ICOP Construction v. Tiong Seng: Microtunnelling Dispute over Contract Termination and Delay Claims
ICOP Construction (SG) Pte Ltd sued Tiong Seng Civil Engineering Pte Ltd in the General Division of the High Court of Singapore, Suit No 1086 of 2019, before Lee Seiu Kin J, judgment on 12 October 2022, for payment of work carried out, costs incurred due to contractual variations, damages for failure to meet project specifications, and monies paid under performance and advance payment bonds. Tiong Seng Civil Engineering disputed liability and counterclaimed for damages due to delays allegedly caused by ICOP Construction. The court found partially in favor of both parties and ordered a Quantum Hearing to determine the final amounts owed.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Judgment partially for Plaintiff, ICOP Construction, and partially for Defendant, Tiong Seng Civil Engineering; Quantum Hearing ordered.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
ICOP Construction sues Tiong Seng for payment and damages related to a pipe construction subcontract. Tiong Seng counterclaims for delays and wrongful termination.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| ICOP Construction (SG) Pte Ltd | Plaintiff, Defendant in Counterclaim | Corporation | Partial Judgment | Partial | Lee Wei Han Shaun, Ng Khim Loong Mark, Low Zhe Ning, Jonathan Choo |
| Tiong Seng Civil Engineering Pte Ltd | Defendant, Plaintiff in Counterclaim | Corporation | Partial Judgment | Partial | Ho Chien Mien, Reuben Gavin Peter, Hannah Chua, Yew Kai Ning Sophia |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lee Wei Han Shaun | Bird & Bird ATMD LLP |
| Ng Khim Loong Mark | Bird & Bird ATMD LLP |
| Low Zhe Ning | Bird & Bird ATMD LLP |
| Jonathan Choo | Bird & Bird ATMD LLP |
| Ho Chien Mien | Allen & Gledhill LLP |
| Reuben Gavin Peter | Allen & Gledhill LLP |
| Hannah Chua | Allen & Gledhill LLP |
| Yew Kai Ning Sophia | Allen & Gledhill LLP |
4. Facts
- ICOP subcontracted with TSCE to perform pipe construction works.
- Disputes arose during the performance of the works, which were only part-completed.
- ICOP terminated the subcontract, claiming justification.
- ICOP sought payment for work carried out, costs for variations, damages for delays, and monies paid under bonds.
- TSCE disputed liability and counterclaimed for damages due to delays allegedly caused by ICOP.
- The project involved microtunnelling to install DN1200mm and DN1600mm pipelines.
- ICOP furnished TSCE with a performance bond for $570,000.
5. Formal Citations
- ICOP Construction (SG) Pte LtdvTiong Seng Civil Engineering Pte Ltd, Suit No 1086 of 2019, [2022] SGHC 257
6. Timeline
| Date | Event |
|---|---|
| TSC engaged by the Public Utilities Board to construct a potable water pipeline | |
| ICOP issued final quotation to TSCE | |
| TSCE entered into a subcontract with ICOP for the performance of microtunnelling works | |
| Subcontract executed between TSCE and ICOP | |
| TSCE sent emails to ICOP with pipe jacking drawings showing 3.0m-long pipe sections | |
| DN1200mm Pipeline works completed | |
| TSCE sent emails to ICOP with shop drawings showing 3.0m-long pipe sections | |
| ICOP informed TSCE that the Project was delayed by around six months | |
| TSCE issued a notice to ICOP to proceed with mobilization at shaft P5-2 from 2018-01-15 onwards | |
| ICOP prepared and issued a revised work programme to TSCE | |
| ICOP to proceed with mobilization at shaft P5-2 | |
| Expected handover of Shaft P5-2 | |
| TSCE handed over the slurry treatment plant area to ICOP | |
| TSCE handed over Shaft P5-2 to ICOP | |
| TSCE aimed to obtain approvals from SPPG and the PUB | |
| Primary generator and MTBM arrived on site | |
| ICOP sought payment for the hydraulic joints it used in connection with the DN1200mm Pipeline | |
| SPPG provided its approval | |
| ICOP was ready to commence pipe jacking subject to the requisite approvals being obtained from SPPG and the PUB | |
| PUB provided its approval | |
| ICOP provided additional works and services at TSCE’s request | |
| ICOP sent a revised version of the 8 January 2018 WP | |
| ICOP sent letter to TSCE enclosing the 17 August 2018 WP; TSCE responded that it had “generally no objection” | |
| TSCE sent a letter to ICOP highlighting the noise and asking that it propose mitigation measures | |
| NEA issued a warning to TSCE cautioning them that if the applicable noise limits continued to be exceeded, the NEA “would not hesitate to issue a notice to restrict the working hours of the construction site” | |
| TSCE forwarded letter along with a noise mitigation plan | |
| TSCE met with the NEA which prescribed some noise mitigation measures and prohibited pipe jacking works from 10pm to 7am nightly | |
| ICOP carried out Drive 2 | |
| ICOP carried out Drive 2 | |
| Parties agreed that the third drive would commence | |
| Parties agreed that the third drive would commence | |
| ICOP terminated the Subcontract | |
| ICOP stated that the applicable baseline programme was one submitted by ICOP on 25 February 2017 | |
| TSCE called on the full sum of the Performance Bond | |
| Agreed Bundle of Documents | |
| Consolidated Bundle of Affidavits of Evidence-in-Chief | |
| Notes of Evidence | |
| Defence and Counterclaim | |
| Joint Presentation (Quantum) | |
| Notes of Evidence | |
| Defendant’s Closing Submissions | |
| Plaintiff’s Closing Submissions | |
| Defendant’s Reply Submissions | |
| Plaintiff’s Reply Submissions | |
| Judgment reserved |
7. Legal Issues
- Contractual Variation
- Outcome: The court found that there were contractual variations for both the DN1200mm and DN1600mm pipelines, entitling ICOP to additional costs.
- Category: Substantive
- Breach of Contract
- Outcome: The court found that ICOP wrongfully terminated the subcontract, constituting a breach of contract.
- Category: Substantive
- Delay Claims
- Outcome: The court partially allowed both ICOP's and TSCE's delay claims, attributing specific delays to each party.
- Category: Substantive
- Wrongful Call on Performance Bond
- Outcome: The court reserved its decision on whether TSCE's call on the performance bond was wrongful until after the Quantum Hearing.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
- Recovery of Monies Paid Under Bonds
9. Cause of Actions
- Breach of Contract
- Claims for Payment
- Claims for Damages
- Quantum Meruit
10. Practice Areas
- Construction Law
- Commercial Litigation
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
- Microtunnelling
- Hydraulic Joints
- Chipboard
- Headwall
- MTBM
- Performance Bond
- Slurry Disposal
- Worksite Readiness
- Authority Approvals
- Noise Restrictions
- Delay Claims
- Termination
15.2 Keywords
- construction
- microtunnelling
- contract
- breach
- delay
- performance bond
- Singapore
- ICOP Construction
- Tiong Seng
16. Subjects
- Building and Construction Law
- Contract Law
- Civil Procedure
- Arbitration
17. Areas of Law
- Building and Construction Law
- Building and construction contracts
- Contractors’ duties
- Damages
- Employers’ duties
- Quantum meruit
- Scope of works
- Variations
- Termination
- Credit and Security
- Performance bond