Puncak Niaga Holdings Bhd's wholly-owned subsidiary, Puncak Niaga Construction Sdn Bhd (PNCSB), has found itself in the midst of a payment dispute.
On October 16 2023, PNCSB received a notice of adjudication under the Construction Industry Payment & Adjudication Act 2012 (CIPAA) from City Tunnelling Sdn Bhd (CTSB), a sub-contractor.
The heart of the matter revolves around an alleged payment claim of RM6.66 million, related to a project titled "To Carry Out Supply And Lay Network Sewerage Pipe At Zone 3 And 3A (Retender) For Pakej D44 - Pembinaan Rangkaian Paip Pembetungan Di Bunus, Kuala Lumpur" (D44 Project).
This claim also includes interest and costs connected to the adjudication proceedings.
In response to the notice, PNCSB has taken decisive action by instructing its solicitors to contest the dispute.
The Construction Industry Payment & Adjudication Act 2012 (CIPAA) was established to provide a framework for speedy dispute resolution in the construction industry, ensuring that payment disputes are efficiently addressed to maintain the integrity of construction projects.
