Desin Construction v Cattel Engineering: Construction Contract Dispute over Payment for Diversion Project

In a civil case before the High Court of Singapore on 11 September 2009, Desin Construction Pte Ltd sued Cattel Engineering Pte Ltd for breach of contract, seeking payment for works completed on a construction project. Desin Construction claimed that Cattel Engineering failed to make full payment for the project. Cattel Engineering counterclaimed for overpayment and rectification costs due to Desin Construction's alleged failure to perform contractual obligations and rectify defects. The court dismissed Desin Construction's claim and Cattel Engineering's counterclaim for overpayment, but allowed Cattel Engineering's counterclaim for rectification costs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Plaintiff's claim dismissed with costs; Defendant's counterclaim for overpayment dismissed with costs; Judgment for Defendant's counterclaim for rectification costs.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment reserved

1.5 Jurisdiction

Singapore

1.6 Description

A dispute over a construction contract between Desin Construction and Cattel Engineering regarding payment for a diversion project. The court dismissed Desin's claim and allowed Cattel's counterclaim for rectification costs.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Desin Construction Pte LtdPlaintiffCorporationClaim dismissed with costsLost
Cattel Engineering Pte LtdDefendantCorporationCounterclaim for overpayment dismissed with costsPartial

3. Judges

Judge NameTitleDelivered Judgment
Kan Ting ChiuJudgeYes

4. Counsels

Counsel NameOrganization
Pavan Kumar RattyP K Ratty & Partners
Ang Cheng Ann AlfonsoA. Ang, Seah & Hoe

4. Facts

  1. Desin Construction and Cattel Engineering entered into a contract for a construction project named “Diversion of Private Services at Jurong Island Highway (Phase 2) – Civil”.
  2. Desin Construction submitted a quotation of $11,512,000.00 to Cattel Engineering, which was accepted.
  3. No formal agreement was executed, nor was there any exchange of correspondence to record terms regarding the execution of and payment for the works.
  4. Desin Construction claimed that it had completed the project to the satisfaction of Cattel Engineering but did not receive full payment.
  5. Cattel Engineering argued that payments were to be made only when work carried out by Desin Construction was completed and approved.
  6. Cattel Engineering counterclaimed that it had overpaid Desin Construction and incurred further costs in rectifying Desin Construction’s works.
  7. The court found that Desin Construction did not prove it was entitled to the payment claimed.

5. Formal Citations

  1. Desin Construction Pte Ltd v Cattel Engineering Pte Ltd, Suit 311/2008, [2009] SGHC 203

6. Timeline

DateEvent
Final inspection of the contracted works
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court dismissed the plaintiff's claim for breach of contract.
    • Category: Substantive
  2. Quantum Meruit
    • Outcome: The court dismissed the plaintiff's claim for payment in quantum meruit.
    • Category: Substantive
  3. Rectification Costs
    • Outcome: The court allowed the defendant's counterclaim for rectification costs in the sum of $401,913.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract
  • Quantum Meruit

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Keating on Construction ContractsN/AYesKeating on Construction Contracts 8th EditionN/ACited regarding the employer's obligation to pay the contractor in a lump-sum contract despite a few defects and omissions, subject to a deduction for the defects.

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 project
  • Diversion of Private Services
  • Jurong Island Highway
  • Contract sum
  • Rectification costs
  • Overpayment
  • Substantial completion
  • Lump sum contract

15.2 Keywords

  • construction contract
  • payment dispute
  • rectification costs
  • overpayment
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Construction Law95
Building and Construction Contracts90
Contract Law80
Breach of Contract70
Damages50
Quantum meruit40

16. Subjects

  • Construction Dispute
  • Contract Law