Lim Chin San Contractors v Sanchoon Builders: Breach of Subcontract & Wrongful Termination

In a construction dispute before the High Court of Singapore on 23 December 2005, Lim Chin San Contractors Pte Ltd (LCS Contractors) sued Sanchoon Builders Pte Ltd (Sanchoon) for breach of contract and wrongful termination of a subcontract for marine works. Sanchoon counterclaimed for damages, alleging LCS Contractors repudiated the subcontract. Justice Judith Prakash found that Sanchoon's termination was wrongful, entitling LCS Contractors to judgment for $219,912 and damages to be assessed. The court found LCS Contractors in breach of contract for failing to obtain approvals from specified government authorities, entitling Sanchoon to damages to be assessed. The court awarded 95% of the costs of the claim and the Defence to the Counterclaim to LCS Contractors.

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

Construction dispute over marine works. LCS Contractors sued Sanchoon Builders for wrongful termination of a subcontract. Court found Sanchoon's termination wrongful.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Lim Chin San Contractors Pte LtdPlaintiffCorporationJudgment for PlaintiffWonKelvin Chia
Sanchoon Builders Pte LtdDefendantCorporationDamages to be assessedPartialJoseph Liow

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

Counsel NameOrganization
Kelvin ChiaBalkenende Chew and Chia
Joseph LiowStraits Law Practice LLC

4. Facts

  1. Sanchoon was the main contractor for the construction of a Police Coast Guard Sub-Base.
  2. Sanchoon appointed LCS Contractors as its subcontractor for certain bored piling and marine works.
  3. LCS Contractors' tender was based on the earth bund method, which was cheaper than the barge method.
  4. CPG Consultants required a method statement for the construction of the bund.
  5. CPG was not satisfied with the initial method statement submitted by LCS Contractors.
  6. Sanchoon engaged Prof Tan to assist LCS Contractors in putting up calculations to satisfy CPG.
  7. Sanchoon terminated the subcontract, alleging LCS Contractors had repudiated the agreement.

5. Formal Citations

  1. Lim Chin San Contractors Pte Ltd v Sanchoon Builders Pte Ltd, Suit 393/2004, [2005] SGHC 227

6. Timeline

DateEvent
LCS Contractors submitted quotation
Meeting held between LCS Contractors, Sanchoon, and CPG Consultants
Sanchoon issued letter of intent to LCS Contractors
Sanchoon issued Original Marine Works Programme
LCS Contractors signed subcontract document
Sanchoon issued Revised Marine Works Programme
LCS Contractors forwarded method statement to Sanchoon
SH Ng sent letter to Sanchoon
SH Ng supplied Sanchoon with Slope Analysis of Bund Wall
Prof Tan produced analysis indicating bund suitable if sand used
LCS Contractors requested particulars of delay
CPG sent letter to Sanchoon regarding statutory submissions and approvals
LCS Contractors sent letter of demand to Sanchoon
Sanchoon produced draft settlement agreement
Sanchoon terminated the subcontract
Action commenced
Judgment reserved

7. Legal Issues

  1. Breach of Subcontract
    • Outcome: The court found that LCS Contractors breached the subcontract by failing to obtain approvals from specified government authorities, but did not breach the subcontract for failing to follow instructions of consultants or failing to carry out works with reasonable diligence.
    • Category: Substantive
    • Sub-Issues:
      • Failure to follow instructions of consultants
      • Failure to carry out works with reasonable diligence
  2. Wrongful Termination
    • Outcome: The court held that Sanchoon's termination of the subcontract was wrongful.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Wrongful Termination

10. Practice Areas

  • Commercial Litigation
  • Construction Disputes

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
N/AN/ANoN/AN/AN/A

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

  • Subcontract
  • Marine works
  • Earth bund method
  • Method statement
  • Wrongful termination
  • Repudiation
  • Revised Programme
  • Original Programme

15.2 Keywords

  • construction
  • contract
  • subcontract
  • marine works
  • breach
  • termination
  • Singapore

16. Subjects

  • Construction Dispute
  • Contract Law
  • Subcontracts
  • Marine Works

17. Areas of Law

  • Contract Law
  • Construction Law
  • Breach of Contract