KUALA LUMPUR (Aug 19): Boutique property developer OCR Group Bhd said its subsidiary has commenced arbitration proceedings against a contractor over alleged breaches of obligations concerning a delayed housing project in Kuantan.

In a bourse filing, OCR said wholly-owned OCR Properties (Kuantan) Sdn Bhd is claiming RM29 million from Kencana Amanjaya Sdn Bhd (KASB) for losses and damages arising from the delay.

OCR said KASB, which was awarded the contract in January 2018, was responsible for the main building works for the housing project

The initial contract sum of RM112.85 million was later adjusted to RM114.68 million due to variation orders, it added.

“The arbitration is not expected to have any material operational impact to OCR. At this preliminary stage, the company is unable to determine the potential financial impact on OCR for the financial year ending Decr 31, 2021,” it added.

This is not the first time OCR has launched the arbitration proceedings against KASB.

On June 23, another of its subsidiaries, OCR Construction Sdn Bhd, claimed RM24 million from KASB for losses and damages caused by KASB for delayed works related to a high-rise project in Bandar Sunway.

This contract worth RM110.39 million was awarded to KASB on May 15, 2019.

OCR’s share price closed unchanged at 15.5 sen, for a market capitalisation of RM91 million.