Real Estate 2024

SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP

ally no restriction against the type of damages that a landlord may seek, a landlord would gen - erally be under a duty to mitigate and minimise its losses in a claim for damages founded on the tenant’s breach of the lease, and a landlord cannot recover more than the damages that the landlord would suffer or be entitled to as a result of such default and termination. Any legal action against the tenant must be brought in a court with the appropriate jurisdiction. A landlord may also have recourse to other remedies prescribed under Singapore law. For example, pursuant to Section 28(4) of the Civil Law Act 1909, a landlord may charge the tenant double the amount of rent if the tenant holds over after the determination of the lease, until possession of the leased premises is given up by the tenant. In a situation where the rent is in arrears, the Distress Act 1934 affords the land - lord the remedy of applying to the court for the issuance of a writ of distress, entitling the seizure and subsequent sale of movable property found at the leased premises, for the realisation and recovery of the rent due to the landlord. A landlord also typically holds security deposit(s) furnished by the tenant, either in cash or guar - antee (from a bank or insurance company), as security for the payment of rent, which may be enforced against in the event of non-payment of rent by the tenant. 7. Construction 7.1 Common Structures Used to Price Construction Projects The two most common contractual models for pricing construction works are the “lump sum” contract and the “measurement” contract.

The lump sum contract is the most common form of construction contract and is used where the type and quantities of works are clearly defined. In this form of contract, the contractor is paid a lump-sum price for the works described in the contract. Subject to the conditions, the lump- sum price may be subject to change, due to the addition or omission of works, extensions of time resulting in increased costs and expenses, and/or agreed fluctuations in prices of materials, for example. The measurement contract is used where the type and quantities of works are not clearly defined at the time a tender is called. In such a case, the contractor usually submits a schedule of rates (SOR) setting out the cost of each type of materials, parts and labour required for the works. Upon completion of the works, parties would carry out measurements, usually with the assistance of a quantity surveyor, to determine the types and quantities of materials, parts and labour incorporated into and expended for the works, and apply the rates stated in the SOR to determine the amount of payment due to the contractor. 7.2 Assigning Responsibility for the Design and Construction of a Project Under the traditional contracting model, the employer (who is the owner of the project) will engage a third-party consultant (an architect in a building project, or an engineer in an engineering project) as the lead consultant responsible for the preparation and completion of the design. That lead consultant typically also oversees the development of the project, together with other consultants engaged by the employer, and acts as the contract administrator or superintending officer for the main construction contract. The lead consultant would also undertake the role of an independent certifier to certify payment,

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