NST BUSINESS
KUALA LUMPUR: Vertice Bhd has lost its RM339.86 million sub-contract pertaining to the proposed Sungai Besi-Ulu Kelang Elevated Highway (SUKE) project.
Vertice announced today that the sub-contract’s letter of award had been withdrawn.
This followed the termination of Chengaljati Sdn Bhd (CSB) as the project’s contractor by SUKE concessionaire Turnpike Synergy Sdn Bhd.
Accordingy, CSB withdrew its letter of award to San Mutual MajuJaya Sdn Bhd (SMM), which had appointed Vertice subsidiary Vertice Construction Sdn Bhd as the sub-contrator on April 10 this year.
“As CSB had exhausted the effort to revive their appointment as the contractor for the project, CSB withdraw the appointment of SMM with immediate effect,” it said.
Vertice added that it would be compensated for the costs and expenses incurred in the project of less than RM1.5 million.
“In view that the group has several projects currently under bid, has other concurrent on-going projects and is confident of securing additional new projects in the foreseeable future, this withdrawal is not expected to materially affect the earnings and net assets of the group,” the company said.