Singapore Construction Update - Vim Engineering Pte Ltd v. Deluge Fire Protection Is Invoked To Avoid Paying Backcharges And Denied (Pro-Active Engineering Pte Ltd v. Prime Structure Engineering Pte Ltd)

Backcharges by contractors are commonly implemented in Singapore construction projects due to issues such as delays in work or poor workmanship by subcontractors. The Singapore High Court has recently shut down a Singapore subcontractor's attempt to avoid paying backcharges claimed by its contractor. In Pro-Active Engineering Pte Ltd v. Prime Structure Engineering Pte Ltd, the claimant ("Pro-Active") alleged it was not given reasonable notice of the work to be de-scoped and backcharged by the defendant ("Prime"). It further alleged that it should also not be liable for them due to a lack of substantiation for the backcharged amounts by Prime. Pro-Active unsuccessfully relied on Vim Engineering Pte Ltd v. Deluge Fire Protection ("Vim"), in which the Singapore High Court had decided to substantially reduce the amount of a contractor's backcharges. In Vim, the subcontractor had raised these same two issues of notice and substantiation. Regarding notice, the Singapore