Construction giant Datem is pursuing its case against realty giant Megaworld for P873 million in arrears on its projects based on a mutual agreement that is equivalent to a settlement deal.

The deal involves the turnover by Datem of accomplished and completed works on the premise that Megaworld pays unpaid claim, a spokesperson of the contractor said.

The Datem representative indicated Megaworld's "posturing of supposed chronic delays in the implementation of projects subject of mutual settlement precisely confirms that it had no intention to be bound by or comply with its undertaking under the Mutual Agreement."

Willful delayed, withheld payments

He added that during the course of the implementation of the construction projects, Megaworld has consistently delayed or withheld payments or made unilateral and unauthorized deductions on billings before releasing payment.

"Megaworld hamstrung Datem's cash flow and ability to pay its suppliers and sub-contractors," as a result of the payment delay.

"Datem is an unpaid contractor of already accomplished works and despite remaining unpaid for a substantial amount of receivables for already accomplished works, it was lured into entering into the Mutual Agreement and giving up possession of accomplished works with the promise of eventual payment.