KUALA LUMPUR (Aug 5): Sarawak Consolidated Industries Bhd (KL:SCIB) has won a RM24.59 million subcontract to undertake the reconstruction of a dilapidated school building in Sabah.

In a Bursa Malaysia filing on Wednesday, SCIB said its wholly owned subsidiary, SCIB Industrialised Building System Sdn Bhd (SIBS), had accepted a letter of award from Belian Juta Sdn Bhd to carry out the works on Sekolah Kebangsaan Kaingaran located in Tambunan.

SCIB said Belian Juta was awarded the main contract by the Sabah Public Works Department (Jabatan Kerja Raya Sabah) on behalf of the federal government.

The subcontract will run from Aug 10, 2026, to Jan 22, 2029, unless extended by mutual agreement.

Under the contract, SIBS will be responsible for carrying out and completing the reconstruction works, including supplying the materials, machinery, equipment and labour required for the project.

SCIB said the contract is expected to contribute positively to earnings over the contract period, with revenue recognised progressively based on the progress of the works.

The project will be financed through internally generated funds or with progress billings.

Non-independent non-executive chairman Datuk Chong Loong Men said the award reflects continued demand for the group's project execution capabilities in Sabah's public infrastructure sector.

“As we continue to strengthen our presence in East Malaysia, our focus remains on disciplined project selection, effective project execution and expanding our order book with quality projects that support sustainable earnings visibility,” said Chong.

SCIB noted that the contract is subject to risks typically associated with construction projects, including labour and material cost fluctuations, supply chain disruptions, project delays and certification of progress claims.

Under the terms of the agreement, the group said SIBS may be liable for liquidated damages of RM548.80 per day if it fails to complete the works within the stipulated timeframe without valid justification.

At market close on Wednesday, SCIB’s shares ended flat at 12 sen. This gives it a market capitalisation of RM88.5 million.