Despite the fact that Singapore’s economic recovery from COVID-19 has been gradually getting more optimistic, there are still businesses out there that continue to be heavily affected by COVID-19.
Just last week on Thursday (26 August), news broke out that construction company Greatearth had run into financial difficulties and had closed five Build-To-Order (BTO) projects without warning, shocking everyone.
However, it seems like this has caused a ripple effect for many subcontractors that had been contracted by Greatearth.
Subcontractors Suffer from Heavy Financial Losses due to Abrupt Closure of Projects
According to The Straits Times, several firms that Greatearth had subcontracted now suffer heavy financial losses after the sudden closure of its five BTO projects.
Not only is Greatearth said to owe its subcontractors contracting fees, but subcontractors have also been locked out of the project construction sites, thus preventing them from retrieving valuable building material such as steel components.
According to the Housing and Development Board (HDB) when informing buyers of the delay, Greatearth Corporation and Greatearth Construction had “run into financial difficulties” which prevented the continuation of work on five BTO projects that they had been the main contractor of.
The five BTO projects in question are:
- Sky Vista @ Bukit Batok
- Senja Heights in Bukit Panjang
- Senja Ridges in Bukit Panjang
- Marsiling Grove in Woodlands
- West Coast Parkview in Clementi
On top of that, Greatearth had also been the main contractor for two other public projects: Mandai Crematorium and Columbarium under the National Environment Agency (NEA), as well as the Gali Batu bus depot under the Land Transport Authority (LTA).
These two public projects are also expected to face possible delays.
It is understood that none of the subcontractors had received any prior notifications or official statements from Greatearth about the closure of the five projects.
In fact, most of them had only found out about the news when the company had started closing the project sites and locking up the gates. Some had also only been informed when news reports about the projects’ closure and Greatearth’s financial troubles came out.
Due to the abrupt closure of the project sites, many subcontractors did not have an opportunity to move the remaining materials out from the work sites, even those that have not been paid for.
Greatearth has worked on numerous projects, including the Marina Bay Sands (hotel), National Library, Raffles Town Club, Mount Elizabeth Hospital and Nanyang Technological University’s Lee Kong Chian School of Medicine campuses in Boon Lay and Novena.
With more than 150 years of history, Greatearth has also received numerous awards and recognitions, including the Building and Construction Authority (BCA) Green Mark Award, BCA Best Buildable Design Award, BCA Green and Gracious Builder Award, as well as BCA Construction Productivity Award.
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