MY pitfall storytelling time: At the height of COVID-19, we landed the biggest deal of our lives. It was a multi-seven-figure design-and-build contract with one of Malaysia’s largest corporate infrastructure giants.
Easily 10 times our usual project size. On paper, we looked like we were flying. Behind the scenes, it almost destroyed us.
When you land a massive project out of excitement and hunger, your blinders go on: We funded it with our own cash flow. Progress claims started dragging almost immediately.
But we wanted to deliver our promise. By the time we had received barely 20% of the funds, we had already executed 60%-70% of the work – pouring our own money into suppliers just to hit the timeline.
We signed a bespoke contract without proper legal scrutiny. Hidden inside was a 15% Liquidated Ascertained Damages (LAD) clause on the entire contract value.
When site delays inevitably occurred due to delayed client decisions and slow payments, the finger-pointing started.
We handed over the keys thinking our goodwill would be recognized. Instead, they withheld 25% to 30% of the final balance. A clean seven-figure sum. And that’s when the real nightmare began.
“Give us a RM700,000 discount and we’ll close an eye.”
That was the counter-offer from a corporate giant that already owed us seven figures for over a year. After delivering their multi-million-ringgit project, 18 months passed without our final payment.
Picking oneself up from the lowest ebb
If you run a service or construction business, you know what that silence feels like:
- Suppliers chasing you weekly.
- Waking up at 3am calculating payroll.
- Realising you’re carrying debt larger than what you’d earn in years.
Desperate to settle amicably and protect the relationship, I extended an olive branch: “Look, we’ll absorb RM100,000 off the claim just so everyone moves forward.”
Two months later, their response came back: They wanted RM700,000 slashed. That was the exact moment I realised: corporate bullies don’t respect your goodwill; they exploit your politeness.
We spent weeks compiling hundreds of pages of documentation – binders of A4 and A3 paperwork – and finally bit the bullet.
We instructed our lawyers to initiate adjudication (CIPAA) and litigation. Handing it to lawyers didn’t magically give us our money back overnight but it gave me back my sanity.
Biz courtesy has limitation
Surviving an 18-month, seven-figure legal fight broke me down but it re-built how I run my company. For anyone in design, construction or client services, here are the two hardest lessons I paid dearly to learn:
- Kindness without documentation is negligence: In Asia, we tend to prioritise harmony. We avoid sending formal delay notices or legal letters because we don’t want to seem “harsh” or spoil the relationship.
But in court, goodwill doesn’t exist. Only black-and-white paperwork does.
- Have an experienced construction lawyer vet bespoke contracts before you sign.
- Every variation order, delayed decision, and site halt must be issued in writing immediately.
- If they stop paying, you must have the contractual teeth to pause work.
- Get a therapist before you hit rock bottom: When you owe suppliers six figures and don’t know if you can meet payroll next week, your mind spirals. You question your competence, your worth and why you ever started a business.
Making critical decisions in that state of panic is dangerous. We hire coaches for badminton, fitness and business – yet we treat mental health like a secret shame.
Speaking to a professional gave me the emotional framework to separate what I could control from what I couldn’t. Big projects feed your ego. Cash flow, solid contracts and peace of mind feed your family.
Don’t sacrifice the latter just to say you landed the former. – Nov 1, 2026
Leonard Mak (known online as Leonardbuilds) is a Malaysian architect, interior designer and content creator based in Kuala Lumpur.
He founded his design and build studio, LM Studio (in 2017) and serves as a director at Contrive Builders Sdn Bhd, specialising in commercial, retail and residential interior construction. He has designed and built over 250,000 sq ft of spaces.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image credit: New York Institute of ART + DESIGN
