What happened with Greatearth in 2021?
Greatearth Corporation and Greatearth Construction were main contractors for five HDB Build-to-Order projects. In August 2021 they told HDB they could not complete them, and works ceased on 20 August 2021. MND told Parliament that work had been progressing satisfactorily with no signs of slowdown beforehand. HDB worked with the provisional liquidators to appoint replacement contractors on 28 September 2021, about a month instead of the usual three to four months for a fresh tender, and estimated further delays of about two to three months.
From the RRD Field Guide, checked against the sources cited in Contractor Insolvency in Singapore: How Owners Protect Themselves If the Contractor Goes Bust. General information, not advice for your project.
The fuller picture
If your contractor becomes insolvent, the money you have not yet paid is your main protection. Pay only against work done, hold a performance bond and check its expiry, keep the right to terminate and step in, and use SOPA section 24 to pay unpaid subcontractors directly where needed. Anything the insolvent contractor still owes you becomes a proof of debt in its liquidation, usually recovered at a fraction.
More questions on this topic
- My contractor has stopped work and is not answering. What should I do first?
- Can I call the performance bond if the contractor goes into liquidation?
- What is SOPA section 24 and how does it help an owner?
- Can my contract say I may terminate if the contractor becomes insolvent?
- How do I claim money from a contractor that is in liquidation?
- How much deposit should I pay a renovation or fit-out contractor?
- Will a replacement contractor cost more than the original?