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- The project includes 22 units of 1.5-storey terrace industrial buildings in Mukim Sungai Petani.
PETALING JAYA (Dec 10): Engineering and construction services group PJBumi Bhd announced that its wholly-owned subsidiary, PJBumi Heavy Engineering & Services Sdn Bhd (PJBumiHES), has been awarded a contract for design and construction.
In a bourse filing on Tuesday, this includes 22 units of 1.5-storey terrace industrial buildings in Mukim Sungai Petani, Kuala Muda District, Kedah.
The contract, valued at RM23.46 million, follows PJBumiHES’s tender submission dated Dec 6, which was formally accepted by PJBumi on Dec 9.
The letter of acceptance (LOA) establishes a binding agreement between the company and PJBumiHES, pending the execution of a formal design & build contract.
A retention of 10% will be deducted from interim payments until a total of 5% of the contract sum is reached, which will be released after the defect liability period, upon issuance of the certificate of making-good-defect.
The group is of the view that the LOA is not expected to have any material impact on the company’s issued capital, shareholder structure, net assets per share, or gearing. However, it is anticipated to contribute positively to earnings and net assets per share for the financial year ending June 30, 2026.
The group also noted the potential risks associated with the project, including financial management, fluctuations in material costs, and changes in political, economic, or regulatory conditions, and confirmed that due care will be exercised in managing these risks.
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