Court reverses deregistration of renovation contractor amid dispute

Move paves way for flat owner to press his claims in court against firm that shuttered

- Toh Yong Chuan

The High Court on Oct 23 reversed the 2023 business deregistration of renovation contractor Concept Werk so that a Housing Board flat owner can continue to press his claims against the contractor in court over a renovation dispute.

Before the dispute was resolved, Concept Werk shuttered and deregistered the business.

In the decision, the High Court made it clear that a unilateral decision by a business to cease operations and deregister itself can be reversed on grounds of fairness if there is an aggrieved party affected by the business closure.

The case marks a rare win for an aggrieved home owner against a renovation contractor in a sector that the Consumers Association of Singapore has consistently flagged as among those that draw the highest numbers of complaints.

The consumer watchdog received 1,168 complaints against renovation contractors in 2023, down from 1,454 in 2022 and 1,300 in 2021.

Despite the decrease in 2023, the sector saw the third-highest number of complaints that year, after cars, and electrical and electronic goods. The complaints against renovation contractors were mostly related to unsatisfactory workmanship and delays in project completion.

The dispute between flat owner Lye Yew Cheong and Concept Werk started in July 2021 when Mr Lye hired the contractor to renovate the HDB flat that he owns with his wife, Ms Jennifer Hong Siew Kim.

At that time, the directors of Concept Werk were Mr Keith Xie Zhiyang and Ms Sonia Tay Ming Hui. Both directors were in charge of the renovation of Mr Lye's flat.

The renovation was initially estimated to cost $123,000 and Mr Lye paid a 20 per cent deposit. The estimates subsequently increased to $144,656.