PETALING JAYA: Vertice Bhd today announced a mutual termination of a sub-contract worth RM218.48 million for the proposed road upgrading works from Gambang, Pahang to Segamat in Johor.
On April 3, 2018, the group said its wholly-owned subsidiary Vertice Construction Sdn Bhd (VCSB) had secured the contract from Kumpulan Liziz Sdn Bhd (KLSB).
The project was awarded to KLSB by Mulia Interlink Construction Sdn Bhd (MICSB), acting as the main contractor for Public Works Department (JKR).
The group told the stock exchange today that VCSB has entered into a mutual termination arrangement with KLSB as a result of the mutual termination of the project between KLSB and MICSB.
To date, the group said the progress claims submitted by VCSB to KLSB for work done amounted to RM36.5 million, in which all the amount claimed by VCSB have been fully settled.
The contract withdrawal is not expected to materially affect the group’s earnings and net assets, it added.
