KUALA LUMPUR: Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has won its dispute with EA Technique (M) Bhd and was awarded US$29.52mil and costs of RM4.86mil over a contract dispute.

MHB said on Thursday it was informed by its solicitors Messrs Mohanadass Partnership that it received the final award dated Nov 10 handed down by the arbitrial tribune.

To recap, its unit Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) had on Sept 27,2018 received a notice of arbitration from EATech for a number of claims.

The claims related to a contract involving the demolition, refurbishment and conversion of a vessel into a floating, storage and offloading facility for the North Malay Basin.

Recall that on June 9, 2015, EATech appointed MMHE as the main contractor. During the period of the contract, MMHE issued additional work orders to EATech claiming payments for the work done.

However, disputes and differences have arisen between the parties in respect of the sum arrived under the invoices and the additional work orders.

On June 22,2018, EATech and MMHE had entered into a letter of undertaking t to settle the sums due. However, they were unable to reach an amicable settlement and both parties sought legal proceedings.

The claims made by EATech were US$8.73mil as overpayment due to the re-measured contract price; US$9mil being the sum which EATech paid under the letter of undertaking and US$4mil as expenses and costs incurred.

MMHE disputed the claims and counter claimed for the additional work orders issued, the costs incurred as a result of extensions of time, and legal costs.

https://www.thestar.com.my/business/business-news/2020/11/12/arbitral-tribunal-orders-ea-technique-to-pay-mhb-us29m