Chai Yong Construction v Chan Hock Seng: Construction Dispute over Angsana Avenue Property

In Chai Yong Construction Co Pte Ltd v Chan Hock Seng and Han Lili, the High Court of Singapore ruled in favor of Chai Yong Construction in a dispute over a construction contract. Chai Yong Construction sued Chan Hock Seng and Han Lili for breach of contract related to construction and renovation work at Angsana Avenue. The court, presided over by Justice Lai Siu Chiu, found that Chai Yong Construction had satisfactorily proven their claim and dismissed the defendants' counterclaim, awarding damages and costs to the plaintiff.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Chai Yong Construction sues Chan Hock Seng for breach of contract related to construction and renovation work. The court found in favor of Chai Yong Construction, dismissing Chan Hock Seng's counterclaim.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Chan Hock SengDefendantIndividualClaim DismissedLost
Chai Yong Construction Co Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
Han LiliDefendantIndividualClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Lai Siu ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Leo Cheng SuanInfinitus Law Corporation
Michael ChiaInfinitus Law Corporation
Raymond WongWong Thomas & Leong

4. Facts

  1. Chai Yong Construction was contracted to build a house and renovate another for Chan Hock Seng and Han Lili.
  2. The contract price was $729,000, governed by Singapore Institute of Architects Conditions of Contract.
  3. The plaintiffs furnished a performance bond of $72,900.
  4. The plaintiffs completed construction on 2 June 1999.
  5. The Building Control Authority refused to issue a Temporary Occupation Licence after an inspection.
  6. The first defendant ejected the plaintiffs from the site on 11 July 1999.
  7. The defendants claimed the plaintiffs' works were defective and lodged a counterclaim.

5. Formal Citations

  1. Chai Yong Construction Co Pte Ltd v Chan Hock Seng and Another, Suit 600276/2000, [2001] SGHC 360

6. Timeline

DateEvent
Original construction contract awarded to Rock Create Pte Ltd
First defendant incarcerated
Letter of award issued to Chai Yong Construction Co Pte Ltd
Rock Create's services terminated
Chai Yong Construction Co Pte Ltd given possession of the site
Performance bond issued by Cosmic Insurance Corporation Ltd
First defendant released from incarceration
Plaintiffs completed construction
First defendant submitted a list of defects
Defendants selected toilet doors
Soh issued certificate of payment no. Ala/09
Certificate delivered to the defendants
Building Control Authority inspection
Building Control Authority refused to issue a Temporary Occupation Licence
Completion date under the agreement
Soh issued a Delay Certificate
Plaintiffs requested issuance of an Architect's Instruction for handrail installation
Plaintiffs asserted reasons for delay in issuance of the Temporary Occupation Licence
Soh issued an Architect's Instruction for installation of the handrails
Incident at the property involving Thai workers
Plaintiffs ejected from the site
Soh requested that the plaintiffs complete outstanding items of work
Without prejudice negotiations culminated in a meeting
Plaintiffs' solicitors wrote to the defendants and Soh setting out the terms of the agreement
Soh wrote to the plaintiffs' solicitors to inquire if the plaintiffs would be willing to install the handrails and toilet doors
First defendant issued a Notice of Termination to the plaintiffs
Defendants wrote to Soh requesting action on previous letters and list of defects
First defendant called for payment on the performance bond
Plaintiffs' solicitors replied to Soh indicating the plaintiffs' willingness to do the work requested
Ho informed by Cosmic that the first defendant called for payment on the performance bond
Soh told Ho that he would speak to the first defendant with a view to resolving the matter amicably
Defendants wrote to the Building Control Authority to withdraw their application for Temporary Occupation Licence
Soh told Ho that he was discussing the matter with the defendants and was confident that a settlement could be achieved
Soh wrote to the Building Control Authority to say that five of the items highlighted in Building Control Authority's letter dated 5 July 1999 would be complied with
Cosmic informed Ho that the first defendant was demanding payment of the sum under the performance bond
Plaintiffs filed D C Suit No. 4415 of 1999 and applied for an interim injunction
Defendants suspended the services of Soh
Soh notified the plaintiffs that he was no longer the qualified person for the project
Defendants applied to set aside the plaintiffs' interim injunction but failed
Defendants appointed Peter Von Selkey of Seifert Asia to take over from Soh as the architect
Temporary Occupation Licence issued for both properties
Suit transferred to the High Court
Certificate of Statutory Completion issued
Part-hearings took place
Trial resumed
Decision Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the defendants breached the construction contract.
    • Category: Substantive
    • Sub-Issues:
      • Failure to make payment
      • Defective workmanship
      • Delay in completion
  2. Defective Workmanship
    • Outcome: The court found that some defects were due to the plaintiffs' workmanship, while others were caused by the defendants' actions.
    • Category: Substantive
    • Sub-Issues:
      • Water ingress
      • Mismatching of roof tiles
      • Roof leakage
      • Insufficient roof insulation
      • Rusting of railings
      • Leaks from copper piping
  3. Wrongful Call on Performance Bond
    • Outcome: The court found that the defendants were not justified in calling on the performance bond.
    • Category: Substantive

8. Remedies Sought

  1. Balance of contract sum
  2. Damages for defective works
  3. Indemnity
  4. Loss of rent

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Disputes
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

  • Construction contract
  • Defects
  • Performance bond
  • Temporary Occupation Licence
  • Certificate of Statutory Completion
  • SIA Conditions
  • Lump sum price
  • Water ingress
  • Roof leakage
  • Anti-termite treatment

15.2 Keywords

  • construction
  • contract
  • defects
  • performance bond
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Construction Law85
Construction Disputes80
Breach of Contract75
Contract Law70
Building and Construction Contracts70
Defective Workmanship65
Performance Bond60
Damages50
Evidence40
Architects Liability30
Civil Procedure30
Summary Judgement20
Estoppel15
Personal Injury10

16. Subjects

  • Construction Dispute
  • Contract Law