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Singapore: Effect of Section 17(3) of the Building and Construction Industry Security of Payment Act on Raising Liquidated Damages and Back-Charges in Adjudication Proceedings

Adjudication under the Building and Construction Industry Security of Payment Act (2020 Rev Ed) (‘SOP Act’) is a form of dispute resolution whereby parties in the construction industry can obtain prompt, cost-effective resolution of payment claim disputes. The SOP Act was amended in 2018, and the revisions came into force on 15 December 2019. Of note, these included new Section 17(3) which states that except in certain situations, an adjudicator is to disregard any part of a payment claim or payment response related to “damage, loss or expense”. Prior to the amendments to the SOP Act, it was common for respondents to raise liquidated damages or back charges as a set-off against amounts claimed by the claimants during adjudication proceedings....To read the full article, please see the PDF file

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Authors

宇野 伸太郎

Shintaro is one of Japan’s leading experts on FIDIC and other construction-industry contracts. He specializes in international engineering and construction of infrastructure projects around the world, with a particular focus on Japan and Asia. He has extensive experience advising on a wide range of projects, including semiconductor plants, data centers, high-speed railways, highways, submarine cables, coal-mining process facilities, Mass Rapid Transit, high-rise buildings, lithium hydroxide plants, various types of power plants, tunnels, ports, dredging, offshore wind, and water treatment and supply facilities, with primary contracts based on the standard FIDIC contract forms (including Redbook, Yellowbook, Silverbook 1999 and 2017 version), Minkanrengo Building contract, Nikkenren Design Build and ENAA. On the contentious side, Shintaro has represented both employers and contractors in proceedings before Dispute Adjudication Boards, arbitral tribunals, and in the courts of various jurisdictions. .
Shintaro has been selected as a Leading Individual in the Construction: International category in Singapore for Chambers Asia-Pacific 2023 and 2024.
Regarding conflict and crisis management in Asia, he has handled numerous complex and difficult cases during his 13 years stationed in Southeast Asia, advising on risk analysis and response strategies based on the local situation. In particular, he has experience in handling over 60 litigation cases and criminal matters in Indonesia over the past 12 years, demonstrating his expertise in handling local disputes.

村田 智美

Tomomi MURATA

  • Partner
  • Singapore

Having been stationed at the Hanoi office from 2016 to 2017 and subsequently at the Singapore office since 2019, Tomomi brings a wealth of experience in international construction and infrastructure projects. Her portfolio spans a diverse range of cases, encompassing all areas from negotiation and drafting construction contracts to handling issues arising during project execution, addressing construction disputes, and conducting regulatory research related to construction in both domestic and international projects.

Leveraging her experience in Singapore and Vietnam, she collaborates with qualified lawyers in various jurisdictions, contributing to her extensive expertise in construction projects across the Southeast Asian region. In addition, she actively holds seminars and in-house training sessions on FIDIC, one of the leading standard forms of contract for international construction.
Beyond her focus on construction and infrastructure, she provides broad legal advice on issues related to new investments, joint ventures, and labor matters in Southeast Asian countries, with a particular emphasis on Singapore, Malaysia, Indonesia, and Vietnam.

ケサヴァン・ナイアー

Kesavan NAIR

  • Alliance Office Director
  • Singapore

Kesavan graduated from University College of Wales in 1988 and was called to the Supreme Court of Singapore in 1992. He is currently a Director of Bayfront Law LLC. Kesavan is also admitted as a Barrister and Solicitor of the High Court of Australia and as a Barrister-at-Law (Middle Temple), England and Wales. Kesavan is also a Notary Public and a Commissioner for Oaths. Kesavan has appeared as Counsel at the State Courts, the High Court, and Court of Appeal, Arbitrations and Mediations in various commercial, corporate, criminal and other disputes. Kesavan has also been briefed by the Housing and Development Board (HDB) as Counsel in appeal proceedings under the Land Acquisition Act and in complex multi-jurisdictional divorce matters.

Bayfront Law is Nishimura & Asahi Singapore Office’s counterpart in the Nishimura & Asahi - Bayfront Law Alliance, which is based on Singapore law.