Construction contracts often contain detailed procedures for the various aspects of the working arrangement between the parties, including the agreed mechanisms for making payment claims or for variation and rectification works, as well as details such as notification periods or approval processes. However, where parties do not comply with the agreed mechanisms, what is the effect upon the relevant contractual claims? When does it bar the claim entirely, and when will the claim be allowed to proceed? The Appellate Division of the Singapore High Court had the opportunity to consider this question in Vim Engineering Pte Ltd v Deluge Fire Protection (S.E.A) Pte Ltd [2023] SGHC(A) 2.
The Court allowed the Appellant subcontractor’s claim for variation works, overturning the decision of the High Court Judge. Conversely, the Court substantially reduced the Respondent employer’s claim for back-charges as it had not provided sufficient evidence.
The Appellant was successfully represented by Avinash Pradhan, Jasmine Thng and Nikolas Tong of Rajah & Tann Singapore LLP, who were the solicitors engaged in respect of the appeal.
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