PETALING JAYA: Encorp Iskandar Development Sdn Bhd, a unit of Encorp Bhd, has served a notice of arbitration dated Nov 6, on Konsortium Ipmines Merz Sdn Bhd in respect of Konsortium Ipmines’ delay to complete a project.
According to a Bursa Malaysia filing, the project in question is a serviced apartment project in Johor for which Encorp Iskandar had hired Konsortium Ipmines as the main contractor for building works.
In the arbitration proceedings, Encorp Iskandar is seeking over RM25 million, including RM11.76 million for liquidated damages, RM163,500 for direct payment to sub-contractors and RM13.08 million for cost in rectifying the defective works and completing the outstanding works, or in the alternative, such other amounts as assessed by the arbitrator.
Loss of profit for the delay of the works, financing charges and/or interest charges on the monies spent on third party contractors, opening up, review, revision and setting aside the architect’s decisions and certifications, all cost and expenses incurred, interest and taxes and general damages will also be sought for by the group.
“Pending outcome of the arbitrator’s decision, it is too preliminary at this stage to ascertain the potential financial gain or loss that could arise from the arbitration. This arbitration does not have any material financial impact on the Encorp Group for the time being,” it said in the filing.