Boustead Projects unit, subcontractor head into arbitration over contracts for work at waste treatment facility

BOUSTEAD Projects subsidiary Boustead Projects E&C has been served with a notice of arbitration by the liquidator of Technics Steel, a subcontractor that it engaged for the construction of a waste treatment facility at Tuas View Circuit.

In a bourse filing on Tuesday (Jun 27), Boustead Projects said that it was served the notice on Jun 16.

On Apr 14, 2021, Boustead Projects E&C terminated the subcontract with Technics after the company wound up and failed to complete its tasks.

Technics was engaged to work on structure steelworks for pipe racks, access platform and staircase works, Boustead Projects said.

The claim by Technics’ liquidators is seeking a payment of around S$830,000 for work done under the subcontract.

In addition, it is seeking damages of around S$680,000 for prolongation costs incurred by Technics. Technics alleges that Boustead Projects E&C breached the subcontract and prevented it from carrying out its work according to the original contract schedule.

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Boustead Projects said that it aims to “vigorously defend” the claim, and that the financial impact of the claim cannot be determined yet at this time.

Boustead Projects’ shares have been suspended since Mar 28. Its parent company, Boustead Singapore, acquired 95.5 per cent of the company’s shares in an attempt to privatise the company, which led the company to lose its free float.