ASMDKL listed 13 claims for damages and costs following EMSB’s failure to complete the project
By FARA AISYAH / Pic By hartabumi.com
MAJU Holdings Sdn Bhd’s subsidiary, ASM Development (KL) Sdn Bhd (ASMDKL), has countersued Econpile Holdings Bhd’s subsidiary, Econpile (M) Sdn Bhd (EMSB), for nearly RM346 million.
The counterclaim was filed after EMSB failed to carry out piling works for the Maju Kuala Lumpur (Maju KL) project worth RM280 million and declared self-determination in early March this year. ASMDKL listed 13 claims for damages and costs following EMSB’s failure to complete the project.
“It is also listed in the countersuit, ASMDKL’s claims of RM33.8 million for rectification costs as EMSB’s delay in completion of works and the undertaken works were defective,” ASMDKL CEO Mohd Farid Nawawi said in a statement yesterday.
ASMDKL took over the works left by EMSB and is carrying out the rectification works for the construction project comprising seven blocks of luxury apartments in KL.
The developer added it is unable to deliver vacant possession of 1,403 units to the purchasers under the sale and purchase agreement with total claims of up to RM98 million, due to EMSB’s failure in completing the works and the subsequent delay caused.
ASMDKL also listed the operating costs incurred due to the delay and extension of the contractor’s abandoned works since March 1, 2019.
The company was forced to employ a new contractor to complete the works after a Certificate of Non-Completion was issued to EMSB by the project architect on April 7, 2018.
ASMDKL has also demanded payments of 110 units worth almost RM67 million from Platinum Rhythm Sdn Bhd, which is also owned by directors and shareholders of Econpile.
Econpile, in an exchange filing yesterday, noted there is no countersuit filed by ASMDKL against the group at the KL High Court.
It added that the arbitration proceedings are still ongoing as of yesterday.
Econpile said the determination of the contract was carried out by EMSB in accordance with provisions under Clause 26 of the Pertubuhan Akitek Malaysia Conditions of Contract (2006 Edition).
The group also said at all material times, Platinum Rhythm is not owned by nor is part of Econpile’s group of companies.
The media had reported that Econpile has taken legal action to demand RM67 million from ASMDKL as a ‘progress payment’ claim for the project.
“ASMDKL questioned Econpile’s action in making the claim as the contractor declared self-determination of employment, whereby ASMDKL didn’t terminate or take any action against Econpile,” Mohd Farid stated in a release yesterday.
In March, Econpile stated the grounds for the determination of the contract of the project were, inter alia, that ASMDKL had interfered with or obstructed the issuance of interim certificates in respect of EMSB’s progress claims amounting to RM80.1 million; and ASMDKL had failed to issue the relevant interim certificates within 30 days from the date of receipt of EMSB’s progress claims, and to make payment of the same within the period of honouring certificates. Econpile said the project were 80% completed.
The contractor said at the date of determination of the contract, the estimated value of the remaining works under the contract was RM56 million.
To recap, the project was awarded by ASMDKL to EMSB on Sept 26, 2016, for the provision of diaphragm wall, contiguous bored pile, earthworks, piling works and basement structure works on the Maju KL project for a contract sum of RM280 million.