KUALA LUMPUR (Feb 18): Construction company GDB Holdings Bhd (KL:GDB) announced it has received a favourable adjudication decision in its dispute with KSK Land Sdn Bhd over payments to be paid following KSK Land’s termination of GDB’s unit as a main contractor for the 8 Conlay project.
In a bourse filing on Tuesday, GDB said an adjudicator ruled that KSK Land’s unit Damai City Sdn Bhd (DCSB) has to pay GDB’s unit Grand Dynamic Builders Sdn Bhd (GDBSB) a total of RM82.67 million, pursuant to GDB’s notice of adjudication on Oct 4, 2024.
According to the adjudicator’s decision dated Feb 17, 2025, the sum comprises 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.
GDB commenced adjudication proceedings on Oct 4, 2024 against DCSB by issuance of a notice of adjudication.
This came less than two months after an adjudicator ruled in favour of GDB on Aug 20, 2024, that DSCB has to pay GDBSB RM59.32 million as outstanding payment based on a contract between them for construction works carried out, but not paid.
This was, however, just a little over half of the RM102.08 million it demanded as outstanding payment from DCSB, based on GDB’s initial notice of demand to DCSB in April 2023, which DCSB had refused to pay.
GDB’s dispute with KSK Land first started in 2022 over late payments for work done. This was prior to KSK Land terminating GDBSB’s RM1.25 billion contract as main contractor of the 8 Conlay mixed development in April 2023.
The dispute at the time had resulted in GDBSB initiating a lawsuit against DCSB to recover over RM120 million for unpaid work while it suspended work on the project. After DCSB made a partial payment of the sum claimed, GDBSB recommenced work on certain parts of the project in January 2023 and dropped its suit, with liberty to file afresh.
However, problems arose again after DCSB failed to pay an instalment sum in April 2023. When the parties could not reach a settlement, DCSB terminated GDBSB from the job, while GDBSB responded by slapping another suit against KSK Land for the payment of RM102.08 million while seeking adjudication over the matter.
Following its termination from the job, GDBSB also filed a winding-up petition against KSK Land in January 2024.
Set up in 2013, KSK Land is the property arm of KSK Group, an investment holding company which is also in the insurance business in Indonesia and Thailand.
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Source: EdgeProp.my
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