HIGH COURT MALAYA SHAH ALAM
PE SETIA CONSTRUCTION SDN BHD – Appellant
Versus
MANGKUBUMI SDN BHD – Respondent
A. Introduction
[1] This is a typical dispute between the Defendant (main contractor) and the Plaintiff (sub-contractor) in relation to non-payment for work done. The dispute between them escalated to the Plaintiff's contract being terminated and had led to the Plaintiff having to file this suit against the Defendant.
[2] The Plaintiff's action against the Defendant is to claim for the balance payment due for the works done together with the retention sum and loss of profit arising from the termination which the Plaintiff disputes as unlawful termination.
B. Brief Background
[3] Pursuant to a Letter of Acceptance of Tender dated 18 February 2016, Jabatan Kerja Raya (JKR) appointed the Defendant as the main contractor for upgrading works for Federal Road 5 (FR5) from Tanjong Karang to Sabak Bernam, Selangor Darul Ehsan ("the Project") for the contract price of RM708,928,000.00 (including the total GST of RM40,128,000.00).
[4] Via a Letter of Award dated 28 April 2016 (LOA), together with the Sub-contract Agreement, the Defendant appointed the Plaintiff as the sub-contractor to perform Pavement Works and Road Furniture works under the Project for the contract s
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