Resource Piling v Geocon Piling: Breach of Subcontract & Damages for Piling Works

Resource Piling Pte Ltd ("Resource") sued Geocon Piling & Engineering Pte Ltd ("Geocon") and Multi-Con Systems Pte Ltd (“Multi-Con”) in the High Court of Singapore, alleging breach of a subcontract for piling works. The court ruled that the subcontract was between Resource and Geocon, dismissing claims against Multi-Con. Tay Yong Kwang J awarded Resource damages against Geocon, including the value of work done, crane rental costs, standby charges, and loss of profits. Geocon appealed parts of the decision, which the court upheld.

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

Resource Piling sued Geocon Piling for breach of contract related to piling works. The court awarded Resource Piling damages, including loss of profits.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Geocon Piling & Engineering Pte LtdDefendant, PlaintiffCorporationJudgment Against DefendantLost
Resource Piling Pte LtdPlaintiff, DefendantCorporationJudgment for PlaintiffWon
Multi-Con Systems Pte LtdDefendant, PlaintiffCorporationClaim DismissedDismissed

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudgeYes

4. Counsels

Counsel NameOrganization
Nicholas NarayananAng & Partners
Tan Joo SengAng & Partners
Leo Cheng SuanInfinitus Law Corporation
KalaiselviInfinitus Law Corporation

4. Facts

  1. Resource was Geocon’s specialist bored piling subcontractor for a Land Transport Authority project.
  2. The subcontract in issue concerned the stretch between the ECP and Nicoll Highway.
  3. The total subcontract sum for the piling works was $18.7m.
  4. Resource submitted a quotation to Geocon, which was accepted with a two percent reduction.
  5. Resource was not permitted to use cranes above 15 years of age, despite a contractual term allowing all cranes with valid lifting machine certificates.
  6. Resource was not given unrestricted access to the relevant sites, resulting in idle time and delay costs.
  7. Resource was not being paid its dues by Geocon from February 2004.

5. Formal Citations

  1. Resource Piling Pte Ltd v Geocon Piling & Engineering Pte Ltd and Another, Suit 334/2004, 282/2004, [2006] SGHC 134

6. Timeline

DateEvent
Resource submitted a quotation to Geocon for piling works.
Resource submitted the final quotation to Geocon.
Geocon issued a letter of award to Resource for the piling works.
Piling works started.
Exchange of letters regarding the omission of works at ECP Car Park A.
Resource was not being paid its dues by Geocon.
Multi-Con commenced Suit No 282 of 2004 against Resource.
Resource left the worksite.
Resource launched Suit No 334 of 2004 against Geocon and Multi-Con.
Court ordered consolidation of the two actions.
Judgment Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that Geocon breached the subcontract with Resource.
    • Category: Substantive
    • Sub-Issues:
      • Improper termination
      • Failure to perform condition precedent
  2. Measure of Damages
    • Outcome: The court determined the appropriate measure of damages for the breach, including the value of work done, crane rental costs, standby charges, and loss of profits.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

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

  • Piling works
  • Subcontract
  • Letter of award
  • Man years
  • LM certificate
  • Standby costs
  • Dumping fees
  • Contra charges
  • Loss of profits
  • Re-measurement basis

15.2 Keywords

  • construction
  • piling
  • subcontract
  • breach of contract
  • damages
  • singapore

17. Areas of Law

Area NameRelevance Score
Breach of Contract75
Contract Law70
Construction Law65
Damages60
Piling Works60
Construction55
Subcontracting50

16. Subjects

  • Construction Dispute
  • Contract Law