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Chuang Uming Case Essay

2116 words - 8 pages

IntroductionThis case of Chuang Uming (Pte) Ltd v Setron Ltd was appealed for owing to the defective tiling works carried out on the façade of a seven storey industrial building known as ‘Haw Par Technocentre’ located at the junction of Commonwealth Avenue and Tanglin Halt Close, Setron Limited being the owners of the building. The architects involved were Lee Sian Teck Chartered Architects and the contractors engaged in the construction of the building were Chuang Uming (Pte) Ltd. The contract period was to last for about 50 weeks, commencing from 14 November 1990 upto 30 October 1991 although, the delay in completion of the work went upto 28 April 1992. A specialist sub contractor, Siwahin Decoration Contrcators for about 21 weeks, undertook the task of tiling the façade with ceramic tiles.BackgroundIn mid May 1992, after two months of completion of the site, the façade proved to be faulty since the tiles began debonding and falling apart. From June 1992 to May 1993 discussions were held regarding the same between the parties involved. Although experts were consulted in this matter, nothing materialized by the end of all these discussions. The main argument started when the contractors refused to comply with the decision of repairing the façade and blamed the architects faulty design being the cause of the debonding of tiles.Suit No: CA 45/1999, CA 46/1999Decision Date: 01 November 1999Court: Court of AppealCounsel for the Contractors: Salem Ibrahim and Leong Why KongCounsel for the Architects: Engelin Teh SC, David Kong and Thomas SimLiterature Review(A) The Interim Certificates-On 19 February 1993 the first Interim Certificate No C18 was issued accounting for an amount of $580,933.10 being the first amount of retention due from the owners to the contractors.-The architects disagreed with this amount since the defects of tiling wasn’t accounted for.-On 31 March 1993 another Interim Certificate C19 was issued after deducting the $49,500 representing 5% of the defects.-No payment was being made by the owners on the above mentioned amounts.-On 5 May 1993 the architects declared tiling of the whole façade as defective. An Interim Certificate No C 20 was issued stating an amount of $218,566.90 due from the contractors to owners after deducting $750,000, the estimated cost of rectifying the facade.-On 13 May 1993 an Interim Certificate No C21 certified that $75,000 was erroneously deducted since the contractors owed the owners $40,259.40.-The final sum arrived at was $621,192.50-the cost of tiling minus the retention money of $580,933.10.(B) Proceedings-On 24 April 1993 the contractors commenced the proceedings in Suit 883/93 against the owners with the intention to claim $ 580,933.10.-The main cause was owing to breach of contract and/or negligence.-The contractors blamed the owners with reference to certificate numbers C18 and C19.-The owners intern blamed the contractors for negligence and...

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