KSK Land terminates main contractor GDB from 8 Conlay project

  • 11 months ago
  • News

KSK Land Sdn Bhd has terminated its contract with Grand Dynamic Builders Sdn Bhd (GDBSB), a wholly owned subsidiary of GDB Holdings Bhd, as the main contractor of mixed development 8 Conlay at Jalan Conlay, Kuala Lumpur.

Following the termination, KSK Land has been in discussion with a new potential main contractor to replace GDBSB. Conlay Construction Sdn Bhd has formally submitted an offer to project owner and wholly owned subsidiary of KSK Land, Damai City Sdn Bhd (DCSB).

According to a press statement, the contract between DCSB and GDBSB was terminated due to a failure to achieve agreeable solutions to various disputes relating to construction site matters over a period of the last nine months.

These include the scope of works, construction programme, and financial instalment payments following the Covid-19 pandemic. Throughout the process of discussion, GDBSB has imposed a series of conditions culminating in a series of demands communicated on April 4, 2023.

“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 Land and DCSB to accommodate or fulfil them,” said the company in the press statement. 

Some of these conditions are GDBSB’s requests for DCSB to novate all existing nominated sub-contractors 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 sub-contractors.

Further, GDBSB requested to be removed from main builder works, and for DCSB to pay for the loss of profits arising from that.

To recap, GDBSB was appointed as the main contractor for the mixed development 8 Conlay after GDB secured the letter of intent in October 2020.

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