The Singapore Government has issued a notice notifying that the amendments to the Security of Payment Act ("SOPA") will come into operation on 15 December 2019.
Click here to download the notice.
Amongst others, the SOPA makes the following changes:
- The application of the SOPA is expanded to allow prefabrication work done overseas for construction work in Singapore. However, the SOPA will not allow prefabrication work done in Singapore for overseas projects where any party to the contract is not registered in Singapore.
- The SOPA is expanded to include claims for work done or goods supplied before valid termination of the contract.
- The interest payable on unpaid payments that has become due and payable will be at the higher of the rate specified in the contract or prescribed in respect of the judgment debt under the Supreme Court of Judicature Act (Cap. 322). Currently the rate specified under the Supreme Court of Judicature Act is at 5.33%.
- A new 30-month limitation period for the service of a payment claim.
- Payment claims that are served before the due date or period specified in a contract are still valid.
- Respondents can provide a payment response in 14 days instead of 7 days after the payment claim is served - in cases where there is no provision for a response time in the contract.
- Previously only Respondents were able to make adjudication review applications. However, claimants are also able to make adjudication review applications as well as withdraw adjudication review applications.
- Adjudicators are prevented from considering objections that are not included in the payment response unless the respondent can prove that the objections could not have been provided earlier.
- There is a non-exhaustive list of grounds on which parties can commence proceedings to set aside an adjudication determination. Some of the grounds include, but are not limited to: the payment claim was not served, the adjudicator failed to comply with the SOPA and, breach of natural justice.