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HDB appoints new contractors for 5 BTO projects after broke firm Greatearth pulled out

SINGAPORE — New contractors have been appointed to take over construction of five Build-to-Order (BTO) projects that were put on hold because their contractors Greatearth Corporation and Greatearth Construction had gone bust.

A view of Sky Vista@Bukit Batok, one of the five BTO projects where new contractors have been appointed, taken on Sept 3, 2021.

A view of Sky Vista@Bukit Batok, one of the five BTO projects where new contractors have been appointed, taken on Sept 3, 2021.

  • The Housing and Development Board (HDB) has appointed new contractors to take over five Build-To-Order projects
  • Work had stopped after the projects’ contractors, Greatearth Corporation and Greatearth Construction, had gone bust
  • HDB expects a two- to three-month delay for five projects from original completion dates

 

SINGAPORE — New contractors have been appointed to take over construction of five Build-To-Order (BTO) projects that were put on hold because their contractors Greatearth Corporation and Greatearth Construction had gone bust.

In a statement on Wednesday (Sept 29), the Housing and Development Board (HDB) said that construction works at the five sites will resume from early next month.

The affected projects and their new contractors are:

  • Senja Ridges in Bukit Panjang — Teambuild Engineering and Construction

  • Senja Heights in Bukit Panjang — Newcon Builders

  • Sky Vista@Bukit Batok — Welltech Construction

  • Marsiling Grove — CES Engineering and Construction

  • West Coast Parkview — Newcon Builders

All work at the five sites had stopped since Aug 20, shortly after Greatearth told HDB that it had run into financial difficulties.

Greatearth Construction and Greatearth Corporation were wound up earlier this week with the former owing creditors at least S$70 million, The Straits Times reported.

The projects had been due to be completed as early as the fourth quarter of this year after they had their original end dates pushed back as a result of Covid-19-related delays.

HDB’s chief executive officer Tan Meng Dui expects the latest delay to add another two to three months to their completion date.

“HDB’s foremost priority is to our flat buyers. We recognise that the delays caused by Greatearth’s exit will affect flat buyers and disrupt their life plans,” he said in a recorded video.

That was why HDB had worked closely over the past month with Greatearth and their liquidators from auditing firm PricewaterhouseCoopers to bring in replacement contractors as quickly as possible, Mr Tan said.

A typical call for fresh tender to take over the remaining works would have taken three to four months, HDB said.

HDB said that it considered several factors when selecting the new contractors. This included their competency, track record and ability to deliver on the projects.

It has also provided the new contractors with a list of Greatearth’s subcontractors and suppliers for materials and products in order to restart the projects sooner.

HDB said that homebuyers of the 2,982 affected units have been informed about the new contractors and the revised completion dates for their flats.

Affected homebuyers who are unable to find alternative interim housing arrangements may apply for temporary housing under the parenthood provisional housing scheme if they are first-time buyers.

On a case-by-case basis, HDB will also offer interim rental housing 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,” it added. “Flat buyers who need further assistance may contact HDB, and we will try our best to help them.”

HDB said it has been checking in regularly with its building contractors and consultants to address any problems early, given the prolonged impact of the Covid-19 pandemic.

It has also been speaking to the key subcontractors and suppliers for its BTO projects, HDB added.

Mr Tan said: “We will monitor the situation closely, and stand ready to do more to help our contractors to complete their projects so that our flat buyers can collect their keys and move into their new homes with as little disruption as possible.”

Related topics

HDB BTO Greatearth construction contractor

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