KSK Land ends GDBSB 8 Conlay contract

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.

The developer, in a statement yesterday said the decision to terminate the contract between its wholly-owned subsidiary, Damai City Sdn Bhd, and GDBSB came after failing to achieve agreeable solutions to various disputes relating to construction site matters over the last nine months.

These include scope of works, construction programme and financial instalment payments following the Covid-19 pandemic.

KSK said throughout the process of discussions, there have also 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.

“Further, 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 said.

It added that the stipulations were 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 had 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 who has formally submitted an offer to Damai City.

“More details will be announced soon,” KSK Land said.

In a separate statement, GDB Holdings stated the notice of determination from project owner Damai City was wrongful, as the mandatory contractual procedures and notices prior to the determination had not been complied with.

It added Damai City had no right to determine GDBSB’s employment under the main contract, given there were existing and continuous breaches by Damai City for failure to effect payment of certified sums due and owing to GDBSB under interim certificates.

“Damai City has failed, refused, and/or neglected to pay the remaining outstanding sums on the date of payment as stipulated in the Jan 4, 2023 agreement and continue to breach,” GDB Holdings stated, adding it will defend the claim.