L & W Building Construction v King Wah Construction: Defective Works Dispute
In L & W Building Construction Pte Ltd v King Wah Construction Pte Ltd, the High Court of Singapore heard an appeal by L & W Building Construction Pte Ltd against the decision of the Assistant Registrar, who had granted summary judgment to King Wah Construction Pte Ltd for $342,350 related to defective works. Woo Bih Li JC allowed the appeal, set aside the Assistant Registrar's decision, and ordered a stay of proceedings pending arbitration, due to an existing arbitration provision in the contract and disputes regarding the alleged defective works.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal Allowed, Stay of Proceedings Ordered Pending Arbitration
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Dispute over defective works in a construction project. The court stayed proceedings pending arbitration, reversing the Assistant Registrar's decision.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| L & W Building Construction Pte Ltd | Appellant, Defendant | Corporation | Appeal Allowed | Won | Edwin Lee |
| King Wah Construction Pte Ltd | Respondent, Plaintiff | Corporation | Appeal Dismissed | Lost | Raymond Chan, Spring Tan |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Woo Bih Li | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Edwin Lee | Chong Yeo & Partners |
| Raymond Chan | Chan Tan & Partners |
| Spring Tan | Chan Tan & Partners |
4. Facts
- L & W Building Construction was the developer of a 4-story factory.
- King Wah Construction was the main contractor for the project.
- The architect issued a Completion Certificate on 6 November 1998.
- A dispute arose regarding outstanding defective works.
- The architect called for tenders for rectification works and awarded the works for $342,350.
- The architect issued a Final Certificate deducting $342,350 for defective works.
- L & W Building Construction paid $199,406.70 to King Wah Construction prior to the hearing.
5. Formal Citations
- L & W Building Construction Pte Ltd v King Wah Construction Pte Ltd, Suit 433/2000/K, RA 43/2000 and 44/2000, [2000] SGHC 246
6. Timeline
| Date | Event |
|---|---|
| Contract signed | |
| Completion Certificate issued | |
| Architect called for tenders for rectification works | |
| Certificate of Payment (Final) No 16 issued | |
| Revised Certificate No 16A issued | |
| Judgment issued |
7. Legal Issues
- Breach of Contract
- Outcome: The court did not make a definitive ruling on the breach of contract issue, as the proceedings were stayed pending arbitration.
- Category: Substantive
- Validity of Architect's Certificate
- Outcome: The court found that the architect's certificate was valid for the purpose of determining the sum due, but the deduction for defective works was subject to arbitration.
- Category: Substantive
- Stay of Proceedings Pending Arbitration
- Outcome: The court allowed the appeal and ordered a stay of proceedings pending arbitration, recognizing the arbitration provision in the contract.
- Category: Procedural
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Construction Disputes
- Commercial Litigation
- Arbitration
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lojan Properties Pte Ltd v Tropicon Contractors Pte Ltd | Court of Appeal | Yes | [1991] 2 MLJ 70 | Singapore | Cited regarding the requirements for a valid Certificate of Cost of Other Contractor’s Work (COCW) and the exclusion of the right to set-off. |
| Lojan Properties Pte Ltd v Tropicon Contractors Pte Ltd | High Court | Yes | [1989] 3 MLJ 216 | Singapore | Cited for the background facts of the Lojan Properties case and the High Court's initial decision regarding the validity of interim certificates and the costs of rectification works. |
| James Png Construction Pte Ltd v Tsu Chin Kwan Peter | High Court | Yes | [1991] 1 MLJ 449 | Singapore | Cited to distinguish the facts from the present case, noting that the final certificate in that case certified the sum due, unlike the present case. |
| Kum Leng General Contractor v Hytech Builders Pte Ltd | High Court | Yes | [1996] 1 SLR 751 | Singapore | Cited to distinguish the facts from the present case, noting that the deductions in that case were made before the issuance of the required architect's certificate. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Defective Works
- Final Certificate
- Arbitration
- Certificate of Payment
- Conditions of Contract
- Rectification Works
15.2 Keywords
- construction
- defective works
- arbitration
- contract
- singapore
16. Subjects
- Construction Dispute
- Contract Law
- Arbitration
17. Areas of Law
- Construction Law
- Contract Law
- Arbitration Law
- Civil Procedure