Tiong Seng Contractors Pte Ltd v. Chuan Lim Construction Pte Ltd [2007] 4 SLR (R) 364
Keywords: Adjudication - Final Claims - SOP Act .
Introduction
This case dealt with the issue of whether the Building and Construction Industry Security of Payment Act (“SOP Act”) applied to final payment claims. It was an important issue because the SOP Act did not expressly state that final payment claims could be adjudicated.
Facts
This case dealt with the issue of whether the Building and Construction Industry Security of Payment Act (“SOP Act”) applied to final payment claims. It was an important issue because the SOP Act did not expressly state that final payment claims could be adjudicated.
The Defendants, Chuan Lim Construction Pte Ltd, were Tiong Seng Contractors (Pte) domestic sub-contractors for excavation works. After the Defendants completed their works it submitted a payment claim to the Plaintiffs to claim for payment for work done ("the penultimate claim"). The Plaintiffs failed to make full payment of this penultimate claim.
Subsequently, the Defendants submitted another payment claim to the Plaintiffs to claim for the outstanding balance ("the final claim"). The Plaintiffs failed to issue a payment response or make payment of the final claim as well and, the Defendants submitted the final claim to Adjudication under the SOP Act.
At the Adjudication, the Plaintiffs argued that the SOP Act did not cover final claims and the Adjudicator had no jurisdiction over the matter. The Adjudicator rejected the Plaintiffs arguments and ordered the Plaintiffs to pay a sum of $168,949.94 plus 5% GST to the Defendants, which was the amount claimed in the final claim.
The Plaintiffs then applied to the High Court to set aside the Adjudication Determination.
Decision
The High Court disagreed with the Plaintiffs and dismissed the application. It held that on a true interpretation of the SOP Act, it covered both interim and final payment claims. This means that both interim and final progress claims may be subject of a claim by way of adjudication under the SOP Act.
This case dealt with the issue of whether the Building and Construction Industry Security of Payment Act (“SOP Act”) applied to final payment claims. It was an important issue because the SOP Act did not expressly state that final payment claims could be adjudicated.
Facts
This case dealt with the issue of whether the Building and Construction Industry Security of Payment Act (“SOP Act”) applied to final payment claims. It was an important issue because the SOP Act did not expressly state that final payment claims could be adjudicated.
The Defendants, Chuan Lim Construction Pte Ltd, were Tiong Seng Contractors (Pte) domestic sub-contractors for excavation works. After the Defendants completed their works it submitted a payment claim to the Plaintiffs to claim for payment for work done ("the penultimate claim"). The Plaintiffs failed to make full payment of this penultimate claim.
Subsequently, the Defendants submitted another payment claim to the Plaintiffs to claim for the outstanding balance ("the final claim"). The Plaintiffs failed to issue a payment response or make payment of the final claim as well and, the Defendants submitted the final claim to Adjudication under the SOP Act.
At the Adjudication, the Plaintiffs argued that the SOP Act did not cover final claims and the Adjudicator had no jurisdiction over the matter. The Adjudicator rejected the Plaintiffs arguments and ordered the Plaintiffs to pay a sum of $168,949.94 plus 5% GST to the Defendants, which was the amount claimed in the final claim.
The Plaintiffs then applied to the High Court to set aside the Adjudication Determination.
Decision
The High Court disagreed with the Plaintiffs and dismissed the application. It held that on a true interpretation of the SOP Act, it covered both interim and final payment claims. This means that both interim and final progress claims may be subject of a claim by way of adjudication under the SOP Act.