KUALA LUMPUR (Feb 13): Property developer Thriven Global Bhd (KL:THRIVEN) said Setiakon Builders Sdn Bhd has initiated arbitration proceedings against its wholly owned subsidiary Mayfair Ventures Sdn Bhd over what Setiakon claimed were unpaid dues for completed work.

Setiakon is claiming about RM4.43 million that it alleged is an outstanding amount that Mayfair has yet to pay, plus RM2.78 million of late interests. Mayfair is disputing the claimed amounts, according to Thriven’s filing with Bursa on Thursday.

According to Thriven, the group plans to file a counterclaim against Setiakon for RM1.78 million for liquidated ascertained damages (LAD), as it claims that the contractor had delayed in completing the defect rectification for a 35-storey serviced apartment project of which Mayfair is the developer.

Mayfair is also claiming for service charge and sinking fund payable from Setiakon.

Thriven said Mayfair had appointed Setiakon as the main contractor for Phase Two of the serviced apartment project on Oct 16, 2017, and subsequently the standard building contract form — PAM 2006 Form of Contract (with Quantities) — was issued on April 24, 2018.
 
Thriven said it has appointed a legal firm to represent it in the arbitration proceedings. Further announcements will be made if there are any material developments, it said.
 
Thriven’s share price was up 1.5 sen or 12% at 14 sen on Thursday’s closing, giving it a market capitalisation of RM76.57 million.