SOILBUILD Construction Group’s subsidiary Soil-Build was on Monday (Mar 13) ordered by the Singapore Mediation Centre to pay a subcontractor almost S$1 million within seven days, and borne S$20,000 in costs in relation to the adjudication application.

This is the outcome of the application which the subcontractor had lodged in respect of a claim for about S$1.28 million. Singapore Mediation Centre is a provider of alternative dispute resolution services.

Addressing the next steps, the company on Tuesday said Soil-Build, among other things, intends to seek recovery of the adjudicated amount from the subcontractor, and is working with its legal advisers, Allen & Gledhill, to initiate the appropriate dispute resolution process.

“The company will make further announcements to update its shareholders when there are material developments in respect of the matter, as and when necessary,” the company added.

Meanwhile, the company said its directors are of the view that the adjudication determination will not have a material impact on the financial position of the group for the financial year ending Dec 31, 2023. This is because a corresponding accrual for liabilities in relation to the adjudication application has already been recognised in the group’s full-year results for the financial year ended Dec 31, 2022, which were announced on Feb 28.

Shares of Soilbuild Construction Group closed flat at S$0.036 on Tuesday.

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