Keng & Keong Construction v Swee Hong Engineering: Subcontract Dispute over Termination and Damages

In a dispute between Keng & Keong Construction Pte Ltd (Plaintiff) and Swee Hong Engineering Construction Pte Ltd (Defendant) at the High Court of Singapore on 31 March 2011, the court addressed issues arising from the termination of a subcontract for structural works at the "Garden By The Bay Marina South Singapore" project. The Plaintiff claimed wrongful termination and sought unpaid progress claims, retention sum, and damages. The Defendant counterclaimed for breach of contract. The court dismissed the Plaintiff's action for wrongful termination but allowed recovery of unpaid progress claims, retention sum, and material costs. The Defendant's counterclaim for breach of contract was allowed, but only nominal damages of $100 were awarded due to insufficient evidence of actual loss.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Counterclaim allowed in part; nominal damages awarded.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Subcontract dispute between Keng & Keong Construction and Swee Hong Engineering regarding contract termination, progress claims, and damages. The court ruled in favor of Swee Hong's counterclaim but awarded nominal damages.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Keng & Keong Construction Pte LtdPlaintiffCorporationAction dismissed in partPartial
Swee Hong Engineering Construction Pte LtdDefendantCorporationCounterclaim allowed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Andrew AngJudgeYes

4. Counsels

Counsel NameOrganization
Christopher Yap Hock HengChristopher Yap & Co
S ThulasidasLing Das & Partners

4. Facts

  1. Plaintiff was the subcontractor of the defendant for structural works.
  2. The defendant alleged the plaintiff was in repudiatory breach of contract.
  3. The plaintiff claimed the defendant prematurely terminated the contract.
  4. The plaintiff sought unpaid progress claims, retention sum, and damages.
  5. The defendant counterclaimed for breach of contract.
  6. The court found the plaintiff was trying to find a way out of the contract.
  7. The defendant failed to prove it suffered loss as a result of the plaintiff’s breach.

5. Formal Citations

  1. Keng & Keong Construction Pte Ltd v Swee Hong Engineering Construction Pte Ltd, Suit No 744 of 2009, [2011] SGHC 78

6. Timeline

DateEvent
Letter of award issued by the defendant to the plaintiff.
Plaintiff stated they may need to be replaced due to not meeting requirements.
Progress Claim No 17 dated.
Plaintiff wrote to defendant regarding delays.
Meeting between plaintiff and defendant.
Meeting between plaintiff, defendant, and sub-subcontractors.
Defendant sent plaintiff an email regarding revised schedule.
Plaintiff sent defendant a letter accepting repudiation.
Progress Claim No 18 dated.
Companion Construction & Engineering Pte Ltd sent quotation to defendant.
Defendant made an announcement that the plaintiff had terminated the contract.
Plaintiff's delivery order No KKPL 2009/07 dated.
Defendant sent letter to plaintiff regarding lack of manpower.
Silver Sea Contractor Pte Ltd sent quotation to defendant.
Decision Date

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found that the plaintiff was in breach of contract.
    • Category: Substantive
    • Sub-Issues:
      • Repudiatory breach of contract
      • Wrongful termination
  2. Damages
    • Outcome: The court awarded nominal damages to the defendant due to insufficient evidence of actual loss.
    • Category: Substantive
    • Sub-Issues:
      • Quantification of damages
      • Liquidated damages
      • Nominal damages

8. Remedies Sought

  1. Monetary Damages
  2. Recovery of unpaid progress claims
  3. Recovery of retention sum

9. Cause of Actions

  • Breach of Contract
  • Wrongful Termination

10. Practice Areas

  • Commercial Litigation
  • Construction Disputes

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

  • Subcontractor
  • Repudiation
  • Progress Claims
  • Retention Sum
  • Access Scaffolding
  • Formwork Material
  • Nominal Damages

15.2 Keywords

  • construction
  • contract
  • subcontractor
  • breach of contract
  • damages
  • Singapore

17. Areas of Law

Area NameRelevance Score
Breach of Contract90
Construction Law85
Contract Law75
Damages60
Building and Construction Contracts50
Subcontracting40

16. Subjects

  • Construction Dispute
  • Contract Law