Security Of Payment Legislation
Public Feedback Sought on Proposed Amendments to the Building and Construction Industry Security of Payment Act (SOPA)
The Ministry of National Development (MND) and the Building and Construction Authority (BCA) invite members of the public to provide feedback on the proposed amendments to the Building and Construction Industry Security of Payment Act (SOPA).
The SOPA came into operation on 1 April 2005. It seeks to improve cash-flow in the construction industry by giving parties the right to seek progress payment for work done, and provides fast and low-cost adjudication to resolve payment disputes. The Act ensures that parties who have carried out construction work or supplied goods or services in the construction industry for projects in Singapore^ have a right to payment, and the party who is not paid for work done (after adjudication) has recourse including the suspension of work, amongst other measures.
^ Excluding any contracts involving construction works or for the supply of related goods or services for residential properties where Building Plan submission is not required under the Building Control Act.
As part of the ongoing review of the Act, BCA has conducted several rounds of industry consultations to seek feedback on the proposed amendments to SOPA. We have reviewed the feedback and taken them into consideration when proposing amendments to SOPA.
The key amendments aim to better align SOPA with the original intent of providing a fast and low-cost dispute resolution mechanism. The amendments cover the following key areas:
- clarify the application of SOPA to unpaid payment claims, final payment claims and terminated contracts;
- clarify when and how payment claims should be served, and the time limit for service of payment claims;
- enhance the adjudication process by giving claimants the right to file for adjudication review; and
- clarify the roles of authorised nominating body, e.g. to maintain a trust account in which respondents deposit the adjudicated amount pending outcome of adjudication review, and the appointment of substitute adjudicators.
Please see Annex A for the proposed amendments to SOPA.
The proposed amendments are released only for the purpose of the public consultation. They should not be used for decisions made by contractual parties, adjudicators or authorised nominating body as they do not represent the final legislation.
Members of the public can send their feedback through post or email. The feedback should reach the following address by 29 June 2018 (12 noon).
|Group Director, Business Development Group|
|Building and Construction Authority|
|52 Jurong Gateway Road|
|#12-01 Singapore 608550|
We will review all comments received by the deadline, and incorporate appropriate input as amendments to the Bill.