EXPLORING REFORM IN SINGAPORE'S BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF PAYMENT ACT IN SOME ASPECTS OF ADJUDICATION APPLICATIONS, DISPUTE SETTLEMENT PERIOD AND REPEAT CLAIMS

Abstract

Prior to the enactment of Singapore’s SOP Act, the building and construction industry was frequently beset by cash flow problems caused by employers’ unscrupulous payment behaviour. The SOP legislation was thus created to safeguard the interests of contractors, subcontractors and suppliers by ensuring that they are paid promptly and fairly during the period of construction. However, the Act came with its own set of problems. Since the Act came into force, a considerable amount of caselaw has emerged as a result of various issues encountered in practice. This dissertation therefore identifies and discusses three areas where the Act requires consideration for amendments. The three areas are validity of out-of-time adjudication applications, relationship between payment response and DSP and repeat claims.

Upon collating the findings of local cases considered most germane to these three areas, comparisons in respect of the cases were made and implications of the relevant provisions of the Act were assessed. Thereafter, commentaries on the issues arising from the cases were introduced, offering perspectives on the decisions laid down by the Singapore courts.

It has been concluded that it is not the legislative intention of the Act to invalidate out-of-time adjudication applications, trigger the DSP mechanism at the service of the payment response and prohibit repeat claims. Although many courts decisions have since clarified the position of law on these issues, several complexities still exist. As such, possible solutions such as sanctions to the DSP and changes by drafting were proposed for the improvement of the regime in the areas identified.