Monday, 10th
November 2008
(11.55 am)
MR VIJAY: May it
please your Honour.
Your
Honour, the plaintiff and the 1st defendant
have settled
the matter on terms that parties have
agreed to keep
confidential, your Honour.
The
plaintiff therefore applies for leave to
withdraw the
claim against the 1st defendant, your
Honour.
(Pause.)
COURT: Leave
granted to the plaintiff to withdraw claim
against the
1st defendant.
MR VIJAY:
Obliged, your Honour.
MR TAN: For
completeness, your Honour, there's also
a counterclaim
by the 1st defendant against the
plaintiff.
MR VIJAY: Yes.
COURT: That's
also included?
MR TAN: That
would also be included, and the 1st defendants
are similarly
asking for leave to withdraw the
counterclaim.
COURT: That's the
1st defendant.
MR TAN: That's
the 1st defendant, your Honour. That has
been subsumed
into the terms that are agreed between the
parties.
COURT: You seek
leave to withdraw the counterclaim?
11:57 MR TAN:
That's correct, your Honour.
COURT:
Leave is granted.
MR TAN:
Much obliged, your Honour.
COURT: What
is left is your claim against the
2nd
defendant.
MR VIJAY:
The 2nd defendant.
COURT: As
agreed, I will give you all time to work it out.
MR VIJAY:
Perhaps we could see your Honour in chambers.
COURT: All
right.
(11.57 am)
(Hearing in chambers)
(2.19 pm)
MR ONG: May
it please your Honour. I think Mr Vijay is in
conference with his client.
COURT:
That's all right.
MR VIJAY:
May it please your Honour. My apologies.
Please, your Honour.
MR ONG: May
I proceed, your Honour.
COURT: Yes.
MR ONG: May
I preface, your Honour, with the
2nd
defendant's position simply being that each and
every
price in the 2nd defendant's quotations to the
plaintiff have, by the course of dealings, been
consistently accepted and agreed to by the
plaintiffs.
I think
the rest of the opening statement can be taken
14:20 as read.
COURT: Yes.
MR ONG:
With that, your Honour, the 2nd defendants call
their
first witness, Mr William Lee Ka Ming.
MR VIJAY:
Your Honour, will the other witness be going
out?
MR ONG: The
other witness is my expert witness. He is here
for
technical matters.
MR VIJAY:
The cross-examination is on pricing. It will
prejudice my cross-examination if Mr Jones sits
in, your
Honour.
MR LEE KA MING (affirmed)
Examination-in-chief by MR
ONG
MR ONG:
Witness, is your name Lee Ka Ming, and are you
also
known as
William Lee?
A. Yes.
Q. Can I
refer you to your affidavit of evidence-in-chief
in that
thick bundle before you found at page 164 to
page
300.
A. Yes.
Q. Do you
confirm that the contents of this sworn
statement
are true
and correct?
A. Yes,
except there is three area where there's a typo
error.
Q. Could
you tell us where they are found?
A. First
one is on paragraph 26. There's -- there's an
14:23 item,
"quotation for interior works for The Pump
Room".
"Interior work" should be replaced as "M&E and
structural work".
The
next one is on paragraph 45, there is:
"As
a result of the hurry to prepare the brewhouse
Quotation in time for Christmas", it should be
read as
only
"brewhouse" without the word "quotation". It's
"to
prepare
the brewhouse in time for Christmas 2006".
Finally, the last one is paragraph 48, right at
the
bottom,
after the (a), (b), (c), there's "Other than
those
mentioned below", it should be "mentioned
above".
That's
all.
MR ONG:
That's all I have, your Honour.
COURT:
Cross-examination.
Cross-examination by MR
VIJAY
MR VIJAY:
May it please your Honour.
William, you and your partner or other director
Wan,
you keep
in close contact, right, regarding Mason Works
matters?
A. Yes.
Q. Whatever
is happening, regardless of whether one is
dealing
with it or you are dealing with it, both of you
are kept
informed of each other's works?
A.
Generally. Not every single thing to the
detail. But
I would
say yes, the bigger picture.
14:25 Q. Let me
start off by asking about your connections with
Ed
Poole. Both of you -- when I say you, I mean
both
Mason
Works and Ed Poole -- have worked together in at
least
nine projects; am I right?
A. Yes.
Q. This
Pump Room project was first given to you all on
26th
July 2006; am I right? That's the time you were
asked to
demolished the walls, the six walls?
A. That was
the time, I think we got the demolition
contract
only.
Q. The
demolition contract. Later, on 8th September,
you
got the
actual contract.
My
question is: prior to even being given that
demolition work, had Ed Poole spoken to you
about the
Pump
Room project?
A. No, I'm
not in Singapore.
Q. Has Ed
Poole spoken to Mason Works about The Pump Room
project?
COURT: Now
that you have discontinued your action against
Poole
and all that, what is the relevance of this?
The
only
issue is whether they have charged you the
reasonable rates, and they say yes, so how they
were
recommended --
MR VIJAY:
It is relevant insofar as they were left free to
charge
what they like, your Honour. That's the preface
14:27 to my
questioning.
COURT: Your
case is they were left free to charge whatever
they
liked?
MR VIJAY:
Whatever they liked, there was nobody checking
on
their
prices as such.
COURT:
Whether they are left free to charge whatever
they
like,
the issue is whether the charges are reasonable
or
not.
Let's focus on that.
MR VIJAY:
Okay.
COURT: Your
case is that the charges are not reasonable,
correct?
MR VIJAY:
Not at market price, and they also charged for
items
that were not used, in particular the steel for
mezzanine floor, your Honour.
COURT: Hold
it. Insofar as there was steel that was not
used,
when did you cancel? Did you cancel them after
they had
ordered?
MR VIJAY:
Before the works were actually started, your
Honour.
COURT:
Before the steel was actually put in place;
right?
What is
your case, because they said they had already
ordered
it by the time you cancelled.
MR VIJAY:
Your Honour, that is their defence. They say
they
have ordered it, therefore we must --
COURT: Is
it your case that you cancelled before they
14:28 ordered?
MR VIJAY:
It is our case that we cancelled in December,
the
work was
never done, and those steel was produced, and
no --
nothing of that sort.
COURT: We
all know that if you order certain things, and
if
you
order certain works to be done and your
contractors
have
already placed the order for the raw materials,
and
if you
cancel at a late hour, what is your position
with
regard
to payment for the raw materials that have
already
been ordered?
MR VIJAY:
Your Honour --
COURT: You
must make up your mind first. What is your
position?
MR VIJAY:
My position is that first, my clients will not
have to
pay for them because even if they have to pay,
they
have a duty to mitigate by either returning the
steel to
us to sell, or they sell the steel --
COURT:
Isn't it your case that you are willing to
return
the
steel to them, Mr Ong?
MR ONG:
Yes, your Honour.
MR VIJAY:
That is not pleaded, your Honour.
MR ONG:
It's not pleaded because they have never pleaded
we
were
thereby bound to return the steel to them.
COURT: Now
we know that they are willing to give you the
steel,
so what is your position?
14:29 MR VIJAY:
Insofar as the mezzanine floor is concerned,
they
are
willing to give back the steel.
COURT: They
are prepared to give you the steel.
MR VIJAY:
Okay. Then that is one part of our alternative
prayers. If they are conceding that, I accept
that.
COURT: So
you will pay for the steel but you will want the
steel?
MR VIJAY:
Your Honour.
COURT: You
were talking about mitigation of damage, they
were
talking about giving you the steel. They have
now
said
they will give you the steel. I am just trying
to
narrow
your differences so you can move along.
MR VIJAY:
Your Honour, the other problem that we face is
that
they have put an exorbitant charge at the rate
for
the --
COURT:
We'll come to that, but now what are we going to
do
about
this steel? Do you agree now that they can
charge
for all
the steel at a reasonable rate?
MR VIJAY:
Your Honour, at a reasonable rate, yes, of
course.
COURT: Is
your client agreeing to pay for the steel for
the
mezzanine floor, but you want the steel? Is
that your
position
and then let's move on.
MR VIJAY:
Your Honour, if I may just clarify. There are
two
parts, as your Honour knows.
14:30 The
mezzanine floor, we say that the steels were
never
used at all, and if at all they have even
purchased it at that time, your Honour, they
could have
got rid
of it at that time when the market was up.
There
was no loss. I mean, it's a question of buying
today,
selling tomorrow and making more money rather
than
losing. That was the market then.
COURT: But
I thought their case was that it's already been
cut for
you, for your specifications.
MR VIJAY:
This is basically steel, your Honour, there are
no --
COURT:
Well, you can ask. What do you want to ask him
now?
We have
to focus, otherwise we will be running around.
I'm not
a quantity surveyor to look at whether every
little
item is correct or not.
MR VIJAY:
Your Honour, can I --
COURT: Go
on.
MR VIJAY:
On the Ed Poole matter, your Honour, I'll just
put it
to him and carry on to my topic.
COURT:
Sure.
MR VIJAY:
Now, I put it to you that Ed Poole has been
copying
e-mails between him and The Pump Room to Mason
Works
with regard to The Pump Room, from as far back
as
May/June 2006.
A. This
e-mail don't come to me, so I can't comment on
14:32 that.
Q. I put it
to you that when you were given the drawings to
do up
your quotation, you were already appointed to be
the
contractor by Ed Poole.
A. Not
necessary.
Q. When you
quoted the prices to The Pump Room, you quoted
the
prices based on all these drawings that you have
exhibited in the bundle of documents; am I
right?
A. Yes.
Q. About
eight to nine of them, maybe?
A. Yes.
Q. When
these were given to you, you prepared a
quotation
and gave
it to The Pump Room to be chosen as
a
contractor; correct?
A. Every
single quotation goes straight to the Pump Room.
Q. Only
after that The Pump Room will decide whether you
are the
contractor or not; am I right? Is that your
case?
A. Yes,
Pump Room will check, review my quotation and
then
decide
whether to appoint us or not.
Q. Right.
The Pump Room decided that sometime on
8th
September 2006, when they signed the first
quotation
with
you?
A. The
first one is the interior work, which is on
12th
September. They signed the quotation and
awarded
14:34 the job
to us.
Q. Right,
so prior to that you were not confirmed as
a
contractor?
A. Prior to
that it's only demolition work.
Q. Except
the demolition. Can I refer you to the
2nd
defendant's bundle of documents, please, page
366.
There is
this tender drawing. Please explain how your
name,
Mason Works, is already on the tender drawing
even
before
you can submit your tender.
COURT: Here
we go again. Your case against him has nothing
to do
with all these things. Your case against him is
that he
charged you --
MR VIJAY:
Your Honour, the background to how he was
appointed and his credibility, I'm building it
up and
coming
to the price. My next topic is going straight
to
the
pricing.
COURT: Can
we get down to it, because how he was appointed,
et
cetera.
MR VIJAY:
This is the way they --
COURT: It's
not that. Your case against him is that he did
not
charge you properly. All these appointments,
et
cetera, you really wanted to get at Poole for
all
this.
Wasn't it your case that Ed Poole appointed him,
et
cetera, and that's why this was relevant there?
But
insofar
as your case against him, it's about
14:36
overcharging you, and you have to prove the
overcharging, that's all.
MR VIJAY:
Let's get on with the pricing. Can I start with
your
first contract, that will be on page 202 of your
affidavit.
A. May I
know what page is that?
Q. Page
202.
A. Yes.
Q. The
first contract was $570,562.47; right?
A. Yes.
Q. Then you
reduced it to $474,770.59?
A. Correct.
Q. You did
this in order to arrive at a lower sum to
benefit
the plaintiff, The Pump Room?
A. I was
told by Mr Graham to remove all the provisional
sum
item, to cost it separately so that it will
reflect
the
amount more accurately without item that is
supposed
to be
provided, but it can be picked up later.
So,
therefore, the revised quotation, I put it under
item 12,
but did not add it inside the summary.
Therefore, the amount will be lower.
On
top of that, there are about four to five item
which we
discussed together with Ed Poole to replace it
with a
cheaper building material to help to save some
costs.
That item was eventually returned when we do the
14:38 final
account on my VO6.
COURT: Mr
Vijay, are you going to run through this to show
that the
items are exorbitant in this contract?
MR VIJAY:
This is in the context of showing that there was
a
deception or misrepresentation, your Honour.
COURT: Hold
it, you have to make up your mind. Is this the
contract
where Crispin says it's okay?
MR VIJAY:
When it was reduced to $474,000, it was okay,
your
Honour.
COURT: But
it was $474,000 --
MR VIJAY:
Yes, but before that he represented to my client
that
it's going to be reduced by $118,000.
COURT: From
how much?
MR VIJAY:
From $570,000-odd, he told my client that it's
going to
be reduced by $118,000 to the figure of
$474,000.
COURT: Yes.
MR VIJAY:
So my client went away thinking that he had
a saving
of $118,000 from the first version of the
contract, to the second --
COURT: What
was the final version, Mr Vijay?
MR VIJAY:
The final version was $474,000, your Honour.
COURT: Your
Mr Crispin said it was okay, so why are we
talking
about history if we're dealing with damages?
In
this contract, are you standing by Crispin that
14:39 it's all
right?
MR VIJAY:
As far as the $474,000, since client and Crispin
said
it's all right --
COURT: All
right, so why are we going on? This is the
contract
now for --
MR VIJAY:
Yes, your Honour. I want to prove their
misrepresentation in the way they went about
deceiving
my
client. That's all, your Honour.
COURT:
Okay, at least we know what you want to do.
MR ONG:
Your Honour, unfortunately I could see none of
that
in the
pleaded case.
COURT: Is
that in your pleaded case, Mr Vijay?
MR VIJAY:
My pleaded case has misrepresentation, deceit,
as
a
consequence of which they were --
COURT: You
have to provide particulars. Did you give
particulars in this area?
MR ONG: Not
this particular, Mr Vijay.
MR VIJAY:
We said that they represented that they were
always
charging market prices.
COURT: You
have to give particulars of what you are talking
about.
Deceit is a very serious charge, you know.
MR VIJAY:
Your Honour --
COURT: You
have to give particulars so they can answer you.
MR VIJAY:
Your Honour, this matter is something that they
raised
in their affidavit of evidence, saying that,
14:40 "Hey, we
were originally" -- this is their case,
$570,000. The plaintiff came and said "Help me
to
reduce
it, and we were very magnanimous, we reduced it
to
$474,000". I am cross-examining on that, your
Honour.
I don't plead it, they can say it in the
affidavit and I'm not supposed to cross-examine
on what
they say
--
COURT: No,
I'm not saying you are not supposed to
cross-examine, I just want to know the purpose.
If you
just
want to show that the contract was wrong --
MR VIJAY: I
need this context in which they operated before
I come
to the prices proper, your Honour. It won't
take
very
long, your Honour.
COURT: All
right, all right.
Yes,
Mr Ong.
MR ONG:
Your Honour, I just want to clarify that nowhere
in
my
witnesses' affidavit of evidence-in-chief was it
stated
that they were doing it because they were
magnanimous, that they were seeking to make all
these
price
savings for the plaintiffs. Nowhere.
COURT: Yes,
Mr Vijay.
MR VIJAY:
Let the witness say that.
MR ONG: You
are making all these accusations now that my
clients
deceived your clients by pretending that they
had made
savings for them when they had not, and none of
14:41 that is
in your statement of claim.
COURT: He
changed four items here, he took out certain
things
there, so you go on that basis and then --
MR VIJAY:
The witness should be allowed to give the
answer,
not my
learned friend, your Honour.
Your
Honour, if I may be allowed to continue with
this.
It won't take very long.
COURT: I
know, but we have to be relevant. We cannot
visit
the
whole area, if your client has said that --
MR ONG:
Your Honour, it's not my place to teach my
learned
friend
the law, but if you didn't plead it, you
certainly can't lead it, nor can you
cross-examine on
it.
That's my position.
MR VIJAY:
Your Honour, when someone files an affidavit
and
says
things to show that they have been magnanimous
and
they --
MR ONG: He
said none of the things you said.
MR VIJAY:
Is he giving evidence?
COURT: No,
refer him to which part of his affidavit, all
right?
That is easier.
MR VIJAY:
Okay. I will refer the witness. Unless my
learned
friend wants to give evidence.
Look
at paragraph 24, page 171 of your affidavit.
COURT:
Paragraph 24.
MR VIJAY:
Page 171.
14:42 COURT: Page
171, yes. Can you read paragraph 24?
MR VIJAY:
"Mr William Graham's first reaction on reading
the
quotation was to refer it to the 3rd Defendant,
saying
something to the effect that he would like the
3rd
Defendant and I to sit down together to somehow
revise
the quotation to a lower figure. He did not say
or
suggest that any particular item was priced ...
...
I proceeded to discuss this quotation ... leave
out
certain items, some of which were provisional
... in
order to
arrive at a lower sum. Thus, I was able to
present
the Plaintiff with a revised quote ..."
I.e.
which he says is a lower sum. It wasn't
a lower
sum, it was the same thing. That's all I am
trying
to establish.
COURT:
Witness, do you understand the thrust of his
question?
A. Yes, I
understand, your Honour.
COURT: That
you did not give a lower sum and that --
A. It is --
it's a lower sum. Because Mr Graham feels that
the
amount is too high, so when we put in our
deposit,
of
course the amount, about 30 to 40 per cent,
naturally
the
amount will be higher.
So
he felt that all this provisional item, which
subject
to adjustment later where the drawings are
ready,
may not be necessary at this stage. Therefore,
14:44 even
though I take it out, I reflected it back under
item
number 12, to show him clearly every item that
I take
out. There's no hiding at all. Every item
which
I revise
it, which is the -- the provisional sum taken
off.
On
top of it, I also further remind my client that
there
are some major item that also need to be
included
inside
this -- this contract to complete the job which
is under
"Important Notes".
So
every items are reflected clearly inside,
nothing
-- no hiding, no taking away, anything, but
eventually yes, the amount was reduced lower.
COURT: All
right. Carry on.
MR VIJAY: I
won't belabour this for very long.
Can
I just refer you to page 213. All these items
on page
213 up to page 214, the total sum of $118,000
all
these items were taken out from the $570,000
quotation?
A. Correct.
Q. The net
result is there was not a saving of even one
cent?
As at that date, 10th September 2006, there was
no
saving of even one cent --
A. I did
not say --
Q. -- just
a reclassification.
COURT: Is
that correct?
14:45 A. It was
not shown at that moment, but when the whole
project
completed, when we do wrapping up that time,
yes,
there are saving. There are a few item that Ed
mentioned, I had taken note, but at that very
moment we
cannot
finalise because it was such a short time we
were
sitting
down there, we --
COURT: You
are not answering his question.
Can
you repeat your question, Mr Vijay?
MR VIJAY:
Yes, your Honour.
I
say that you just reclassified and there was not
a single
cent saved.
A. Yes. No
-- no savings. It's only lowering the figure.
Q. Not a
cent was lowered; it was just taken and
classified
at the
bottom.
A. Yes. As
I want to explain, is that if --
Q. No, you
can explain in re-examination, but I have to go
through
my main points.
Maybe just one illustration. Look at 12.4.
"Provision sum for construction of U-shape
hostess/cashier counter".
A. Yes.
Q. That was
taken from the previous item.
COURT:
Which page?
MR VIJAY:
Page 213, your Honour.
COURT:
Which item is that?
14:47 MR VIJAY:
It's for a U-shape hostess/cashier counter. You
have
said lump sum, $3,500; correct?
A. Yes.
Q. There's
only one U-shape hostess/cashier counter that
you
built in The Pump Room, right?
A. Yes.
Q. What you
have done -- I will only have one
illustration -- if I may refer you back to
January 2007.
COURT:
Where is that?
MR VIJAY:
That is on page 237, your Honour. May I first
go
to page
239, your Honour, item 23.0. That's the same:
"Construct U shape hostess/cashier counter in
cement
..."
That
is the same item for $3,500?
A. Yes.
Q.
Correct. Now, can I refer you back to page
237. Look
at item
4.0. You charge labour and material for the
same
item, $700, right? And item 10.0, supply and
install
the U-shape, another $825.
So
the U-shape, from one item, has become three
items in
January. That's how you -- correct?
A. Okay.
We are talking about the same item.
Q. Yes.
A. But,
subsequently, there are addition things added to
it
like the
magazine racks, like the additional serving
14:48 latch,
so that we need bracket to secure it.
So
these are added at a later stage where the
U-shaped
counter are already delivered to site, and
with --
the client find that they need certain areas to
attach
certain thing on it, like even the place where
they
supposed to put the menu and all this, this was
added
later.
Q. At the
end of the day, it's one item that became three
items,
and the prices is added; right?
A. Based on
the requirement of the operator to make this
counter
work better.
MR VIJAY:
One last question only, your Honour, on this.
COURT: I am
not stopping you at all.
MR VIJAY:
If you had carried out this work in September,
it
would
have been just $3,500; right?
A. Not
necessary. I was still put in additional
variation
if it's
obviously additional work needed.
Q. You gave
a lump sum price. When you say "lump sum",
it's
all-encompassing; right? $3,500.
A. Lump sum
with items -- lump sum price with items with
breakdowns.
Q. I put it
to you you never reduced the price. In fact,
you
increased the price.
COURT: Mr
Vijay, check with your clients what's happening.
MR VIJAY: I
already checked, your Honour.
14:50 COURT: His
evidence is that when he quoted $3,500 --
A. Yes,
your Honour.
COURT: --
these additional variations, these variations
were not
there?
A. Yes,
your Honour.
COURT: You
might have ordered a desk with three drawers,
but now
if you want some other things on the table, such
as if
you want to drill holes for computers, et
cetera,
then
we'll charge you for the additional.
So
his point is that the additional charges are for
variations to the original thing.
Am I
right?
A. Yes,
your Honour.
COURT: Can
you make the case on that basis, please.
MR VIJAY:
Okay, your Honour.
Can
you show me in these three items, where is the
variation? Items 4.0 and 10.0.
COURT: At
page 237.
MR VIJAY:
Show me where is the variation compared to the
lump sum
that you quoted earlier.
COURT:
Witness, the lawyer's point is that it's the
same
thing.
MR VIJAY:
Split into three items?
A. I can
explain that.
COURT: You
split it into three items so that you can make
14:51 more
money, that's his allegation.
A. Okay.
That is -- that is untrue.
COURT: Can
you point out to him what are the variations?
A. Okay.
Item 4.0:
"Labour and material to fabricate U-shape
stainless
steel
rod complete with L-shape bracket ..."
The
first drawing, there's one face of the counter
which is
totally flat, and they find that this area,
they can
hang some menu or some magazine, we fabricated
some
additional bar to attach onto this. This is
totally
an additional thing that was not in the first
drawing,
therefore the variation is for that. This is
to
explain item 4.0.
Item
10.0 has nothing to do with the U-shaped
cashier
counter. This item is -- this item is at the
bar end
there, where there is -- it's very close to the
dance
floor, they were concerned that when people
dancing
may fall into the bar area, therefore the rails
was
added later. This item, nothing to do with the
--
the
U-shape cashier counter at all -- or hostess
counter. It's already stated there, the DJ
booth.
COURT: What
is your client saying, Mr Vijay? He is saying
item
10.0 has nothing to do with it therefore it's
not
three
items. Is it your client's case that this is
part
of the
--
14:52 MR VIJAY:
Your Honour, my client's case is they quoted,
for
that
whole work, $3,500, and later on it ended up
there --
COURT: No.
That is my difficulty. You are not even
joining
issue. He is saying that item 10.0 has nothing
to do
with the construction of the cashier counter.
Is
that what you're saying?
A. Yes.
COURT: They
are totally different things, so will you check
with
your clients? If they are the same thing, then
you
are ad
idem and you are arguing. But he is saying you
are
talking about a cupboard in the kitchen,
compared to
the
sink.
MR VIJAY:
Item 10.0 is talking about a U-shape stainless
steel
square hollow section railing between dance top
and DJ
counter.
A. The
U-shape word may be used on different fittings,
but
they are
totally different, because -- this one is
referring to the DJ area where they were worried
that
when
people start dancing they may trip over, so the
additional U-shape bar is to hold --
COURT:
Yes. We have heard that. There is no need to
repeat
it.
Do
you have that? He is saying that they are
totally
different, so can you check with your clients?
14:54 MR VIJAY: I
will, your Honour. Just one question on this,
your
Honour.
On
page 214, your item 12.13:
"Provision sum for shipping, customs duties,
port
clearance", et cetera, you made provision for
$6,500.
All
right?
A. Yes.
Q. That
same item, which you took out, resurfaced on
page 238
under item 19.0.
A. Yes.
Q. Except
that it went up to $9,793.
My
question is: there was no saving; it was just
that
first, you put it as provisional sum, and later
you
billed
them subsequently; the net result is, there was
no
saving whatsoever from the $118,000?
A. This is
a very good example to exhibit provisional sum.
Provisional sum is not necessary to be
saving --
Q. I
concede that.
A. The
amount can be --
Q.
Provisional sum is -- I concede that. It can go
up and
down,
but it never went down, right? It always goes
up.
A. Not
necessary it will go down. It's an amount --
like
for
example if I give a provisional sum of $6,500
earlier
on, if the -- if all the material need to take
10, 20,
even 30 shipment to come in, so obviously I am
14:56 entitled
to claim for the additional. The $6,500, as I
said,
provisional sum is a sum that we indicate that
you
may need
to use it in the course of the project. But
subsequently, we were -- we will have the total
figure
which is
the accurate one, which show on page 238, that
is
exactly all the shipments that incur in this
project.
So I'm
reflecting the actual amount which I eventually
billed
the client.
Q. My only
question is: when you represented on
10th
September that you were reducing the price by
$118,000, that was not true, because the client
was
subsequently billed for the items.
A. I
removed it, I take it out to put it on a
separate
classification.
MR VIJAY:
Your Honour, I am going to another area.
COURT: Yes.
MR VIJAY:
Mason Works functions as a main contractor, i.e.
you take
the job and then you subcontract to various
subcontractors? Is that what you do?
A. Yes.
Q. In the
case of The Pump Room, all the works were
subcontracted out to subcontractors, and then
you mark
up your
price; that's --
A. Most of
them, but carpentry work, we did it in the
factory
-- in our factory.
14:58 Q.
Carpentry work. Apart from carpentry work, was
there
anything
else?
A. Not of I
can think of now.
Q. When you
say "carpentry work", can you show me in your
quotation what you are referring to, so that I
will not
mix up
my next question?
A. Page
203.
Q. Yes.
A. Item
1.5, the hoarding.
Q. The
hoarding, that's what you call by carpentry?
A. No. You
need me to run through the entire contract,
there
are more to come behind. I'll list every one
for
you.
Q. Apart
from hoarding, what other carpentry work did you
do? The
reason I'm asking this is because --
A. I'll
come to that. I'll come to that. I need to
read
the
notes first, so -- because some cases there's
one
item,
but some by the carpenter, some by my
subcontractor. I need to -- I need to ...
(Pause.)
Item
2.3. Item 2.3 consist of two groups of people:
one
group, which is my subcontractor, which put up
the
ceiling;
then the second group which is my carpenter who
nailed
the coconut planks on it.
Item
3.2, this is the -- to clad the -- to clad the
wall
with the coconut planks. That is my carpentry
15:01 work.
Q. 2-point?
A. 3.2.
Q. Can I
try and save some time. Would your carpentry
work
exceed
$100,000, what did you yourself?
A. I cannot
answer this question. I need -- there's too
long
already, I got to add it up. I can list out the
item for
you and you can --
COURT: Mr
Vijay, here we go again. You say that he has
got
subcontractors, all right.
MR VIJAY:
Yes.
COURT: It's
perfectly for contractors and subcontractors;
your
point is that he overcharged you, so do you have
any
proof that he overcharged you other than the
fact
that he
had subcontractors, because that by itself is
neither
here nor there. You can have subcontractors and
you can
overcharge, or you can have subcontractors and
charge a
fair mark-up, so that you are not beyond that.
Or else
we are going to see what you have done, what you
do
yourself, et cetera.
Do
you have any --
MR VIJAY: I
don't actually want the witness to give me
a
detailed account, I just --
COURT: Then
tell him, so that --
MR VIJAY:
What percentage of it was done by you yourself?
15:02 A. I can't
give that figure.
Q. You
can't answer that?
A. Because
the -- too many things, as I say --
COURT: If
you can't, you can't. Let's move on.
A. I can't
answer that.
MR VIJAY:
When you entered into a contract with The Pump
Room,
you never told them that you were going to
subcontract your work; right?
A. No.
Q. When you
billed The Pump Room, you say that you took
into
account the fact that you had a rush job and so
on
and so
forth; right? You took into account other
factors?
A. Yes.
Q. These
factors are what, one, that there is rush. Time
was one?
A. Time
constraint, yes.
Q. The
second one?
A.
Information like drawings and all these coming
in, drips
and
pieces. A lot of -- some of the oversea item,
they
come in
their own different schedule; as a result, we
can't
plan the work accordingly, and also due to the
fact
that the site is in -- Clarke Quay itself is
functioning, so a lot of work got to be work
during --
so-called off peak hours, to -- to disturb the
-- the
15:04 other
tenants that is doing business there.
And
also one thing -- one last thing is that some of
the
quotation and all this that we were -- we
submitted
took a
while to -- to come back, and there are also
certain
cases, I chase for it. So all these add into
the
entire frustration of managing this job.
Q. First,
there's not a single quotation that came back to
you
late. You are lying, right? I challenge you to
prove to
me which quotation was approved late.
A. The
aircon quotation. Variation number 1, aircon
quotation. Because equipment need to be indent
in.
I've
been chasing them to confirm this so that I can
start
indenting the material --
Q. What
delay are we talking about?
A. Sorry?
Q. How much
delay are we talking about?
A. Off my
head, at least -- at least a week.
Q. A week?
A. If I --
if I don't send an e-mail to chase, it will take
even
longer.
Q. At the
end of the day you are talking about the worst
situation being one week; right? Most of the --
A. No, that
is one item, one week. There are many items as
well.
Like, for example, even when we are doing the --
the
preparation for the pathway at the next unit,
that
15:06 one
also, we were chasing them to remove all the
material
away so that I can return the place to
Clarke
Quay.
Q. Witness,
just tell me what is the delay. You said one
week.
Now,
many of the quotations were approved on the
same
day; right?
A. Some on
the same day, some not.
Q. Some on
the next day or two lays later; right? We can
go
through it if you want to spend the time. I can
go
through
it.
First quotation, 8th September. You got the
approval
on the 10th September. Was there a delay?
A. I --
Q. The main
one.
A. I
remember the -- I remember the aircon, there is
some
delay,
in approving. I remember also the electrical
also
there was some delay in approving.
Q. No. You
said the maximum that they took one week.
Apart
from that, the rest were all around the same
day,
the next
day or two days; am I right? If not, please
show me
otherwise. (Pause.)
Can
I go on to my next question? Are you looking
for
something or can I ask my next question?
A. No. I'm
going through the -- the day that the quotation
15:08 was
issued and the approval.
Q. I put it
to you that no quotation was delayed. You can
admit or
deny and I will move on. You can explain it in
your
re-examination.
A. I deny
that.
Q. Clarke
Quay, at that point of time, everyone was doing
renovations there; right?
A. Not
true.
Q. Was
there any time restriction on you and when you
could
not do
work and all that?
A. Noisy
work and carrying out of debris out of the job
site,
walking past the tenant units, all this got to
be -- be
kept until they have finished operation before
we can
move things out.
Q. My
question is: were you in any way limited in your
work,
i.e., you can work day and night if you want to
--
A. Noisy
work, drilling work we can't --
Q. -- the
quotation said night work.
A. Yes. If
there's drilling work, all this -- there are
cases
whereby we even have to wait till about 2 am
before
we can start work. One example is to cut off
the
gas,
because the gas is serving Satay Club and other
unit at
the same time also. So that -- that is all --
inconvenience.
Q. Those
are very minor factors. Compared to a
residential
15:09 area,
you were in a much more advantageous position;
right?
A. Not
true.
Q. Next
door was Highlander. They were also doing work;
correct?
A.
Highlander -- Highlander -- I didn't --
Highlander is
not an
issue. The one that I am concerned is Satay
Club
on the
other side. Satay Club is on -- on the other
end
of the
Pump Room.
Highlander didn't give me any issue at all
because
at that
time Highlander -- while we are working -- is
still
not fully operate now.
Q. In any
construction work or interior work, there will
always
be these problems; right? It's nothing out of
the
ordinary; correct?
A. It
depends on the degree of inconvenience only.
Some --
some
it's not so serious, some it's more serious.
Everyone
will have some problem.
Q. But you
only found out all these things after you were
given
your quotation; right?
A. I know
there is inconvenience, but you have to actually
go in to
start work, then you will actually experience
the real
-- the real effect to it.
Q. Witness,
you had already given your quotation to The
Pump
Room; right? Then only you are saying, "Oh,
there
15:10 are
delays, there are frustrations" -- all this
happened
subsequently?
A. Giving
the quotation that time, I have take this into
consideration, but I --
Q. Let me
go to specifics then. When you gave the
quotation to The Pump Room, did you know that
they will
be
approving only one week later, according to you?
A. When I
gave, I don't know.
Q. Yes, so
how can you factor that in as a reason to
increase
the cost?
A. No, I
did not increase the cost based on confirming my
quotation one week later. That quotation I gave
one
week ago
stay.
Q. No. You
said that when you quoted your prices, you took
all
these factors into account.
A. Not
giving quotation late.
Q. These
are the reasons you gave --
A. No, I
did not -- I did not say that. My reason is,
the
inconvenience of working at a place that is
operating,
the
delay in some -- some material coming in, and
also
the
delay in the information and drawings coming in.
Q. Let's
take one. So you quoted higher because of the
delay in
the drawings coming in; is that your evidence?
A. No.
Q. What
does the delay in the drawings have to do with
your
15:12 prices?
A. I quoted
higher based on anticipating knowing that
I will
incur overtime on this work, but end of the day,
there's
actually much more delay than what I expected,
which I
didn't allowed for.
Q. Let me
take you on that. When you quoted your pricing,
you
increased the quotation to make provision for
overtime
work; is that what you're saying?
A. This is
one of it, yes.
Q. This is
one reason. In other words, when you gave the
quotation, you had already put a certain amount
of money
into the
quotation for overtime work; am I right?
A. Yes.
Q. How many
per cent did you mark up for the overtime work?
A. It
varies from different kind of work. Certain
work,
I can
anticipate that we are doing it in the factory.
I won't
--
Q. You
would have a figure; right? Over and above the
market
price, you put a certain figure up.
A. Okay.
Not -- not -- that does not apply to every
quote --
every item, but in the range of three to five.
Q. What
would you have done if subsequently there was no
need for
additional manpower? There was no provision to
return
the difference; right?
A. Not for
this case.
15:13 Q. No. You
put in labour costs beforehand; right?
A. A small
percentage for overtime work, yes.
Q. For the
fact that the place, you say, is inconvenient to
work,
how many per cent did you mark it up?
A. In the
region of three to five -- I mean, that is for
overtime. For overtime work, to rush up the
work.
Inconvenience to work, that one I didn't put in.
Q. Delay?
A. What
sort of delay?
Q. You said
there were delays.
A. Delay in
issuing information and drawings, is that what
you're
referring to?
Q.
Whatever.
A. Okay,
for issuing of drawings and information, that
delay I
did not factor in any additional costs.
Q. At the
end of the day, this was no different from any
ordinary
renovation work, was it, of this nature?
A. I don't
understand when you say no different --
Q. Any
renovation work, especially if it is a
restaurant,
they are
always in a hurry to open; right?
A. Yes.
Q. Such
work is always an urgent job; right?
A. Not
all. You want me to explain?
Q. Almost
all; right?
A. Not
necessary -- I can explain on this.
15:15 Q. There is
no need. You can explain in re-examination.
Let
me come to the gas piping. The gas piping, you
gave to
A's M&E Pte Ltd?
A.
Correct. They are -- they are the appointed
subcontractor by Clarke Quay, to use them.
Q. You had
no work to do except to appoint them; right?
A. No, I
have a lot of work to do. You want me to list
the
work
done?
Q. A's M&E
works did the whole thing, right, A to Z?
A. The
physical work.
Q. Yes?
A. The
physical work. I need to get the application
from
Clarke
Quay for night work. I need to go down to all
the
tenants that is affected to say hello to them,
let
them --
see what time they stop the kitchen so that I'm
able to
go in.
Q. All this
are not in your invoice; right?
A. No, this
one is -- this is part and parcel as my
attendance inside to take care of all these.
Therefore
I have a
profit over it.
Q. Can I
show you what you billed the clients? To save
time,
can I refer to you Kenneth Hugh Jones'
affidavit,
page 64.
A. The 2nd
defendant?
Q. The
thick bundle.
15:17 A. Page 64.
Q. That's
your quotation; right?
A. Yes.
Q. For
alteration and installation of gas piping?
A. Yes.
Q. On page
67 is A's M&E's Pte Ltd quotation, for the same
works?
A. Yes.
Q. What you
have done is that you have just ditto copied
out A's
M&E quotation; correct? Look at item 1.1 and
their
1.1, it is the same, right?
"Supply labour, tools to cap off, dismantle and
remove
..."
A. Yes,
correct.
Q. Exactly
the same, right? They are doing the work here
for
$1,750; all you did was to give a quotation
increasing it to $2,300. Correct?
A. That is
-- that is my mark-up and my mark-up consists
of --
Q. Your
mark-up comes to 33 per cent; correct?
A. Correct.
Q. A's M&E
is already charging for the whole thing plus GST
and
everything. On top of it all, you marked it up
33
per
cent. Don't you think that's very high?
A. Not high
at all.
15:19 Q. For
doing nothing, isn't it high?
A. Untrue.
I not doing nothing.
Q. Item 1.2
is another copy, isn't it, a ditto copy? All
you did
was to copy out the item from A's M&E into your
quotation, and then mark it. The only hard work
you did
was to
change the figure to $2,650 from $2,000.
A
mark-up of 32.5 per cent, that's not high?
A. Not
high, taking into consideration the work that I
have
to do in
order to finish this --
Q. I put it
to you that there was no work for you to do
except
to prepare a back-to-back quotation with the
marked-up prices. That's all.
A. Untrue.
Q. I put it
to you that A's M&E are proficient, they are
reputable and they know how to carry out their
work.
All you
did in this case was to duplicate their
quotation and mark up the price?
A. I
disagree.
Q. Look at
items 1.3 and 1.4. That is another duplicate of
item 1.3
of A's quotation; correct?
A. Yes.
Q. Except
that their item is 1.3, yours is broken up into
items
1.3 and 1.4. Correct?
A. Yes.
Q. Look at
the 1.3:
15:20
"Night Works for the above job ... Box-Up ... PE
submission."
For
PE submission, they charge $4,000.
You
have put a separate item: preparation of
drawing,
professional engineer endorsement and
submission also. Right?
You
all talked about preparation of drawing,
endorsement, et cetera; they only talk about
submission.
Are they
the same thing or are you exaggerating?
A. No,
because before that we also got to provide them
with
drawings. I need to get relevant drawings for
them,
I need
to go to get the master copy from Clarke Quay,
give it
to them so that they are able to plot their work
done for
submission.
Q. Did you
put that here? Did you give a quotation for all
those
works that you are now adding in?
A. No.
It's all lumped in together.
Q. Now you
are saying you have to do all of this.
A. Correct.
Q. You just
took from A's M&E and duplicated it into your
quotation, that's all. You didn't say that you
had to
do
anything additional. So here, the total of
items 1.3
and 1.4,
when compared to item 1.3, you have a mark up
of 45
per cent for doing nothing.
A. Not
doing nothing.
15:22 Q. Do you
agree your mark-up is 45 per cent?
A. Yes, but
there are a lot of work behind.
Q. Of
course. You will say that, but it's not
reflected in
your
quotation; right?
A. Sometime
when we do the quotation, there's a lot of
things
that we cannot write down everything. But
ultimately, Pump Room having the gas now.
Q. All you
have said in your quotation to Pump Room is that
you have
to do these items 1.3 and 1.4 work. That's all
you have
said; right? That's all you have said. You
have not
said that you are doing any additional work.
Am I
right?
A. Not true
--
Q. As far
as the quotation is concerned.
A. No.
Quotation is concerned, yes, but I'm telling you
now --
Q. No,
don't tell me now. You have already given the
quotation and collected your money. What's the
point of
talking
now?
Similarly, item 1.5, you copied wholesale:
"Supply and install ... solenoid valve".
You
just cut and paste and then you marked it up to
$3,100.
That's all you did. Correct?
A. Plus a
lot of physical work at site.
Q. Did you
mention here that you did other physical work,
15:23 et
cetera?
A. It's not
mentioned here.
Q. No.
Item 1.6, again it's a cut copy; correct?
A. Yes.
Q. Of item
2.2 at page 67. The only hard work you did was
to
increase the amount; correct?
A. Not
correct.
Q. Why is
that not correct?
A. Because
there are more work at site that was done.
Q. Does
your quotation show that you have done any more
work
than A's M&E?
A. It's not
shown in the quotation.
Q. Yes.
Similarly for item 1.7, that is a duplicate cut
copy of
item 2.3; correct?
Again, the only thing you have done is to mark
up by
23.3 per
cent to $7,650; correct?
A. Which
item.
Q. Item 1.7
of your quotation is a duplicate of item 2.3,
page
67? Correct?
A. As I
said, with some other work as well.
Q. It is
not mentioned in your quotation; right?
Even
submission and testing by City Gas, amount to
be paid
to be City Gas -- this is like an expense,
disbursement -- $570. Even that, you put into
your bill
and
marked it up to $750.
15:25 A. We need
to get a --
Q. Item
1.8.
COURT: Are
you asking a question?
MR VIJAY:
Yes.
COURT:
Please let him answer.
MR VIJAY:
Yes.
COURT: Do
you want to say something about the mark-up?
A. No.
This testing, we need to get our project guy to
standby
at site to open up some of the doors for City
Gas to
turn on and test it. So we have -- we have
somebody
there to do the coordination.
MR VIJAY:
That testing by City Gas was done and billed by
A's M&E
Pte Ltd; correct?
A. Correct.
Q. They did
all the work and billed $570? Page 67?
A. Correct.
Q. You
merely increased that to $750 in your quotation?
A. As I
said, we need a representative at our site to --
to
liaise
with City Gas as well.
Q. Did you
bill or did you quote, did you say it anywhere
that you
are billing for your presence there while the
testing
is going on? Did you?
A. I take
it as one item included all this to get the
testing
and commissioning over.
Q. Witness,
the testing and commissioning has been done by
15:27 A's
M&E. You are saying that your contribution was
that
you had
to be present there, et cetera.
A. Yes.
And also --
Q. Did you
put that into your quotation or invoice?
A. That is
part and parcel of the job, and also to sign the
form
once everything is approved, collect the key for
the --
for the control valve, so that we can hand over
to the
client subsequently.
Q. I put it
to you that you merely duplicated the item, and
merely
marked up and increased the price for no
additional work or good reason.
A. I
disagree.
Q. The same
thing you did, can I now --
COURT: Is
your client saying that they did no work at all?
I keep
telling you, I'm not a quantity surveyor trying
to look
at every little item here, $100, $200.
MR VIJAY:
Yes, your Honour --
COURT: I
don't know what your case is insofar as the
$570 is
concerned.
MR VIJAY:
$570 became $750 --
COURT: You
have asked him and he has said he has somebody
who has
to stand by, et cetera. Is it your case, then,
that
nobody stood by?
MR VIJAY:
He never invoiced my client for any of those
works,
your Honour. My case is that he simply took --
15:28 COURT: I
know that, but as proof of that, you are
eliciting
examples
to me. So when you said, "Look, your Honour,
$570
became slightly over $700, he just added
a
mark-up".
So
he says to you, "No, I have to do the
coordinating work, I have to have somebody
there, I have
to hand
over the key, I have to sign documents and so
on, and
this is what I did to earn that extra
$100-over".
Fine, so I've got your view that he just added,
and
now he
has said that he has to stand by it. So is it
your
case that nobody stood by?
MR VIJAY:
My --
COURT:
Otherwise, we are left in the air.
MR VIJAY:
My instructions are that from the documents they
have
produced, it looks like it was carried out by
A's M&E
completely, your Honour, nothing to do with
them.
All they did was mark it up and just billed my
clients.
COURT: I
know that is your case, but he has explained to
you, so
now do you have any evidence to challenge this
explanation?
MR VIJAY:
Your Honour, all I can ask him -- and I've asked
him
before -- is: if that's the work you did, then
why
didn't
you say so in your quotation and your invoice,
15:29 "I am
charging you because I had to do all these
works"?
COURT: Is
that what they do? When somebody just tells you
$750, do
they have such great detail for one person
attending?
MR VIJAY:
Your Honour, if he's billing for that work, then
he
should say that "This is the cost of subcon,
plus" --
or
whatever. He must at least invoice to show what
he
did, not
invoice on the basis of what A's M&E did, which
he
didn't do.
COURT: Is
that the practice? That's the difference
between
nominated subcontractors who then bill, but if
the main
contractor bills for cupboards, he subcontracts
it out,
then he
bills the owner, does he say "The subcontractor
is how
much and how much, and my man stood by, how
much",
or is it the total bill and then you vet it?
MR VIJAY:
Your Honour --
COURT: I'm
just helping you along, to gather the evidence.
MR VIJAY:
Yes.
COURT:
Otherwise there's nothing in the end and both of
you
submit,
"Well, he added". He'll say "No, it's not true,
he added
this bit on", and with a few little pieces here
and
there, how am I to know what was the
overcharging
about?
$100 here, $100 here, can I magnify it to what
you
alleged, 550,000?
MR VIJAY:
Your Honour, at the end of the day, the case is
15:31 that --
I'll put it to him.
COURT: At
the end of the day, he who alleges must prove
it,
that's
all.
MR VIJAY:
Fair enough.
COURT: If
you have substantive evidence, bring it forth.
Yes,
carry on.
MR VIJAY: I
put it to you that your mark ups of what
I showed
you just now, amounting to 45 per cent, 33 per
cent
were all far above the market price.
A. I
disagree.
Q.
Similarly, with your work on interior fitting
out and
M&E
works, which is on page 75 and 76 of Mr Jones'
quotation. Right? Here again, the works were
all done
by
Hamptonford according to your affidavit; right?
A. Majority
of the work.
Q. Item 1
is again a duplicate of item number 3, right?
A. Yes, he
described the work on item number 3, Hamptonford
quotation.
Q.
Similarly, item 5.0 is the same as item 7?
A. You're
referring to item 7, right, of Hamptonford
quotation.
Q. Yes,
item 5.0 is item 7, right?
A. Correct.
Q. That has
been marked up by 48.7 per cent.
A. Some of
the work for Hamptonford is that we have to
15:35 provide
them scaffolding --
Q. I am
moving on.
Do
you agree that the mark-up is 48 per cent for
that
item 5.0, 48 per cent mark-up?
A. I don't
have a calculator but I presume you have done
your
calculation -- never mind. Take it there.
Q. One last
question on this area. Item 4.0, is it item 6?
Page 78?
A. Yes,
correct.
Q. Would
you agree that the mark-up is about 43.3 per
cent?
A. Yes.
Q. If I may
move on to another area.
You
did your first job, 20th July 2006, and you
demolished six walls; you charged, for that
alone,
$28,000?
A. Which
page you're referring to now?
Q. I don't
have a page. Was that done by subcontractors?
A. Yes.
Q. How much
did they charge?
A. Cannot
remember.
Q. Just to
terminate the M&E services, you charged $12,000.
Could
you explain what you do when you terminate M&E
services?
A. There
are three sets of distribution board that we got
to
terminate. There are lights, power points to
15:38
terminate before we can go in and do the
demolition.
There
are also power point above the ceiling, for
fans,
for
exhaust, and we also need to ensure that all the
power
point going into the toilets, like to the
sensors,
to the
hand dryers, everything are -- are removed are
taken
out.
And
in some cases, when we remove the main
distribution board, we got to make arrangement
with
Clarke
Quay to do it in the night so that we can switch
off the
-- from the meter room, so that this work can be
carried
out.
Q.
Basically, it's a switch-off and switch-on job,
isn't
it?
A. No.
This -- this way to describe it is too simple
already. And all these work are not done at one
go,
they are
all in phases as well, because -- not
forgetting we still had to keep some electricity
inside
the
premises for us to work, and some temporary
light as
well.
Q. Can I
move on to the construction of the cold room and
the
brewhouse.
Your
Honour, may I ask for a short break at this
point.
COURT: All
right.
(3.39 pm)
15:39 (A short adjournment)
(4.03 pm)
COURT: Yes.
MR VIJAY:
Please your Honour.
COURT: How
long more will you take with this witness? You
indicated you would take a short time.
MR VIJAY: A
short time, your Honour. I will finish up with
the
steel and then the 8th November --
COURT: In
terms of hours?
MR VIJAY: I
should be done in 15, 20 minutes.
COURT: Go
ahead then.
MR VIJAY:
Can I refer you to page 274 of your affidavit,
please,
items 2.1 and 2.2. Can I refer you to those two
items?
A. Yes.
Q. This is
the charges for the amount of steel you are
charging
for the construction of the cold room and the
brewhouse; right?
A. Yes.
Q. You were
charging $79,400 and $60,700, making a total of
$140,100?
A. Yes.
Q. The
amount of the weight of the steel involved is
18541.1
kg; correct? That is at page 433 of volume 2 of
the 2nd
defendant's bundle of documents. Do you have
16:05 that?
A. Yes.
Q. Do you
agree that that is the amount of steel for these
two
items, 2.1 and 2.2?
A. Yes.
Q. If you
divide what you are charging, $140,100, divided
by
18541.1 kg, that will give you $7.55. Would you
like
to
re-check that?
A. Yes.
Q. You were
charging $7.55, and of course you have other
incidental items on the following page.
Correct?
A. Correct.
Q. Right up
to item 2.11, making a total of $195,776.60?
A. Correct.
Q. Can I
now refer you to D2-1, the 2nd defendant's
bundle,
which
you submitted as exhibit 1, that is the Cost
Information Quarterly, an excerpt.
Before that, can I refer you to page 430 at
volume 2
of the
2nd defendant's bundle of documents.
A. Yes.
Q.
Structural steel work and metal work. That is
mild
steel,
under 1.1, $3.50, and this at $3.80. Item A.
A. Yes.
Q. The
price here is $3.50 and $3.80; correct?
A. Yes.
16:08 Q. This
price, what does it include? We have to go back
to
the
preamble in D2-1.
Can
I refer you to 1.3, descriptions and rates.
A. Where is
the D2 page?
Q. There is
no page number. You have to look under
section
E.
A. Yes.
Q. Section
E, the first page of the preamble.
This
$3.50 includes a lot of things which, if I may
point
out J: establishment charges, overhead charges,
preliminaries, and even profit. Right? So
$3.50,
according to your exhibit, includes all these
items.
You
have charged $7.55 for steel, and in addition
you
have, of course, the other items. Can you
explain?
A. Item 2.1
and 2.2, these two item, was -- the price was
given to
me by my subcontractor, and I do my mark-up and
I
presented this price inside this quotation.
Q. Would
you agree with me that your dealings with the
subcontractor has nothing to do with The Pump
Room;
right?
A. But the
prices that are charged here also come from
them.
Q. You must
first answer my question. The Pump Room has
nothing
to do with your subcontractors; in fact, I am
instructed that they didn't even know you had
16:10
subcontractors.
A. Correct.
Q. Would
you agree with me that it is your look-out to
negotiate the correct price with your
subcontractors; it
has
nothing to do with The Pump Room?
A. Correct.
Q. Would
you then agree with me that your duty or your
agreement with The Pump Room is to charge market
rate?
A. Right.
Q. Looking
at your own exhibit D2-1, and going by the
suggestions and questions made by your counsel
on your
behalf,
it is their case that $3.50 would be the market
price;
right?
A. As I
said, if you're referring to this book --
Q. Yes.
Then it would be $3.50?
A. Then,
yes. But as for my case, it's that this price
come
from my subcontractor, and I put in the mark-up.
Q. Right.
I've already said that, but that has nothing to
do with
The Pump Room; right?
A. Well --
COURT: He
is trying to tell you that your price from your
subcontractor may not be a reasonable price.
A. I --
COURT: Is
that not what you are trying to say?
MR VIJAY:
Yes, certainly.
16:11 COURT: Well
then, tell him.
A. I did --
gone through this with the subcontractor, how
they
come to the price. According to them, the price
that
they received is also from the price that they
purchased the steel from the supplier in
Singapore,
taking
into consideration all the other necessary
preparation work for the steels, cutting,
priming,
delivering to site, all this.
And
based on that time where they get the price, and
also
taking into consideration the very small
quantity
that was
ordered, and that is the price that they get,
and they
had given it to me.
And
I did also -- between us we did negotiated for
a good
price, and also this contractor has been working
for us
for many years, and I have used their price and
put in
the mark-up, and put it for -- into the
quotation.
Q. Would
you agree with me that what your subcontractor
charged
you is not an indication of what the market
price
was? It's obvious, right? It may not
necessarily
be.
A. They --
they are charging me the market price. Basing
on the
-- the type of work that they are doing, the
size,
the quantity of the steel they are buying, and
also the
-- the site constraints and all that.
16:13 Q. I have
put you all on notice, whether you are calling
the
subcontractor to give such evidence. I had put
you
all on
notice. Are you calling the subcontractor to
show
that they charged you market price and
reasonable,
et
cetera?
A.
According to them --
Q. But I
have objected to these invoices and I have also
put on
record that I want the subcontractor to come --
MR ONG:
Your Honour, my learned friend is putting a
point
of law
to my witness.
MR VIJAY:
Fair enough.
MR ONG: It
is them who alleged that must prove.
MR VIJAY:
It is he who is alleging that his market price
was fair
from the subcontractor. I'll leave it for
submissions, your Honour. I can't go further
than that.
Let
me complete the other half, mezzanine floor,
item
3.0, page 276 of your affidavit.
Of
course, there is no dispute that these works
were
not
done; right?
A. Correct.
Q. You are
still invoicing $24,600 and $27,800 for work
that was
not done; correct?
A. Minus
the $10,670 and $13,340.
Q. For the
workmanship, okay, I stand corrected.
When
were you told that they are not carrying on
16:15 with
this work?
A. About --
about one month after I've started the work.
About
one month later.
Q. On 4th
December or something like that; right?
A.
Correct. I started the work early November.
Q. What
work did you do?
A. The
entire brewery construction, everything.
Q. No, the
mezzanine floor, please.
A. The
mezzanine floor, yes, inclusive the preparation
of
the
steel purchasing of the steel.
Q. At the
work site, there was no work done in relation to
the
mezzanine floor. You couldn't have.
A. Day one,
there is no work done at all. All the work are
done
off-site, and the steel are cut --
Q. You are
saying that you purchased steel.
A.
Inclusive, the cold room floor and the brewhouse
floor,
we have
to do off site fabrication before they are ready
to move
into the site.
Q. No. On
the mezzanine floor --
A. Yes?
Q. -- there
was no work done at all at the Pump Room site;
correct?
A. Pump
Room site, no, but off-site we have the steel,
we
cut
them, and all the floor plate has been bent to
all
the
various angle, and getting ready to deliver to
the
16:16 site.
Because the site is very small, we cannot bring
all the
steel, so we got to finish the floor slab first
before
we put the -- the mezzanine floor on the floor
slab and
slowly move it into the kitchen. Because at
that
very moment they also doing micropiling and all
this.
So material are sent to site in stages.
Q. Did you
inform The Pump Room in any way that "I have
already
purchased the steel for the mezzanine floor"?
A. Yes.
Q. That's
after they cancelled; right?
A.
Correct. When they -- when they sent me a
message to
say that
they want to cancel this, I told them the
repercussion of other work related to this which
is more
serious,
like the -- the delay of TOP, whether when they
cancel
the floor -- the mezzanine floor at this stage,
will it
affect and all this. At the same time, also
I told
them that the materials are all ready to come
into the
site.
Q. Prior to
this, December 2006, although it was on the
drawing,
no one actually gave you any go-ahead with
these
mezzanine works; right?
A. I got
go-ahead to do the entire job, everything. RSP
give me
all the drawing for every stages. My client
confirmed the entire quotation, so which means
that once
I
ordered all the steel, everything, I'll take it
as
16:17 a whole
already. Everything is a go.
Q. You are
saying that your subcontractor ordered the
steel;
is that --
A.
Correct. Day one, together with the -- with the
cold
room and
the brewhouse steel.
Q. On 4th
December 2006 you were told by an e-mail to
cancel
the -- that they were not proceeding with the
mezzanine floor; am I right?
A. Yes, I
received an e-mail from Shaharin.
Q. 4th
December, you are not disputing the date, are
you?
A. I think
it's early -- early December, but whether is it
exactly
on the 4th, I can't -- I can't remember that.
Q.
Immediately the next day, you seem to have an
invoice
from
your subcontractor for the steel that they've
already
ordered. The date is 5th December 2006. Page
423 is
the translation, volume 2 of the 2nd defendant's
bundle.
A. That's
right.
Q.
Immediately the next day, you have the invoice;
right?
I'm just
asking you about the date. Do you confirm that
it's
immediately the next day?
A. That's
right.
Q. Then
your subcontractor cancelled item 4 for
staircase
materials, right? He has cancelled it in this
document.
A. He
cancelled that, it's the installation.
16:20 Q. Sorry?
A. It's for
the installation.
Q. Item 4
says "Side stairs materials, steel plates
without
installation" was cancelled. $15,000 was
cancelled.
A. Without
installation, they cancel the -- they cancel the
thing
out, without installation.
Q. The
$15,000 is also cancelled?
A.
Correct. Without installation.
Q. The
steel supposed to be used for the staircase, he
cancelled, he didn't believe?
A. He
cancelled the labour cost for that.
Q. The
English translation says "Side stairs materials,
steel
plates without installation". That means they
are
talking
only about the steel, they are not talking about
the
installation. That's the translation I have.
The
rest is
in Chinese. I don't know.
A. Side
stair is the item. Then he put a special
remark,
"without
installation", so he giving the cost for
without
installation. So he cancel out the -- the
labour
cost for that.
Q. Did you
collect the steel from the subcontractor?
A. No. I
do not have place to store the steel, so I left
it at
the subcontractor factory.
Q. When you
were told that this steel was no longer
necessary, what steps did you take to dispose of
them?
16:22 A. I cannot
do anything to the steel because it belongs to
the
client, because I bill Pump Room for the steel,
so
the
steel will have to be kept in the factory,
waiting
for Pump
Room to give me instruction.
Q. The Pump
Room had already given instruction on
4th
December categorically that they are not
building
the
mezzanine floor; correct?
A. Correct.
Q. Isn't
that enough instruction?
A. That
instruction not to build.
Q. Yes?
A. But I
have already purchased the steel.
Q. Yes.
A. So the
steel will belongs to the Pump Room.
Q. Yes.
Did you give it to Pump Room?
A. Pump
Room did not ask from me, so I store it.
Q. You
invoiced them --
A. Because
--
Q. You
invoiced them, and at the same time you didn't
give
them the
steel?
A. Okay.
That -- those -- we are talking about at least
about 10
tons of steel. It's not a small little item
where
you can give it to Pump Room. First, they got
to
tell me
they want the steel, they have to find a place,
then I
have to hoist them out and deliver to them.
16:23 Q. Did you
ask Pump Room whether they wanted the steel
back?
A. I did
not ask.
Q. Did you
show them the steel that you had purchased at
any one
time?
A. It's in
the factory.
Q. Did you
offer to show to them what you have purchased?
Never;
right?
A. They did
not ask to see them.
Q. They
never asked and you never offered; right?
A. It's
there for them to see.
Q. You have
purchased an item on behalf of the customer.
The
least you could show is "Look, I've purchased
this,
what do
you want me to do with it?" That's a minimum
that
would be expected of you; right?
A. I show
them that I have purchased the steel by billing
them.
Q. By
billing them, you are showing them that you
purchased
the
steel?
A. Yes, I
show them that it's already purchased, therefore
I bill
them and I only remove the labour cost for
installation only.
Q. Yes, but
did you not ask them what they want you to do
with the
steel?
A. They did
not tell me what they want to do.
16:24 Q. Do you
agree that once they pay for it, or you invoice
them,
the steel belongs to The Pump Room?
A. Correct.
Q. Why
didn't you ask them what to do with the steel?
A. I'm just
--
Q. They are
your customers; right?
A. I'm
waiting for them to see what they want to do to
it.
It's
sitting in the factory there.
Q. Come
on. William, the price of steel was increasing
--
MR ONG:
Your Honour, this argument has gone on long
enough.
The
simple point is it was never pleaded by the
plaintiff that the 2nd defendants have failed in
any
duty to
inform or ask the plaintiff what they wanted to
do with
the discontinued steel. It's as simple as that.
MR VIJAY:
This is evidence, your Honour. I am trying to
establish --
MR ONG:
It's evidence if you pleaded it, that it was my
client's
duty and they failed to carry it --
MR VIJAY: I
don't have to plead evidence. This is the
case --
MR ONG: If
you don't plead it, then you can't lead it, you
can't
cross-examine on it.
MR VIJAY:
No, you don't plead evidence.
MR ONG:
Yes, you do have to plead if you want to say
that
my
clients have been remiss in not informing your
16:25 clients
about this. It's elementary, Mr Vijay.
MR VIJAY:
Your Honour, I take a different view. This is
evidence, his conduct and what he has done --
COURT: I
will see both of you in chambers right now.
(4.25 pm)
(Hearing in chambers)
(6.08 pm)
(The hearing concluded)
|