Ecobuilt Holdings wholly owned subsidiary company, EKO BINA, and Harmoni Bumiria Sdn. Bhd. have signed a Mutual Settlement Agreement to settle and bring an end to all disputes in respect of a contract from 2021.
This is referring to a LOA Eko Bina accepted back in September 2021, from HBSB, for the appointment as contractor for the proposed re-development and subdivision of Land for Commercial Development Comprising Offices, Shops and Service Suites in Kota Kinabalu, Sabah.
Both parties have had a dispute with regards to the contract but have entered into negotiations in good faith and in January 2023, have mutually agreed to terminate the contract with effect from 16 January 2023.
Ecobuilt said the mutual settlement had provided flexibility to the company in term of cash flow, human and material resources, which allow the company to distribute the resources and focus to other projects. Also, it can help mitigate risks associated with unforeseen events such as changes in market conditions, regulatory changes or unexpected project delays.
In term of relationship with HBSB, under this mutual settlement where both parties can agree to terminate the contract amicably, and resolving disputes without resorting to costly litigation or arbitration, will beneficial for future business endeavors.
As full and final settlement between the Parties, the Parties hereby collectively agreed that HBSB shall pay EKO BINA a total settlement sum of RM1.4 million.
