Both Vestland and Rimbum Merdu have mutually agreed to terminate the contract that Rimbun had awarded the construction company back in January 2023.
The award was given to Vestland Resources Sdn Bhd which accepted a Letter of Award from Rimbun Merdu Sdn Bhd to undertake the main building and associated works for one block of 33-storey service apartments and related facilities located at the city center of Kuala Lumpur.
The project value is estimated to be RM63.1 million which involves Vestland supplying labour/workers, materials, tools, equipment, and machinery for the construction, completion, and maintenance of the main building and associated works. The scope of works comprises complete piling works, architectural works, structural works, mechanical and electrical services, and external works within and outside lot boundaries
With the termination, the Letter of Award shall no longer be in force and effect with immediate effect.
Vestland said the mutual termination of the Letter of Award is not expected to have a material impact on the earnings and net assets of the Company and its subsidiary.