An investigation into SOP based contract dispute adjudication process

• Main Author: Li, YanEn.
• Other Authors: Wong Wai Fan
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Engineering::Civil engineering::Construction management
• Online Access: http://hdl.handle.net/10356/53859
• Institution: Nanyang Technological University

Security of Payment Act is introduced in Singapore in the year 2004 till present. During this period of time, Singapore is experiencing slowdown in the growth of the construction industry. There have been various problems in the construction industry; the most common issue is the cash flow problem between the Sub-Contractor and the Main Contractor. Therefore, the Security of Payment Act aims to facilitate the progress payment by resolving the dispute cases through the adjudication procedures. The objective is to minimise the time delay to process the proposed payment claims between the two concerned parties. The implementing of the Security of Payment Act has shown positive feedbacks and results. Due to the fact that the SOP Act is introduced only recently, many Claimants and Respondents have minimum knowledge about it. There are various documentation formatting requirement and stringent timeline adhered closely to in the SOP Act. Without the proper guidelines and sufficient knowledge, it has resulted in high level of non-compliances of the SOP Act. This has led to the ineffective use of this legislation to facilitate the claiming of the progress payment by the Claimants and Respondents. The objective of the FYP is to formulate a checklist by identifying four problems of concern which are the improper formatting of payment claims, payment response, Notice of Intention for Adjudication Application and Adjudication Response. These four issues are the rising problems in the submission of important documents. Hence, four case studies will be analysed to identify and understand the common mistakes made by the Claimants and Respondents. These problems will be used as a reminder to help in the process of formulating a comprehensive and useful checklist. After all, the checklist aims to assist the Claimant and Respondent to understand the checklist in a simplified manner and thus reduce the occurrence of defective submission of the important documents.