GDB to defend against ‘wrongful’ termination notice from 8 Conlay project

• In a statement on Wednesday (April 19), the construction services firm said that the purported determination is wrongful as the mandatory contractual procedures and notices prior to the determination have not been complied with.

KUALA LUMPUR (April 19): GDB Holdings Bhd has claimed that its subsidiary Grand Dynamic Builders Sdn Bhd (GDBSB) was wrongfully terminated from 8 Conlay project.

In a statement on Wednesday (April 19), the construction services firm said that the purported determination is wrongful as the mandatory contractual procedures and notices prior to the determination have not been complied with.

GDB said GDBSB on Wednesday received a copy of the notice of determination from 8 Conlay project owner Damai City Sdn Bhd (DCSB) to determine the letter of award dated Nov 9, 2020 for the development of the 8 Conlay project.

The builder said DCSB has no right to determine GDBSB’s employment under the main contract given that there are existing and continuous breaches by DCSB for failure to effect payment of certified sums due and owing to GDBSB.

It said since March 24, 2023, GDB has remobilised and recommenced construction works for Tower A only after a total prolonged duration of 220 days for suspension under Clauses 30.7 and 21.4 of the PAM Contract 2006 due to non-honouring of multiple interim certificates by DCSB.

“DCSB 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.

“Therefore, the board of directors is of the opinion that the Notice of Determination served by DCSB is unjustified and will defend the claim,” it said.

“GDBSB has exercised its immediate right to immediately determine the contract and has served a notice of determination dated April 19, 2023 to DCSB pursuant to Clause 26.2 of the PAM Contract and Jan 4, 2023 Agreement,” it said.

At the midday break, GDB dipped 2.56% or half a sen to 19 sen with 1.36 million shares done.