Performance Bond & COTMA Relief

Can a contractor restrain a call on a performance bond made by the employer on the ground that the architect had failed to take into account the contractor's application for relief under the COVID-19 (Temporary Measures) Act 2020? This issue arose for consideration in Shanghai Chong Kee Furniture & Construction Pte Ltd v Church of St Teresa [2024] SGHC 5.

Background. The claimant was the contractor for a project to conduct restoration works at the premises of the defendant church ([1]).

The claimant provided a performance bond (the "Bond") issued by Lonpac Insurance Bhd in the amount of $629,998.70 ([1]).

Disputes arose between the parties, resulting in the defendant calling on the Bond ([9]).