Damai City Sdn Bhd (DCSB), a wholly-owned subsidiary of KSK Land, has been ordered to pay RM97.8 million to GDB Holdings Bhd’s wholly-owned subsidiary, Grand Dynamic Builders Sdn Bhd (GDBSB).
The adjudication decision, made under The Construction Industry Payment and Adjudication Act 2012 (CIPAA 2012), was received on July 26, 2023.
GDBSB initiated the adjudication proceeding against DCSB on November 10, 2022, well before the final determination of the high-profile 8 Conlay project.
Apart from the awarded sum, DCSB is also liable to pay an interest rate of 4% per annum on the adjudicated amount, calculated from the date of the decision until full payment is made.
Furthermore, the adjudication decision mandates Damai City to bear the claimant’s costs of RM30,000 and compensate RM30,300 as the claimant’s portion of the adjudication costs.
In response to the adjudication decision, DCSB has been directed to pay RM30,300, reflecting the sum previously paid by the claimant for the adjudication costs incurred by DCSB.
It is noteworthy that prior to the adjudication decision, DCSB had made a partial payment of RM60 million to GDBSB.
However, this payment did not include the late payment interest, which was factored into the overall adjudicated sum now awarded to GDBSB.
The 8 Conlay project, with an estimated gross development value of RM5.4 billion, features the world’s tallest “twisted” twin tower residence.
The project had faced delays in the past due to payment issues, leading to GDBSB’s suspension of all works in August 2022.
On April 19, KSK Land, the developer of the luxury 8 Conlay project, decided to terminate its contract with GDBSB.
GDBSB claims wrongful termination from the 8 Conlay project and contends that the termination lacked compliance with contractual procedures and notices.
GDBSB exercised its right to determine the contract and issued a notice of determination to DCSB on April 19, 2023.
The dispute centers around DCSB’s alleged failure to make payments for certified sums due under interim certificates.
GDB vows to defend its claim against the termination.