Star Engineering Pte Ltd v Pollisum Engineering Pte Ltd [2024] SGCA 30

This case update discusses the recent case of Star Engineering Pte Ltd v Pollisum Engineering Pte Ltd [2024] SGCA 30 (https://lnkd.in/gUyBjRV8) where the Court of Appeal dismissed an appeal by a subcontractor against a stay in favour of arbitration of its injunction application against a main contractor’s call on a performance bond. However, the Court of Appeal found that the main contractor had worsened its position by turning what was an on-demand performance bond into a conditional bond.

This case has important implications for main contractors who must be clear in their strategy for calling on a performance bond and understand the difference between a call on a performance bond and a dispute under the contract.

This case update is prepared by Wei Shing Ngo and Rajiv Hariharan.

Find out more about the Firm’s Construction, Infrastructure & Energy practice here: https://lnkd.in/gQntbAk9