Case studies on contract disputes under SOP framework

The construction sector has grown tremendously in the last few years and with its significant contribution, became one of the strong pillars of Singapore’s economy. Whilst enjoying continuous strong growth, unfortunately the industry also witnesses an increase in payment problems between the main contractors and the subcontractors. For example, the main contractor may face adverse financial difficulties, resulting in delay of payments to the subcontractors. Without proper and adequate cash flows, the contractors, subcontractors and suppliers find themselves in an invidious situation, which will slow down the progress of the construction project and even to an extent of completely stop work. Therefore, the Building and Construction Industry Security of Payment Act was enacted to improve and resolve the cash flow disputes. The author has the good opportunity to understand the mechanism of the Security of Payment (SOP) Act and would focus on the payment claim perspective under the SOP Act with two cases studies. To contrast a valid payment claim with an invalid payment claim, to enhance the efficiency of making a valid payment claim and adjudication application.Bachelor of Engineering (Civil