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THE owners of a terrace house which they claimed had been damaged by Circle Line works have been compensated by the Land Transport Authority (LTA).

The Pillays, a family of 10 siblings, received a pay-out of $380,000 about a month ago.

Said Madam Dhana Pillay, 48: 'It's been a long struggle. We are relieved, but not excited.

'We were given the bare minimum, but at least there's closure.'

They have not decided what to do with the money yet.

In 2004, the walls of the house in 232 Upper Paya Lebar Road started cracking, and its beams and pillars had to be propped up by steel poles.

In April that year, the Building and Construction Authority (BCA) declared the house and another behind it unsafe, and ordered them vacated.

The other house, which is behind the Pillays', was taken over by a bank after its owners ran into financial trouble.

The Pillays' house was near works to Upper Paya Lebar station, which will run under Upper Paya Lebar Road and Tai Seng Link. Digging and tunnelling there began in early 2003.

They initially submitted a compensation claim of $500,000 to the LTA insurer's loss-adjuster, Cunningham Lindsey.

It included a reconstruction cost of $400,000, the costs of hiring a professional engineer to assess the house, legal fees and lost income.

In September last year, Cunningham Lindsey offered a reduced amount of about $239,100 after deducting costs for 'wear and tear' and 'existing damage'.

These two points were the bones of contention between the LTA and the Pillays, who claimed that their house was damaged only after Circle Lines works began.

The LTA, however, said the observed defects were 'aged' and 'pre-date Circle Line construction activities'.

The final offer of $380,000 was made to the Pillays in a letter from Cunningham Lindsey in November last year.

All 10 siblings live in their own homes in Siglap, Woodlands, and Bedok Reservoir. The Paya Lebar house was a legacy from their late mother.

Other residents in the area have also complained of hairline cracks appearing in their walls after Circle Line works began.

In 2004, the LTA spent $130,000 to repair cracks and other superficial damage to 58 homes in Tai Keng Gardens.

LTA maintained that the buildings were not damaged by the underground works, but agreed to help with repairs out of 'goodwill'.

A retiree who lives two doors away from the Pillays, Mr William Yap, said authorities have made regular checks to see that the structure is safe.

The BCA told The Straits Times that no other buildings in the area have been declared unsafe.

Last August, 35 owners and residents of a five-storey building in Paya Lebar, Hock Kee House, had to move out because of fears it could collapse during deep excavation for the Circle Line.

The Singapore Land Authority offered shop owners $900,000 to $1 million, and home owners $250,000 to $300,000 in compensation.

tanya@sph.com.sg