Article(s)
Pay When Paid and Termination – the Singapore High Court untangles the SOP Act in Frontbuild Engineering & Construction Pte Ltd v JHJ Construction Pte Ltd [2021] SGHC 72
Singapore’s Building and Construction Industry Security of Payment (SOP) Act seeks to facilitate cash flow through its fast and low-cost adjudication process, and also imposes some restrictions on what is permissible in a contract caught by the Act. In Frontbuild v JHJ the High Court recently addressed the interplay between 2 key - and in some scenarios arguably contradictory – SOP Act provisions: Section 9, which outlaws ‘pay when paid’ provisions, and Section 4(2)(c), which provides that the Act shall not apply (and a party cannot adjudicate, for example) where a contract permits a party, following termination of the contract, to suspend payment until a later specified date or event....
Contributed by: Sean Hardy - Clyde & Co Clasis, V. Kumar Sharma - Classis LLC
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