Parties must substantiate claims and defenses with adequate evidence; unproven allegations do not affect contractual obligations.

[1] This is a suit for contract payment in respect of the design, fabrication, supply and delivery of equipment for a marine platform in the oil and gas industry.

[2] The Plaintiff is a Singapore incorporated company with expertise in marine engineering works. The Defendant is a Malaysian incorporated company and secured a sub contract from a Ramunia Fabricators Sdn Bhd ("Ramunia Fabricators") to provide Test and LP separators. These separators form part of the EPCC contract works relating to the East Belimut - A Topside platform undertaken by Ramunia Fabricators for Newfield Peninsular Malaysia Inc.

[3] The trial was only a day. Besides the documentary evidence adduced in bundles marked B to D, the parties called Jason Yang Jian Sheng (PW1), the General Manager of the PESP division in the Plaintiff company and Peng Joo Hock @ Dato' Amir Danial Abdullah (DW1), the Managing Director of the Defendant company respectively as witnesses. After trial, the parties put in concurrent written closing submissions in chief and in reply.

Background Facts

[4] By a letter of award dated 22 January 2007 ("Supply Contract"), the Defendant awarded to the Plaintiff the contract to design, calculate, test, supply and deliver of Test and LP separators to the Defendant at the price of USD 765,000. The material terms of the Supply Contract are as follows:

Supplier's Obligations

[1.1] The Supplier's obligations and liabilities are as set out in this letter and all attachments hereto and the Supplier shall therefore assume and perform all the Contractor's obligations and liabilities to be evolved therefrom in connection to the supply of Materials herein described. The Supplier shall save harmless and indemnify the Contractor against all claims, demands, proceedings, damages costs, charges and expenses arising out of or in connection with any failure by the Supplier to perform his obligations under this Supply Contract or any default on the Supplier's part.

[1.2] The Supplier accepts full responsibility for the Materials to achieve full compliance with the requirements specified hereinafter:-

(i) Specification No : NEWFIELD-A-1249/SPE/ME/111 rev B dated 24 April 06.

(ii) Data Sheets :

NEWFIELD-A-1249/DS/ME/111-1 (4 sheets) rev B

NEWFIELD-A-1249/DS/ME/111-2 (1 sheets) rev B

NEWFIELD-A-1249/DS/ME/111-3 (4 sheets) rev B

NEWFIELD-A-1249/DS/ME/111-4 (1 sheets) rev B

(iii) Instruments Datasheets rev B (52 pages)

(iv) Piping and Instrument Diagram

a) Test Separator- BEL-A-0104 rev.A dated 27 November 06

b) LP Separator- BEL-A-0105 rev.A dated 27 November 06

(v) Attachment I : Technical Clarification no 1 dated 6 December 06

(vi) Attachment II : Scope of Work.

Supply Contract Price

[2.2] The above Supply Contract Price also includes :-

(i) the cost of necessary mill certificates and documentation required by RAMUNIA FABRICATORS SDN BHD ("End User") and PCM Feam (M) Sdn Bhd ("Contractor")

(ii) all the taxes & duties to be paid for all materials purchased for the Supply Contract and to be imported into Malaysia.

Delivery Date

[3.1] The Supplier undertakes to design, supply, test, pack and deliver the Materials exclude fabrication, testing, lining, material, calculation, painting and certification for pressure vessels to the Nilai Fabrication Yard Site within 21 weeks from this Letter of Award (ie 18 June 2007) (hereinafter referred to as the "Contractual Delivery Date"). And the fabricated / completed pressure vessels by OTHERS shall be delivered at Nilai Yard by 17^th May 2007 or earlier to provide sufficient time for Oakwell to install / assembly all supplied material on the vessels. In the event of late delivery of the pressure vessels, the completion of the total skid packages w