Introduction

[1] Pursuant to a design and build contract entered into between Imej Warisan Sdn Bhd (the plaintiff in the court below) and the Government of Malaysia (the defendant in the court below), the plaintiff sued the defendant for (i) late payment interest of RM1,511,386.84; (ii) damages in the sum of RM685,225.71 for wrongful deduction of liquidated ascertained damages ('LAD') of 27 days; and damages of RM3,420,320.96 for loss and expense suffered by the plaintiff in respect of the delay in the completion of the project.

[2] After a full trial at the Kota Kinabalu High court, the learned judge allowed the plaintiff's claim and made the following orders, inter alia:

a) The defendant to pay the plaintiff late payment interest of RM1,021,932.18 together with interest at 4% per annum from date of judgment until realisation;

b) The defendant is entitled to impose LAD of 24 days only amounting to RM609,089.52 and not RM685,225.71 an