Winstech Engineering v Shanghai Chong Kee: Sub-contractor Claims & Privity of Contract

In Winstech Engineering Pte Ltd v Shanghai Chong Kee Furniture & Construction Pte Ltd, the High Court of Singapore dismissed Winstech Engineering's claim against Shanghai Chong Kee for breach of contract. Winstech, a sub-contractor, alleged that Shanghai Chong Kee failed to provide a line of credit as specified in a letter of award. The court, presided over by Lee Seiu Kin J, found that the contract was between Winstech and JDK Construction Pte Ltd, not Shanghai Chong Kee, and therefore there was no privity of contract. The court also dismissed Winstech's claims for outstanding progress payments and variation order payments, as these claims arose from the contract with JDK. The judgment was delivered on 12 September 2019.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Plaintiff's claims are dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Winstech Engineering sues Shanghai Chong Kee for breach of contract regarding a line of credit. The court dismissed the claims due to lack of privity.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Shanghai Chong Kee Furniture & Construction Pte LtdDefendantCorporationJudgment for DefendantWon
Winstech Engineering Pte LtdPlaintiffCorporationClaim DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

Counsel NameOrganization
Chia Swee Chye KelvinLumen Law Corporation
Bernard TanLumen Law Corporation
K V Sudeep KumarS K Kumar Law Practice LLP

4. Facts

  1. Defendant was the main contractor for a hotel project.
  2. Defendant engaged JDK Construction Pte Ltd as its main sub-contractor.
  3. JDK sub-contracted M&E works to the plaintiff, Winstech Engineering Pte Ltd.
  4. The letter of award stated a line of credit to be issued by the defendant.
  5. Plaintiff claimed the defendant breached the contract by failing to provide the full line of credit.
  6. Plaintiff requested financing from JDK, not the defendant.
  7. Defendant terminated the sub-contract with JDK.

5. Formal Citations

  1. Winstech Engineering Pte Ltd v Shanghai Chong Kee Furniture & Construction Pte Ltd, Suit No 788 of 2018, [2019] SGHC 213

6. Timeline

DateEvent
Defendant engaged as main contractor for hotel project.
Letter of award issued to Plaintiff by JDK Construction Pte Ltd.
Plaintiff completed 95% of sub-contract works.
Defendant terminated sub-contract with JDK.
Trial began.
Judgment reserved.

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court held that there was no breach of contract because the defendant was not a party to the contract between the plaintiff and JDK.
    • Category: Substantive
  2. Privity of Contract
    • Outcome: The court held that the defendant was not bound by the contract between the plaintiff and JDK due to lack of privity.
    • Category: Substantive

8. Remedies Sought

  1. Monetary Damages

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Law
  • 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

  • Sub-contract
  • Line of Credit
  • Privity of Contract
  • Letter of Award
  • Variation Orders
  • Progress Payments

15.2 Keywords

  • Sub-contractor
  • Breach of Contract
  • Privity of Contract
  • Construction Law
  • Singapore High Court

17. Areas of Law

Area NameRelevance Score
Construction Law85
Subcontracts80
Breach of Contract70
Contract Law70

16. Subjects

  • Construction Dispute
  • Contract Law