The construction firm involved in the 8 Conlay projects, Grand Dynamics Berhad Holdings said it had received a copy of the Notice of Determination from 8 Conlay project owner Damai City Sdn Bhd to determine the Letter of Award dated given back in November 2020 for the development of the project.
This comes after Grand Dynamics suspended work at the project after failing to receive payment from the developer, GDBSB said it maintains that the purported determination is wrongful as the mandatory contractual procedures and notices prior to the determination have not been complied with.
It added DCSB has no right to determine its employment under the Main Contract given that there are existing and continuous breaches for failure to effect payment of certified sums due and owing to the contactor under Interim Certificates.
Construction works for Tower A have already been initiated after a total prolonged duration of 220 days for suspension under Clauses of the PAM Contract 2006 due to non-honouring of multiple Interim Certificates by the project owner it said.
The developer has failed, refused, and/or neglected to pay the remaining outstanding sums on the date of payment as stipulated in the 4 January 2023 Agreement and continues to breach. Therefore, the Board of Directors is of the opinion that the Notice of Determination served is unjustified and will defend the claim.
The group said it has exercised its immediate right to immediately determine the contract and has served a Notice of Determination dated 19 April 2023 to DCSB.
