The Importance of Proper Drafting in relation to Construction Contracts

The addition of Section 17(2A) to The Building and Construction Industry Security of Payment Act (“SOPA”), which came into effect on 15 December 2019, and the recent Court of Appeal decision in Orion-One Residential Pte Ltd v Dong Cheng Construction Pte Ltd [2020] SGCA 121 (“Orion-One”) highlights the importance of proper drafting in relation to construction contracts.

Section 17(2A) of the SOPA compels an adjudicator to disregard any claim for damage, loss or expense that is not supported by: (a) any document showing agreement between the parties on the quantum of the said claim; or (b) any certificate or other document that is required to be issued under the contract. While exception (a) very much depends on the negotiations between the parties, exception (b) is, to a certain extent, within the control of the party drafting the contract.

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건설계약에서 제대로 된 초안 작성의 중요성

제17조 (2A)를 2019년 12월 15일부터 시행된 건축 및 건설업 지불 보증법(“SOPA“)에 추가한 것과 (2019년 12월 15일 발효), 최근 Orion-One Residential Pte Ltd v Dong Cheng Construction Pte Ltd [2020] SGCA 121(“Orion-One”)의 항소법원 결정은 건설 계약서를 작성할때 제대로 초안을 작성하는 것의 중요성을 강조합니다.

SOPA 제17조 (2A)는 재판자(adjudicator)가 (a)퀀텀에 따라 당사자 간에 합의를 보여주는 문서 또는 (b)계약에 따라 발행되어야 하는 인증서 또는 기타 문서로 뒷받침 되지 않는 손실/비용에 대한 청구를 무시하라고 강요합니다. (예외 사항: 당사자 간의 협상에 따라 매우 큰 차이가 있거나 계약 초안 당사자의 통제 하에 있을 경우)

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Building and Construction Industry Security of Payment Act (“SOP Act”): Supplementary Rules for Electronic Adjudication Lodgment

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Introduction

On 15 April 2020, the Singapore Mediation Centre (“SMC”) enacted Supplementary Rules for Electronic Adjudication Lodgment to provide for:

  1. the electronic lodgment of documents;
  2. telegraphic transfer of fees;
  3. electronic service of documents; and
  4. adjudication conferences.

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Dealing with Manpower Costs during the COVID-19 Pandemic

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The COVID-19 pandemic and resulting preventative measures, including social distancing, business closures and the prohibition on construction in Singapore from 7 April 2020 to 4 May 2020, will severely affect Singapore’s citizens and economy.

The construction industry faces numerous challenges, particularly with  labour costs during this crisis.  This article addressess the Singapore government’s relief measures  for construction and supply companies, steps these companies can take themselves, as well as some frequently asked questions.

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Dealing with COVID-19 in the Construction Industry – An Update

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Note: This is an update to our 7 April 2020 Alert.

On 3 April 2020, the Building and Construction Authority (BCA) released an advisory to inform contractors that to reduce the risk of further local transmission of COVID-19, all building work (except for essential works) are to cease from 7 April 2020 to 4 May 2020, known as the Circuit Breaker Period.

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Dealing with COVID-19 in the Construction Industry

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The global COVID-19 pandemic, and the response by the Singapore government will have important consequences for the construction industry. This article provides a summary of the current laws, our analysis of how it will affect industry players, and various legal and practical issues that may arise.

The government response is changing rapidly and we will update this article periodically to reflect the latest changes.

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