Recently, in March 2024, our client’s claim in a PAM arbitration proceeding was allowed. Overlooking the coastline on the reclaimed island of Pulau Melaka, the Harbour City project was to be an illustrious landmark to the historical state of Malacca. Launched in 2015, the project was supposed to be a 5 million sq. ft marine-themed mixed development, comprising 3 hotel blocks, a mall and a theme park. However, the project was abandoned since 2020. Our client, a subsidiary of a state-owned public listed telco company in China, was a sub-subcontractor in the project. The sub-subcontract adopts the PAM Conditions of Sub-Contract 2006. The subcontractor who employed our client failed to progressively certify and pay them for the works carried out. When our client say they can no longer sustain works without payment, the sub-contractor terminated them and called on their performance bond, citing poor performance. Our client commenced arbitration on July 2021 under the PAM Arbitration Rules, claiming for, among others, (1) unpaid works (2) the sum under their performance bond (3) materials left at Site, and (4) loss from the unlawful termination. The subcontractor denied our client’s claims. In addition, they counterclaimed for liquidated damages and back charges. Despite the numerous issues and voluminous documentary evidence, the arbitration hearing took only 3 days. This was in 2023.