USING CRITICAL PATH TO RENDER SCIENTIFIC DETERMINATION OF TERMINATION BASED ON DUE DILIGENCE IN PSSCOC AND SIA FORMS OF CONTRACT

Abstract

There are two main types of Conditions of Contracts used in Singapore, the Public Sector Standard Conditions of Contract for Construction Works (PSSCOC) and the Singapore Institute of Architects Articles and Conditions of Building Contract (SIA). From the literature review, the definition of due diligence is ambiguous and not specified clearly in these two contracts, which is associated to as a ground for termination. This has led to different definitions that is unique to cases heard in the Courts. With the lack of a proper scientific and technical method to establish due diligence, the Courts have tried several ways to define it and use it to determine termination in accordance with the contract. As a result, the definition of due diligence is distinct in each case and there is no uniformity across the construction contracts in Singapore regarding this issue. Therefore, this study establishes the use of critical path method, a common scheduling method that sequences activities critical to the project to determine the duration of project, to determine the lack of due diligence as a ground of termination in PSSCOC and SIA.

This study uses the respective case law of Singapore and English courts to highlight this ambiguity. In doing so, the use of critical path if any, to tackle this issue by the courts is examined. Accordingly critical path is in fact used in a recent English case to determine due diligence. However, the limitation of this study is that each case is unique and that one case could not be generalized to the general population. Nevertheless, the study remains significant as it encourages the consideration of making critical path a binding document in which it must be followed and done as scope of works so as to determine due diligence in a scientific basis when it comes to terminating a contract.