By way of a sub-contract dated 4.6.93 (the agreement) and varied by a supplemental agreement to the agreement dated 21.10.94 (the supplemental agreement) the defendant appointed the plaintiff to perform certain sub-contract works on the Kuala Lumpur Telecommunications Tower. Article 4 in the conditions of contract annexed to the agreement provides that the plaintiff shall place with the defendant a performance bond (the bond) equal to 30% of the sub-contract sum. In accordance with their obligations under Article 4 the plaintiff caused the Bank of Commerce (M) Bhd (the bank) to issue the bond no. 1408LG940735 dated 8.2.94 in the sum of RM1,530,000.00 to the defendant. The sub-contract works were due for completion on 31.10.95. The plaintiff alleged that whilst it had substantially completed all the sub-contract works, the portions of the sub-contract works remaining to be done are as a result of the defendant and/or their other sub-contractors failing to complete their works on time and as a result of numerous variations in the works requested for by the defendant. The plaintiff wrote to the defendant that certain works could not be performed because certain items had not