Ref.: SHY/DDP/PE1/12/101 Your Ref.: QDDP-IMS-SNH-121108-849_Dear Sir,Your letter has been duly reviewed and we hereby respond as follows:1. We agree with your statement “the submission of the Performance Security is a pre-requisite f

3、or the Advance Payment”. As you know that it took 2months to finalize the Performance Security since from the Kick-off meeting due to many reasons, which consequentially resulted into the unreasonable delay of effect of the Advance Payment. The letter we submitted should be served you as our kind re

4、minders to earlier effect the Payment so that we can mobilize various resources for the subject Project without any further delay. At the juncture, no final agreement seems to be likely reached due to the extra terms of assignment of Guarantee initiated by the Employer. 2. Although we have got the B

5、ank Loan for execution of the Work, the cash flow was being alarmed and no options but to reduce the rate of Work till 9th October 2012. You may understand that the financing charge is to be borne by the Contractors shoulder, which is not acceptable to us because the Employer shall make an advance p

6、ayment as an interest-free loan for mobilization as per Sub-Clause 14.2. Prior to 9th October 2012, we have enhanced the rate of the Work because the handing over of the Site took place on 21st September, which is extremely late against our desired timeline. To minimize any further delay and the Del

7、ay Damages to be potentially arisen, we enhanced to execute the earthwork by day & night shifts since from the taking-over of the Site to 9th October 2012. Thereafter, we reduced the rate of Work to the normal level and only night shift for excavation was forcedly ceased because of the severe shorta

8、ge of cash flow. Supposed that the Advance Payment had been paid to the Contractor earlier, the rate of the Work would be maintained to the practical extent. Hence, our kind reminders in this regard would not be construed as your statement “this constitutes a breach of Contract”. 3. As committed, we

9、 hereby confirm you that the Notice of Suspension has been immediately lifted upon the finalization of the Advance Payment. 4. Besides that, we hereby update you with the following information:l We have extended working hours for earlier completion of the site offices.l We have provided you with the

10、 vehicles as per the TS.l The technical proposal on how to execute the Work in winter season shall be submitted to you in due course and the progress would be reasonably maintained, if you approved. Assuring you of our best cooperation at all times, as always.Yours faithfully,Project Manager of * Corporation LimitedCC: Mr. Rakesh Pant, QD Project ManagerMr. Ahmet Ziya Akyil, IMS Project Manager