Rotol Projects v CCM Industrial: Sub-Contract Dispute over Variations & Payment for Aluminium and Glazing Works
In a consolidated suit, Rotol Projects Pte Ltd (Plaintiff) sued CCM Industrial Pte Ltd (Defendant) to recover sums due under an aluminium and glazing sub-contract for the Park Regis Hotel project. The High Court of Singapore, presided over by Quentin Loh J, ruled in favor of the Plaintiff, finding that the sub-contract was subject to additions and omissions for changes to the works and design. The court held the Defendant liable for variations, financing charges, and payment for gypsum blocks, dismissing the Defendant's counterclaim. The court determined that 22 days of delay were solely attributable to the Plaintiff, and another 20 days were attributable to the Plaintiff, Defendant, and Defendant's other sub-contractors.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiff
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Sub-contract dispute between Rotol Projects and CCM Industrial concerning payment for variations and additional works under an aluminium and glazing sub-contract. The court found in favor of Rotol Projects.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Rotol Projects Pte Ltd | Plaintiff | Corporation | Judgment for Plaintiff | Won | John Chung, Maurice Tan |
| CCM Industrial Pte Ltd | Defendant | Corporation | Counterclaim Dismissed | Lost | Ng Hweelon |
| Park Regis Investments Pte Ltd | Other | Corporation |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Quentin Loh | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| John Chung | Kelvin Chia Partnership |
| Maurice Tan | Kelvin Chia Partnership |
| Ng Hweelon | Legal Clinic LLC |
4. Facts
- Plaintiff and Defendant entered into a sub-contract for aluminium and glazing works for a hotel project.
- The sub-contract price was a lump sum of S$3.15 million.
- The Plaintiff claimed for variations and additional works beyond the original sub-contract sum.
- The Defendant argued that the sub-contract was a lump sum contract with no provision for additional payments.
- The Architect issued revised drawings that changed the facade treatment of the office block.
- The Plaintiff supplied gypsum blocks for acoustic soundproofing of hotel room partitions.
- The Defendant alleged that the gypsum blocks did not meet acoustic specifications.
5. Formal Citations
- Rotol Projects Pte Ltd v CCM Industrial Pte Ltd, Suit No 255 of 2011, [2014] SGHC 72
6. Timeline
| Date | Event |
|---|---|
| Plaintiff's Quotation issued | |
| Defendant's Works Order issued | |
| Plaintiff signed and accepted Defendant's Works Order | |
| Master Program Revision 11 dated | |
| Progress Payment Claim No 11 submitted | |
| Oral judgment given | |
| Decision Date |
7. Legal Issues
- Entitlement to Payment for Variations
- Outcome: The court held that the Plaintiff was entitled to be paid for changes from the approved shop drawings, subject to proof of quantum.
- Category: Substantive
- Sub-Issues:
- Changes to design
- Changes to work
- Existence of Binding Claims Procedure
- Outcome: The court found that there was no binding claims procedure in the sub-contract.
- Category: Procedural
- Sub-Issues:
- Implied terms
- Condition precedent
- Related Cases:
- [2008] 3 SLR(R) 1029
- [2013] 4 SLR 193
- Liability for Financing Charges
- Outcome: The court held the Defendant liable to pay the Plaintiff damages by way of financing charges and interest incurred due to its breach of contract.
- Category: Substantive
- Sub-Issues:
- Breach of contract
- Terms of payment
- Attribution of Delay
- Outcome: The court found that the 'main contractor's master program' referred to the Rev 9 Program and attributed 22 days of delay solely to the Plaintiff and another 20 days to the Plaintiff, Defendant, and Defendant's other sub-contractors.
- Category: Substantive
- Sub-Issues:
- Master program
- Work schedule
- Breach of Contract in Supply of Gypsum Blocks
- Outcome: The court held that there was no breach of contract and the Defendant was liable to pay the Plaintiff for the gypsum blocks sold and delivered.
- Category: Substantive
- Sub-Issues:
- Acoustic specifications
- Sale of Goods Act
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Construction Disputes
11. Industries
- Construction
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd | High Court | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited for the contextual approach in interpreting the terms of a written contract. |
| Sembcorp Marine Ltd v PPL Holdings Pte Ltd and Anor and another appeal | Court of Appeal | Yes | [2013] 4 SLR 193 | Singapore | Cited for principles on interpretation of contracts and implication of terms. |
| Lim Chin San Contractors Pte Ltd v Sanchoon Builders Pte Ltd | High Court | Yes | [2005] SGHC 227 | Singapore | Distinguished from the present case regarding the sub-contractor's obligation to carry out works as requested. |
| SM Integrated Transware Pte Ltd v Schenker Singapore (Pte) Ltd | High Court | Yes | [2005] 2 SLR(R) 651 | Singapore | Cited regarding the possibility of implying condition precedents. |
| Asirham Investment Pte Ltd v JSI Shipping (S) Pte Ltd | High Court | Yes | [2008] 1 SLR(R) 117 | Singapore | Cited regarding the possibility of implying condition precedents. |
| Foo Jong Peng and others v Phua Kiah Mai and another | Court of Appeal | Yes | [2012] 4 SLR 1267 | Singapore | Cited for the standard for the implication of terms remains one of necessity not reasonableness. |
| Forefront Medical Technology (Pte) Ltd v Modern-Pak Pte Ltd | High Court | Yes | [2006] 1 SLR(R) 927 | Singapore | Cited for the principle that an implication in law must not be made lightly. |
| LS Investment Pte Ltd v Majlis Ugama Islam Singapura | High Court | Yes | [1998] 3 SLR(R) 369 | Singapore | Cited for the principle that a party could not have possibly acquiesced to a state of affairs which it was unaware of. |
| National Foods Ltd v Pars Ram Brothers (Pte) Ltd | High Court | Yes | [2007] 2 SLR(R) 1048 | Singapore | Cited for the principles regarding satisfactory quality of goods under the Sale of Goods Act. |
| Balmoral Group Ltd v Borealis (UK) Ltd | Court | Yes | [2006] 2 Lloyd’s Rep 629 | United Kingdom | Cited for the principle that a guideline may not be applicable for goods that have a wide range of possible uses. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
| Sale of Goods Act (Cap 393, 1999 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Sub-contract
- Lump sum contract
- Variations
- Additional works
- Approved shop drawings
- Architect's Instructions
- Gypsum blocks
- Acoustic specifications
- Progress Payment Claim
- Main contractor's master program
15.2 Keywords
- construction
- contract
- subcontract
- variation
- payment
- aluminium
- glazing
- gypsum
- delay
16. Subjects
- Construction Dispute
- Contract Law
- Sub-Contract
- Variations
- Payment Claims
17. Areas of Law
- Construction Law
- Contract Law
- Building and Construction Law
- Civil Procedure