KUALA LUMPUR (July 6): HCM Engineering Sdn Bhd, a wholly-owned unit of Protasco Bhd, is instructed to pay its sub-contractor a total of RM2.96 million for a payment claim requested in February.

In a filing with Bursa Malaysia today, Protasco said it has received an adjudication decision for the claim, following a dispute with Kuasatek (M) Sdn Bhd over the mechanical and electrical (M&E) work packages under a project previously awarded to HCM Engineering.

To recap, Kuasatek was the M&E works sub-contractor for the construction of a four-storey office building with basement car parking at Bukit Jalil, Kuala Lumpur. The office building is for the Asian Football Confederation, the governing body of Asian football.

Kuasatek had on Feb 20 filed a notice of adjudication — pursuant to Section 8 of Construction Industry Payment Adjudication Act 2012 — against HCM Engineering for a sum of RM3.27 million.

According to the adjudication decision, HCM Engineering is now required to satisfy the payment of RM2.96 million within 14 days from the date of decision.

Protasco said HCM shall seek advice from its firm of solicitors on the adjudication decision and will make further announcements on any material development on this matter in due course.

Shares of Protasco rose half a sen or 1% to close at 46.5 sen today, giving it a market capitalisation of RM230.1 million.