Vertice and main sub-con mutually terminate RM218.5 mil contract

KUALA LUMPUR (March 30): Vertice Bhd and Kumpulan Liziz Sdn Bhd have mutually agreed to terminate a sub-contract for the proposed upgrading works on a federal road from Gambang, Pahang, to Segamat, Johor, valued at RM218.48 million.  

In April 3 last year, Vertice's wholly-owned unit Vertice Construction Sdn Bhd was awarded a sub-contract job from Kumpulan Liziz, the main sub-contractor for the upgrading of the federal road known as Federal Road 12 (FR12).  

The project was awarded to Kumpulan Liziz by Mulia Interlink Construction Sdn Bhd, acting as the main contractor for Jabatan Kerja Raya Malaysia (Malaysian Public Works Department). 

In a filing with Bursa Malaysia today, Vertice — formerly Voir Holdings Bhd — said its arrangement with Kumpulan Liziz was mutually terminated as a result of the mutual termination of the project between Kumpulan Liziz and Mulia Interlink Construction.  

"Following the mutual termination, it has been agreed by Kumpulan Liziz and Vertice Construction that Vertice Construction’s appointment under the Letter of Award shall accordingly be mutually withdrawn with immediate effect subject to full payment of all progress claims made by Vertice Construction." 

As of yesterday, the progress claims submitted by Vertice Construction to Kumpulan Liziz for work done amounted to RM36.5 million. The claims have been fully settled.  

"Hence the Letter of Award shall thereafter be null and void and neither Vertice Construction nor Kumpulan Liziz shall have further claim against each other as a consequence of the withdrawal of the Letter of Award," it said.  

Vertice added that the withdrawal is not expected to materially affect the earnings and net assets of the group. Shares of Vertice closed up 3 sen yesterday or 3.47% to 89.5 sen for a market capitalisation of RM167.28 million.  — theedgemarkets.com

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