KUALA LUMPUR (Sept 20): AWC Bhd has filed a lawsuit against BUCG (M) Sdn Bhd for failing to settle RM2.06 million in outstanding payment for subcontract works of a project developing one block of serviced apartments and a 55-storey hotel at Jalan Conlay here.
BUCG is the main contractor in the project for Tetuan Lumayan Indah Sdn Bhd. On Nov 14, 2012, BUCG had awarded a RM10.24 million contract to AWC's wholly-owned subsidiary Qudotech Sdn Bhd to carry out and complete the whole plumbing services installation works of the project.
In a filing with Bursa Malaysia today, AWC said Qudotech, via its solicitors Messrs Muthu & Partners, had filed a writ of summons together with the statement of claim against BUCG.
"The circumstances leading to the filing of the writ and statement of claim is based on Qudotech's contention that BUCG had breached the terms of the letter of award in view that it failed to settle the unpaid portion of the debt of RM2.06 million even though Qudotech had issued a letter of demand dated July 20 and thereafter another letter via its solicitors to BUCG claiming for said outstanding payment," it added.
AWC said on Qudotech's part, it had carried out and completed the plumbing works, with a practical completion certificate for the project issued on Feb 25, 2016 with conditions and Qudotech had also via a letter dated Aug 12, 2016 certified that it had complied with all of the relevant terms and conditions.
In addition, Qudotech had carried out extra works for the project amounting to RM2.05 million.
According to AWC, BUCG had settled RM10.08 million to Qudotech for the sub-contract works, but failed to settle the unpaid portion of the debt of RM2.06 million.
AWC said the suit is not expected to have any material financial and operational impact on the group. "Further announcement will be made as and when there are material developments on the matter," it added.
AWC shares closed up 1.5 sen or 1.86% at 82 sen today, with 3.89 million shares done, bringing a market capitalisation of RM221.08 million.