Bumi contractor sues PWD for RM16 mil
Hafiz YatimPublished: May 7, 2009 9:50 AM | Updated: May 7, 2009 11:50 AM
A bumiputera Class A contractor is seeking RM16.331 million in special damages following the sudden 'termination and breach of contract' by the Public Works Department (PWD) after it was awarded the project to build a nine-storey chemistry lab at Universiti Malaya.
A bumiputera Class A contractor is seeking RM16.331 million in special damages following the sudden 'termination and breach of contract' by the Public Works Department (PWD) after it was awarded the project to build a nine-storey chemistry lab at Universiti Malaya.
Jabal Uhud Properties Sdn Bhd, based in Shah Alam, named the PWD and the Malaysian government as defendants in a suit filed at 1.15pm today by lawyer S Ashokvijay at the Kuala Lumpur High Court registry.
It is seeking RM16.331 million in special damages, general damages, costs and other relief deemed fit by the court.
Jabal Uhud, in its statement of claim, stated it was awarded the project to build a nine-storey block of Chemistry Laboratory at UM on September 13, 2007, worth RM49 million, and it received an advance payment of RM10 million from the defendants and the company itself placed a fixed deposit on the sum of RM3.494 million.
It carried out works in accordance to terms and it was also granted a three months extension for the project via a letter dated Oct 28, last year.
On March 31, 2009, the defendant had ‘wrongfully and unlawfully’ terminated Jabal Uhud's contract and demanded possession of the project site and fixed April 2, 2009, as the period to evaluate the works done.
Caused much humiliation
According to its director, Ibrahim Jamaluddin, PWD issued the termination notice in the presence of some of its sub-contractors and this had caused much humiliation and PWD did not give any valid reason.
Ibrahim said the project was 35 percent completed and all nine-floors had been up and the unnecessary delay had hurt its reputation with its sub-contractors.
However, on April 7, PWD withdrew the termination notice and wanted Jabal Uhud to resume with the project.
Following this, one of the company directors lodged a police report on the same day that it shall remain in possession and control of the project until PWD settled their liability.
Hence, the plaintiff is seeking the RM16.311 million special damages.
Jabal Uhud claimed that it had appointed 17 subcontractors for the project since Feb 16, 2009. The company also claimed for general damages as a consequence of PWD's sudden termination.
Jabal Uhud Properties Sdn Bhd, based in Shah Alam, named the PWD and the Malaysian government as defendants in a suit filed at 1.15pm today by lawyer S Ashokvijay at the Kuala Lumpur High Court registry.
It is seeking RM16.331 million in special damages, general damages, costs and other relief deemed fit by the court.
Jabal Uhud, in its statement of claim, stated it was awarded the project to build a nine-storey block of Chemistry Laboratory at UM on September 13, 2007, worth RM49 million, and it received an advance payment of RM10 million from the defendants and the company itself placed a fixed deposit on the sum of RM3.494 million.
It carried out works in accordance to terms and it was also granted a three months extension for the project via a letter dated Oct 28, last year.
On March 31, 2009, the defendant had ‘wrongfully and unlawfully’ terminated Jabal Uhud's contract and demanded possession of the project site and fixed April 2, 2009, as the period to evaluate the works done.
Caused much humiliation
According to its director, Ibrahim Jamaluddin, PWD issued the termination notice in the presence of some of its sub-contractors and this had caused much humiliation and PWD did not give any valid reason.
Ibrahim said the project was 35 percent completed and all nine-floors had been up and the unnecessary delay had hurt its reputation with its sub-contractors.
However, on April 7, PWD withdrew the termination notice and wanted Jabal Uhud to resume with the project.
Following this, one of the company directors lodged a police report on the same day that it shall remain in possession and control of the project until PWD settled their liability.
Hence, the plaintiff is seeking the RM16.311 million special damages.
Jabal Uhud claimed that it had appointed 17 subcontractors for the project since Feb 16, 2009. The company also claimed for general damages as a consequence of PWD's sudden termination.
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