CCA (Coll.) Ltd.

Construction Contracts Advisors

(Collaborated) Ltd.

/ . , . 22 , 2008 - ... & Windsor Brokers Ltd. - .

WINDSOR BROKERS LTD.

1.

MDA ( ) , : ": Windsor Brokers Ltd's New Offices, Limassol. Final Account - Interim Discharge of Debt Owing to the Contractor. "

2.

: " We would like to confirm a verbal agreement reached with yourselves as the Quantity Surveyor under the Contract, according to which, in the light of the fact that upon Practical Completion of the above Works there had been accumulated an undue or excessive amount of executed work and/or damages which had not been valued and certified and paid for, there should be an immediate release of a lump sum of 85.430 (C 50.000) prior to and pending the full and final processing and resolution of the Final Account and all outstanding or unresolved financial matters. You had indicated and it was agreed that this payment should take effect forthwith and in any case within the first half of the month of January 2008, which has now expired. We are therefore standing by and awaiting the issuance of an Architect's Interim Payment Certificate to that effect, as well as the finalisation on your part of the Account's audit and completion of all relevant checking processes, so that there may be comprehensive settlement and agreement the soonest possible. Again, you had indicated that the timescale for this exercise is placed around the end of the current month of January 2008. This completion is as important to our company in terms of cashflow as the above-mentioned agreed immediate release. Furthermore, kindly note that based on a true construction of the Contract's terms and conditions, any outstanding amount owing for executed work, whether of the original Contract's scope or otherwise extra and/or additional quantities and items, is to be considered as a debt to the Contractor if it remains pending from the end of the time cycle between its physical execution on site and its valuation and certification as same should have taken place contemporaneously. Under the terms of contract there is no applicable case where valuation and certification by the Contract Administrator and his support consultants should not have taken effect, only cases where there is withholding of monies on proper and justifiable grounds (other than the contractual retention) related to defaults of the Contractor. In all other instances measurement and certification are always due, even if they have to take
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CCA (Coll.) Ltd.

Construction Contracts Advisors

(Collaborated) Ltd.

/ . , . 22 , 2008 - ... & Windsor Brokers Ltd. - .

place proactively by the Contract Administrator so as to discharge the Employer's financial obligations, seeing that there are contractual mechanisms in place for there always to be available an updated, or contemporaneous, valuation of the Works, irrespective of any of the Contractor's own applications. Consequently, we would like it to be placed on record and notified once again that we reserve fully our rights and entitlement to be reimbursed our interest and finance charges, given that all of the executed work ought to have been certified and paid within the contemporaneous time cycles as explained above, and in any event at times which were significantly earlier than the current period, or even the point in time of Practical Completion of the Works. Please note that, indeed, a large part of our claimed damaged in this respect has already been incorporated in our Claim for direct loss and/or expense, submitted as part of the overall Final Account now before you for examination. " 3. Close, and circulation.