Megawide, Araneta swaps claims over construction contracts

The Araneta Group’s ACI Inc., the owner, developer and manager of Araneta City in Cubao, is seeking P1.53 billion from Megawide Construction Corporation for alleged violations in their construction contracts.

In a disclosure to the Philippine Stock Exchange, Megawide said ACI has filed a permissive counterclaim against Megawide amounting to P1.53 billion for alleged violations of their Construction Contract.

The permissive counterclaim filed by ACI is founded on the alleged violations for the general construction of Gateway Mall 2 and Ibis Hotel in Quezon City. The contract price for the project is P4.25 billion.

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The counterclaim was filed after Megawide filed a complaint claiming P339.65 million from ACI before the Construction Industry Arbitration Commission (CIAC).

Megawide said its complaint involved the contract entered with ACI for the design and construction of the Araneta Cyberpark Tower 2.

“MCC intends to file, within the allowed period, an opposition/objection to ACI, Inc.’s permissive counterclaims for due consideration of the CIAC Arbitration panel,” said Megawide.

It assured that “The permissive counterclaims will not have a significant impact as far as the operations of the Company is concerned.”

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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