Draft Letter - Subcontractor's Cessation of Works Under General Requirements

XXX/OP-7174-L-446-19
Page 1 of 3
25 June 2020
XXX
Municipality of XX,
Province of XXX, Philippines
Attention : Mr. XXX

Project Manager
Subject : Subcontractor’s Notification of Cessation of Works under Section

1000: General Requirements
XXX XXX Airport Construction Project
Dear Mr. XXX,
The Subcontractor refers its concern to the Contract BOQ lines under Section 1000 General
Requirements which the Subcontractor has hitherto continuously providing to the Engineer and
the Employer thru the Contractor, whereas follows:
a) Section G-1115: Contractor's Facilities
Item No. 3 Provision of 2 persons each at 6 entrances of Barangay Road for a period of
12 months;
b) Section G-1120: Employer's and Engineer's Facilities – Office Equipment
Item No. 26 Lease: Multi-task Copy Machine with accessories;
c) Section G-1120: Employer's and Engineer's Facilities – Attendance upon the
Engineer's Staff During Construction Period
Item No. 47 Survey Assistants (3 persons)
Item No. 48 Laboratory Assistants (5 persons)
Item No. 49 Chainman (4 persons)
Item No. 50 Drivers including stand-by drivers (10 drivers)
d) Section G-1130: Environment Management
Item No. 1 Water Quality - Seawater
Item No. 2 Water Quality - Ground Water
Item No. 3 Air Quality
Item No. 4 Noise
Item No. 5 Solid Waste
e) Section G-1210: Project Equipment - Maintain, repair, provide fuel
lubricants replacement tires and other parts - (per month of Vehicle use
-vm):
Item No. 6 Type-I: Sedan (monthly average mileage: 3000 km)
Item No. 7 Type- II: Rough Terrain (monthly average mileage: 3500km)
Item No. 8 Type-III: Micro Bus (monthly average mileage: 3600km)
Item No. 9 Type-IV: Motorcycle (monthly average mileage: 3600km)
This is to hereby notify the Contractor on the Subcontractor’s cessation of the abovementioned
works due to the following reasons:
1. Delayed Payments from the Contractor
The Parties are fully-aware on the Subcontractor’s full compliance with its contractual
responsibility to the Contractor for the abovementioned works regardless of the
Contractor’s cognitive manner in withholding the corresponding payment certificates for
the Subcontractor pursuant to Sub-Clause 14.6 Issue of Interim Payment Certificates.
The Subcontractor has submitted its request to the Contractor for the Progress Billing
No. 15 Interim Payment No. 16 under correspondence no. XXX/OP-7174-L-344-19
XXX/OP-7174-L-446-19
Page 2 of 3
dated 04 July 2019 (Attachment-1) which, as of the date of this letter (90 days
pending), the Contractor has not yet acknowledged.
Further to above, the Subcontractor’s progress billing, covering the period from 01 June
2018 to 31 July 2018, was just the Contractor’s latest approval under its
correspondence no. XXXX/XXX-2019-003 dated 10 January 2019 (Attachment-2), which
is 265 days of no further issuance from the Contractor. Noting that the Subcontractor
has submitted its succeeding requests with supporting documents to the Contractor,
however, these has never responded and has remained unheeded.
2. Quantities continuously exceeds beyond the approved BOQ

In relation to the Reason No. 1, the Subcontractor’s submitted progress billing No. 17
Interim Payment No. 18 under its correspondence no. XXX/OP-7174-L-437-19 dated 25
September 2019 (Attachment-3) has included the items that the Subcontractor is
concerning hereto. As such, it is noted that as of the latter progress billing (IPC No.
18), the measured quantity for such items has thereby exceeded from the approved
revised quantity by Engineer (see Attachment-4). By 28 November 2019, it is
forecasted that the quantities for such concerned items will furtherly exceed without
any corresponding issuance of payment certificates, even if the Subcontractor will
submit its progress billing.
3. Subcontractor’s Progress and Completion

As the project is already operated and occupied by the Employer; and the
Subcontractor has reached its completion progress of 99.86% (Attachment-5), the
Subcontractor intends to complete all remaining works including the closing out of
punchlist items and the demobilization of its remaining resources by the end of
November 2019 (expiration date of Defects Notification Period).
In view of the above, the Subcontractor hereby submits its notification and clarification:
1) Subcontractor’s cessation of the works concerning hereto and under Section 1000 General
Requirements by the end of November 2019; and
2) Subcontractor’s recommendation for the Contractor to solely acquire the responsibility with
the Engineer and Employer for such works under Section 1000 General Requirements as
itemized in the first part of this letter and as follows:
a) Section G-1115, Item No. 3;
b) Section G-1120, Item No. 26, 47, 48, 49, 50;
c) Section G-1130, Item No. 1, 2, 3, 4, 5; and
d) Section G-1210, Item No. 6, 7, 8, 9, 10
3) Attachment-4 – Summary of Component 1: General Requirements, shows that the items
have already exceeded the revised quantities under Variation Orders 1 to 5. Hence,
Subcontractor has complied with its responsibility for these items.
Nevertheless, the Subcontractor’s decision shall not prejudice its entitlement to any financing
claims (e.g. payment certificates) under the Construction Subcontract Agreement.
The Subcontractor trusts that the Contractor will find the above acceptable.
Very truly yours,

XXX Corporation
Melvin A. Lucas
Project Manager
Enc: Attachment 1- XXX/OP-7174-L-344-19 dated 04 July 2019

XXX/OP-7174-L-446-19
Page 3 of 3
Enc: Attachment 2- XXXX/XXX-2019-003 dated 10 January 2019

Enc: Attachment 3- XXX/OP-7174-L-437-19 dated 25 September 2019
Enc: Attachment 4- Summary of Component-1: General Requirements for Subcontractor’s Cessation
Enc: Attachment 5- Weekly Report dated 30 September 2019

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XXX/OP-7174-L-446-19

Attention : Mr. XXX

Subject : Subcontractor’s Notification of Cessation of Works under Section

Dear Mr. XXX,

2. Quantities continuously exceeds beyond the approved BOQ

3. Subcontractor’s Progress and Completion

Very truly yours,

Enc: Attachment 1- XXX/OP-7174-L-344-19 dated 04 July 2019

Enc: Attachment 2- XXXX/XXX-2019-003 dated 10 January 2019

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