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View Full Version : The “independent contractor” clause that’s helping property developers screw you over



Arcachon
07-12-15, 04:52
http://themiddleground.sg/2015/12/06/independent-contractor-clause-thats-helping-property-developers-screw/

by Ryan Ong

PROPERTY developers have one job. This should mean that, if the house sucks, it’s pretty clear whose fault it is. In reality though, property developers can resort to something called the “independent contractor” clause. This deflects blame to one of the (possibly hundreds) of people who worked on your property. For comparison, that’s like your surgeon removing the wrong organ, and then telling you to sue the nurse because her bad handwriting caused it.

The Seaview case and your property

The hearing for The Seaview condominium case, which appeared in ST in July, has again been shifted to sometime in mid-2016. That means residents have been living with $32 million worth of defects for over five years. I imagine their developer meetings now begin with the careful removal of sharp objects.

The critical issue here is the “independent contractor” defence, which is being raised by Wheelock Properties:

“Developer Mer Vue Developments, a subsidiary of Wheelock Properties; main contractor Tiong Aik Construction; and RSP Architects Planners & Engineers are arguing that they had taken care to engage competent independent contractors to carry out the works, and so are not responsible for any faults.”

Claims that the developer is “not responsible”, so long as they engage independent contractors, should make your hair stand. If your property ends up being more Warcraft dungeon than luxury retreat, the developer can shrug and say it’s not their fault. The contractor did it.

Sadly, past cases have always accepted this defence. The Seaview trial is the first time the independent contractor defence is being challenged – and its outcome can significantly shift power back into the hands of property buyers.

How much can a developer get away with?

I need to point out how ridiculously bad things can get, because most of you will think I’m referring to surface defects (boo hoo hoo, someone is unhappy that their kitchen cabinet is ugly, etc.) Let me show you what we’re dealing with.

Study this picture of this building’s roof for a minute. This is a block from The Seaview:

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Notice the right side of the roof is not the same as the left?

That’s not a style feature. That’s because, within the first year of occupancy, a storm caused the grille-like structure to break off and crash near the swimming pool. Literal pieces of this building can fall off, and potentially crush residents to death.

Now look at the cutting edge swimming pool. And I mean “cutting edge” in a literal way. It already cost a $25,000+ medical bill, when a pregnant woman was jabbed by its loose tiles:

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See those green patches? They’re spots where the tiles have popped loose, and lie around like tiny razor blades. The management council told me they find new patches appearing almost daily. Besides the aforementioned lady who needed stitches, many residents still leave the pool with small cuts. It’s so bad that parts of the pool have to be cordoned off.

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The wooden platforms next to the pools are deathtraps, which you can manage to put your foot right through because some planks are rotted.

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See the different coloured planks? Each one was a replaced plank, so it’s easy to count the number of opportunities to snap an ankle. Again, this development is around five years old.

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Life within the apartments is not heaven either. Due to the plumbing of the units, the waste from the toilet and the kitchen all go into the same pipe, which is as disgusting as it sounds. This means each apartment reeks about twice a month, and clouds of flies start to appear.

One of the residents, who declined to be named, admitted it makes taking care of the apartment a problem. At present, he has to unclog the pipes in his unit by going arm-deep in filth, twice a month. The alternative is to pay a contractor to fix the issue every single time.

I could go on, if I include the fact that stalactites are forming in the car park (due to leakage from the pool), the clubhouse has doors that don’t close (the wood shrunk), the buildings have no lightning conductors (the vertical space was maximised before lightning conductors were included), etc.

So: floor traps, falling debris, and pools of water that hurt you if you touch the wrong area. Someone was designing a Super Nintendo game level, not a residence. But at present, a property developer can get away with all this by yelling “independent contractor.”

That is, it’s the independent contractor’s fault. So sue me – if you can.

Now you might think it will be a simple matter then for residents to pass the buck to the independent contractors and sue these small boys. But hey, residents don’t enter into contracts with these small boys do they? They might not even know who they are. Okay, let’s say residents succeed and the small boys have to wind up because they can’t afford the sum, then it’s back to square one for residents.

The Seaview case is something property investors as well as home buyers should really get behind. If developers continue this way, we could see a negative impact on future developments – why wouldn’t developers skimp on costs and build shoddy houses, when it’s so easy to get away with it?

The residents of The Seaview paid around $1,600 per square foot for their units. Now most would struggle to get over $1,000 per square foot – and some banks won’t even finance loans for The Seaview, until the existing legal battle is over.

It’s high time a little more power was shifted back into the hands of buyers, especially if we’re trying to go in a pro-family direction. These are houses, not laptops or cardigans. They affect family units, financially and physically, and developers should be held to higher standards of responsibility.



Featured image by Flickr user yeowatzup, licensed under CC BY 2.0.

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