Questions & Answers
Performance of contractual obligation and delay in the process
A Sub-Contractor (SC) holds/stops the work highlighting Article 246 & 247 [UAE Civil Code] due to payment delayed (Advance & Interim Payments) by the Main Contractor (MC).
But the Main Contractor's concern is the document required to process Advance Payment [i.e. Advance Bank Guarantee - ABG] was not submitted on time & LC draft issued to SC was not agreed on time due to several arguments on some of its content.
The MC paid the SC Advance Payment in 90 days from receipt of ABG highlighting the delay in reallocating the fund due to delay in ABG submission & LC draft agreement.
Whose argument will withstand moving forward if MC intends to impose delay penalty on SC?
Please advise.
Thank you
Hello,
Please note that without seeing the original contract between the MC and the SC, I may not be able to advise in the most adequate manner.
In accordance with the aforementioned facts, the SC has stopped the work due to non-performance of the MC's contractual obligation.
However, the SC did not perform his part in providing the ABG and due to negotiation, the LC was delayed. By law, both parties have the right to take steps as they deem fit in accordance with the contract.
I may be able to advice more appropriately if I can see the contract, accurate information on dates and delays in the ABG and LC draft.
You may forward me this information at:
khubaib@jmadvocatesuae.com
Mobile/Whatsapp: 0529349402
Best regards,
Khubaib Naeem
