KUALA LUMPUR (Jan 28): Taghill Holdings Bhd (KL:TAGHILL) said it is not proceeding with a RM38.88 million contract to build a 15-storey columbarium in the city centre due to escalating material costs.
Taghill’s wholly owned unit Siab (M) Sdn Bhd has agreed with the client, City Centre Columbarium Bhd, to mutually terminate the contract awarded in March 2021, according to the construction outfit’s bourse filing on Tuesday.
The company said the contract will cease to be in force effective Feb 13.
Taghill said the project in Sungai Besi was initially slated for completion in July 2023, but experienced prolonged delays due to the Covid-19 pandemic.
“While the original completion date in July 2023 was extended to Aug 11, 2024, escalating material costs and the inability to reach an agreement with City Centre Columbarium on a revised cost plan and work programme had rendered the continuation of the project unfeasible,” the company said.
Taghill said the project was 36% completed as at end-January 2024, while the balance contract value stood at RM25.01 million.
“Subsequent to the termination, Taghill’s orderbook stands at RM1.54 billion,” it added.
Shares in Taghill ended unchanged at 11.5 sen on Tuesday, valuing the company at RM171.5 million.
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Source: EdgeProp.my
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