Protasco sues sub-contractor for breach of contract

PETALING JAYA: Protasco Bhd’s wholly owned subsidiary HCM Engineering Sdn Bhd has filed a legal suit at the High Court against its mechanical and electrical works sub-contractor Kuasatek (M) Sdn Bhd for breach of contract.

HCM’s claim against Kuasatek is premised on breach of contract by Kuasatek pursuant to a letter of appointment for mechanical and electrical works packages dated March 15, 2016, a work package under a project previously awarded to HCM, which was the design and built contract for the proposed additional of a four-storey office building with basement car park to the existing facilities in Bukit Jalil for the Asian Football Confederation.

“The legal proceeding is to finally determine the liability of Kuasatek under the contract and for the refund of the adjudicated sum paid to Kuasatek pursuant to the adjudication decision dated July 4, 2018,“ Protasco said.

HCM’s claims against Kuasatek include a declaration that the contract dated May 13, 2016 between the plaintiff and the defendant is for the sum of RM9.5 million; the defendant has breached the contract dated May 13, 2016; the plaintiff is allowed to set off the sum of RM288,204.76 as the costs to rectify the defectives works and /or work done on behalf; the plaintiff is allowed to set off the sum of RM930,000 as liquidated ascertained damages; the plaintiff is allowed to withhold the sum of RM475,000 as the performance until the issuance of the Certificate of Making Good Defects by Asian Football Confederation.

In addition, the defendant shall pay the sum of RM12,889.25 to the plaintiff; refund the sum of RM2.97 million to the plaintiff being the excess payment paid by the plaintiff to the defendant for work done; refund the sum of RM106,571.60 to the plaintiff forthwith being the sum paid by the plaintiff to the defendant for legal costs, adjudication costs and expenses; general damages to be assessed by the Court; interest at the rate of 5% per annum on the amount above from the date of judgment until date of full payment; and costs.

Protasco said the legal proceeding it has initiated has no significant immediate adverse impact on its current financial position.

HCM had previously appealed to the High Court after its originating summons to set aside the adjudication decision dated July 4, 2018 obtained by Kuasatek was dismissed with costs.

Source: The Sun Daily

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