Civil Engineering Reference
In-Depth Information
Letter 139
To employer, if the advance payment is not paid on the due date
This letter is not suitable for use with MW, MWD or GC/Works/1
(1998).
Dear
Under the provisions of clause 4.8 [
substitute '4.5' when using IC or ICD or '4.6'
when using DB
] an advance payment in the sum of [
insert the amount
] was due
to be paid to us on the [
insert date
] as stated in the contract particulars. That is
[
insert number
] days ago. We furnished a bond on the [
insert date
]inthe
standard terms from a surety which you have approved.
Your failure to provide the advance payment is a serious breach of contract.
We were relying on the payment to assist our funding of this project. Indeed,
the offer of such payment was the deciding factor in deciding to enter into this
contract.
We are advised that we are entitled to damages for your breach and that, if it
continues for more than a few days, we may be able to treat it as repudiatory,
because it will effectively prevent us from proceeding with the Works. In that
case, we would be able to accept the breach and bring our obligations to an
end. Hopefully, that will not be necessary and we look forward to receiving
your payment by return.
Yours faithfully
