Articles

The Importance of Observing the Dispute Settlement Period 

Case(s) 

Newcon Builders Pte Ltd v Sino New Steel Pte Ltd [2015] SGHCR 13
Newcon Builders Pte Ltd v Sino New Steel Pte Ltd [2015] SGHC 226
Tienrui Design & Construction Pte Ltd v G&Y Trading and Manufacturing Pte Ltd [2015] SGHC 243 

Can an adjudication application be lodged prior to the expiry of the dispute settlement period ("DSP") provided under section 12(5) of the Building and Construction Industry Security of Payment act (the "Act")? This issue was considered in several decisions by the High Court. 

In the case of Newcon Builders Pte Ltd v Sino New Steel Pte Ltd [2015] SGHCR 13, Assistant Registrar Paul Chan was asked to consider whether the lodgement of an Adjudication Application prior to the expiry of the dispute settlement period. AR Chan held that the primary objective of the Act was to create an expedited adjudication process to facilitate cash flow. If an adjudication application were to be rendered invalid by reason that it had been lodged prior to the expiry of the DSP, such invalidity would run counter to this primary objective. Further to the same, AR Chan also held that a failure to comply with section 12 of the Act was not an issue which fell to be considered by the High Court in an application to set aside an adjudication determination. For this reason, the Assistant Registrar upheld the validity of the adjudication application, and hence, the adjudication determination. 

Contributed by Toh Chen Han, Pinsents Masons
Wen Si Chow, Clasis LLC