All-Trade Construction v Lo Geok Kwee: Building Contract Dispute over Payment & Parol Evidence

In All-Trade Construction Pte Ltd v Lo Geok Kwee, the High Court of Singapore addressed a dispute arising from a building contract. All-Trade Construction sued Lo Geok Kwee to recover $460,907.58 outstanding for works certified by the architect. Lo Geok Kwee claimed a separate agreement existed and disputed the amount due. The court dismissed Lo Geok Kwee's appeal, upholding the order for conditional leave to defend and rejecting her application for an extension of time, finding the architect's certificates enforceable and the parol evidence inadmissible.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Defendant's appeal dismissed; application for extension of time dismissed; conditional leave to defend upheld.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Building contract dispute. Court rejects owner's parol evidence claim of separate agreement, enforcing architect's certificates for payment to contractor.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
All-Trade Construction Pte LtdPlaintiffCorporationConditional Leave to Defend UpheldPartial
Lo Geok KweeDefendantIndividualAppeal DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Judith PrakashJudgeYes

4. Counsels

4. Facts

  1. Lo Geok Kwee contracted with All-Trade Construction for construction of a building.
  2. The contract was based on the SIA Conditions of Building Contract (Lump Sum Contract).
  3. The contract price was a lump sum of $1,680,000.
  4. The architect certified $1,242,118.05 of work completed.
  5. Lo Geok Kwee paid $781,210.47, leaving a balance of $460,907.58 outstanding.
  6. All-Trade Construction commenced action to recover the outstanding sum.
  7. Lo Geok Kwee claimed a separate agreement existed for provisional items.

5. Formal Citations

  1. All-Trade Construction Pte Ltd v Lo Geok Kwee, Suit 1322/1999, [2000] SGHC 120

6. Timeline

DateEvent
Architects appointed All-Trade Construction as main contractor.
Architects certified $1,242,118.05 of work completed.
All-Trade Construction commenced action to recover $460,907.58.
Assistant registrar ordered conditional leave to defend.
Plaintiffs filed an appeal against the assistant registrar`s order.
Defendant filed an appeal against the order for conditional leave.
Defendant applied for leave to amend her defence and counterclaim.
Defendant applied for an extension of time to comply with the order of court dated 1 March 2000.
Plaintiffs entered judgment in default.
Court dismissed defendant's appeal and application for extension of time.
Decision Date

7. Legal Issues

  1. Admissibility of Parol Evidence
    • Outcome: The court held that parol evidence was inadmissible to contradict the written contract.
    • Category: Substantive
  2. Enforcement of Architect's Certificates
    • Outcome: The court held that the architect's certificates were enforceable and the defendant was obligated to pay the certified amount.
    • 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
Lojan Properties Pte Ltd v Tropicon Contractors Pte LtdCourt of AppealYes[1991] 1 SLR 80SingaporeConfirmed that an employer is obliged to pay the amount certified by the architect unless they have a certified cross claim.
Aurum Building Services (Pte) Ltd v Greatearth Construction Pte LtdHigh CourtYes[1994] 3 SLR 330SingaporeFollowed Lojan Properties, holding that a contractor must pay the certified amount first and pursue the counterclaim separately.
China Construction (South Pacific) Development Co Pte Ltd v Leisure Park (Singapore) Pte LtdHigh CourtYes[2000] 1 SLR 622SingaporeEstablished that architect's interim certificates issued under the SIA Conditions are prima facie to be honoured as they enjoy `temporary finality`.

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

  • Building Contract
  • SIA Conditions
  • Architect's Certificate
  • Parol Evidence Rule
  • Lump Sum Contract
  • Conditional Leave to Defend

15.2 Keywords

  • building contract
  • SIA conditions
  • architect's certificate
  • parol evidence
  • construction dispute
  • summary judgment

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Contract Law
  • Civil Procedure