NEWS FROM THE SECRETARIAT - SISV FROM THE SECRETARIAT SISVnews 3 ... VGP Ong Siok Ling Jasmine VGP Ong Ai Ling Yvonne VGP Ong Poh Suan MEMBER Division Name VGP …

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SUNNY ISLAND!Welcome to our

SISV News is a quarterly newsletterof the Institute. It is distributed tomembers, students and friends ofthe surveying profession free ofcharge. Anyone wishing toreceive a copy may contact theSecretariat.

22nd COUNCIL 2005 - 2007Council ChairpersonDr Amy Khor, FSISV

President (LS)See Seng Guan, FSISV

President (QS)Seah Choo Meng, FSISV

President (VGP)Dr Lim Lan Yuan JP, FSISV

Honorary SecretaryDaniel Wong, MSISV

Honorary TreasurerThomas Lim, MSISV

SECRETARIATAssistant ManagerJanet Han

EDITORIAL CONTRIBUTIONSAll contributions of suitable articlesare welcomed. Articlesubmissions should include bothhard (printed) copy and asoftcopy (via email or diskette) inword format. Contributions shouldreach the Secretariat before 25March, June, September andDecember.

DISCLAIMERNo part of this newsletter may bereproduced without thepermission of the Institute.Contents of the newsletter do notnecessarily reflect the views oropinions of the Singapore Insituteof Surveyors & Valuers and noliability is accepted in relationthereto.

ADVERTISEMENTSFor informations and advertisingrates, please contact theSecretariat’s office:

SINGAPORE INSTITUTE OFSURVEYORS & VALUERS20 Maxwell Road #10-09BMaxwell House Singapore 069113Tel (65) 6222 3030Fax (65) 6225 2453Website http://www.sisv.org.sgEmail [email protected]

OFFICE HOURSMonday to Friday9.00am to 6.30pm

EDITORIAL & DESIGN CONSULTANTDesign Fusion

SISVnewscontents

26th AsianConference Get Your

Act Together

Law and theConstruction Industry

Out goes the old,In comes the new04

02Welcome ToOur SunnyIsland!

WAVO BoardMeeting

Tan Kian HoonPBM

MSISV, QS Division

Ng Cheng HuatBBM

MSISV, QS Division

Kong Mun KwongBBM (L)

FSISV, QS Division

Chia Aik Kok, EricPBM

FSISV, LS Division

CONGRATULATIONSTO THESE NEWLY-APPOINTED

JUSTICE OF PEACE

058th South EastAsia SurveyCongress 2005 08

Raising the bar

SISV played host to a 10-member delegation from the Yunnan Association for Science andTechnology (YAST) from 27 to 28 Nov 2005.

Led by Yang Jun-Dong, President of the Yunnan Association for Surveying and Mapping,the team was made up of officials from various local authorities and vice-professors fromthe Kunming Metallurgy College. The delegation team was given a guided tour at one of thelocal land-surveying firms to learn more about surveying methods here.

The team also attended a dialogue session, held at the Institute’s premises, with landsurveying council members.

During the session, the delegates expressed interest in sending an undergraduate to beattached to a local members’ firm during their school vacation.

They also extended an invitation to SISV to visit Yunnan in Apr 2006 and LS division wasgiven the responsibility to organize a technical visit in conjunction with the ASEAN Flagmeeting.

SISV hosted a delicious lunch reception at a local restaurant, where members and delegatescould mingle and interact. SISV definitely looks forward to hosting more of such visits fromour regional neighbours.

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You can now browse for list of SISV Library collectionsfrom the web.

If you come across books or wish to donate books thatare useful to the surveying profession, do call May Lamat 6222 3030 or e-mail to [email protected].

CIRCULARS

Contents of the circulars will be made available to FSISV and MSISV only. Please call Joe of Secretariatat Tel: 6222 3030 to request for a copy. For SISV Probationers and CREA, please contact the originatordirectly.

URAIssued by Urban Redevelopment Authority (URA). These circulars are also available at http://www.ura.gov.sg

URA/PB/2005/25-CUDDRevised boundary and change of use guidelines for Core Areas within the historic districts

URA/PB/2005/26-DCDGuidelines for the residential with commercial at the 1st storey zone

URA/PB/2005/27-DCDLodgment scheme for strata subdivision in commercial, mixed commercial, non-landed residential, flatted factoryand flatted warehouse developments

URA/PB/2005/28-DCDStreetblock plans for house no. 1 to 73 (odd nos) and 2 to 24 (even nos) Watten Drive, house no. 2 to 28(even nos) Watten Close and house no. 49 to 61 (odd nos) Watten Estate Road

URA/PB/2005/29-DCDPlanning (Declaration by Qualified Person) Rules 2005

URA/PB/2005/30-DCDClarifications on GFA treatment for planter boxes

FSSBIssued by Fire Safety & Shelter Bureau. These circulars are also available at http://www.scdf.gov.sg

CD/FSSD/12/01/03/04Circular on Naming of files for Corenet’s E-submission

CD/FSSD/12/01/03/04Standard for Fire Safety in Rapid Transit Systems (2005 Edition)

CD/FSSD/12/01/03/04Revision to Technical Requirement for Storey Shelter – Setback Distance of Storey Shelter (SS) Walls

CD/FSSD/12/01/03/04Revision to Technical Requirement for Household Shelter – Setback Distance of Household Shelter Walls

CD/FSSD/12/01/03/04Fire Safety (Exemption) (Amendment) Order 2005

CONFERENCE

REAL ESTATE INVESTMENT WORLD27 - 30 Mar 2006THE WESTIN SHANGHAI, CHINAEmail: www.Terrapin.com/2006/reiv_cn

10TH PACIFIC ASSOCIATION OF QUANTITYSURVEYORS (PAQS) CONGRESS"Advancing New Frontiers"21 - 24 May 2006MARINA MANDARIN SINGAPORECongress SecretariatSingapore Institute of Surveyors and Valuers20 Maxwell Road #10-09B Maxwell House Singapore 069113Tel: +65 6222-3030Fax: +65 6225-2453Email: [email protected] person: Ms Judy PohWebsite: www.sisv.org.sg/10PAQS

FIABCI 57TH WORLD CONGRESS 200626 - 31 May 2006BANGKOK, THAILANDEmail: www.fiabci-bangkok2006.com

14TH ASEAN VALUERS ASSOCIATION (AVA)CONGRESS 2006"Valuation in Asia"3 - 5 Jul 2006MERITUS MANDARIN SINGAPORECongress Secretariat AVA SingaporeSingapore Institute of Surveyors and Valuers20 Maxwell Road, #10-09B Maxwell House Singapore 069113Tel: +65 6222-3030 Fax: +65 6225-2453Email: [email protected]: http://www.sisv.org.sg/avacongress2006

26TH PAN PACIFIC CONGRESS16 - 19 Sep 2006SAN FRANCISCO, USAEmail: www.appraisalinstitute.org/ppc/

1st WAVO VALUATION CONGRESS"Valuation in the Globalised Economy"27 - 29 Nov 2006MERITUS MANDARIN SINGAPORESingapore Institute of Surveyors and Valuers20 Maxwell Road #10-09B Maxwell House Singapore 069113Tel: +65 6222-3030 Fax: +65 6225-2453Email: [email protected] Persons: Ms Jean Lian / Ms Janet HanWebsite: http://www.wavoglobal.org

Conquas Enhancement Series:Good Industry Practices(a) Timber Doors(b) Wardrobes & Kitchen Cabinets

FIG Commission 4 Hydrography Year 2004-5 CD-Rom.

FIG Commission 6 Engineering Surveys Year 2005 CD-Rom.

International Conference Valuation For FinancialStatementsThe Fair Value from Bucharest.

Realtor Magazine – Oct 2005

Spatial Sciences Institute BiennialConference SSC2005:Spatial Intelligence, Innovation and Praxis(12 - 16 Sept 2005)Final Program and Abstract Book.

Synthesis – Journal 2005

The Building Economist – Sep 2005 Journal of theAustralian Institute of Quantity Surveyors

Valuation and Construction Issues in Real Estate Indices.

NOTICE

The following members have resigned from the Institute:

PROBATIONERDivision NameQS Oon Tze PongVGP Chong Teck Chin ShirleyVGP Goh Duo YangVGP Lee Poo YokeVGP Chong Chew YongVGP Hoo Tee Hui Serene

MEMBERDivision NameQS Lim Tong KayQS Tay Wei Loong AlanVGP Yao Yen PaulVGP Lam Siew Qu Alice

CONGRATULATIONS AND A WARMWELCOME TO OUR NEW MEMBERS/MEMBER FIRMS

MEMBERDivision NameLS Ang Soo ChengLS Ong Ban SoonLS Suey Hueh KingVGP Ang RinaVGP Chan Chew HengVGP Chan Lee Kian JasmineVGP Cheng Wai FunVGP Cheong Sue Ling IsabelVGP Chin Ming Eng ChristineVGP Chong Nyuk Kay RosalindVGP Ee Kong Han DanielVGP Gan Lee Huang IvyVGP Goh Gek Phuay FlorenceVGP Gwee Chew Lee EmilyVGP Hong Choon Learn AlanVGP Hwee Yew Leong ClarenceVGP Kok Yin Fung CeciliaVGP Lee Chor Hiah AmyVGP Lee Siow Hui RebeccaVGP Lee Sock Ee CarineVGP Lee Wei Ling MichelleVGP Lee Yann TengVGP Leong Hong YewVGP Lim Hock Hai AnsonVGP Lim Hui SwanVGP Lim Soh HuiVGP Lim Wee NeeVGP Loh Mei Fun AnneVGP Loy Yoke MingVGP Mak Kah Woh GaryVGP Mok Sauk Soo SuzieVGP Ng Ai HuaVGP Ng Lee Pheng RosalindVGP Ng Swee Koon HazelVGP Ngeng Fung Chin LenaVGP Oh Wan Keong MarcusVGP Ong Siok Ling JasmineVGP Ong Ai Ling YvonneVGP Ong Poh Suan

MEMBERDivision NameVGP Sim Kai LiVGP Sin Chong MengVGP Soh Chor YinVGP Tan Boon Chew PatrickVGP Tan Chun HowVGP Tan Hong Chye HendryVGP Tan Lay TinVGP Tan Pui Siang JayneVGP Tan Teck MoiVGP Tan Thiam Joo StevenVGP Tay Gek Hoon AdaVGP Tok Yee Fong YvonneVGP Wong Yann LukVGP Yeo Ai Lin Alison

PROBATIONERDivision NameQS Childs David PeterQS Han Meiqi JoyQS Ho Ooi Howe EricQS Koay Kean TattQS Sim Tze Kwan SunnyQS Tan Ai Nee AnnieQS Wong Yick MengVGP Fun Li-Ping EileenVGP Ho Hui Ping AndreaVGP Lee Hwee Boo ConradVGP Liow Pick YuenVGP Ngo Sie Yin JeanetteVGP Tan Zai Ling JacquelineVGP Tay Choon Kwan Richard

TECHMEMBERDivision NameVGP Wong Shi MinVGP Ng Kiat Poh Vera

LIBRARY SECTION

26th ASIANCONFERENCE

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Kwoh Leong Keong, representing SISV, attendedthe 26th Asian Conference on Remote Sensing,held in Hanoi (Vietnam) from 7 Nov to 11 Nov2005. The conference was jointly organized by theAsian Association on Remote Sensing (AARS),the Vietnam Association of Geodesy, Cartographyand Remote Sensing (VGCR) and the Associationof Vietnamese Geographers (AVG). It was alsosupported by the Vietnamese Department of theAir Force, Cadastre and Engineering SurveyCompany, Aerial Photo-Topography Company,Remote Sensing Center, Ministry on NaturalResources and Environment, and Survey andAerial Mapping Corporation.

The opening of the 5-day conference was officiatedby the Honourable Prof Dr Sc Dang Hung Vo,Deputy Minister for Ministry on Natural Resourcesand Environment. The opening session was alsoaddressed by Prof Shunji Murai (General Secretaryof AARS), Prof Ian Dowman (President of ISPRS),Prof Dr Nuyen Thoung Hung (Vice President andGeneral Secretary of ACG), Dr Le Quy Thuc(President of VGCR) and Prof Wim Stokhof(Director of IIAS)

A total of 502 participants from 43 countriesattended the conference, and a total of 232 paperswere presented, as compared to 481 participantsfrom 27 countries and 252 papers presented in2001. Singapore had a total of 9 participants, 1from SISV, 5 from NUS and 3 from the NTU. Atotal of 10 papers were presented by the Singaporeteam.

A total of 27 internationally renowned organizationsparticipated in the exhibition, to showcase theirlatest remote sensing data, hardware and software,and application services.

The Conference Banquet for conference was heldon 7 Nov 2005. The highlight of the dinner was thecultural show comprising of song and dance itemsfrom various participating countries. The bestperformers for this year’s cultural show were fromChina, Japan, Thailand and Vietnam. As a tokenof encouragement, Prof Shunji Murai contributed4 prizes to these top performing countries.

Next year’s ACRS will be held in Ulumbatar,Mongolia, in mid-Oct, 2006.

BANDAR SERI BEGAWAN,BRUNEI DARUSSALAM

This year,the 8th South East Asia Survey Congress (SEASC) was organizedby Brunei Institution of Geomatics (BIG), Brunei’s Survey Department, theASEAN Federation of Land Surveying and Geomatics (ASEAN Flag) andsupported by International Federation of Surveyors (FIG).

The 8th SEAC kicked off with the registration of the delegates and exhibitorsat The MALL, Gadong, on 21 Nov 2005 and ended on 25 Nov 2005. Otherevents held in conjunction with SEAC are the ASEAN Flag AGM and its24th Council Meeting (21 Nov), UNGEGN (22 Nov) and PCGIAP Meeting(26 Nov).

The SEAC 2005 was officially opened by Minister of Development, YangBerhormat Pehin Orang Kaya Hamzah Pahlawan Dato’ Paduka Awang HjAbdullah Bin Pehin Begawan Mudin Dato’ Paduka Hj Bakar.

Other VIP guests were the Deputy Minister of Development, PermanentSecretaries, Head of Departments under Ministry of Development, seniorgovernment officials, local and foreign delegates and exhibitors.

The opening address was given by the Chairman of the OrganizingCommittee, Pg Hj Matusin bin Pg Hj Matasan and President of InternationalFederation of Surveyors (FIG), Prof Holger Magel.

Twelve members from Singapore attended the Congress and the 3 membersfrom SISV are Christopher Chai, Kwoh Leong Keong and Wee Soon Kiang.Kwoh Leong Keong also represented SISV as a speaker.

The theme for the 8th SEASC Conference was “Geomatics and theCommunity: Spatial way to Sustainable Development”. More than 70 paperswere presented during the 4-day event, of which, 6 papers were representedby Singapore.

Some of the papers presented by our Singapore representatives are:

TOR YAM KHOONKalman Filter For Multi-Surveying Robot Deformation Monitoring Survey, A PrototypeStrata Unit Management System Using 3DGIS,

KWOH LEONG KEONGSatellite Remote Sensing In Monitoring Of The Environment by CRISP,

VICTOR KHOORapid Static Survey UsingThe Singapore Integrated Mul t ip le Reference Stat ion Network,

SOH KHENG PENG & VICTOR KHOOImplementation Of A Modern Cadastral Survey System – SVY21 System.

The 9th SEASC Conference will be held in Christchurch, New Zealandfrom 29 Oct to 2 Nov 2007.

8th SOUTH EAST ASIASURVEY CONGRESS 2005

Informative and insightful, that summed up the sentiments of those who attendedthe seminar organised by SISV’s Quantity Surveying Division at Furama CityCentre on 23 Sep 2005. Titled “An overview of the Security of Payment Act &Amendments to the SIA Conditions of Contract”, around 60 SISV members andnon-members attended the seminar.

Returning for his second SISV seminar, guest speaker, Paul Sandosham, 35, isa partner in the Building & Construction and India Practices of Wong Partnership.

The seminar began at 2.15pm sharp, with the first half concentrating on theSecurity of Payment Act (SOP). Aimed to facilitate cash flow in the constructionindustry, the act was passed on October 2004 and was effective from 1 Apr 2005.

After the coffee break, the second half concentrated on amendments to the SIA(Singapore Institute of Architects) Conditions of Contract, an issue which manyarchitects are concerned of. These involved progress payments and paymentclaims.

Finally, when it came round to the Q & A section, the questions came fast andfurious. Most of the questions centred on the time lag, which can go up to 90 daysand attendees were mostly concerned with the cash flow problems this mightpose especially to the contractors and sub-contractors. Paul reassured them thatthe relevant authorities are trying to speed it up. When it was time to leave, therewas no doubt that attendees gained more knowledge of the new SOP Act andhow it would affect them.

Get Your ACT Together!Be aware of what the new Security ofPayment Act entails and know how it can affect you

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Specially organised by Singapore Institute of Surveyors & Valuers and SISVServices Pte Ltd, the 3-hour session attracted more than 50 professionals fromboth within and outside the industry.

Raymond Lim Keat Heng, 37, an SISV QS division council member, and AssistantManager (contracts) of Sembcorp Design and Construction Pte Ltd, was at theseminar specifically to get updates on the law of contracts in the industry whileChong Pui Chih, 30, an engineer from Jurong Town Corporation and a non-SISVmember, was there to familiarise herself with current developments and aspectsof the law related to her work.

Twelve cases were discussed at the “Construction Case Law Updates” seminar,held on 30 Sep at Hotel Novotel Clarke Quay. These included nine subjects onthe various aspects of contracts and three on tort and negligence.

Citing several cases from the High Court and Court of Appeals – special guestspeaker Dr Philip Chan Chuen Fye who teaches Construction Law and Arbitrationat the Department of Building, School of Design and Environment, NationalUniversity of Singapore explored and explained the many aspects of the casescited and their legal implications to the industry.

Updates on newcases and the legalimplications…

Law and TheConstructionIndustry

To enforce its implementation, CEMS wasintroduced in lectures at all the tertiaryinstitutions, thus phasing out the SMM2.Besides catering to procurement systems,CEMS also serve as a “common language”to facilitate communication between quantitysurveyors and engineers.

A seminar titled “Mechanical and Engineering(M&E) Quantity Surveying” was organisedby SISV on 21 Oct 2005 to highlight themethods of measurement of mechanical andelectrical works and builders’ quantities withreference to CEMS. Kee Bee Kheng, a fellowSISV member and director of KBKConsultants Pte Ltd, shared her knowledgeon M&E Quantity Surveying to an audienceof 40 people.

Held at the PSB Academy in Toa Payoh, thefully comprehensive seminar covered allgrounds and Bee Kheng used photographs,charts and drawings to support herpresentation.

Catching up with her after the seminar, BeeKheng was very forthcoming with heranswers. When probed why the CEMS wasintroduced, she revealed that there is ashortage of quantity surveyors knowledgeableon M&E and M&E surveying is often left toengineering staff, who lacks the expertise ofquantity surveyors and this might lead toerrors during a pitch. CEMS was introducedto implement a standardised form ofmeasurements, to ensure that both engineersand surveyors are on the same page, so tospeak.

Hanizah, a quantity surveyor at Surbana PteLtd, who was at the seminar with hercolleagues, lamented that the seminar wastoo short and suggested for it to be a seriesof seminar instead. She also pointed out thatwhile most of the information presented werehelpful, it was too basic for quantity surveyorslike herself and would benefit the engineersmore since they have to be aware of theterms and measurements used by quantitysurveyors when drafting out their plans.

Industry professionals are hopeful that withthe introduction of CEMS, engineers andsurveyors alike will no longer have to faceproblems and disputes in future.

8th SOUTH EAST ASIASURVEY CONGRESS 2005

That was certainly the casewhen the ConstructionElectronic MeasurementStandards (CEMS) wereintroduced in Jan 2004, inplace of the SingaporeStandard of Measurement ofBuilding Works (2nd Edition)(SMM2).

Out Goes theOLD, incomes the NEW

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A decade or so ago, it was unthinkable for developers and architects in Singapore to be sued for building defects, let alone by a partywith whom they have no contractual nexus. These people were respected in industry circles and held in high regard by property owners.Sentiments have changed somewhat today – not only because of growing affluence and higher expectations but also as consumersbecome more cognisant of their legal rights and entitlements to remedies when they suffer a loss having invested in what is probablythe single most important and expensive asset in their lifetimes.

The wave of change started in the area of pure economic loss when the construction industry witnessed a far-reaching landmark rulingin Ocean Front. The Court of Appeal in Ocean Front affirmed that there was no bar to the imposition of a duty of care for pure economicloss owed by developers to management corporations in respect of defects in the property itself. This was later extended to architectsand engineers in Eastern Lagoon. Whilst the ruling was significant in settling what the law is in Singapore on pure economic loss, oneof the issues discussed in obiter in Eastern Lagoon was that the employer of an apparently competent independent contractor couldnot generally be held liable for their negligence in the course of carrying out the work.

“It is trite law that the employer of anindependent contractor is, in general, notliable for the negligence or other tortscommitted by the contractor in the courseof the execution of the work.”

– Lord Bridge in D&F Estates

Unsurprisingly, this statement provokedstrong criticisms from leading textcommentators – not least, Ian DuncanWallace who remarked that the courtfailed to appreciate the essential functionsof a contractor in ‘the placing, coordinationand supervision of all trades on thebuilding site’.

The general principle is that an employercannot be held liable for the negligentacts of an independent contractor. Thereare however exceptions to the rule wherethe employer could be liable – extrahazardous acts, working on highways,non-delegable duties, and duty to seethat care is taken. The defence is notopen to a party sued where it was awarethat the design or work was carried outnegligently and did nothing about it.

Thus, an employer sued for tort cansuccessfully escape liability if he canshow that he has relied upon the skilland expertise of an independentcontractor. A developer can reject claimsagainst him for a negligently designedor constructed building on the premisethat by employing a reasonablycompetent contractor such as anarchitect, engineer or a contractor, hehas discharged his duty to take care.This was one of the issues before theCourt of Appeal in Seasons Park inrelation to the claim in tort.

The plaintiffs, the management corporation (MCST) of a condominium known as ‘SeasonsPark Condominium’ sued the defendant developer, Seasons Park Ltd, for defects in thecommon property. The action was in contract as well as in tort.

The claim in contract concerns whether or not the MCST could sue on behalf of all thesubsidiary proprietors. The MCST represented 390 subsidiary proprietors, 71 of whomwere sub-purchasers who had no contract with the developer. The court below ruledin the negative that the MCST had no authority to institute an action in contract and thiswas affirmed by the Court of Appeal.

In relation to the claim in tort by the MCST against the developer, it was alleged that itfailed to exercise skill and care in the design, construction and supervision of thecondominium, and in the rectification of the defects. The issue before the court waswhether the developer could rely on the defence of independent contractor against theMCST’s claim. The trial judge’s ruling which the Court of Appeal affirmed was that suchdefence was available.

THE INDEPENDENTCONTRACTOR DEFENCE -WHAT IS THIS RULE?

FROM EASTERN LAGOON - THE UNANSWERED QUESTION

SEASONS PARK - SOME BRIEF FACTS

In Eastern Lagoon, the independent contractor defence was raised by the third partycontractor who asserted that he had hired specialist gangs to carry out bricklaying andtiling work. They were independent contractors to whom he relied on their skill andexpertise, and therefore had no responsibility in tort for their action or inaction.

The trial judge was not persuaded by the architect’s argument that it was industrypractice and also stipulated in standard forms for a contractor to be responsible underthe contract for all work done whether by the contractor’s direct workmen or specialistsubcontractors.

The judge distinguished the position in tort and declined to impose tortious liabilitybased on a contractual term and succinctly said ‘What the defendants would have medo is to find that a contract between A and B can impose a duty of care in tort on Bowed to C’.

The primary cause of failure of the external cladding was design inadequacies and notbad workmanship. The trial judge inferred as obiter dictum that had bad workmanshipbeen the cause, the independent contractor defence would be available to the contractor.

The independent contractor defence was strongly challenged by the defendant architectbefore the Court of Appeal. By allowing such defence, it encourages contractors tosubcontract all their works to various ‘independent’ persons to escape liability for shoddyworkmanship. As the Court of Appeal upheld the High Court judgment that it wasnegligent design, not negligent construction, that caused the damage, it left this issueunanswered.

Seasons Park and The IndependentContractor Defence - What Next?

by Ms Eugenie Lip

INTRODUCTION

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Quite understandably, the fact that thecontractor can use the independent contractordefence has stirred up considerable debateand controversy given the realities of acontractor-subcontractor relationship underthe nomination system. It further begs thequestion on who will be worth suing if theprincipal can simply ‘pass’ liability down to thenext tier of the supply chain – the consultant,contractor, subcontractor or perhaps even thesub-subcontractor? How far downstream inthe supply chain can the passing of the parcelof liability be tolerated and stretched?

This unsatisfactory situation runs counter tothe realities and commercial necessity ofgetting a building built. It is typical for adeveloper-owner to procure the services, skilland expertise of competent contractors suchas the architect, engineer and contractor todesign, supervise and construct the building.These people in turn rely on the competenceof subcontractors with whom the developer-owner has no control. The inappropriate‘transfer’ of tortious liability from one party tothe next down the supply chain or by a partywho may seemingly be looking around forsomewhere to park it, does not sit comfortablyunder the prevalent system of subcontractingand nomination in the industry.

Following the Court of Appeal’s affirmationthat the independent contractor argument isnow a defence for developers in consequenceof an action in negligence, it is likely to berelied upon in future cases. That the HighCourt had dealt with it albeit obiter in EasternLagoon and since then clarified and affirmedby the Court of Appeal in Seasons Park,suggests the availability of a defence worthpursuing. The dilemma is how it can hold abalance between allowing such defence to beused, and the implausible situation where aprincipal can simply avoid liability in tort bysubcontracting all works to various independentcontractors.

Given the contractual matrix in mostprocurement methods, clarification and perhapsa revisit of the principles in this defensibleargument of independent contractor seemsvery desirable and appropriate in an industrywhere no single contracting outfit can claim topossess all manner of expertise in the designand construction of buildings and that it is ahallmark to subcontract almost all works. Notsurprisingly, there are critical questions whichmay pose legal challenges and will continueto be a cause for controversy and significantpractical difficulties.

This article is adapted from Volume 1 Issue 1 of“…@DLS Contract Advisory & Dispute

Management” Executive Summaries

CONCLUSION

Q1. Can MCorp recover pure economic loss fromarchitect / engineer in absence of contractualrelationship?

Q2. Is independent contractor defence available tocontractor?

A. High Court:

Q1. Yes; damage caused by negligent design; MCorp can sue architect/engineer.

Q2. Yes, had damage been caused by negligent construction (obiter) .

Court of Appeal:

Q1. MCorp can sue architect / engineer for pure economic loss.

Ocean Front extended.

Q2. Did not deal with independent contractor defence as damage caused by negligent design.

Q. Can developer avail itself of independentcontractor defence?

A. High Court: Yes.

- But it must show that it had exercised skill and care in engaging independent contractor.

Court of Appeal: Yes.

- Developer entitled to rely on defence of independent contractor.

- Must show that proper care was taken to appoint a competent contractor.

Figure 1:Legal development on independent contractor defence –from Eastern Lagoon toSeasons Park

ManagementCorporation

Sues for repairs todefective external cladding

Third party action for contribution orindemnity

Architect/Engineer

Contractor

Developer

Sues for damages tocommon property defects

1999 2005

ManagementCorporation

The availability of the independent contractor defence to a developer has nowbeen authoritatively decided and affirmed by the Court of Appeal (Figure 1). Therule can equally apply to a contractor who can be exonerated from tortious liabilitythrough the mere appointment of competent subcontractors.

In Eastern Lagoon, the trial judge dealt in obiter with the independent contractordefence that a contractor is as a general rule not liable for the negligence of hisapparently competent subcontractors.

The defendant architect’s argument failed because the contractual term reliedupon to impose a duty of care on the contractor did not amongst other things‘purport to create liability in tort’.

The language of the clauses in the standard forms currently in use is howeverdifferent. There are express references in the standard forms to the contractor’sresponsibility for any work ‘designed, specified or chosen’ [SIA clause 3(1)] byany subcontractor and for their ‘negligence’ [SIA clause 18(2)], and the employer’sreliance on the ‘skill and judgment’ [SIA clause 28(2)] of the subcontractor in thedesign and suitability of work and materials. Had the trial judge in Eastern Lagoondiscussed the position in the light of the contractual terms found in contracts today,it raises the interesting point whether the defendant architect’s argument couldhave found judicial support.

If the developer can succeed on the independent contractor defence, who thencan the MCST sue? It is likely to be the contractor who will have to show that hehas carried out the work with due care and skill and it was not negligentlyconstructed. However, there is nothing to prevent the contractor to plead in defencethat he has engaged competent subcontractors and therefore cannot be held liablefor their negligent actions or inactions.

WHAT NEXT AFTER SEASONS PARK?

Held on the 20 and 21 Oct 2005, at the swanky Crowne Plaza Hotel, the boardmeeting of WAVO (World Association of Valuation Organisations) was hostedby the National Association of Romanian Valuers.

Chaired by Dr Lim Lan Yuan, Chairman of WAVO, the meeting discussed issuessuch as strategic and business plans, the forthcoming WAVO ValuationCongress in Singapore, international workshops and talks, recruitmentprogramme and shared news f rom the respect ive countr ies.

Happening simultaneously was the ANEVAR conference, which saw a Romanianversion of IVS 2005 being launched. Close to 200 participants who attended theconference also had the opportunity to listen to three speakers, made up ofWAVO members Dr Lim Lan Yuan, Chairman from Singapore, John Martin fromAustralia and Gary Taylor from United States, who shared their experience onvaluation practices in their respective countries.

With new knowledge gained and friendships built, it was time well-spent inBucharest.

Representatives from both East and West gathered at Bucharest, Romania for the WAVO Board meeting

“Rogue” agents and unethical practices will soon be a thing of thepast, thanks to the Singapore Accredited Estate Agencies (SAEA)scheme.

RAISING THE BARWith a new accreditation scheme in place, consumers can be rest assured of a higher professional standard

Aimed to raise the professional standards of housing agentsand enforcing a strict code of conduct, the scheme will alsomediate in disputes and take action against errant agents.

Initiated by the Singapore Institute of Surveyors and Valuersand the Institute of Estate Agents, the scheme is stronglysupported by the Ministry of Finance, Housing and DevelopmentBoard and the Inland Revenue Authority of Singapore.

Launched by Mrs Lim Hwee Hua, Minister of State for Financeand Transport on 11 Nov 2005, at the Urban RedevelopmentAuthority (URA) auditorium, the launch was attended by some300 agents from the different agencies.

Dr Lim Lan Yuan, chairman of SAEA's accreditation board,said accredited agents are expected to pass at least theCommon Examination for House Agents(CEHA). Through thescheme a higher level of professionalism will beattained. He urged the public to deal with only accreditedagencies and agents.