Case studies on contract disputes under sop
Koh, Zhan Ning
Date of Issue2017-05-18
School of Civil and Environmental Engineering
This Final Year Project (FYP) studied the use of Security of Payment (SOP) Act as a form of legislation to expedite transactions in the construction industry, and will focus on the aspect of Payment Response. Following a period of payment disputes occurring frequently between construction firms, The Building and Construction Industry Security of Payment (SOP) 2004 Bill was passed by the parliament on 16 November 2004 to improve cash-flow and expedite payment in the building and construction industry. It was designed to ensure rapid determination of the adjudication process (7 days) to ensure cash flows within the businesses in the industries without the involved parties being tied up in lengthy and expensive litigation or arbitration. The cases of YTL Construction (S) Pte Ltd vs Balanced Engineering & Construction Pte Ltd  and Lim Poh Yeoh (alias Aster Lim) vs TS Ong Construction Pte Ltd  were analysed to demonstrate and discuss the pertinent issues regarding the Payment Response that surfaced during contract payment disputes. The report will analyse the various sections of the SOP, particularly the Payment Response, with the aid of the above mentioned case studies and several other cases to understand the complexity of disputes in the construction industry and how the adjudicators arrived at the determinations.
Final Year Project (FYP)
Nanyang Technological University