Newtech Engineering v BKB Engineering: Sub-Contract Dispute Over Construction Works and Liquidated Damages

In a dispute before the High Court of Singapore, Newtech Engineering Construction Pte Ltd sued BKB Engineering Constructions Pte Ltd for payment of work done under two sub-contracts for the Sembawang Camp construction project. BKB Engineering counterclaimed for liquidated damages due to delays. The court ruled in favor of Newtech Engineering, awarding them $55,037.18, and dismissed BKB Engineering's counterclaim.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the plaintiff, Newtech Engineering Construction Pte Ltd, and the defendant's counterclaim is dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment reserved.

1.5 Jurisdiction

Singapore

1.6 Description

High Court case between Newtech Engineering and BKB Engineering concerning claims for work done under sub-contracts and liquidated damages for delays.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Newtech Engineering Construction Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
BKB Engineering Construction Pte LtdDefendantCorporationCounterclaim DismissedLost
The Asia Insurance Company LtdDefendantCorporationNeutralNeutral
Cosmic Insurance Corporation LimitedDefendantCorporationNeutralNeutral

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Chong Kuan KeongChong Chia and Lim LLC
Lawrence LimChong Chia and Lim LLC
Michael ChongChong Chia and Lim LLC
Josephine ChongUniLegal LLC

4. Facts

  1. Newtech Engineering was a sub-contractor for BKB Engineering for the Sembawang Camp project.
  2. Two sub-contracts were signed between Newtech Engineering and BKB Engineering for box culvert and external works.
  3. Newtech Engineering claimed $376,944.99 (inclusive of GST) was owed by BKB Engineering for completed works.
  4. BKB Engineering counterclaimed for liquidated damages due to delays in the sub-contract works.
  5. The box culvert works were completed on 9 November 2000, after a revised completion date of 10 November 2000.
  6. Disputes arose over the cause of delays in the external works, with each party blaming the other.
  7. BKB Engineering engaged other sub-contractors to complete some of the works originally assigned to Newtech Engineering.

5. Formal Citations

  1. Newtech Engineering Construction Pte Ltd v BKB Engineering Construction Pte Ltd and Others, Suit 42/2003/N, [2004] SGHC 61

6. Timeline

DateEvent
First sub-contract signed for box culvert construction.
Plaintiff to take possession of site for box culvert works.
Plaintiff complained about delay in shoring work.
Second sub-contract signed for external works.
Original scheduled completion date for box culvert works.
Parties exchanged letters regarding removal of surplus earth.
Box culvert works completed.
Revised completion date for box culvert works.
Defendant attempted to call on performance bonds.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found in favor of the plaintiff, determining that the defendant owed the plaintiff money for work done under the sub-contracts.
    • Category: Substantive
  2. Liquidated Damages
    • Outcome: The court dismissed the defendant's counterclaim for liquidated damages, finding that the defendant failed to prove the plaintiff caused the delays.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages
  2. Restraint of payment under performance bonds

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Disputes
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Newtech Engineering Construction Pte Ltd v BKB Engineering Constructions Pte LtdHigh CourtYes[2003] 4 SLR 73SingaporeCited as the case where the plaintiff restrained the defendant from calling on the performance bonds, which was affirmed on appeal.

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

  • Sub-contract
  • Liquidated damages
  • Box culvert
  • External works
  • Shoring
  • Piling
  • Surplus earth
  • Delay
  • Extension of time

15.2 Keywords

  • Construction
  • Subcontract
  • Liquidated Damages
  • Singapore
  • High Court

17. Areas of Law

Area NameRelevance Score
Construction Law90
Contract Law80
Breach of Contract75
Liquidated Damages70
Construction70
Sub-contracts65
Damages60

16. Subjects

  • Construction Dispute
  • Contract Law
  • Arbitration