Case study analysis & investigation on contract disputes

• Main Author: Lim, Xin Yi
• Other Authors: Wong Wai Fan
• Format: Final Year Project
• Language: English
• Published: 2014
• Subjects: DRNTU::Engineering
• Online Access: http://hdl.handle.net/10356/61146
• Institution: Nanyang Technological University

The enduring history of payment difficulties faced by contractors due to payment delays had deeply affected the financial state of contractors, subcontractors, sub-subcontractors and suppliers. Since the passing of SOPA on 1 April 2004, it has significantly eased the cash flow problem claimants faced. However, in anticipation of the 10 year anniversary of the SOPA since it was passed on 1 April 2004, there were calls by users of the act to review and refine the provisions of the SOPA to suit the current state of affairs. The Final Year Project (FYP) seeks to understand the mechanism of the Security of Payment Act by looking into three aspects namely, payment claims, role of adjudicator and the extent of the court’s supervisory role. Emphasis was placed on payment claim as it is a crucial aspect of adjudication process. An analysis was conducted on the first SOP case dispute by Court of Appeal; Chua Say Eng (formally trading as Weng Fatt Construction Engineering) v Lee Wee Lick Terence @ Lee Weili Terence, which provided an in-depth analysis into the validity of a payment claim and conditions that would render a payment claim to be invalid. For an all-rounded discussion, the role of the adjudicator and extent of Court’s supervisory was also discussed. Four other case studies were also analysed for comparison; two local and overseas cases respectively. The FYP wraps up by highlighting the key points mentioned in the analysis of the individual case studies. Recommendations and possible future research topics are then provided.