- The arbitration notice was filed in response to GDBSB’s notice of demand amounting to RM102.07 million on April 25, which has to be paid on or before May 2.
KUALA LUMPUR (May 2): Construction group GDB Holdings Bhd’s unit Grand Dynamic Builders Sdn Bhd (GDBSB) has been issued with a notice of arbitration by KSK Land Sdn Bhd’s wholly owned subsidiary Damai City Sdn Bhd (DCSB), over the 8 Conlay project termination dispute.
According to a Bursa Malaysia filing by GDB on Tuesday (May 2), DCSB claimed for costs and expenses incurred for the delayed completion of the project. The claims included loss of profits, reputation, and general damages for breach of contract.
The arbitration notice was filed in response to GDBSB’s notice of demand amounting to RM102.07 million on April 25, which has to be paid on or before May 2.
GDBSB was appointed as the main contractor for KSK Land’s flagship 8 Conlay mixed development project after GDB secured the letter of intent in October 2020.
However on April 19, 2023, KSK Land terminated GDBSB as the main contractor for the project citing failure to achieve agreeable solutions to various disputes relating to construction site matters over a prior nine-month period.
GDBSB said in Tuesday’s filing that it could take legal action against DCSB if it failed to pay the outstanding amount of RM102.07 million, including commencing adjudication proceedings against DCSB under the Construction Industry Payment and Adjudication Act 2012.
GDBSB could also start arbitration proceedings against DCSB.
At the time of writing, GDB shares traded unchanged at 15 sen per piece, valuing the company at RM140.63 million.