Ccs Woes Spur Tengah Residents Seek Legal Recourse Against Sp Group

Tengah’s CCS teething issues lead to legal recourse

When the Tengah eco-town estate was launched over six years ago, it was marketed as a “forest town” with green, sustainable and smart features. One of the features was the introduction of the central cooling system (CCS) which was the first of its kind in a public housing estate.The initial marketing materials for the CCS promised an eco-friendly and efficient system that used centralised condensers to distribute chilled water as the main coolant. It was also advertised as being 30% more cost-effective compared to conventional air conditioning systems.However, the implementation of the CCS at Tengah has resulted in some teething issues, causing some residents who have moved in to seek legal recourse against SP Group, the company in charge of designing, building and implementing the CCS across the estate.Read also: MOE relocates Kranji Primary School to Tengah and Outram Secondary to SengkangA Telegram chat group named “Tengah CCS Issues”, with over 3,000 members, conducted a poll to determine the intentions of its members. Out of 500 respondents, 21 (4.2%) have filed a case with the Small Claims Tribunal (SCT) and 92 (18.4%) have expressed their intention to do so.Of the 21 respondents who have filed cases, four have succeeded in their cases against SP, three have not, and the remaining cases are still ongoing.Several respondents have shared with EdgeProp Singapore that one of the main reasons for their legal recourse was their lack of belief in SP keeping their initial promises for the CCS. As such, they are seeking to terminate their contracts with minimal financial losses.As of July 22, the MyTengah.sg website by SP Group still states that there will be cost savings of 30% based on November 2023 estimates (Source: SP Group/MyTengah website)Early birdsA resident of Tengah, who wishes to be known only as Mrs Tan, currently has an ongoing case and recounts why she signed up for the CCS in 2020.“The system was eco-friendly, cost-effective, and we wanted to support the new idea,” says Tan. “It did not matter to us that we signed up years before the actual implementation because we trusted that an established organisation like SP Group would execute it well.”However, her issues with the CCS and SP started soon after she signed her contract.Tan explains: “I wanted to shift my fan coil unit.” She claimed to have brought it up at her initial conversations with SP’s sales representatives before signing her contract.Read also: [UPDATE] Copen Grand fully sold, with remaining units snapped up by second-time buyersDespite that, she was informed after signing the contract that the system could not accommodate the shift. She attempted to resolve the issue with SP for over a year before requesting that any pre-installation works for her unit be put on hold.Cases of water condensation or leakage from the piping are among the majority of complaints about the CCS. (Photo: Samuel Isaac Chua / EdgeProp Singapore)Termination penaltiesPhotos and videos of pooled water caused by the CCS started to emerge on the “Tengah CCS Issues” chat group on Sept 22, 2023, after the completion of the first batch of flats in the estate.Shortly after, SP released a statement on Nov 6, 2023, updating their initial cost-saving estimates from 30% to 17%. This was attributed to the increase in electricity costs.SP also announced several measures to reassure residents in their statement in November 2023, such as additional quality checks, waiving CCS usage charges, halving the contract cancellation fee, and addressing 88% of the reported issues.However, due to her previous experience with SP, Tan decided to terminate her contract. The cost of terminating her contract in December 2023 was $796.25, or 17.5% of the total installation charge. Her unit was five months away from completion.Currently, residents who terminate their CCS contract agreement before the installation of their fan coil units, piping, and cables incur a penalty equivalent to 17.5% of the total installation charge. The penalty increases to 50% if the contract is terminated after the completion of installation works. Contracts terminated within the 30-day cooling-off period upon signing, will incur no cancellation charges.Read also: Copen Grand EC receives 2,300 e-applicationsAccording to the contract agreement issued by SP, the amount reflects a “genuine pre-estimate of the loss” suffered by the company due to the contract’s cancellation.CCS testing being carried out on a completed unit in Tengah to detect leaks that were discovered six months after moving in (Photo: Samuel Isaac Chua / EdgeProp Singapore)Claims and counterclaimsCourt documents seen by EdgeProp Singapore show that at least one resident has managed to dismiss SP’s claims of losses incurred from customers terminating their contracts.The resident, who wishes to be known only as Maan, is a construction project manager in his 50s. He was successful in dismissing SP’s claims of damages incurred during his SCT hearing in February.Like Tan, Maan terminated his CCS contract after discovering that the system would not allow for the rerouting of the coolant pipe in his unit to accommodate his renovation plans.Maans says that a sales representative from SP had assured him that he could terminate the contract without any repercussions in such cases. However, SP informed him that he was still liable for the cancellation fee after terminating the contract.Without evidence of the verbal exchange between himself and the sales representative, Maan filed a claim against SP with the SCT. In response, SP filed a counterclaim.“I am not sure why I even filed the claim,” says Maan, as he had not yet paid the cancellation fee at the time and, thus, could not prove that he suffered a loss. However, to his surprise, neither could SP.SCT records showed that SP’s counterclaim was dismissed.“When we were asked to provide evidence, SP did not submit anything,” retells Maan. “I think that is why the magistrate dismissed their claim.”Newly completed HDB flats are covered by a one-year Defects Liability Period effective from the date of key collection (Photo: Samuel Isaac Chua / EdgeProp Singapore)‘Refuse to pay’Since sharing his experience on the Telegram group, Maan estimates that up to 15 other residents have reached out to him for advice on how to proceed with their own claims against SP. However, he has not heard of SP filing another counterclaim since his case.Other residents who have filed with the SCT claim that their cases were dismissed immediately when they could not prove any losses, and they are still liable for the termination charges. As a result, a future resident of Tengah’s Park District, a multimedia designer in his 20s who wishes to be known only as Jay, has decided not to pay the cancellation fee and wait for SP to file an SCT claim against him.A common belief among members of the Telegram group is that the SCT will view the payment of the cancellation fee as a settlement and dismiss the case.“At the moment, we just refuse to pay and see how it goes,” says Jay. “I think fewer people will want to go down the SCT route now since there are many cases of them being dismissed.”More than 9,000 CCS subscribersAs of Feb 12, SP announced that they have more than 9,000 CCS subscribers in Tengah, equivalent to about 70% of residents who have signed leases for HDB flats there.SP has also stated that they aim to address all reported issues within 10 business days of the initial inspection.In response to a comment request from EdgeProp Singapore, an SP spokesperson said: “SP Group, together with our partners, are committed to delivering a reliable, energy-efficient, and cost-effective CCS. Our round-the-clock operations and customer support teams are always ready to respond to customer queries and provide timely assistance.”‘Brilliant idea’Russell Pang, co-founder of local interior design company Kinjo, has renovated five HDB flats in Tengah, all of which had subscribed to the CCS.“Of my five projects, three units encountered issues with condensation or leaks even before the renovation works began,” says Pang. “Technicians from SP Group responded in two to three weeks at no additional cost to the homeowners.”Since then, Pang has not had any cases of CCS faults arising in the projects he worked on.He adds that there are preventive measures that can be taken to minimise such occurrences. “I advise my clients to thoroughly test their CCS units and report any problems before renovations begin,” says Pang. “This way, any issues with leakage can be resolved before they affect the renovation works.”Newly completed HDB flats are also covered by a one-year Defects Liability Period effective from the date of key collection. Defects can be reported to the Building Service Centre within the estate for rectification works.Pang advises CCS subscribers to refrain from hiding or covering the coolant pipe’s trunking to be able to detect any faults more easily (Photo: Russell Pang / Kinjo)Pang also suggests that they avoid concealing or covering the coolant pipe’s trunking in the five units he renovated. He explains that it would allow homeowners to identify and rectify any leakages or condensation issues in the future.“The CCS is a brilliant idea,” says Pang. He acknowledges that like any new feature, there will be teething issues, but he has faith that they will eventually be resolved.An example of where the CCS has been implemented is in the new open-concept layout offered at the upcoming Build-To-Order flats in Kallang-Whampoa, which will be launched

The Master Plan for Tengah, revealed by the Urban Redevelopment Authority, aims to provide efficient amenities for the community’s needs. This development will greatly benefit residents of Novo Place Hoi Hup with its diverse range of convenient facilities, such as shopping centers, schools, healthcare services, and community clubs. From daily essentials to recreational activities, everything will be easily accessible within the town. Moreover, Tengah’s inclusion of modern educational institutions ensures that families living in Novo Place Hoi Hup will have access to top-quality education for their children. By being a part of this exciting development, residents of Novo Place Hoi Hup will enjoy a well-equipped and thriving community. Novo Place Hoi Hup will be a prime location for families to live, work, and play.