Haily Group’s wholly owned subsidiary has accepted a letter of award (LoA) for the construction and completion of a project in Johor, Malaysia.
Issued by Gunung Impian Development, the contract awarded to Haily Construction is valued at RM32.33m ($6.8m).
It involves building 76 double-storey cluster houses and one unit of the TNB substation.
The contract is based on a fixed-price lump sum contract model, which excludes provisional items and is determined by specific drawings and specifications.
A performance bond of RM1.61m is mandated, which is 5% of the total contract sum.
This bond is required to be secured before work begins and will remain in effect until three months after the certificate of practical completion (CPC) is issued.
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Construction work on one unit of the double chamber TNB substation, one unit of show house, and three units of mock-up is expected to commence on 1 February 2024.
The project is expected to have a positive impact on the group’s earnings and net assets.
The defect liability period for the works is set at 26 months from the date of the CPC.
Haily Group’s board of directors said: “The board having considered the rationale, prospects and all other aspects of the LoA, is of the opinion that the acceptance of the LoA is in the best interest of the company.”