HDB appoints new contractors for five BTO projects affected by Greatearth’s liquidation

Eugenia Liew30 Sep 2021

New contractors have been appointed to take over the construction of five Build-to-Order (BTO) projects that were affected by the liquidation of their previous contractors, announced the Housing and Development Board (HDB) on Wednesday (29 September).

Teambuild Engineering & Construction has been appointed as the new contractor for Senja Ridges; Welltech Construction for Sky Vista @ Bukit Batok; CES Engineering & Construction for Marsiling Grove; and Newcon Builders for Senja Heights as well as West Coast Parkview.

Construction works at the five BTO project sites will resume progressively from early October.

“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,” said HDB.

Specifically, the completion date for Senja Ridges has been moved from Q4 2021 to Q1 2022, Senja Heights from Q1 2022 to Q2 2022 and Sky Vista @ Bukit Batok from Q3 2022 to Q4 2022.

The completion date for Marsiling Grove was also moved from Q4 2022 to Q1 2023, while that for West Coast Parkview was moved from Q2 2023 to Q3 2023.

Works at the five projects have been suspended since 20 August, after Greatearth Corp and Greatearth Construction informed HDB that they faced financial difficulties and were unable to complete the projects despite Government assistance.

HDB revealed that it has been working closely with Greatearth as well as their liquidators from PricewaterhouseCoopers Advisory Services over the past month “to bring on board new contractors as quickly as possible to complete the remaining works and reduce the impact on home buyers”.

To speed up the process, HDB shared that it assisted in sourcing for several suitable contractors to take over the projects.

“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,” it said.

HDB noted that several factors were considered in selecting the replacement contractors, which include their track record, competency and ability to deliver on 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.”

Prior to their appointment, the new contractors were also provided with a list of Greatearth’s subcontractors and material and product suppliers so they could 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,” explained HDB.

It added that it will continue to closely work with the new contractors, extending any assistance required to ensure a smooth hand-over and completion of projects.

Flat buyers of the five BTO projects have been updated about the appointment of the new contractors as well as the projects’ revised completion dates.

“We recognise and understand that the delays will affect flat buyers and further disrupt their life plans,” said HDB.

With this, 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, Interim Rental Housing (IRH) will also be offered by HDB “to low-income households with limited family support and without alternative housing options”.

HDB said it will consider waiving the forfeiture as well as the one-year wait out period for those who opt to cancel their flat application to purchase a resale flat.

Eugenia Liew, Senior Digital Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories, email eugenialiew@propertyguru.com.sg

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