Soilbuild Construction Group warned on Tuesday it expected to report a loss for the fourth quarter and full year after an arbitrator ruled against its wholly owned subsidiary Soil-Build in a case it brought against a sub-contractor.
Soil-Build had sought damages from the sub-contractor for its delay in completing its sub-contracted work for a construction project, Soilbulid Construction said in a filing to SGX before the market open on Tuesday.
Instead, the arbitrator ruled the sub-contractor isn’t liable to pay Soil-Build any damages for the delay and Soil-Build must pay it the balance owed, which was around S$1.4 million, not including interest, the company said, noting it previously hadn’t expected to the sum to be payable.
Soilbuild Construction said it will need to recognize the balance owed and other project costs, including damages it previously had expected to receive, as additional cost of sales for the project.
“The company is in the midst of making an assessment with a view to finalizing the amount of other associated project costs to be recognized,” it said.
In addition, it said it was taking legal advise on the arbitration award and “intends to take all steps necessary to protect its interests.”
Soilbuild Construction didn’t state the name of the sub-contractor or the construction project in the filing.