We are a MEP subcontractor in one project , it’s menthioned in the contract agreement that main contractor will pay us 15 % as advnace payment agains bank gurantee with same.
We already submite the bank gurantee and we got the advance payment but now after more than one year the gurantee is already expired and main contractor asked us to renew the bank gurantee for one more year due to some delay in the project and we refuse to extende the validity of the gurantee becuase our bank refuse to do so . Now the main contractor sent us a letter saying that he will going to stop all our due payments in the project in case of we don’t renew the advance payment gurantee .
Does he entitled to stop paying us if we didn’t renew the gurantee ? even the gurantee from the begining is issued for only one year and it impilicty clear that we will not go to renew it in the futur.
So if the Main contractor stop all our due payments in the project is it give us a right to stop or suspend our work in the project untill he release our old payments?
We already submite the bank gurantee and we got the advance payment but now after more than one year the gurantee is already expired and main contractor asked us to renew the bank gurantee for one more year due to some delay in the project and we refuse to extende the validity of the gurantee becuase our bank refuse to do so . Now the main contractor sent us a letter saying that he will going to stop all our due payments in the project in case of we don’t renew the advance payment gurantee .
Does he entitled to stop paying us if we didn’t renew the gurantee ? even the gurantee from the begining is issued for only one year and it impilicty clear that we will not go to renew it in the futur.
So if the Main contractor stop all our due payments in the project is it give us a right to stop or suspend our work in the project untill he release our old payments?