• Published Date: 29 Sep 2021

           HDB has appointed new contractors to take over the construction of five Build-to-Order (BTO) projects affected by the liquidation of their previous main contractors Greatearth Corporation Pte Ltd and Greatearth Construction Pte Ltd (hereafter collectively referred to as Greatearth). The replacement contractors were appointed on 28 September 2021, and construction works at all the five project sites will progressively resume from early October 2021.

     

    2       Works at the five BTO projects ceased on 20 August 2021, shortly after Greatearth informed HDB that it had run into financial difficulties and was unable to complete the projects.  This is despite the support measures that the Government has rolled out over the past one and a half years for companies in the construction industry.

     

    3       The Covid-19 pandemic has put the construction industry under severe strain, with many contractors facing challenges of manpower shortages, supply disruptions, increased cost of materials and productivity loss. Over the past month, HDB has been working closely with Greatearth and their liquidators from PricewaterhouseCoopers Advisory Services Pte Ltd (PwC) to bring on board new contractors as quickly as possible to complete the remaining works and reduce the impact on home buyers.

     

    4       To speed up the process, HDB had assisted in sourcing for several suitable contractors to take over the projects and worked with Greatearth and PwC to facilitate the transfer. This has enabled HDB to bring on board the new contractors within about a month, compared with the three to four months it would typically take to call a fresh tender for new contractors to take over the balance of works.


    5       With this, we have been able to minimise the extent of delays for flat buyers – all five projects will be further delayed by about two to three months, due to the time needed to bring in the replacement contractors, and for them to mobilise their resources to take over and complete the projects.

     

    6       The replacement contractors and the revised probable completion dates (PCD) of the five projects are as follows:

     

    Project Name

    (No. of Blocks and Units of Flats)

    New Main Contractor

     
     Previous Probable Completion Date

    Revised Probable Completion Date

     

    Senja Ridges

    (1 block, 230 units)

     Teambuild Engineering & Construction Pte. Ltd. 4Q 2021   1Q 2022
     

    Senja Heights

    (2 blocks, 552 units)

     Newcon Builders Pte. Ltd.  1Q 2022  

    2Q 2022

     

    Sky Vista @ Bukit Batok

    (2 blocks, 257 units)

     Welltech Construction Pte Ltd  3Q 2022

    4Q 2022

     
     

    Marsiling Grove

    (5 blocks, 1,246 units)

     

    CES Engineering & Construction Pte. Ltd.

     4Q 2022  1Q 2023
     

    West Coast Parkview

    (3 blocks, 697 units)

     Newcon Builders Pte. Ltd. 2Q 2023   3Q 2023


    Selecting Replacement Contractors

     

    7         In selecting the replacement contractors, several factors were considered, including the contractors’ competency, track record, and ability to deliver on the projects. Only contractors who scored well in these criteria were considered, to ensure that they have the capabilities and resources to complete the projects without compromising safety and quality.

     

    8         A list of Greatearth’s subcontractors and material/product suppliers was also provided to the new contractors prior to them being appointed, so that they can work out suitable arrangements with the replacement contractors to remain on the projects and complete the remaining works. This would also minimise disruption for subcontractors and suppliers, and bring the projects back on track more quickly.

     

    9         HDB will continue to work closely with the new contractors and extend any assistance that they may require, to ensure a smooth handing-over and completion of the five projects.

     


    Assisting Flat Buyers

     

    10       HDB has updated flat buyers of the five BTO projects about the appointment of the new contractors and the revised completion dates for their projects. We recognise and understand that the delays will affect flat buyers and further disrupt their life plans.

     

    11       Affected flat buyers who are unable to find alternative interim housing arrangements with family members, relatives or on the open market, can apply for temporary housing under the Parenthood Provisional Housing Scheme (PPHS) if they are first-timers. On a case-by-case basis, HDB will also offer Interim Rental Housing (IRH) to low-income households with limited family support and without alternative housing options. For those who decide to cancel their flat application to buy a resale flat, HDB will consider waiving the forfeiture and one-year wait out period. Flat buyers who need further assistance may contact HDB, and we will try our best to help them.

     

    Supporting Building Contractors

     

    12       All our building contractors are affected by the pandemic, albeit to different degrees depending on the financial strength of their companies. To ensure that projects stay on track, HDB has been leaning forward to support our contractors, including rolling out an extensive suite of assistance measures to help ease their financial pressures. Given the prolonged impact of the pandemic, HDB has also been checking in regularly with our building contractors and consultants to address any problems early and render assistance to alleviate pain points where necessary.  We have also been engaging some of the key sub-contractors and suppliers of our BTO projects to widen our sources of feedback and pick up emerging problems early.