Please be informed that we are presently engaged to execute a turnkey project work at SAIL, bokaro. The project is getting inormous delay due to other contractor or SAIL's supervision. Consequently we are still unable to obtain the clear front to start our job. So as to continue the contract we need to have a delivery Extension which was expired on 1st Feb, 2012. Accordingly we applied for that now got a incredible reply fom the clients as mentioned below:
May kindly submit undertaking as follows with regards to obtain the delivery period.
“We agree to SAIL, BSL’s reservation of right to levy liquidated damage at a later date and such levy of liquidated damage by BSL will not be disputed by us.”
Under this circumstances we are quite puzzled to hear this from the purchaser.
My Specific question is as follows:
1. What does it mean?
2. How will it affect at later stage?
3. What is cost implication?
4. Is there any hide intension to be imposed on us at later stage?
5. If we will not provide the above undertaking, then what shall going to be happened except delay in getting delivery extension?
Please give your valued reply at the earliest.
Thanks & Regards