PETALING JAYA: KSK Land Sdn Bhd (KSK), the developer of the luxury 8 Conlay project in Kuala Lumpur, has decided to terminate its contract with Grand Dynamic Builders Sdn Bhd (GDBSB), a subsidiary of GDB Holdings Bhd.
In a statement today, KSK said the difficult decision to terminate the contract between Damai City Sdn Bhd (DCSB), a wholly-owned subsidiary of KSK Land Sdn Bhd, and GDBSB, follows a failure to achieve “agreeable solutions to various disputes”.
Stay up-to-date by following FMT's Telegram channel FMT “(These issues were in relation to) construction site matters over a period of the last nine months, including scope of work, construction programme, and financial instalment payments following the Covid-19 pandemic,” it said.
Ads by Kiosked Throughout the process of discussions, KSK said there has also been an increasing number of conditions imposed by GDBSB, culminating in a series of demands communicated on April 4.
“In the communication, GDBSB requested for DCSB to novate all existing nominated subcontractors (NSCs) within a two-week period, and to take on all liabilities and responsibilities thereafter as well as for any matters arising prior to the determination of the NSCs,” it said.
GDBSB had also asked to be removed from the main builder works, and for DCSB to pay for the loss of profits arising from that.
“These stipulations are extremely one-sided and unreasonable on the part of GDBSB as 8 Conlay’s main contractor, and despite best efforts to find a viable solution for each matter, it has become impossible for KSK and DCSB to accommodate or fulfil them,” it added.
Since then, KSK has been in discussion with new potential contractors, including Conlay Construction Sdn Bhd.
8 Conlay is a luxury mixed-use development comprising a four-storey retail block, the Kempinski Hotel in Malaysia, and two residential towers.
TOPICS StarExtra| Flood Alert| StarESG| Urban Biodiversity| True or Not| SOBA 2022| Covid-19 Watch| Sabah & Sarawak| Do You Know Next GDB Holdings lifts suspension on 8 Conlay project
BUSINESS Monday, 09 Jan 2023 6:04 PM MYT
PETALING JAYA: GDB Holdings Bhd has lifted its suspension of works on the 8 Conlay project.
The construction services firm said it is set to resume facade works for Tower A pursuant to the terms of agreement and the supplementary correspondences, based on the employer's instruction issued to the architect for the forthcoming issuance of Architect's Instruction under Clause 21.4 of the Persatuan Arkitek Malaysia (PAM) contract.
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This was following the receipt of partial payment towards outstanding sums owed by project owner Damai City Sdn Bhd.
GDB is the main contractor for 8 Conlay across its three towers. GDB will proceed to remobilise and recommence for the full scope of works for the 8 Conlay project in early April 2023, subject to Damai City fulfilling the agreed terms and scheduled full settlement of outstanding sums.
“With the requisite conditions fulfilled and uplifting of suspension of works together with the forthcoming issuance of the Architect Instruction, we will remobilise and recommence façade works for Tower A of 8 Conlay pursuant to the terms of agreement,” group managing director Cheah Ham Cheia said in a statement.
GDB’s current order book amounts to RM1.3bil, which provides earnings visibility until the financial year ending Dec 31, 2024.
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This post has been edited by Raddus: Apr 19 2023, 09:57 PM
alot of developer depend on buyer & banker to have cashflow to run the project. If contractor fucked up & slow down the progress. Developer equally fucked up.
developer tried to hardball contractor, obvious developer cashflow screw up the project but still expect contractor take all the fault and financial loss and finish it on time
Founded in 2013, KSK Land Sdn Bhd is a wholly owned subsidiary of KSK Group Berhad, an established Malaysian investment holding company, with a vision to craft bespoke properties that prioritise design, craftsmanship and lifestyle.
In 2010, Joanne led the RM1.6 billion sale of Kurnia Insurance (M) Bhd to AmGeneral Insurance Bhd.
In 2012, she took the helm as group CEO and spearheaded the rebranding of Kurnia Asia Bhd to KSK Group; and in 2013, she led the privatisation of KSK Group.
Bangunan KSK 32 Jalan Yap Ah Shak 50300 Kuala Lumpur Malaysia
Changes in Sub. S-hldr's Int. (29B) KSK GROUP BERHAD
Particulars of substantial Securities Holder Name Tan Sri Dato' Paduka Kua Sian Kooi Nationality/Country of incorporation Malaysian Descriptions (Class & nominal value) Ordinary shares of RM0.25 each
no relationship!!!! THIS ONE IS FORMER KURNIA AUTO INSURANCE company
alot of developer depend on buyer & banker to have cashflow to run the project. If contractor fucked up & slow down the progress. Developer equally fucked up.
Developer didnt pay, GDB slowing progress, developer complain, GDB request pay up baru start work, developer cancel contractor.
Founded in 2013, KSK Land Sdn Bhd is a wholly owned subsidiary of KSK Group Berhad, an established Malaysian investment holding company, with a vision to craft bespoke properties that prioritise design, craftsmanship and lifestyle.
In 2010, Joanne led the RM1.6 billion sale of Kurnia Insurance (M) Bhd to AmGeneral Insurance Bhd.
In 2012, she took the helm as group CEO and spearheaded the rebranding of Kurnia Asia Bhd to KSK Group; and in 2013, she led the privatisation of KSK Group. Bangunan KSK 32 Jalan Yap Ah Shak 50300 Kuala Lumpur Malaysia
Changes in Sub. S-hldr's Int. (29B) KSK GROUP BERHAD
Particulars of substantial Securities Holder Name Tan Sri Dato' Paduka Kua Sian Kooi Nationality/Country of incorporation Malaysian Descriptions (Class & nominal value) Ordinary shares of RM0.25 each no relationship!!!! THIS ONE IS FORMER KURNIA AUTO INSURANCE company
tqvm for the clarification .
what is the percentage of completion .
wonder if officially declared as abandoned project
Developer didnt pay, GDB slowing progress, developer complain, GDB request pay up baru start work, developer cancel contractor.
Kek
Developer with those old Malaysian mindset thinking always try to do this in hopes the contractor bankrupt before repeating the same practice to other contractors.
They think that all contractors are supposed to fund their projects, and they will not be any repercussions for not paying what are due.
Apr 19 2023, 07:42 PM, updated 3y ago
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