Weekly Industry News

Too little, too late

Weekly Industry News

TAKE it or leave it.

Those were the options given to home owner Gerald Chu by a developer of a new apartment in Kuala Lumpur.

Despite handing over the keys to his brand new unit four months late, the developer didn’t want to pay Chu the full damages for the late delivery.

He was instead forced to take their offer: only 50% of the compensation, known as Liquidated Ascertained Damages (LAD).

“But it was delayed by the developer for four months. I should be receiving LAD worth RM16,000 but instead, I received only RM8,000,” says the finance executive.

When he asked why the developer was only paying half the sum, Chu was told “it was a management decision” without room for any negotiation.

Without much choice, he knew he had to take it, or be left with nothing.

MediaTitle: Sunday Star

Date: 21 Apr 2019

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