KUALA LUMPUR: Vertice Bhd
and Consortium Zenith Construction Sdn Bhd have mutually terminated the contract for the construction works for Package 2 of the Penang Mega Infrastructure project worth RM815.0 million undertaken by Buildmarque Construction Sdn Bhd.
Buildmarque Construction is a 50:50 JV company formed between Vertice Construction, a wholly-owned unit of Vertice Bhd, and Vizione Construction Sdn Bhd, a wholly-owned subsidiary of Vizione Holdings Bhd, for the construction of a by-pass from Bandar Baru Ayer Itam connecting to Lebuhraya Tun Dr Lim Chong Eu.
In a filing with Bursa Malaysia today, Vertice said Buildmarque Construction, Vertice Construction and Consortium Zenith Construction has entered into a deed of rescission and termination to mutually agree to terminate the contract awarded on Aug 30, 2018, and the supplemental letter of award dated Jan 31, 2019.
According to the company, Buildmarque Construction was unable to procure project financing worth up to RM295.0 million to fund the total estimated project costs for the contract works, overheads (such as salaries, office expenses as well as legal and professional fees) and interest costs in order to pay the sub-contractors and suppliers in a timely manner.
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