CONSTRUCTION company Soilbuild Construction said on Monday (Mar 20) that it will be applying to overturn an order from the Singapore Mediation Centre to pay close to S$1 million to its subcontractor. The amount will instead be paid to court as security, as it pursues further legal proceedings against the subcontractor. 

It also added in a bourse filing that the outcome of this adjudication will not have a material impact on the financial position of the company for the financial year ending on Dec 31, 2023.

This is because a corresponding accrual for liabilities in relation to this matter has already been recognised in the group’s full-year results for the previous year.

One of Soilbuild’s subcontractors had lodged a claim for about S$1.28 million with the Singapore Mediation Centre on Feb 3, 2023.

The construction company had previously said that it disagrees with the claim made by the subcontractor.

The subcontractor was initially appointed by another subcontractor to carry out works on the project. Subsequently, Soilbuild had to directly engage them when the other subcontractor could not complete its work.  

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Shares of Soilbuild closed flat on Monday at S$0.037.