Vertice loses SUKE Highway sub-contract job

September 14, 2018 | By | Reply More

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PETALING JAYA: Vertice Bhd’s wholly owned subsidiary Vertice Construction Sdn Bhd(VCSB) has lost its sub-contract job for the Sungai Besi-Ulu Kelang Elevated Highway (SUKE) project after the project’s contractor was terminated.

In April, Vertice was awarded the RM339.85million contract by San Mutual Maju Jaya Sdn Bhd(SMM) which in turn bagged the contractor from Chengaljati Sdn Bhd(CSB).

Meanwhile, Turnpike Synergy Sdn Bhd which appointed CSB as the project’s contractor had terminated the company’s service along with SMM—which in turn had resulted in the termination of VCSB’s contract.
This came about after CSB had exhausted the effort to revive its appointment as the contractor for the project, hence it had to withdraw the appointment of SMM with immediate effect.

“ Following the withdrawal of SMM, it has been agreed that VCSB’s appointment under the Letter of Award shall be mutually withdrawn with immediate effect and VCSB to be compensated accordingly,” Vertice’s board of directors told the stock exchange.

“The costs and expenses incurred in this project is approximately less than RM1.5 million only. VCSB and SMM have mutually agree that VCSB shall be entitled, within 14 days to submit the relevant claims for all outstanding amount including but not limited to all such costs incurred for the purpose of closing the project’s account,” it added.

According to Vertice the withdrawal is not expected to materially affect its earnings on the back of tendered projects and ongoing ones. It is also confident of securing additional new projects in the foreseeable future.

Vertice’s shares gained 0.56% to close at 89sen with 15,200 shares done.

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