Waja Konsortium subsidiary wins RM190m Johor Bahru building contract

Waja Konsortium Bhd's 51%-owned subsidiary, Waja Build Tech Sdn Bhd, has accepted a RM190 million letter of award from Affluent Crafts Sdn Bhd for main building and external works on a Johor Bahru development. The project comprises 824 serviced apartments and 24 affordable townhouses.

PETALING JAYA (Nov 5): Waja Konsortium Bhd's 51%-owned subsidiary, Waja Build Tech Sdn Bhd, has accepted a RM190 million letter of award from Affluent Crafts Sdn Bhd for main building and external works on a proposed Johor Bahru development. The project, located on PTB 24750 and PTB 24751 (HSD 600390 and HSD 600391) along Jalan Suria Muafakat Utama in Mukim Bandar Johor Bahru, will comprise 824 serviced apartments and 24 affordable townhouses.

In a Bursa Malaysia filing on Wednesday (Nov 4), Waja said its subsidiary accepted the Oct 21 letter of award that day. The award appoints Waja Build Tech as main contractor for the project. The 26-storey serviced apartment block will have six levels of podium parking, two levels of semi-basement parking and a facilities podium. The Type C affordable townhouses will occupy a separate three-storey block.

The contract sum includes a 6% service tax. Waja Build Tech must complete the works within 24 months of commencement, which occurs upon issuance of the architect's instruction. The contract provides for liquidated damages of RM70,000 per day if Waja Build Tech fails to complete the works by the completion date or any extended completion date. Separate damages apply to delays in specified priority works.

The subsidiary must also furnish a RM9.5 million bank guarantee as a performance bond, equivalent to 5% of the contract sum. Waja expects the contract to contribute positively to earnings over its duration, barring unforeseen circumstances. It plans to fund the works with internally generated funds, bank borrowings or both, as needed.