GDB gets court enforcement on RM83 mil adjudication award involving 8 Conlay project payments

• The adjudication decision was secured earlier in February this year and comprised RM76.55 million for outstanding certified sums and uncertified sums, plus retention sum and interests, RM5.93 million in late payment interest and RM158,844.80 for the costs of adjudication proceedings.

KUALA LUMPUR (Nov 6): Construction company GDB Holdings Bhd (KL:GDB) has secured a court order enforcing an RM83 million adjudication award in its dispute with KSK Land Sdn Bhd over payments following the developer’s termination of its unit as the main contractor of the 8 Conlay project.

Its unit Grand Dynamic Builders Sdn Bhd's (GDBSB) application to enforce the adjudication decision was allowed by the Kuala Lumpur High Court on Thursday, according to a bourse filing.

Meanwhile, KSK Land unit, Damai City Sdn Bhd's application to set aside and stay the adjudication decision was dismissed by the court.

“As a result of the above decisions and by virtue of Section 28 of the Construction Industry Payment and Adjudication Act 2012, the adjudication decision has the same force and effect as if a judgment or order of the High Court to enable the enforcement of the said adjudication decision,” GDB said.

The adjudication decision was secured earlier in February this year and comprised RM76.55 million for outstanding certified sums and uncertified sums, plus retention sum and interests, RM5.93 million in late payment interest and RM158,844.80 for the costs of adjudication proceedings.

GDBSB’s adjudication proceedings against Damai City commenced in October 2024.

The dispute between the construction company and KSK Land first emerged in 2022 over late payments for works done on the 8 Conlay project.

It led to GDBSB suspending work on the project and bringing Damai City to court to recover over RM120 million for unpaid work. After a partial payment was made, GDBSB recommenced work on certain parts of the project in January 2023 and dropped its suit, with liberty to file afresh.

Problems reemerged in April 2023 after Damai City failed to pay an instalment sum.

When the parties failed to reach a settlement, Damai City terminated GDBSB’s RM1.25 billion contract as the main contractor of the mixed development.

GDBSB then responded with another suit against KSK Land for the payment of RM102.08 million while seeking adjudication over the matter in May 2023.

In August 2024, the adjudication proceeding ruled that Damai City pay GDBSB RM59.32 million as outstanding payment based on a contract between them for construction works carried out, but not paid.

An enforcement order from the High Court was secured for this adjudication award in April 2025.

Following its termination from the job, GDBSB also filed a winding-up petition against KSK Land in January 2024.

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