KUALA LUMPUR: KSK Land Sdn Bhd has terminated its contract with Grand Dynamic Builders Sdn Bhd (GDBSB), a wholly owned subsidiary of GDB Holdings Bhd, as the main contractor for its flagship 8 Conlay development.
In a statement today, KSK Land said the decision to terminate the contract between its wholly owned subsidiary, Damai City Sdn Bhd, and GDBSB follows a failure to achieve agreeable solutions to various disputes relating to construction site matters over the last nine months.
Among the disputes are scope of works, construction programme and financial instalment payments following the Covid-19 pandemic.
It said throughout the process of discussions, there have been an increasing number of conditions imposed by GDBSB, culminating in a series of demands communicated on April 4, 2023.
“In the communication, GDBSB requested for Damai City to novate all existing nominated sub-contractors (NSCs) within two weeks, and to take on all liabilities and responsibilities thereafter as well as for any matters arising before the determination of the NSCs.
“GDBSB also asked to be removed from main builder works, and for Damai City to pay for the loss of profits arising from that,” KSK Land.
It said these stipulations are extremely one-sided and unreasonable on the part of GDBSB as 8 Conlay’s main contractor, and despite best efforts to find a viable solution for each matter, it has become impossible for KSK Land and Damai City to accommodate or fulfil them.
Since then, KSK Land has been in discussions with potential new main contractors, including Conlay Construction Sdn Bhd, which has formally submitted an offer to Damai City.
“More details will be announced soon,” KSK Land added. – Bernama
