Limits of duty to respond to construction payment claims

17 Jul 2019

In the recent decision of Far East Square Pte Ltd v Yau Lee Construction (Singapore) Pte Ltd [2019] SGCA 36, the Court of Appeal held that the “duty to speak” via a payment response provided under the Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Revised Ed) (“SOPA”) does not apply when the payment claim falls outside the ambit of the SOPA.
In the present case, the Court of Appeal held that a particular payment claim fell outside the ambit of the SOPA from the outset (as it was submitted after the final certificate was issued, and was therefore invalid). There was therefore no corresponding obligation to raise the objection by way of a payment response.

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