GDB secures court order to enforce adjudication award relating to 8 Conlay project

• “As a result of the above decision, the adjudication decision has been enforced by virtue of Section 28 of the Construction Industry Payment and Adjudication Act 2012 as if it is a judgement or order of the High Court.”

KUALA LUMPUR (April 22): GDB Holdings Bhd (KL:GDB) said it has secured a court enforcement order on its RM59.32 million adjudication award against KSK Land Sdn Bhd’s unit Damai City Sdn Bhd, over outstanding payments for construction work carried out on the 8 Conlay project. 

The High Court at the same time dismissed Damai City’s application to set aside and stay the adjudication award, with undisclosed legal costs to be paid by Damai City to GDB’s unit Grand Dynamic Builders Sdn Bhd.

“As a result of the above decision, the adjudication decision has been enforced by virtue of Section 28 of the Construction Industry Payment and Adjudication Act 2012 as if it is a judgement or order of the High Court,” GDB said in a bourse filing on Monday.

Grand Dynamic Builders' dispute with KSK Land began in 2022 over late payments for work done. Grand Dynamic Builders suspended works in August 2022, subsequently resuming them following various supplementary agreements with Damai City.

Ultimately, negotiations fell through. In April 2023, KSK Land terminated Grand Dynamic Builders' RM1.25 billion contract as the main contractor of the 8 Conlay mixed development.

Post-contract termination, Grand Dynamic Builders and Damai City have been embroiled in various legal disputes over the project.

The adjudication proceedings over the dispute concerning outstanding payments for construction work was initiated in May 2023. The RM59.32 million secured by Grand Dynamic Builders in August 2024 accounts for over half of the RM102.08 million the company initially demanded in unpaid work payments.   

GDB had a separate adjudication proceeding against Damai City over unfulfilled payment obligations under contracts. In February this year, the adjudicator ruled that Damai City pay Grand Dynamic Builders RM82.67 million over the dispute.

On another note, Grand Dynamic Builders filed a winding-up petition against KSK Land in January 2024.

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