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Thread: Residents sue listed developer City Developments Limited

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    Default Residents sue listed developer City Developments Limited

    http://www.straitstimes.com/Breaking...ry_632257.html

    Feb 7, 2011

    Residents sue listed developer City Developments Limited

    By Selina Lum


    The residents of the Emery Point condominium have sued listed developer City Developments Limited. -- ST PHOTO: ALPHONSUS CHERN

    THE residents of the Emery Point condominium have sued listed developer City Developments Limited, the main contractor, five sub-contractors and the architect over numerous building defects.

    The condo's management corporation, representing the owners, is claiming about $600,000 in compensation to rectify defects in 17 areas.

    The defects include a leaking basement carpark which is located below a swimming pool, cracks in walls, and lift lobbies with ceilings damaged by rainwater.

    The case opened in the High Court on Monday and is fixed for a 10-day hearing.

    Emery Point, an 18-storey block of 51 units at Ipoh Lane in the Tanjong Katong area, is a freehold development that was completed in 2003 but not fully sold until 2007.

    In his opening statement, lawyer Leo Cheng Suan, representing the condo owners, said that CDL was fully aware of the defects. Mr Leo said: 'The plaintiffs are extremely disappointed that CDL, being a public listed company, did not live up to its social responsibility to build quality homes'.

    http://www.straitstimes.com/Singapor...ry_632334.html

    Feb 8, 2011

    Emery Point defects: CDL and others sued

    Condo residents seek $600k compensation for problems in 17 areas

    By Selina Lum


    THE residents of Emery Point condominium have sued listed developer City Developments Limited (CDL), the main contractor, five subcontractors and the architect over numerous building defects.

    The condo's management corporation, representing the owners, is claiming about $600,000 in compensation to rectify defects in 17 areas.

    These include a leaking basement carpark, which is located below a swimming pool, cracks in walls, and lift lobbies with ceilings damaged by rainwater.

    The case opened in the High Court yesterday, and is fixed for a 10-day hearing.

    Emery Point, an 18-storey block of 51 units at Ipoh Lane in the Tanjong Katong area, is a freehold development completed in 2003, but not fully sold until 2007.

    In his opening statement, lawyer Leo Cheng Suan, representing the condo owners, said that CDL was fully aware of the defects. 'The plaintiffs are extremely disappointed that CDL, being a public-listed company, did not live up to its social responsibility to build quality homes.'

    He said many of the defects were caused by the long period in which the unsold units were closed up, and exposed to high heat and humidity.

    Some defects were discovered in September 2003, when the Building and Construction Authority issued a certificate of statutory completion (CSC) for the development. Others were discovered after the management corporation assumed responsibility for the condo's common property from CDL in July 2005.

    Around July 2007, the owners hired building surveyors to conduct an audit, which found extensive defects and shortcomings in 17 areas.

    Highlighting the key defects, Mr Leo said the most glaring one was in the basement carpark, which had been 'leaking since the very beginning'.

    Despite numerous repairs, the carpark, located below the swimming pool, is an 'unwanted water feature', said Mr Leo.

    He also noted that a building surveyor hired by CDL and main contractor Hytech Builders had conceded that there were a 'staggering' 280 points of water leakage in the carpark.

    The low fencing of the children's playground also poses a 'death trap' for children if they were to climb over it and fall right into the basement carpark, said Mr Leo.

    Other defects include leaky windows and cracks in the tennis court surface.

    Mr Leo said the defendants were prepared to do only cosmetic patch repairs at the lowest possible cost, such as 'applying silicone to try to stop the leaks for a few months'. The lawyer described these as 'delay tactics' to 'wear out' the owners until the warranties expire.

    CDL, represented by Mr Ling Tien Wah, conceded that there were defects due to the contractors' 'poor workmanship', but contended that 'there is no such thing as a perfect building'.

    The developer argued that it was liable only for defects for the two units sold before the CSC date. As for the rest of the owners, who had bought their units after that, CDL was not liable for any defects found in these units.

    The key defence raised by the other defendants was that the problems were not defects, but were caused by wear and tear.

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    Last edited by mr funny; 10-02-11 at 16:49.

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    seems like FEO getting better, CDL getting worse ~

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    Mr Kwek old man liao.

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    If the outcome is in favour of the residents, I'm sure there will be more of such cases coming up in the future.
    hungry eat sleepy sleep

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    For a long while, I was under the impression CDL is a good developer.
    It appears they now run in the ranks of FEO ??


    Quote Originally Posted by acidic.straw
    If the outcome is in favour of the residents, I'm sure there will be more of such cases coming up in the future.

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    They will have a hard time selling their units now...

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    I my opinion, FEO is better than CDL in terms of workmanship and quality. Try viewing some older 10 year old projects, then you will realise the FEO quality way exceeds that of CDL. Even recent new launches and newly TOP projects, FEO quality appears better.

    Quote Originally Posted by DN
    For a long while, I was under the impression CDL is a good developer.
    It appears they now run in the ranks of FEO ??

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    Fully agree. No need 10 years. 1 year already chui. Maybe also due to the maintenance agent they appoint. I know they like to appoint ECC and IMO, they are Seems to be a subsidiary of CDL?

    Good luck to one shenton owners if they get ECC.




    Quote Originally Posted by Wild Falcon
    I my opinion, FEO is better than CDL in terms of workmanship and quality. Try viewing some older 10 year old projects, then you will realise the FEO quality way exceeds that of CDL. Even recent new launches and newly TOP projects, FEO quality appears better.

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    Emery only has 51 households, I wonder what happens if the minority are dissatisfied with the workmanship in a big condo that has fallen to disrepair?

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    btw who is the main contractor for this one??

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    Quote Originally Posted by DN
    For a long while, I was under the impression CDL is a good developer.
    It appears they now run in the ranks of FEO ??
    in recent yrs seems like CDL has declined, while FEO which everyone tells me was horrible appears to have improved

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    Quote Originally Posted by august
    in recent yrs seems like CDL has declined, while FEO which everyone tells me was horrible appears to have improved
    Not every1....bcoz i always been saying FEO is good....except their pricing...LOL :X

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    Quote Originally Posted by devilplate
    Not every1....bcoz i always been saying FEO is good....except their pricing...LOL :X

    good quality comes at a price mah....

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    i was not impressed with both CDL's and FEO's finishing for their projects 10 years ago. FEO has improved recently but their prices has also become exhorbitant. as recent as watermark, i still saw poor finishing by CDL.

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    Quote Originally Posted by bargain hunter
    i was not impressed with both CDL's and FEO's finishing for their projects 10 years ago. FEO has improved recently but their prices has also become exhorbitant. as recent as watermark, i still saw poor finishing by CDL.
    so far i hf no major problems with FEO ppty....others....sian 1/2....tenant called me say windows sip in water recently(past few wks heavy downpour) ....dun ask me which project

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    Water seeping in will be a serious problem with those condos with "greenhouse design" i.e. all glass... because developers only use SILICON to stick the glass together and silicon will wear out very soon. So won't be surprised the new greenhouse all-glass condos are getting problems within a year or so.


    Quote Originally Posted by devilplate
    so far i hf no major problems with FEO ppty....others....sian 1/2....tenant called me say windows sip in water recently(past few wks heavy downpour) ....dun ask me which project

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    Quote Originally Posted by 2824
    btw who is the main contractor for this one??
    http://www.todayonline.com/Singapore...lleged-defects

    The management corporation's role will also be highlighted by main contractor Hytech Builders and two sub-contractors, Heng Boon Seng Construction and Industrial Contracts Marketing, who claim that it failed to maintain the property and that any problems were caused by wear and tear.

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    I love what the CDL lawyer said: " there is no such thing as a perfect building"

    I really hope this time small flies can win !

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    Thumbs up

    Quote Originally Posted by amk
    I love what the CDL lawyer said: " there is no such thing as a perfect building"

    I really hope this time small flies can win !
    Actually, CDL should just repair the defects and settle this. Not good image for renowned CDL with this news floating around. As Developer, am sure if CDL repair, they will bill this to the main contractor and sub-con. If kena sue and lose, am sure CDL will countersue the main-con and sub-con.

    From the report, it appears that residents really have a good case this time.

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    Ten years back, FEO used to be notorious in terms of the quality of their projects. They slowly cleaned up their acts and built high-end developments to improve the company's image.

    There are always risks there when you are buying uncompleted projects. The showflats look nice. So do the drawings in the brochures. But remember they are "artists' impressions only" and showflats are "for display only". You are buying based on "trust" of what the developers and agents said.

    Once TOP, you step into the unit and find bad workmanship, different finishing, less space, extra pillar, etc. You can only cross your fingers that the developer will get the defects fixed so you don't have to dig into your own pocket.

    Your bargaining power is low because you are only one out of hundreds of owners. You know very well that the developer can easily push the responsibility to someone else and remain hands off. You are wasting time and money hiring a lawyer.

    That's very unfair, considering the fact that you've chipped in to help finance the developer's building costs with your deposits and progressive payments few years back.

    That's why I only buy completed or 2nd hand projects. What you see is what you get ...

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    Quote Originally Posted by vip
    That's why I only buy completed or 2nd hand projects. What you see is what you get ...
    CDL is using this argument to deny all obligations for those bought after CSC

    Look, let's be honest. It's never fair. There is no way a buyer can assess the full conditions of a project.

    For example, water leaking through the walls/roofs/windows. Say only happen after 5yrs. developer can even claim it's "wear and tear" !

    Consumer protection is one area SG still has a long way to go

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    Not really. You have the last 15% unpaid (for 6 mths to 1 yr) for a reason. Regardless whether you are first owner or subsale. You can even repair and claim back if the developers are unresponsive. Not sure how it works. Maybe someone can share?





    Quote Originally Posted by vip
    Ten years back, FEO used to be notorious in terms of the quality of their projects. They slowly cleaned up their acts and built high-end developments to improve the company's image.

    There are always risks there when you are buying uncompleted projects. The showflats look nice. So do the drawings in the brochures. But remember they are "artists' impressions only" and showflats are "for display only". You are buying based on "trust" of what the developers and agents said.

    Once TOP, you step into the unit and find bad workmanship, different finishing, less space, extra pillar, etc. You can only cross your fingers that the developer will get the defects fixed so you don't have to dig into your own pocket.

    Your bargaining power is low because you are only one out of hundreds of owners. You know very well that the developer can easily push the responsibility to someone else and remain hands off. You are wasting time and money hiring a lawyer.

    That's very unfair, considering the fact that you've chipped in to help finance the developer's building costs with your deposits and progressive payments few years back.

    That's why I only buy completed or 2nd hand projects. What you see is what you get ...

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    Quote Originally Posted by amk
    CDL is using this argument to deny all obligations for those bought after CSC

    Look, let's be honest. It's never fair. There is no way a buyer can assess the full conditions of a project.

    For example, water leaking through the walls/roofs/windows. Say only happen after 5yrs. developer can even claim it's "wear and tear" !

    Consumer protection is one area SG still has a long way to go
    fully agree with with you. but I prefer strong words. SG offers very very little protection to consumers. just look at the minibond saga. even BT ran an article arguing that it is basically a fraud. but still the victims got nothing.

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    I heard from my banker friends it is totally different in HK. Banks have to vomit out the money.




    Quote Originally Posted by stalingrad
    fully agree with with you. but I prefer strong words. SG offers very very little protection to consumers. just look at the minibond saga. even BT ran an article arguing that it is basically a fraud. but still the victims got nothing.

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    Quote Originally Posted by thomastansb
    I heard from my banker friends it is totally different in HK. Banks have to vomit out the money.
    just read today's article about new rules that developers need to observe when building showflats.

    I thought the new rules should've been set a long long time ago.

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    Quote Originally Posted by august
    seems like FEO getting better, CDL getting worse ~
    i believe is the acse of mismanagement on the developer.
    Normally, even the developer wins, it will lose it reputation in this instance.

    More over is just a mere 600k...developer squeeze a bit here and there (from the sub con) it will settle already and make every body happy...Also which developments got no defect issue wan?

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    Quote Originally Posted by vip
    Ten years back, FEO used to be notorious in terms of the quality of their projects. They slowly cleaned up their acts and built high-end developments to improve the company's image.

    There are always risks there when you are buying uncompleted projects. The showflats look nice. So do the drawings in the brochures. But remember they are "artists' impressions only" and showflats are "for display only". You are buying based on "trust" of what the developers and agents said.

    Once TOP, you step into the unit and find bad workmanship, different finishing, less space, extra pillar, etc. You can only cross your fingers that the developer will get the defects fixed so you don't have to dig into your own pocket.

    Your bargaining power is low because you are only one out of hundreds of owners. You know very well that the developer can easily push the responsibility to someone else and remain hands off. You are wasting time and money hiring a lawyer.

    That's very unfair, considering the fact that you've chipped in to help finance the developer's building costs with your deposits and progressive payments few years back.

    That's why I only buy completed or 2nd hand projects. What you see is what you get ...
    i always have an impression of CDL's good rating for their quality and service.

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    600k is a lot to CDL boss , u know..

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    This is an unusual case. It is also unusual that only 2 units were sold prior to CSC and the rest after that. If more units were sold earlier, the owners would have spotted the defects before csc and during defects warranty, and they would have kept the 15% till rectification was done. After such a long time, the defects liability of the contractors is over and CDL has no recourse to them. To make things complicated, the CDL is the managing agent for initial years whereby the problems had already surfaced as claimed by the current owners.It seems that the scope of work required to rectify is going to be a massive scale and no one wants to claim liability.

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    Not just 600k. Not so simple. It's admission of guilt. This will lead to many other law suits. DENY at ALL COSTS

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