The Building and Construction Industry Security of Payment Act provides a statutory mechanism through which contractors may serve payment claims on their employers. In the decision of Orion-One Residential Pte Ltd v Dong Cheng Construction Pte Ltd [2020] SGCA 121, the Singapore Court of Appeal considered the circumstances in which a payment claim can be validly served even after the termination of the underlying contract between the contractor and employer.
The Court of Appeal held that the proper approach is to first consider the terms of the contract, and whether the contract entitles the contractor to serve progress payment claims after termination of the contractor’s employment, rejecting the submission that the statutory entitlement to payment will automatically survive termination. This Update provides a summary of the key points of the Court of Appeal’s decision.
For more information, click here to read the full Legal Update.
