Updated 9 October 2021: Despite signing on a replacement contractor, Expand Construction, in October 2020, it seems buyers of delayed BTO project Waterway Sunrise II, may need to wait a little longer for their flat to be complete (by 6-9 months) – which is roughly between Q4 2022-Q1 2023.
This is due to more pandemic-related challenges, such as manpower crunch and material costs.
As the projected completion dates are now past the delivery possession date (DPD), all buyers of the 1,014 units will receive a one-time compensation (estimated to be between S$700 and S$10,500) from HDB after they collect their keys.
HDB has also said will be waiving the forfeiture fees and one-year wait-out period for buyers who choose to cancel their booking in lieu of getting a resale unit instead.
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Homeowners of Waterway Sunrise II, an under-construction BTO project in Punggol, are facing a delay of at least one year after HDB terminated the services of its building contractor, Lian Ho Lee Construction, due to “not being able to meet project milestones”.
The HDB had told The Straits Times that it had been “monitoring the progress of works” by the contractor. The project, located on the East side of Punggol town, is fairly large, with 1,014 units across seven blocks, in addition to a basement car park.
99.co discovered that problems with the contractor began well before the Covid-19 pandemic, but owners were only recently notified. Comparing photographs taken three months (nearly 14 weeks) apart in 21 November 2019 and then again in 25 February 2020, the contractor only managed to complete one additional storey. (For BTO projects, the average time it takes to build an additional storey is between two to four weeks.)
Lian Ho Lee Construction had previously been contracted to build other BTO projects, such as West Crest @ Bukit Batok.
“Failed to perform its duties effectively”
According to HDB’s account, Lian Ho Lee Construction informed the authority on July 28 that it had to cease operations on-site due to difficulties in continuing with the project. HDB did not elaborate on what the difficulties were.
Following that, HDB decided to terminate the services of the contractor outright in early August. “As the contractor had failed to perform its duties effectively, we terminated their services to safeguard the interest of flat buyers,” the HDB told The Straits Times.
It added: “We have commenced the process to quickly bring on board a new contractor to complete the remaining works.”
HDB has also appointed a contractor in the interim to secure the site and to provide environmental control services such as mosquito breeding prevention.
“A projected delay by about 12 months”
Previously, HDB had announced that some BTO projects would be delayed by about six to nine months beyond the original estimated completion dates due to Covid-19.
In the case of Waterway Sunrise II, finding a replacement contractor is a task made more difficult by Covid-19 restrictions and manpower shortages. The HDB confirmed that this process will take longer than usual.
“We expect a projected delay by about 12 months,” HDB said. Homeowners will get their keys in Q1 or Q2 2022, instead of the original estimated completion date in Q1 2021. As of now, 45% of the project is complete.
Speaking to the buyers of Waterway Sunrise II, The Straits Times highlighted their frustrations regarding the situation, including concerns about workmanship and contractor takeover issues, as well as personal problems with renting while waiting for the BTO’s completion.
HDB has stated that it will keep buyers updated on revised completion dates via the online My HDBPage portal, as construction work for Waterway Sunrise II resumes and makes progress.
Do you think that resale flats are a better option than BTO especially in the current circumstances? Let us know your thoughts in the comments below!
If you found this article helpful, check out Paying $1.1 million for a 43-year-old Tiong Bahru HDB flat is a genius move. Here’s why and BTO delayed? This is what couples should rent—without breaking the bank
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About Kyle Leung
Content Marketing Manager @ 99.co
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How will HDB compensate the buyers? Does LAD apply?