Announcement

Victory in Arbitration: Main Contractor’s Claim of RM1.9 Million Allowed

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16 June 2023

Our Partners, T. Kuhendran and  Susan Tan Shu Shuen and Associates, Koh Shien Lin and Noor Sumaeya Sofea Shamsudin from Zul Rafique & Partners’ Construction Dispute Resolution Practice Group successfully secured an arbitration award of RM1,939,749.16 in favour of the Main Contractor for a construction project at the Batu Kawan Industrial Park in Penang.

The Claimant as the Main Contractor appointed the Respondent as the Sub-Contractor to carry out pile cap works for the contract sum of RM6,300,000.00. These works were completed in 2013. However, in 2015, the Claimant discovered various defects in the works. In June 2019, the Claimant commenced arbitration to claim for, among others, the defects rectification costs amounting to RM1,955,149.16. The Respondent on the other hand counterclaimed for the sum of RM15,400.00, which was not disputed by the Claimant.

The arbitration revolved around a complex and technically intricate dispute concerning defects in the pile cap works. The primary point of contention was determining the cause of the defects, which were alleged by the Respondent to be related to the Claimant’s failure in its role as the Main Contractor, site conditions, design issues and the preceding piling works carried out by another contractor.

The Tribunal in its Final Award dated 12.6.2023 found that the Respondent is liable for the defects and allowed the Claimant's claim of RM1,955,149.16 in its entirety, except for the undisputed counterclaim of RM15,400.00, which was deducted accordingly.

For more insight into this area of law, please contact our Partners in the Construction Dispute Resolution Practice Group:
Kuhendran Thanapalasingam
Susan Tan Shu Shuen

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