GPE Pte Ltd v Siemens Pte Ltd: Construction Law, Damages for Defects & Delay

In GPE Pte Ltd v Siemens Pte Ltd, heard in the High Court of Singapore on 6 September 2018, GPE sued Siemens for losses arising from delays and variation works related to the construction of E-Houses across three projects (Jangkrik, 030, and 103). Siemens counterclaimed for liquidated damages, overpayment, and back charges for rectification of defects. The court allowed some of GPE's claims for losses and variation works to be assessed, entered judgment for certain completed works, and also allowed some of Siemens' counterclaims for liquidated damages and back charges, ordering assessment for others. The court dismissed some of GPE's claims and Siemens' counterclaims. The claims included breach of contract and delays. The court ordered that all judgments on the claims and counterclaims for each project are to be consolidated and set off accordingly.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Partial Judgment for Plaintiff; Partial Judgment for Defendant; Assessment Ordered

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

GPE sued Siemens for losses and variations in constructing E-Houses. Siemens counterclaimed for delays and defects. The court allowed some claims and counterclaims, ordering assessment.

1.7 Decision Date

5 September 2018

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
GPE Pte Ltd	Plaintiff	Corporation	Partial Judgment for Plaintiff; Assessment Ordered	Partial	Lim Chee San of TanLim Partnership
Siemens Pte Ltd	Defendant	Corporation	Partial Judgment for Defendant; Assessment Ordered	Partial	Nandakumar Ponniya Servai of Wong & Leow LLC Wong Tjen Wee of Wong & Leow LLC Jeunhsien Daniel Ho of Wong & Leow LLC Nicolettte Onn of Wong & Leow LLC

3. Judges

Judge Name	Title	Delivered Judgment
Chan Seng Onn	Judge	Yes

4. Counsels

Counsel Name	Organization
Lim Chee San	TanLim Partnership
Nandakumar Ponniya Servai	Wong & Leow LLC
Wong Tjen Wee	Wong & Leow LLC
Jeunhsien Daniel Ho	Wong & Leow LLC
Nicolettte Onn	Wong & Leow LLC

4. Facts

Siemens engaged GPE to fabricate, assemble, and erect the structure and casing of three E-Houses.
The three projects were the Jangkrik Project, the 030 Project, and the 103 Project.
GPE claimed for losses arising out of delays allegedly caused by Siemens.
GPE claimed for variation works allegedly undertaken.
Siemens counterclaimed for liquidated damages arising from delays allegedly caused by GPE.
Siemens counterclaimed for back charges for costs incurred to rectify defects allegedly caused by GPE.
The court found that the defendant was late in the issuance of drawings and materials.

5. Formal Citations

GPE Pte Ltd v Siemens Pte Ltd, Suits No 532 and 736 of 2016, [2018] SGHC 194

6. Timeline

Date	Event
2017-10-10	Trial began
2017-10-11	Trial continues
2017-10-12	Trial continues
2017-10-13	Trial continues
2018-03-14	Trial continues
2018-03-15	Trial continues
2018-03-16	Trial continues
2018-03-20	Trial continues
2018-03-21	Trial continues
2018-07-23	Judgment reserved
2018-08-02	Further hearing
2018-08-24	Further hearing
2018-09-06	Judgment issued

7. Legal Issues

Breach of Contract
- Outcome: Some claims allowed, some dismissed, assessment ordered for others.
- Category: Substantive
- Sub-Issues:
  - Failure to complete works
  - Defective works
  - Delays in completion
Damages for Delay
- Outcome: Assessment ordered to determine losses resulting from delays.
- Category: Substantive
- Sub-Issues:
  - Prolongation costs
  - Idle machinery and manpower costs
Variation Works
- Outcome: Assessment ordered to determine reasonable costs for variation works.
- Category: Substantive
- Sub-Issues:
  - Quantum meruit basis for pricing
  - Compliance with variation clauses
Liquidated Damages
- Outcome: Judgment entered for liquidated damages based on expert assessment.
- Category: Substantive
- Sub-Issues:
  - Attribution of delay
  - Critical path analysis
Pleadings
- Outcome: Court held that pleadings could be read broadly to encompass claim for losses arising out of idle time.
- Category: Procedural
- Sub-Issues:
  - Sufficiency of generality
  - Explicit mention of claim

8. Remedies Sought

Monetary Damages

9. Cause of Actions

Breach of Contract

10. Practice Areas

Commercial Litigation
Construction Law
Arbitration

11. Industries

Construction

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
No cited cases

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
No applicable statutes

15. Key Terms and Keywords

15.1 Key Terms

E-Houses
Variation works
Liquidated damages
Back charges
Idle time
Prolongation costs
Quantum meruit
Weld Procedure Specifications
Cutting plan
Critical path analysis

15.2 Keywords

construction
contract
damages
delay
E-Houses
variation
liquidated damages
Singapore

17. Areas of Law

Area Name	Relevance Score
Construction Law	90
Damages	85
Breach of Contract	50
Contract Law	40

16. Subjects

Construction Dispute
Contract Law
Damages