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Annual Construction Law Update 2020 (22 January 2020)
“The 2020 SCL(S) year kicked off with the ever popular attended Annual Construction Law Update. This year’s iteration was no different, in that a full room of attendees listened in to get an overview of key legal developments that transpired in 2019.
It was a pleasure of mine to chair a very informative and well delivered session alongside our esteemed speakers in Christopher Chuah (Partner, WongPartnership LLP) and Kelvin Aw (Partner, CMS Holborn Asia). Prior to the session, upon receiving the presentation slides, a brief moment of concern fell upon me when I looked through the sheer volume of material Christopher and Kelvin were attempting to cover. At the close of the 2 hour session, it was clear that the concern was unwarranted, as our seasoned speakers efficiently, yet eloquently, delivered their respective presentations.
One key development in Singapore’s construction law landscape that occurred in 2019, was the Building and Construction Industry Security of Payment (Amendment) Bill that came into operation on 15 December 2019. Christopher provided a thorough insight into the key amendments by way of explaining the background issues that led to the amendments, the operation of the amendments and some words of advice in light of these changes. The key changes arising from the SOP Amendment Act that were highlighted by Christopher, related to:
- Terminated Contracts;
- The application of the Act to Contracts for Prefabrication Works;
- Prescribed Rate of Interest;
- Claims for Prolongation Costs;
- Time for the service of Payment Claims;
- Default Periods for Payment Responses;
- Extending Recourse of Adjudication Review to the Claimant;
- Appointment of Replacement Adjudicator;
- Grounds for Setting Aside an Adjudication Determination; and
- Limitation Period for Payment Claims.
Kelvin had the unenviable task of trawling through the past year’s judgements and decisions in Singapore and relevant cases overseas. A series of interesting judgements were presented, covering:
- Consultants’ Design Obligations, in relation to ‘fitness for purpose’ obligations and implied terms;
- Interpretation of Practical Completion & the application of Defect Liability Clauses;
- Validity of Liquidated Damages provisions; and
- Performance Bonds & Injunctions.
Of the cases covered, the judgement on the Global Switch matter, concerning ‘fitness for purpose’ obligations and implied terms, was highlighted by Kelvin as being the most pivotal and potentially the most likely to change the law landscape, particularly given the increasing trend to adopt non-traditional procurement methods.
Following an engaging Q&A session, we convened for some much welcomed cocktails, kindly sponsored by Addleshaw Goddard LLP.