Both the Impression U-Thant project on Jalan U-Thant in Kuala Lumpur and the Dawn @ Impression City Melaka are experiencing hiccups and their completion may be further delayed.
The two condominium projects, with a total outstanding contract value of RM190.48 million, have been mutually terminated in principal by SIAB Holdings Bhd and Yong Tai Bhd.
The termination occurred because the parties were unable to agree on the revised work schedule, cost plan, or completion deadlines for the two projects. This came about as a result of the delays in both undertakings and the rising price of construction materials.
The Impression U-Thant and the Dawn projects commenced in May 2018 and in April 2021 respectively, but progress was delayed due to the Covid-19 pandemic, SIAB said in its filing on March 31.
According to the filing, the original contracted completion date for The Impression U-Thant project was May 2020 and the completion date was extended to June 2022 after obtaining the extension from Yong Tai.
The original contracted completion date for the Dawn project was February 2023, it said.
SIAB was the main contractor of the projects through its wholly-owned unit SIAB (M) Sdn Bhd.
The Impression U-Thant consists of one 10-storey luxury condominium block with 108 units, while the Dawn comprises two blocks of Condotel with a total of 648 rooms on five-storey podium.
According to SIAB, the balance contract value of the letter of award for Impression U-Thant and the Dawn project is RM37.84 million (of total RM75.51 million) and RM152.64 million (of total RM160 million), respectively. As at 28 February 2023, the percentage of completion is respectively 50.65 per cent and 4.6 per cent, it said.
"The quantity surveyor consultant shall evaluate and prepare the final accounts for these two projects within the next three months together with the settlement arrangement on the balance outstanding amount," SIAB said.