THE STATUTES OF THE REPUBLIC OF SINGAPORE

BUILDING AND CONSTRUCTION INDUSTRY SECURITY

OF PAYMENT ACT

(CHAPTER 30B)

(Original Enactment: 57 of 2004)

REVISED EDITION 2006

(31st January 2006)

Prepared and Published by

THE LAW REVISION COMMISSION
UNDER THE AUTHORITY OF
THE REVISED EDITION OF THE LAWS ACT (CHAPTER 275)

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 2006 Ed.
CHAPTER 30B

Building and Construction Industry

Security of Payment Act
ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY
Section
1. Short title
2. Interpretation
3. Definitions of “construction work”, “goods” and “services”
4. Application of Act

PART II
RIGHTS TO PROGRESS PAYMENTS
5. Entitlement to progress payments
6. Amount of progress payment
7. Valuation of construction work, goods and services
8. Due date for payment
9. Effect of “pay when paid provisions”

PART III
PAYMENT CLAIMS AND RESPONSES
10. Payment claims
11. Payment responses, etc.
12. Entitlement to make adjudication applications

PART IV
ADJUDICATION OF PAYMENT CLAIM DISPUTES
13. Adjudication applications
14. Appointment of adjudicator
14A. Appointment of replacement adjudicator
15. Adjudication responses
16. Commencement of adjudication and adjudication procedures
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Section
17. Determination of adjudicator
18. Adjudication review applications
18A. Appointment of replacement review adjudicator
19. Adjudication review procedures, etc.
20. Withdrawal of adjudication applications and adjudication
review applications
21. Effect of adjudication determinations and adjudication review
determinations
22. Payment of adjudicated amount

PART V
MEASURES TO ENFORCE PAYMENT OF ADJUDICATED AMOUNT
23. Consequences of not paying adjudicated amount
24. Direct payment from principal
25. Lien on goods supplied
26. Right to suspend work or supply
27. Enforcement of adjudication determination as judgment debt,
etc.

PART VI
GENERAL PROVISIONS RELATING TO ADJUDICATION
28. Authorised nominating bodies
28A. Authorised nominating body to maintain trust account
29. Eligibility criteria for adjudicators
30. Costs of adjudication proceedings
31. Adjudicator’s fees and expenses
32. Protection from liability for adjudicators and authorised
nominating bodies
33. Confidentiality of adjudication
34. Effect on other proceedings

PART VII
MISCELLANEOUS
35. Act to bind Government
36. No contracting out
37. Service of documents
38. Exemption
39. Amendment of specified periods

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Section
40. Delegation of powers
41. Regulations
42. Transitional and savings provisions

An Act to facilitate payments for construction work done or for

related goods or services supplied in the building and construction
industry, and for matters connected therewith.
[3rd January 2005: Sections 1, 28 and 40;
1st April 2005: Sections 2, 3, 4, 29 to 39, 41 and 42 and
Parts II to V]

PART I
PRELIMINARY
Short title
1. This Act may be cited as the Building and Construction Industry
Security of Payment Act.

Interpretation
2. In this Act, unless the context otherwise requires —
“adjudicated amount” means the amount of a progress payment
that is determined to be payable under section 17 or 19, as the
case may be;
“adjudication” means the adjudication of a payment claim
dispute in accordance with Part IV, and includes an
adjudication review under that Part;
“adjudication determination”, in relation to an adjudication,
means the determination of the adjudicator;
“adjudication response” means a response to an adjudication
application lodged by a respondent under section 15(1);
“adjudicator” means a person appointed under this Act to
determine a payment claim dispute that has been referred for
adjudication, and includes —

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(a) a replacement adjudicator appointed under
section 14A(3);
(b) a review adjudicator or a panel of review adjudicators
appointed under section 18(5)(b); and
(c) a replacement review adjudicator or a replacement
member of a panel of review adjudicators appointed
under section 18A(3);
[Act 47 of 2018 wef 15/12/2019]

“authorised nominating body” means a person authorised under

section 28(1);
“claimant” means a person who is or claims to be entitled to a
progress payment under section 5;
“claimed amount” means the whole or part of any progress
payment claimed by a claimant in a payment claim, and
includes any interest payable under section 8(5);
“construction contract” means an agreement under which —
(a) one party undertakes to carry out construction work,
whether including the supply of goods or services or
otherwise, for one or more other parties; or
(b) one party undertakes to supply services to one or
more other parties;
“construction site”, in relation to a contract between a claimant
and a respondent, means —
(a) the land on which or the premises at which the
claimant has been, is or will be carrying out
construction work; or
(b) the land or the premises in relation to which goods or
services have been, are being or will be supplied
under the contract;
“contract” means a construction contract or a supply contract,
and includes a construction contract or a supply contract that
has been terminated;
[Act 47 of 2018 wef 15/12/2019]

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“costs”, in relation to an adjudication, includes —

(a) the application fee payable to an authorised
nominating body; and
(b) the fees and expenses of the adjudicator;
“day” means any day other than a public holiday within the
meaning of the Holidays Act (Cap. 126);
“due date”, in relation to a progress payment, means the date on
which the progress payment becomes due and payable under
section 8;
“land” has the same meaning as in section 4 of the Land Titles
Act (Cap. 157);
“owner”, in relation to a contract between a claimant and a
respondent, means —
(a) a person who —
(i) enters into a contract, whether with the
respondent or any other person, for the
carrying out of construction work at or on, or
for the supply of goods or services in relation
to, the construction site concerned by the
respondent or other person (as the case may
be); and
(ii) is not engaged by any other person to carry out
construction work at or on, or to supply goods
or services in relation to, the construction site
concerned; or
(b) where there is no such person, a person who owns the
construction site concerned;
“patent error”, in relation to a payment claim, means an error
that is obvious, manifest or otherwise easily recognisable on
the face of the claim;
[Act 47 of 2018 wef 15/12/2019]

“payment claim” means a claim made by a claimant for a

progress payment under section 10;

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“payment response”, in relation to a construction contract,
means a response to a payment claim made by a respondent
under section 11(1) or 12(4);
“principal”, in relation to a respondent named in a payment
claim served by a claimant under section 10, means a person
who is liable to make payment to the respondent for or in
relation to the whole or part of the construction work that is,
or the whole or part of the goods or services that are, the
subject of the contract between the respondent and the
claimant;
“progress payment” means a payment to which a person is
entitled for the carrying out of construction work, or the
supply of goods or services, under a contract, and includes —
(a) a single or one-off payment (including a final
payment); or
[Act 47 of 2018 wef 15/12/2019]

(b) a payment that is based on an event or a date

(including a final payment);
[Act 47 of 2018 wef 15/12/2019]

“respondent” means a person who is or may be liable to make a

progress payment under a contract to a claimant;
“response amount” means —
(a) in relation to a construction contract, the amount that
a respondent proposes to pay to a claimant in a
payment response provided under section 11(1) or
12(4) or as varied under section 12(4); or
(b) in relation to a supply contract, the amount of the
claimed amount in a payment claim that a respondent
has paid to the claimant on or before the due date (if
any);
“supply contract” means an agreement under which —
(a) one party undertakes to supply goods to any other
party who is engaged in the business of carrying out
construction work or who causes to be carried out
construction work;

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(b) the supply is for the purpose of construction work

carried out or caused to be carried out by the second-
mentioned party; and
(c) the first-mentioned party is not required to assemble,
construct or install the goods at or on the construction
site,
but does not include such agreements as may be prescribed.

Definitions of “construction work”, “goods” and “services”

3.—(1) In this Act, unless the context otherwise requires and
subject to subsection (2) —
“construction work” means —
(a) the construction, alteration, repair, restoration,
maintenance, extension, demolition or dismantling
of buildings or structures (whether permanent or not)
that form, or are to form, part of the land;
(b) the construction, alteration, repair, restoration,
maintenance, extension, demolition or dismantling
of any works that form, or are to form, part of the
land, including walls, roadworks, power-lines,
telecommunication apparatus, aircraft runways,
docks and harbours, railways, inland waterways,
pipelines, reservoirs, water mains, wells, sewers,
industrial plant and installations for the purpose of
land drainage, coast protection or defence;
(c) the installation in any building, structure or works of
fittings that form, or are to form, part of the land,
including systems of heating, lighting, air-
conditioning, ventilation, power supply, drainage,
sanitation, water supply or fire protection, and
security or communications systems;
(d) any operation which forms an integral part of, is
preparatory to, or is for rendering complete, works of
the kind referred to in paragraph (a), (b) or (c),
including —

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(i) land reclamation;
(ii) site clearance, earth-moving, excavation,
tunnelling and boring;
(iii) the laying of foundations;
(iv) the erection, maintenance or dismantling of
scaffolding;
(v) the prefabrication of components to form part
of any building, structure or works, whether
carried out at or on the construction site or
elsewhere; and
(vi) site restoration, landscaping and the provision
of roadways and other access works;
(e) the external or internal cleaning of buildings,
structures or works, so far as it is carried out in the
course of their construction, alteration, repair,
restoration, maintenance or extension; or
(f) the painting or decorating of the external or internal
surfaces of any building, structure or works;
“goods” means —
(a) materials or components to form part of any building,
structure or works arising from construction work; or
(b) plant or materials (whether supplied by sale, hire or
otherwise) for use in connection with the carrying out
of construction work;
“services” means —
(a) the conduct of feasibility studies, planning services,
the submission of applications or other documents to
any relevant authority, site supervision services,
professional engineering services, or architectural,
design, surveying or quantity surveying services, in
relation to construction work;
(b) project management services in relation to
construction work;

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(c) building, engineering, exterior or interior decoration

or landscape advisory services in relation to
construction work; or
(d) the provision of labour to carry out construction
work.
(2) The Minister may, by order published in the Gazette, modify the
definition of “construction work”, “goods” or “services” in
subsection (1) by adding to, varying or deleting any part of the
definition.

Application of Act
4.—(1) Subject to subsection (2), this Act shall apply to any
contract that is made in writing on or after 1st April 2005, whether or
not the contract is expressed to be governed by the law of Singapore.
(2) This Act shall not apply to —
(a) any contract for the carrying out of construction work at or
on, or the supply of goods or services in relation to, any
residential property (within the meaning of the Residential
Property Act (Cap. 274)), which do not require the
approval of the Commissioner of Building Control under
the Building Control Act (Cap. 29);
(b) any contract to the extent that —
(i) it contains provisions under which a party undertakes
to carry out construction work, or supply goods or
services, as an employee (within the meaning of the
Employment Act (Cap. 91)) of the party for whom
the construction work is to be carried out or the
goods or services are to be supplied; or
(ii) it deals with construction work carried out outside
Singapore, or goods or services supplied in relation
to construction work carried out outside Singapore;
[Act 47 of 2018 wef 15/12/2019]

(c) any terminated contract to the extent that —

(i) the terminated contract contains provisions relating
to termination that permit the respondent to suspend

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progress payments to the claimant until a date or the
occurrence of an event specified in the contract; and
(ii) that date has not passed or that event has not
occurred;
[Act 47 of 2018 wef 15/12/2019]

(d) any contract for the prefabrication, in Singapore, of

components intended for construction work to be carried
out on a construction site outside Singapore, where any one
of the parties to the contract is not —
(i) a body corporate incorporated under any written law
in Singapore;
(ii) a limited partnership registered under the Limited
Partnerships Act (Cap. 163B); or
(iii) a person carrying on a business that is registered
under the Business Names Registration Act 2014
(Act 29 of 2014); and
[Act 47 of 2018 wef 15/12/2019]

(e) such other contract or class of other contracts as may be

prescribed.
[Act 47 of 2018 wef 15/12/2019]

(2A) To avoid doubt, this Act —

(a) applies to a contract that deals with the prefabrication
(whether in or outside Singapore) of components that will
form part of any building, structure or works, where the
contract is for the supply of these prefabricated
components for construction work to be carried out on a
construction site in Singapore; and
(b) does not apply to claims made between former parties to a
contract in relation to any construction work that is carried
out, or goods or services that are supplied, at the time of or
after the termination of the contract.
[Act 47 of 2018 wef 15/12/2019]

(3) For the purpose of this section, a contract shall be treated as

being made in writing —

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(a) if the contract is made in writing, whether or not it is signed

by the parties thereto;
(b) if the contract is made by an exchange of communications
in writing;
(c) if the contract made otherwise than in writing is recorded
by one of the parties thereto, or by a third party, with the
authority of the parties thereto; or
(d) if the parties to the contract agree otherwise than in writing
by reference to terms which are in writing.
(4) Where a contract is not wholly made in writing, the contract
shall be treated as being made in writing for the purpose of this
section if, subject to the provisions of this Act, the matter in dispute
between the parties thereto is in writing.

PART II
RIGHTS TO PROGRESS PAYMENTS
Entitlement to progress payments
5. Any person who has carried out any construction work, or
supplied any goods or services, under a contract is entitled to a
progress payment.

Amount of progress payment

6. The amount of a progress payment to which a person is entitled
under a contract shall be —
(a) the amount calculated in accordance with the terms of the
contract; or
(b) if the contract does not contain such provision, the amount
calculated on the basis of the value of the construction
work carried out, or the goods or services supplied, by the
person under the contract.

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Valuation of construction work, goods and services
7.—(1) Construction work carried out, or goods or services
supplied, under a contract are to be valued —
(a) in accordance with the terms of the contract; or
(b) if the contract does not contain such provision, having
regard to the matters specified in subsection (2).
(2) For the purpose of subsection (1)(b), construction work carried
out, or goods or services supplied, under a contract are to be valued —
(a) having regard to —
(i) the contract price for the construction work, goods or
services;
(ii) any other rate or price specified in the contract; and
(iii) any variation agreed to by the parties to the contract
by which the contract price, or any other rate or price
specified in the contract, is to be adjusted by a
specific amount,
or, in the absence of the matters referred to in
sub-paragraphs (i), (ii) and (iii), then having regard to
the rates or prices prevailing in the building and
construction industry at the time the construction work
was carried out, or the goods or services were supplied;
(b) if any part of the construction work, goods or services is
defective, having regard to the estimated cost of rectifying
the defect; and
(c) in the case of materials or components that are to form part
of any building, structure or works arising from the
construction work, having regard to the basis that the
only materials or components to be included in the
valuation are those that have become or, on payment,
will become the property of the party for whom the
construction work is being carried out.

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Due date for payment

8.—(1) Where a construction contract provides for the date on
which a progress payment becomes due and payable, the progress
payment becomes due and payable on the earlier of the following
dates:
(a) the date as specified in or determined in accordance with
the terms of the contract; or
(b) the date immediately upon the expiry of 35 days after —
(i) if the claimant is a taxable person under the Goods
and Services Tax Act (Cap. 117A) who has
submitted to the respondent a tax invoice for the
progress payment, the date the tax invoice is
submitted to the respondent; or
(ii) in any other case, the date on which or the period
within which the payment response is required to be
provided under section 11(1) (whether or not a
payment response is provided).
(2) Where a construction contract does not provide for the date on
which a progress payment becomes due and payable, the progress
payment becomes due and payable immediately upon the expiry of 14
days after —
(a) if the claimant is a taxable person under the Goods and
Services Tax Act (Cap. 117A) who has submitted to the
respondent a tax invoice for the progress payment, the date
the tax invoice is submitted to the respondent; or
(b) in any other case, the date on which or the period within
which the payment response is required to be provided
under section 11(1) (whether or not a payment response is
provided).
(3) Where a supply contract provides for the date on which a
progress payment becomes due and payable, the progress payment
becomes due and payable on the earlier of the following dates:
(a) the date as specified in or determined in accordance with
the terms of the contract; or

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(b) the date immediately upon the expiry of 60 days after the
relevant payment claim is served under section 10.
(4) Where a supply contract does not provide for the date on which
a progress payment becomes due and payable, the progress payment
becomes due and payable immediately upon the expiry of 30 days
after the relevant payment claim is served under section 10.
(5) The interest payable on the unpaid amount of a progress
payment that has become due and payable is at the higher of the
following rates:
(a) the rate specified in or determined in accordance with the
terms of the contract;
(b) the rate prescribed in respect of judgment debts under the
Supreme Court of Judicature Act (Cap. 322).
[Act 47 of 2018 wef 15/12/2019]

(6) For the purpose of subsections (1) and (2) and subject to the
Goods and Services Tax Act (Cap. 117A), the claimant may submit
the tax invoice referred to in subsection (1)(b)(i) or (2)(a) at any time
after the payment response referred to in subsection (1)(b)(ii) or
(2)(b), respectively, is provided, notwithstanding anything to the
contrary in the contract.

Effect of “pay when paid provisions”

9.—(1) A pay when paid provision of a contract is unenforceable
and has no effect in relation to any payment for construction work
carried out or undertaken to be carried out, or for goods or services
supplied or undertaken to be supplied, under the contract.
(2) In this section —
“money owing”, in relation to a contract, means money owing
for construction work carried out, or for goods or services
supplied, under the contract;
“pay when paid provision”, in relation to a contract, means a
provision of the contract by whatever name called —
(a) that makes the liability of one party (referred to in this
definition as the first party) to pay money owing to

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another party (referred to in this definition as the

second party) contingent or conditional on payment
to the first party by a further party (referred to in this
definition as the third party) of the whole or any part
of that money;
(b) that makes the due date for payment of money owing
by the first party to the second party contingent or
conditional on the date on which payment of the
whole or any part of that money is made to the first
party by the third party;
(c) that otherwise makes the liability to pay money
owing, or the due date for payment of money owing,
contingent or conditional on the operation of any
other contract or agreement; or
(d) that is of such kind as may be prescribed.

PART III
PAYMENT CLAIMS AND RESPONSES
Payment claims
10.—(1) A claimant may serve one payment claim in respect of a
progress payment on —
(a) one or more other persons who, under the contract
concerned, is or may be liable to make the payment; or
(b) such other person as specified in or identified in
accordance with the terms of the contract for this purpose.
(2) A payment claim must be served —
(a) not later than —
(i) the date, or the last day of a period, specified in, or
determined in accordance with, the terms of the
contract relating to the purpose of this subsection; or
(ii) the date prescribed for the purpose of this subsection
if the contract does not contain such terms; and

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(b) not later than 30 months after the following, whichever is
applicable:
(i) the date on which the goods and services to which the
amount in the payment claim relates were last
supplied;
(ii) the latest of the following dates:
(A) the date on which the construction work to
which the amount in the payment claim relates
was last carried out;
(B) the issuance date of the last document, as at the
time the payment claim is served, certifying the
completion of the construction work under a
contract;
(C) the issuance date of the last temporary
occupation permit as at the time the payment
claim is served.
[Act 47 of 2018 wef 15/12/2019]

(2A) In subsection (2) —

(a) a payment claim that is served before the date or last day
mentioned in subsection (2)(a)(i) is deemed to have been
served on that date or day, as the case may be; and
(b) a payment claim that is served before the prescribed date
mentioned in subsection (2)(a)(ii) is deemed to have been
served on that date.
[Act 47 of 2018 wef 15/12/2019]

(3) A payment claim —

(a) shall state the claimed amount, calculated by reference to
the period to which the payment claim relates; and
(b) shall be made in such form and manner, and contain such
other information or be accompanied by such documents,
as may be prescribed.

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(4) Nothing in subsection (1) prevents the claimant from serving an

unpaid payment claim in accordance with subsection (2).
[Act 47 of 2018 wef 15/12/2019]

(5) In this section —

“issuance date”, for a document, means the date that the
document is served;
“temporary occupation permit”, in respect of a building or part
of a building, means —
(a) a temporary occupation permit granted under the
Building Control Act (Cap. 29) for the building or
part of the building; or
(b) a certificate of statutory completion issued under that
Act for that building or part of that building where no
temporary occupation permit is granted;
“unpaid payment claim” means —
(a) a payment claim for which full payment has not been
received, and for which an adjudication application
has not been brought; or
(b) a payment claim for which —
(i) full payment has not been received; and
(ii) an adjudication application has been brought,
but was withdrawn for any reason or rejected
without adjudication because the claimant’s
entitlement to make an adjudication application
had not arisen under section 12, or because the
adjudication application did not comply with
the requirements under section 13(2) or (3).
[Act 47 of 2018 wef 15/12/2019]

Payment responses, etc.

11.—(1) A respondent named in a payment claim served in relation
to a construction contract shall respond to the payment claim by
providing, or causing to be provided, a payment response to the
claimant —

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(a) by the date as specified in or determined in accordance
with the terms of the construction contract, or within 21
days after the payment claim is served under section 10,
whichever is the earlier; or
(b) where the construction contract does not contain such
provision, within 14 days after the payment claim is served
under section 10.
[Act 47 of 2018 wef 15/12/2019]

(2) A respondent named in a payment claim served in relation to a

supply contract may respond to the payment claim by paying to the
claimant the claimed amount, or such part of the claimed amount as
the respondent agrees to pay, or by raising objections in writing, by
the due date.
[Act 47 of 2018 wef 15/12/2019]

(3) A payment response provided in relation to a construction

contract —
(a) shall identify the payment claim to which it relates;
(b) shall state the response amount (if any);
(c) shall state, where the response amount is less than the
claimed amount, the reason for the difference and the
reason for any amount withheld; and
(d) shall be made in such form and manner, and contain such
other information or be accompanied by such documents,
as may be prescribed.
(4) A respondent may vary a payment response which he has
provided to a claimant if, and only if, the variation —
(a) is made in such form and manner as may be prescribed; and
(b) is provided to the claimant by the date or within the period
that a payment response is required to be provided under
subsection (1) or within the dispute settlement period
under section 12(4).

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Entitlement to make adjudication applications

12.—(1) Subject to subsection (2), a claimant who, in relation to a
construction contract, fails to receive payment by the due date of the
response amount which he has accepted in writing is entitled to make
an adjudication application under section 13 in relation to the relevant
payment claim.
[Act 47 of 2018 wef 15/12/2019]

(2) Where, in relation to a construction contract —

(a) the claimant disputes a payment response provided by the
respondent; or
(b) the respondent fails to provide a payment response to the
claimant by the date or within the period referred to in
section 11(1),
the claimant is entitled to make an adjudication application under
section 13 in relation to the relevant payment claim if, by the end of
the dispute settlement period, the dispute is not settled or the
respondent does not provide the payment response, as the case may
be.
(2A) For the purpose of subsection (2)(a), a claimant is considered
to dispute a payment response if the claimant does not in writing
accept the payment response.
[Act 47 of 2018 wef 15/12/2019]

(3) A claimant who has served a payment claim in relation to a

supply contract is entitled to make an adjudication application under
section 13 in relation to the payment claim if —
(a) the claimant fails to receive payment by the due date of the
claimed amount; or
(b) the claimant disputes the response amount, where the
response amount is less than the claimed amount.
(4) During the dispute settlement period, in addition to any other
action that the claimant or the respondent may take to settle the
dispute —

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(a) the claimant or the respondent may seek clarification from
the other party on any matter relating to the relevant
payment claim; and
(b) the respondent may provide the claimant with a payment
response where he has failed to do so under section 11(1),
or vary the payment response provided under that section.
(5) In this section, “dispute settlement period”, in relation to a
payment claim dispute, means the period of 7 days after the date on
which or the period within which the payment response is required to
be provided under section 11(1).

PART IV
ADJUDICATION OF PAYMENT CLAIM DISPUTES
Adjudication applications
13.—(1) A claimant who is entitled to make an adjudication
application under section 12 may, subject to this section, apply for the
adjudication of a payment claim dispute by lodging the adjudication
application with an authorised nominating body.
(2) An adjudication application shall not be made unless the
claimant has, by notice in writing containing the prescribed
particulars, notified the respondent of his intention to apply for
adjudication of the payment claim dispute.
(3) An adjudication application —
(a) shall be made within 7 days after the entitlement of the
claimant to make an adjudication application first arises
under section 12;
(b) shall be made in writing addressed to the authorised
nominating body requesting it to appoint an adjudicator;
(c) shall contain such information or be accompanied by such
documents as may be prescribed;
(d) shall be accompanied by such application fee as may be
determined by the authorised nominating body; and

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(e) may contain or be accompanied by such other information

or documents (including expert reports, photographs,
correspondences and submissions) as the claimant may
consider to be relevant to the application.
(4) The authorised nominating body shall, upon receipt of an
adjudication application —
(a) serve a copy thereof on the respondent; and
(b) serve on the principal (if known) and the owner concerned
a notice in writing that the application has been made.
(5) The notice referred to in subsection (4)(b) shall contain such
particulars as may be prescribed.

Appointment of adjudicator
14.—(1) The authorised nominating body shall, upon receipt of an
adjudication application, refer the adjudication application to a
person who is on the register of adjudicators established under
section 28(4)(a) and whom the authorised nominating body considers
to be appropriate for appointment as the adjudicator to determine the
adjudication application.
(2) The person to whom the adjudication application has been
referred under subsection (1) may agree or decline to determine the
adjudication application.
(3) The authorised nominating body shall, within 7 days after
receipt of the adjudication application, serve a notice in writing
confirming the appointment of an adjudicator on the claimant, the
respondent, the principal (if known) and the owner concerned.

Appointment of replacement adjudicator

14A.—(1) Where an authorised nominating body becomes aware
that —
(a) an adjudicator appointed under section 14 has ceased to
meet the eligibility criteria for adjudicators under
section 29; or

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(b) the adjudicator has become unable to perform the
adjudicator’s duties for any reason,
the authorised nominating body must refer the adjudication
application to a person who is on the register of adjudicators
established under section 28(4)(a) and whom the authorised
nominating body considers to be appropriate for appointment as
the replacement adjudicator to determine the adjudication
application.
(2) The person to whom the adjudication application has been
referred under subsection (1) may agree or decline to determine the
adjudication application.
(3) The authorised nominating body must, within 7 days after
becoming aware of the matters in subsection (1)(a) or (b) (as the case
may be) serve on the claimant, the respondent, the principal (if
known) and the owner concerned a notice in writing confirming the
appointment of the person who has agreed to determine the
adjudication application referred to the person under subsection (1)
as the replacement adjudicator.
[Act 47 of 2018 wef 15/12/2019]

Adjudication responses
15.—(1) A respondent shall, within 7 days after receipt of a copy of
an adjudication application under section 13(4)(a), lodge with the
authorised nominating body a response to the adjudication
application.
(2) The adjudication response —
(a) shall be made in writing addressed to the authorised
nominating body;
(b) shall identify the adjudication application to which it
relates;
(c) shall contain such information or be accompanied by such
documents as may be prescribed; and
(d) may contain or be accompanied by such other information
or documents (including expert reports, photographs,

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correspondences and submissions) as the respondent may

consider to be relevant to the adjudication response.
(3) Subject to subsection (3A), the respondent must not include in
the adjudication response an objection of any nature, unless —
(a) where the adjudication relates to a construction contract,
that objection was included in the relevant payment
response provided by the respondent to the claimant; or
(b) where the adjudication relates to a supply contract, that
objection was raised by the respondent to the claimant in
writing on or before the relevant due date.
[Act 47 of 2018 wef 15/12/2019]

(3A) Despite subsection (3), the respondent may include in the

adjudication response an objection mentioned in subsection (3) if —
(a) in the case of an adjudication that relates to a construction
contract —
(i) the circumstances of that objection only arose after
the respondent provided the relevant payment
response to the claimant; or
(ii) the respondent could not reasonably have known of
the circumstances when providing the relevant
payment response to the claimant; or
(b) in the case of an adjudication that relates to a supply
contract —
(i) the circumstances of that objection only arose after
the relevant due date; or
(ii) the respondent could not reasonably have known of
the circumstances by the relevant due date.
[Act 47 of 2018 wef 15/12/2019]

(4) The authorised nominating body shall, upon receipt of an

adjudication response —
(a) serve a copy thereof on the claimant; and

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(b) serve on the principal (if known) and the owner concerned
a notice in writing that the adjudication response has been
lodged.
(5) The notice referred to in subsection (4)(b) shall contain such
particulars as may be prescribed.

Commencement of adjudication and adjudication procedures

16.—(1) An adjudication commences immediately upon the expiry
of the period referred to in section 15(1) within which the respondent
may lodge an adjudication response.
(1A) If an adjudicator is appointed under section 14A(3), a new
adjudication commences as if the adjudication under subsection (1)
had not commenced, immediately upon expiry of the period
mentioned in section 14A(3) within which the notice confirming
the adjudicator’s appointment must be served.
[Act 47 of 2018 wef 15/12/2019]

(2) Subject to subsection (2A), an adjudicator must reject —

(a) any adjudication application that is not made in accordance
with section 13(3)(a), (b) or (c); and
(b) any adjudication response that is not lodged within the
period referred to in section 15(1).
[Act 47 of 2018 wef 15/12/2019]

(2A) Despite subsection (2), an adjudicator may accept any

adjudication application that is not made in accordance with
section 13(3)(c) if the adjudicator is satisfied that the non-
compliance does not materially prejudice the respondent.
[Act 47 of 2018 wef 15/12/2019]

(3) An adjudicator shall —

(a) act independently, impartially and in a timely manner;
(b) avoid incurring unnecessary expense; and
(c) comply with the principles of natural justice.
(4) Subject to subsection (3), an adjudicator may do all or any of the
following in relation to an adjudication:
(a) conduct the adjudication in such manner as he thinks fit;

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(b) require submissions or documents from any party to the

adjudication;
(c) set deadlines for the submissions or documents to be
provided by any party and for the submissions or responses
thereto by any other party;
(d) appoint, after notifying the parties, an independent expert
to inquire and report on specific issues relevant to the
adjudication;
(e) call a conference of the parties;
(f) carry out an inspection of any construction work,
construction site, goods or any other matter to which the
adjudication relates;
(g) issue such directions as may be necessary or expedient for
the conduct of the adjudication.
(5) Where an adjudicator has called for a conference of the parties
to an adjudication, a party to the adjudication shall not be represented
by more than 2 representatives (whether legally qualified or
otherwise) unless the adjudicator permits otherwise.
(6) The parties to an adjudication shall comply with any
requirement made or direction issued by the adjudicator in
accordance with this section.
(7) An adjudicator’s power to determine an adjudication
application is not affected by the failure of —
(a) the respondent to provide a payment response or lodge an
adjudication response; or
(b) any of the parties to comply with the adjudicator’s call for a
conference of the parties or any other requirement made or
direction issued by the adjudicator,
and in the event of any such failure, the adjudicator may determine
the application on the basis of the information and documents
available to him.
(8) The determination of an adjudicator on any adjudication
application shall be in writing.

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Determination of adjudicator
17.—(1) An adjudicator shall determine an adjudication
application —
(a) within 7 days after the commencement of the adjudication
under section 16(1) or (1A) (as the case may be) or within
such longer period as may have been requested by the
adjudicator and agreed to by the claimant and the
respondent, if the adjudication relates to a construction
contract and the respondent —
(i) has failed to make a payment response and to lodge
an adjudication response by the commencement of
the adjudication; or
(ii) has failed to pay the response amount, which has
been accepted by the claimant, by the due date; or
[Act 47 of 2018 wef 15/12/2019]

(b) in any other case, within 14 days after the commencement

of the adjudication under section 16(1) or (1A) (as the case
may be) or within such longer period as may have been
requested by the adjudicator and agreed to by the claimant
and the respondent.
[Act 47 of 2018 wef 15/12/2019]

(2) An adjudicator shall, in relation to an adjudication application,

determine —
(a) the adjudicated amount (if any) to be paid by the
respondent to the claimant;
(b) the date on which the adjudicated amount is payable;
(c) the interest payable on the adjudicated amount; and
(d) the proportion of the costs of the adjudication payable by
each party to the adjudication,
and shall include, in the determination, the reasons therefor.
(2A) In determining an adjudication application, an adjudicator
must disregard any part of a payment claim or a payment response
related to damage, loss or expense that is not supported by —

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(a) any document showing agreement between the claimant

and the respondent on the quantum of that part of the
payment claim or the payment response; or
(b) any certificate or other document that is required to be
issued under the contract.
[Act 47 of 2018 wef 15/12/2019]

(3) Subject to subsection (4), in determining an adjudication

application, an adjudicator shall only have regard to the following
matters:
(a) the provisions of this Act;
(b) the provisions of the contract to which the adjudication
application relates;
(c) the payment claim to which the adjudication application
relates, the adjudication application, and the
accompanying documents thereto;
(d) the payment response to which the adjudication application
relates (if any), the adjudication response (if any), and the
accompanying documents thereto;
(e) the results of any inspection carried out by the adjudicator
of any matter to which the adjudication relates;
(f) the report of any expert appointed to inquire on specific
issues;
(g) the submissions and responses of the parties to the
adjudication, and any other information or document
provided at the request of the adjudicator in relation to
the adjudication; and
(h) any other matter that the adjudicator reasonably considers
to be relevant to the adjudication.
(4) In determining an adjudication application, an adjudicator shall
not be bound by any payment response, or any assessment in relation
to the progress payment, that is provided in the contract to be final or
binding on the parties thereto, whether subject to any term or
condition or otherwise.

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(4A) The adjudicator must not consider an objection from the
respondent of any nature that was not included in the adjudication
response, unless —
(a) the circumstances of that objection only arose after the
respondent lodged the adjudication response with the
authorised nominating body;
(b) the respondent could not reasonably have known of those
circumstances when lodging the adjudication response
with the authorised nominating body; or
(c) the objection relates to a patent error.
[Act 47 of 2018 wef 15/12/2019]

(5) If, in determining an adjudication application, an adjudicator

has determined in accordance with section 7 —
(a) the value of any construction work carried out under a
construction contract; or
(b) the value of goods or services supplied under a contract,
the adjudicator (or any other adjudicator) shall, in any subsequent
adjudication application that involves the determination of the value
of that work or of those goods or services, give the construction work
or the goods or services, as the case may be, the same value as that
previously determined unless the claimant or respondent satisfies the
adjudicator concerned that the value thereof has changed since the
previous determination.
(6) If the determination of an adjudicator contains —
(a) a clerical mistake;
(b) an error arising from an accidental slip or omission; or
(c) a defect of form,
the adjudicator may, on the adjudicator’s own initiative or on the
application of the claimant or the respondent, correct the mistake,
error or defect, as the case may be.
(7) Except as provided in subsection (6), the adjudicator shall not
change his determination on any adjudication application.

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(8) The authorised nominating body —

(a) shall serve a copy of the adjudication determination, and
any amended adjudication determination, on the claimant
and the respondent; and
(b) shall serve on the principal (if known) and the owner
concerned a notice in writing that the adjudication
determination has been made or amended, as the case
may be.
(9) The notice referred to in subsection (8)(b) shall contain such
particulars as may be prescribed.

Adjudication review applications

18.—(1) This section shall apply to a respondent who is a party to
an adjudication if the adjudicated amount exceeds the relevant
response amount by the prescribed amount or more, and to a claimant
who is a party to an adjudication if the claimed amount exceeds the
adjudicated amount by the prescribed amount or more.
[Act 47 of 2018 wef 15/12/2019]

(2) Subject to subsection (3), where a respondent or a claimant to

whom this section applies is aggrieved by the determination of the
adjudicator, the respondent or claimant may, within 7 days after being
served the adjudication determination, lodge an application for the
review of the determination with the authorised nominating body
with which the application for the adjudication had been lodged under
section 13.
[Act 47 of 2018 wef 15/12/2019]

(3) Where the respondent is required in consequence of the

adjudication determination to pay an adjudicated amount to the
claimant, the respondent shall not lodge any application for the
review of the determination unless he has paid the adjudicated
amount to the authorised nominating body.
[Act 47 of 2018 wef 15/12/2019]

(4) An adjudication review application —

(a) shall be made in writing addressed to the authorised
nominating body requesting it to appoint one or more
review adjudicators to determine the application;

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(b) shall contain such information or be accompanied by such
documents as may be prescribed; and
(c) shall be accompanied by such application fee as may be
determined by the authorised nominating body.
(5) The authorised nominating body shall, upon receipt of an
adjudication review application —
(a) serve —
(i) a copy thereof on the claimant or the respondent, as
the case may be; and
[Act 47 of 2018 wef 15/12/2019]

(ii) a notice in writing that the application has been made

on the principal (if known) and the owner concerned;
and
(b) subject to subsection (7) and in accordance with the
prescribed criteria, appoint a review adjudicator or a panel
of 3 review adjudicators.
(6) The authorised nominating body shall, within 7 days after
receipt of the adjudication review application, serve a notice in
writing confirming the appointment of the review adjudicator or the
panel of review adjudicators, as the case may be, on the parties to the
adjudication review, the principal (if known) and the owner
concerned.
(7) For the purpose of subsection (5)(b) —
(a) section 14(1) and (2) shall apply with the necessary
modifications; and
(b) the authorised nominating body shall not appoint an
adjudicator whose determination is the subject of the
adjudication review.

Appointment of replacement review adjudicator

18A.—(1) Where an authorised nominating body becomes aware
that —
(a) a review adjudicator or a member of a panel of review
adjudicators appointed under section 18(5)(b) has ceased

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to meet the eligibility criteria for adjudicators under

section 29; or
(b) a review adjudicator or a member of a panel of review
adjudicators has become unable to perform the
adjudicator’s duties for any reason,
the authorised nominating body must refer the adjudication review
application to a person who is on the register of adjudicators
established under section 28(4)(a) and whom the authorised
nominating body considers to be appropriate for appointment as
the replacement review adjudicator or a replacement member of a
panel of review adjudicators to determine the adjudication review
application in place of the review adjudicator or member of a panel of
review adjudicators in paragraph (a) or (b), as the case may be.
(2) The person to whom the adjudication review application has
been referred under subsection (1) may agree or decline to determine
the adjudication review application.
(3) The authorised nominating body must, within 7 days after
becoming aware of the matters in subsection (1)(a) or (b) (as the case
may be) serve on the parties to the adjudication review, the principal
(if known) and the owner concerned a notice in writing confirming
the appointment of the person who has agreed to determine the
adjudication review application referred to the person under
subsection (1) as the replacement review adjudicator or the
replacement member of the panel of review adjudicators, as the
case may be.
(4) The authorised nominating body must not appoint an
adjudicator whose determination is the subject of the adjudication
review.
[Act 47 of 2018 wef 15/12/2019]

Adjudication review procedures, etc.

19.—(1) An adjudication review commences on the date
immediately after the appointment of the review adjudicator or the
panel of review adjudicators, as the case may be, is confirmed by the
authorised nominating body under section 18(6).

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(1A) If an adjudicator is appointed under section 18A(3) to replace
a review adjudicator, or if 3 adjudicators are appointed under
section 18A(3) to replace 3 members of a panel of review
adjudicators, a new adjudication review commences —
(a) immediately upon expiry of the period mentioned in
section 18A(3) within which the notice confirming the
adjudicator’s appointment must be served; and
(b) as if the adjudication review under subsection (1) had not
commenced.
[Act 47 of 2018 wef 15/12/2019]

(1B) If 2 or fewer adjudicators are appointed under section 18A(3)

to replace 2 or fewer members of a panel of review adjudicators, the
adjudication review resumes for the reconstituted panel to hear and
determine so much of the adjudication review as the panel considers
fit —
(a) immediately upon expiry of the period mentioned in
section 18A(3) within which the notice confirming the
adjudicator’s appointment must be served; and
(b) whether or not any part of the adjudication review has been
heard by the previous panel of adjudicators.
[Act 47 of 2018 wef 15/12/2019]

(1C) In subsection (1B), the reconstituted panel may have regard to

the evidence given and arguments adduced during the part of the
adjudication review heard by the previous panel of review
adjudicators.
[Act 47 of 2018 wef 15/12/2019]

(2) The review adjudicator or the panel of review adjudicators, as

the case may be, shall reject any adjudication review application that
is not made —
(a) within the period referred to in section 18(2); or
(b) in accordance with section 18(4)(a) or (b).
(3) The review adjudicator or the panel of review adjudicators (as
the case may be) must determine the adjudication review application
within —

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(a) 14 days after the commencement of the adjudication

review under subsection (1) or (1A), as the case may be;
(b) the remainder of the 14 days after the resumption of the
adjudication review under subsection (1B); or
(c) such longer period as may have been requested by the
review adjudicator or the panel of review adjudicators (as
the case may be) and agreed to by the claimant and the
respondent.
[Act 47 of 2018 wef 15/12/2019]

(4) In relation to any adjudication review application, a review

adjudicator or a panel of review adjudicators, as the case may be,
may —
(a) substitute the adjudication determination that is the subject
of the adjudication review for any other determination as is
considered appropriate; or
(b) refuse the adjudication review application.
(5) A review adjudicator or a panel of review adjudicators, as the
case may be, shall determine under subsection (4)(a) —
(a) the adjudicated amount (if any) to be paid by the
respondent to the claimant;
(aa) the amount, if any, to be returned by the authorised
nominating body to the respondent;
[Act 47 of 2018 wef 15/12/2019]

(b) where the adjudicated amount referred to in paragraph (a)

is different from the amount that the respondent has paid to
the authorised nominating body under section 18(3), the
date on which the difference in amount is payable;
[Act 47 of 2018 wef 15/12/2019]

(c) the interest payable on any such amount; and

(d) the proportion of the costs of the adjudication review
payable by each party to the adjudication review,
and shall include, in the determination, the reasons therefor.

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(5A) In determining an adjudication review application, the review
adjudicator or the panel of review adjudicators (as the case may be)
must disregard any part of a payment claim or a payment response
related to damage, loss or expense that is not supported by —
(a) any document showing agreement between the claimant
and the respondent on the quantum of that part of the
payment claim or the payment response; or
(b) any certificate or other document that is required to be
issued under the contract.
[Act 47 of 2018 wef 15/12/2019]

(6) In determining an adjudication review application, the review

adjudicator or the panel of review adjudicators, as the case may be —
(a) shall only have regard to the matters referred to in
section 17(3)(a) to (h) and the adjudication
determination that is the subject of the adjudication
review; and
(b) shall not be bound by any payment response, or any
assessment in relation to the progress payment, that is
provided in the contract to be final or binding on the parties
thereto, whether subject to any term or condition or
otherwise.
(6A) The review adjudicator or the panel of review adjudicators (as
the case may be) must not consider an objection from the respondent
of any nature that was not included in the adjudication response,
unless —
(a) the circumstances of the objection only arose after the
respondent lodged the adjudication response with the
authorised nominating body;
(b) the respondent could not reasonably have known of those
circumstances when lodging the adjudication response
with the authorised nominating body; or
(c) the objection relates to a patent error.
[Act 47 of 2018 wef 15/12/2019]

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(7) Where a panel of review adjudicators is appointed to determine

an adjudication review application, the determination shall be
decided in accordance with the opinion of the majority of the
review adjudicators on the panel.
(8) Sections 16(3) to (8) and 17(5) to (9) shall apply, with the
necessary modifications, in relation to adjudication review
applications.

Withdrawal of adjudication applications and adjudication

review applications
20.—(1) An adjudication application may be withdrawn by the
claimant at any time upon serving a notice of withdrawal on —
(a) the adjudicator;
(b) the authorised nominating body which appointed the
adjudicator; and
(c) the respondent.
(2) An adjudication review application may be withdrawn by the
party who lodged the application at any time upon serving a notice of
withdrawal on —
(a) the review adjudicator or the panel of review adjudicators,
as the case may be;
(b) the authorised nominating body which appointed the
review adjudicator or the panel of review adjudicators,
as the case may be; and
(c) the other party to the adjudication review application.
[Act 47 of 2018 wef 15/12/2019]
[Act 47 of 2018 wef 15/12/2019]

Effect of adjudication determinations and adjudication review

determinations
21.—(1) An adjudication determination made under this Act shall
be binding on the parties to the adjudication and on any person
claiming through or under them, unless or until —

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(a) leave of the court to enforce the adjudication determination
is refused under section 27;
(b) the dispute is finally determined by a court or tribunal or at
any other dispute resolution proceeding; or
(c) the dispute is settled by agreement of the parties.
(2) An adjudication review determination under section 19(4)(a)
shall have effect as if it were an adjudication determination for the
purposes of this Act.
(3) This section shall not affect the right of any party to challenge
an adjudication determination or an adjudication review
determination in any proceeding before a court or tribunal or in
any other dispute resolution proceeding.

Payment of adjudicated amount

22.—(1) Where, in relation to an adjudication application, the
adjudicator has determined that the respondent shall pay an
adjudicated amount to the claimant, then except as provided in
subsection (1A) and section 18(3), the respondent shall pay that
amount —
(a) within 7 days after the adjudicator’s determination is
served on the respondent; or
(b) by the date on which the adjudicated amount is determined
by the adjudicator to be payable,
whichever is the later.
[Act 47 of 2018 wef 15/12/2019]

(1A) Where a respondent is required in consequence of the

adjudication determination to pay an adjudicated amount to the
claimant, and the claimant is entitled under section 18(2) to lodge an
application for the review of the adjudication determination, the
respondent must pay that amount —
(a) not earlier than 7 days but within 10 days after the
respondent is served the adjudicator’s determination;

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(b) within 7 days after the respondent is served the

adjudication review determination of an adjudication
review brought by the claimant; or
(c) on or before the date (if any) determined by the review
adjudicator or the panel of review adjudicators under
section 19(5)(b) as the date that the amount is payable,
whichever is the later.
[Act 47 of 2018 wef 15/12/2019]

(2) Where an application for the review of an adjudicator’s

determination has been lodged by the respondent, an authorised
nominating body to whom an adjudicated amount has been paid
under section 18(3) must pay the relevant amount to the party who is
entitled to payment —
(a) within 7 days after the adjudication review determination
is served on that party; or
(b) on or before a later date (if any) determined by the review
adjudicator or the panel of review adjudicators under
section 19(5)(b) as the date that the amount is payable.
[Act 47 of 2018 wef 15/12/2019]

(3) Where the adjudicated amount under an adjudication review

determination is higher than the adjudicated amount under the
adjudication determination, a respondent who has paid the
adjudicated amount under the adjudication determination to the
authorised nominating body under section 18(3) must pay the
difference to the claimant —
(a) within 7 days after the adjudication review determination
is served on the respondent; or
(b) on or before a later date (if any) determined by the review
adjudicator or the panel of review adjudicators under
section 19(5)(b) as the date that the amount is payable.
[Act 47 of 2018 wef 15/12/2019]

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PART V
MEASURES TO ENFORCE PAYMENT OF ADJUDICATED
AMOUNT
Consequences of not paying adjudicated amount
23.—(1) Where a respondent fails to pay the whole or any part of
the adjudicated amount to a claimant in accordance with section 22,
the claimant may do either or both of the following:
(a) serve a notice in writing on the respondent of the
claimant’s intention to exercise a lien under section 25
on goods supplied by the claimant to the respondent under
the contract concerned that are unfixed and which have not
been paid for;
(b) serve a notice in writing on the respondent under section 26
of the claimant’s intention to suspend carrying out
construction work or supplying goods or services under
the contract concerned.
(2) Without prejudice to the generality of subsection (1), where a
party to an adjudication fails to pay the whole or any part of the
adjudicated amount to any other party in accordance with section 22,
the aggrieved party may apply for and enforce the adjudication
determination as if it were a judgment debt in accordance with
section 27.

Direct payment from principal

24.—(1) Where a respondent fails to pay the whole or any part of
the adjudicated amount to a claimant in accordance with section 22,
the principal of the respondent may make payment of the amount
outstanding, or any part thereof, in accordance with the procedure set
out in subsection (2).
(2) The procedure by which the principal may make payment to the
claimant shall be as follows:
(a) the principal shall serve a notice of payment on the
claimant stating that direct payment shall be made, and
serve a copy thereof on the respondent and the owner (if
the principal is not the owner);

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(b) the respondent shall, if he has paid the adjudicated amount

to the claimant, show proof of such payment to the
principal and the owner (if the principal is not the owner)
within 2 days after receipt of the notice referred to in
paragraph (a); and
(c) if the respondent fails to show proof of payment in
accordance with paragraph (b), the principal shall be
entitled to pay the outstanding amount of the adjudicated
amount, or any part thereof, to the claimant.
(3) Where the principal is a licensed housing developer under the
Housing Developers (Control and Licensing) Act (Cap. 130) with a
project account opened under section 9 of that Act, the claimant shall
not be entitled to exercise the lien under section 25 or suspend work
or supply under section 26 for 21 days after being served the notice of
payment under subsection (2)(a) by the principal, unless the principal
had previously defaulted on any payment to the claimant under this
section in relation to the same contract.
(4) Any payment by the principal under this section —
(a) may be treated by the principal as payment to the
respondent in reduction (by the amount of the payment)
of any amount that the principal owes, or may in future
owe, to the respondent in connection with the construction
work, or the goods or services, concerned; or
(b) may be recovered by the principal as a debt due from the
respondent.
(5) Where the principal has paid the adjudicated amount or any part
thereof under this section, the subsequent setting aside of the relevant
adjudication determination does not affect any rights conferred on the
principal under this section.

Lien on goods supplied

25.—(1) Subject to the provisions of this Act, the claimant has a
lien on goods supplied by the claimant to the respondent under the
contract concerned that are unfixed and which have not been paid for.

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(2) The lien under subsection (1) subsists if, and only if —
(a) the claimant has served on the respondent the notice
referred to in section 23(1)(a);
(b) a copy of the notice has been served by the claimant on the
principal (if known) and the owner concerned;
(c) 7 days have elapsed since the notice was served on the
respondent, the principal (if known) and the owner, or
since the last of them was served the notice; and
(d) the claimant has not been paid the adjudicated amount.
(3) The lien under subsection (1) shall not give the claimant any
priority over the liens on the goods existing before the date on which
the first-mentioned lien arises.
(4) The claimant has no rights to exercise the lien referred to in
subsection (1) —
(a) if the goods concerned are owned by some person other
than the claimant or the respondent; or
(b) during the period referred to in section 24(3).

Right to suspend work or supply

26.—(1) Subject to the provisions of this Act, a claimant may
suspend the carrying out of construction work, or the supply of goods
or services, under a contract if, and only if —
(a) the claimant has served on the respondent the notice
referred to in section 23(1)(b);
(b) a copy of the notice has been served by the claimant on the
principal (if known) and the owner concerned;
(c) 7 days have elapsed since the notice was served on the
respondent, the principal (if known) and the owner, or
since the last of them was served the notice; and
(d) the claimant has not been paid the adjudicated amount.
(2) During the period of suspension exercised in accordance with
subsection (1) —

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(a) the claimant is not liable to the respondent, the principal or

the owner for any loss or damage suffered by the
respondent, the principal or the owner, respectively, or
by any person claiming through or under the respondent,
the principal or the owner; and
(b) the respondent, the principal and the owner shall have no
claim against the claimant for any loss or damage suffered
as a result of the suspension, but the principal and the
owner may recover liquidated damages or any other
remedy from the respondent pursuant to any contract or
under any law.
(3) If the claimant, in exercising the right to suspend the carrying
out of construction work or the supply of goods or services in
accordance with subsection (1), incurs any loss or expenses as a result
of the removal by the respondent from the contract of any part of the
work or supply —
(a) the respondent is liable to pay the claimant the amount of
any such loss or expenses; and
(b) any such loss or expenses may be recovered by the
claimant as a debt due from the respondent.
(4) Where a claimant has suspended the carrying out of
construction work or the supply of goods or services under a
contract in accordance with subsection (1), he shall resume such work
or supply within 3 days after being paid the adjudicated amount.
(5) Where a claimant has suspended the carrying out of
construction work or the supply of goods or services under a
contract in accordance with subsection (1), and —
(a) the principal, who is a licensed housing developer under
the Housing Developers (Control and Licensing) Act
(Cap. 130) with a project account opened under
section 9 of that Act, has served a notice of payment
under section 24(2)(a) on the claimant; and
(b) the principal has not previously defaulted on any payment
to the claimant under section 24 in relation to the same
contract,

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the claimant shall resume such work or supply within 3 days after
being served the notice of payment under section 24(2)(a).
(6) The claimant shall be liable to pay for any loss or damage
suffered by the respondent or the principal as a result of any failure to
resume carrying out construction work or supplying goods or
services, as the case may be, under subsection (4) or (5).
(7) Any period of suspension under subsection (1) shall be
disregarded in computing for the purposes of any contractual time
limit the time taken, by the party exercising the right of suspension or
by a third party (other than the respondent), to complete any
construction work or the supply of any goods or services directly or
indirectly affected by the exercise of the right of suspension.
(8) Where the contractual time limit referred to in subsection (7) is
set by reference to a date rather than a period, the date shall be
adjusted accordingly.

Enforcement of adjudication determination as judgment debt,

etc.
27.—(1) An adjudication determination made under this Act may,
with leave of the court, be enforced in the same manner as a judgment
or an order of the court to the same effect.
(2) Where leave of the court is so granted, judgment may be entered
in the terms of the adjudication determination.
(3) An application for leave to enforce an adjudication
determination may not be filed in court under this section unless it
is accompanied by an affidavit by the applicant stating that the whole
or part of the adjudicated amount has not been paid at the time the
application is filed.
(4) If the affidavit referred to in subsection (3) indicates that part of
the adjudicated amount has been paid, the judgment shall be for the
unpaid part of the adjudicated amount.
(5) Where any party to an adjudication commences proceedings to
set aside the adjudication determination or the judgment obtained
pursuant to this section, he shall pay into the court as security the
unpaid portion of the adjudicated amount that he is required to pay, in

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such manner as the court directs or as provided in the Rules of Court

(Cap. 322, R 5), pending the final determination of those proceedings.
(6) The grounds on which a party to an adjudication may
commence proceedings under subsection (5) include, but are not
limited to, the following:
(a) the payment claim was not served in accordance with
section 10;
(b) the claimant served more than one payment claim in
respect of a progress payment, otherwise than permitted
under section 10;
(c) the payment claim was in respect of a matter that has
already been adjudicated on its merits in proceedings under
this Act;
(d) the adjudication application or the adjudication review
application was not made in accordance with the
provisions of this Act;
(e) the adjudicator failed to comply with the provisions of this
Act in making the adjudication determination;
(f) the adjudication determination requires the claimant to pay
an adjudicated amount to the respondent;
(g) a breach of the rules of natural justice occurred in
connection with the making of the adjudication
determination;
(h) the making of the adjudication determination was induced
or affected by fraud or corruption.
[Act 47 of 2018 wef 15/12/2019]

(7) A respondent may not commence proceedings under

subsection (5) on any ground if the objection to support that
ground was not included in the respondent’s adjudication response,
unless —
(a) the circumstances of the objection to support that ground
only arose after the respondent lodged the adjudication
response with the authorised nominating body; or

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(b) the respondent could not reasonably have known of those
circumstances when lodging the adjudication response
with the authorised nominating body.
[Act 47 of 2018 wef 15/12/2019]

(8) Without affecting a court’s powers under any other written law
or rule of law, a court may, in any proceedings under subsection (5) —
(a) set aside an adjudication determination in whole or in part;
(b) remit the whole or any part of the adjudication
determination to the adjudicator;
(c) correct in the adjudication determination any clerical
mistake, error arising from an accidental slip or
omission, or a defect of form; and
(d) award costs to any party to an adjudication.
[Act 47 of 2018 wef 15/12/2019]

(9) Where the court makes an order of remission under

subsection (8)(b) —
(a) Parts IV to VII apply, with the necessary modifications, to
the determination of the remitted issues by the adjudicator,
as if the remitted issues were issues in an adjudication that
commenced on a date specified by the court in the order;
and
(b) the adjudicator’s determination of the remitted issues has
effect as if it were an adjudication determination for the
purposes of this Act.
[Act 47 of 2018 wef 15/12/2019]

PART VI
GENERAL PROVISIONS RELATING TO ADJUDICATION
Authorised nominating bodies
28.—(1) The Minister may —
(a) upon the application of any person, authorise the person to
appoint adjudicators and undertake such other functions or

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duties as may be imposed under this Act, subject to such

terms and conditions as the Minister may think fit; and
(b) withdraw any such authorisation.
(2) The Minister may limit the number of persons who may, for the
time being, be authorised under subsection (1).
(3) An authorised nominating body shall provide the Minister with
such information or documents as may be requested by the Minister
from time to time in relation to the activities of the authorised
nominating body or its register of adjudicators established under
subsection (4)(a), including but not limited to information as to the
fees charged by the authorised nominating body or by the persons on
its register of adjudicators for any service provided under or by virtue
of this Act.
(4) An authorised nominating body shall, in relation to its
authorisation under subsection (1) —
(a) establish and maintain a register of adjudicators;
(b) establish and administer codes of conduct or practice;
(c) provide training for the persons who are on the register of
adjudicators;
(d) establish a schedule of fees for adjudication services
provided under or by virtue of this Act, including an
adjudicator’s fees;
(e) facilitate the conduct of adjudications under this Act,
including the establishing of rules therefor not inconsistent
with this Act or any other written law, and provide general
administrative support therefor;
[Act 47 of 2018 wef 15/12/2019]

(ea) abide by any regulations that the Minister may prescribe;

and
[Act 47 of 2018 wef 15/12/2019]

(f) undertake such other functions or duties as may be

imposed under this Act or as may be directed by the
Minister.

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Authorised nominating body to maintain trust account
28A.—(1) An authorised nominating body must open and maintain
a trust account with a bank for the purpose of holding the adjudicated
amount mentioned in section 18(3).
(2) An authorised nominating body must not withdraw any money
from a trust account except for the purpose of subsection (3) or
making a payment under section 22(2).
(3) All interest earned from the maintenance of adjudicated
amounts received in a trust account accrue to the authorised
nominating body, which may dispose of the interest in such
manner as the authorised nominating body considers fit.
(4) Money held in a trust account is not available for payment of the
debts of an authorised nominating body or liable to be paid or taken in
execution under the order or process of a court.
(5) Nothing in subsection (4) takes away or affects any lawful claim
that a claimant or a respondent has against money held in a trust
account.
(6) In this section —
“bank” has the meaning given by the Banking Act (Cap. 19);
“trust account” means a current or deposit account maintained in
the name of the authorised nominating body at a bank, in the
title of which the words “BCISOPA ANB — Adjudicated
Amount Client Account” appear.
[Act 47 of 2018 wef 15/12/2019]

Eligibility criteria for adjudicators

29.—(1) A person is eligible to be on the register of adjudicators
established under section 28(4)(a) if the person is an individual with
such qualifications, expertise or experience as may be prescribed.
(2) A person is not eligible to be an adjudicator in relation to a
contract —
(a) if the person is a party to the contract, or is otherwise
related to a party to the contract in such manner as may be
prescribed; or

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(b) if there exists such circumstances as may be prescribed.

(3) A person to whom an adjudication application has been referred
by the authorised nominating body under section 14, 14A, 18 or 18A,
and who —
(a) is or becomes interested in any way, whether directly or
indirectly, in any contract or other matter that relates to the
adjudication application; or
(b) is or becomes aware that he —
(i) does not meet the eligibility criteria in subsection (1);
or
(ii) is not eligible to be an adjudicator in relation to a
contract for any reason mentioned in
subsection (2)(a) or (b),
must immediately disclose the nature of his interest, the nature of his
ineligibility or the reason for which he is not eligible (as the case may
be) to the authorised nominating body.
[Act 47 of 2018 wef 15/12/2019]

Costs of adjudication proceedings

30.—(1) The costs of any adjudication shall not exceed such
amount as may be prescribed by the Minister.
(2) An adjudicator shall, in making his determination in relation to
any adjudication application, decide which party shall pay the costs
of the adjudication and, where applicable, the amount of contribution
by each party.
(3) Where an adjudicator is satisfied that a party to an adjudication
incurred costs of the adjudication because of frivolous or vexatious
conduct on the part of, or unfounded submissions by, another party,
the adjudicator may decide that the second-mentioned party shall pay
some or all of those costs.
(4) A party to an adjudication shall bear all other costs and expenses
incurred as a result of or in relation to the adjudication, but may
include the whole or any part thereof in any claim for costs in any
proceeding before a court or tribunal or in any other dispute
resolution proceeding.

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Adjudicator’s fees and expenses
31.—(1) Subject to this section, an adjudicator is entitled to be paid,
in relation to an adjudication application —
(a) such fees as may be specified by the authorised nominating
body which appointed the adjudicator; and
(b) such amount, by way of expenses, as may be agreed
between the adjudicator and the parties to the adjudication
or, if no such amount is agreed, then as the authorised
nominating body considers to be reasonable having regard
to the work done and expenses incurred by the adjudicator.
(2) An adjudicator is not entitled to be paid, and shall not retain, any
fee in relation to an adjudication application if he fails to make a
determination on the application within the time allowed by
section 17 or 19, as the case may be, otherwise than because the
application is withdrawn or terminated or the dispute between the
claimant and respondent is settled.
[Act 47 of 2018 wef 15/12/2019]

(3) Subsection (2) shall not apply —

(a) in circumstances in which an adjudicator requires payment
of the fees referred to in subsection (1) before the issue of
his determination on the adjudication application; or
[Act 47 of 2018 wef 15/12/2019]

(b) in such other circumstances as may be prescribed.

(4) Where an adjudication application is withdrawn or terminated
or the dispute between the claimant and the respondent is settled, the
adjudicator is entitled to be paid the fees and expenses incurred in
relation to the adjudication up to, and including, the date on which the
adjudication application is withdrawn or terminated or the dispute is
settled, as the case may be.
(5) For the purposes of subsection (4) —
(a) in the case of the withdrawal of an adjudication
application, the applicant shall be liable to pay the fees
and expenses of the adjudicator; and

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(b) in any other case, the parties to the adjudication shall be

jointly and severally liable to pay the fees and expenses of
the adjudicator.
(6) An adjudicator may recover his fees and expenses from a person
liable to pay them as a debt due to the adjudicator.

Protection from liability for adjudicators and authorised

nominating bodies
32.—(1) No liability shall lie against an adjudicator with respect to
anything done or omitted to be done in good faith in the discharge or
purported discharge of his functions or duties under this Act.
[Act 47 of 2018 wef 15/12/2019]

(2) No liability shall lie against an authorised nominating body or

any person acting under the direction of the authorised nominating
body with respect to anything done or omitted to be done —
(a) in good faith in the discharge or purported discharge of the
authorised nominating body’s function of nominating
adjudicators under this Act; and
(b) in good faith and with reasonable care in the discharge or
purported discharge of any other functions or duties of the
authorised nominating body under this Act.
[Act 47 of 2018 wef 15/12/2019]

Confidentiality of adjudication
33.—(1) This section shall apply to the following information:
(a) any statement or document created or made for the
purposes of an adjudication; and
(b) any information (whether written or oral) that, for the
purposes of an adjudication, is disclosed in the course of
the adjudication.
(2) No party to a dispute or adjudicator shall disclose to any other
person (not being the principal or the owner concerned) any
information to which this section applies, except —
(a) with the consent of the party to whom the information
relates;

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(b) to the extent that the information is already in the public
domain;
(c) to the extent that the disclosure is necessary for the
purposes of, or in connection with, the adjudication, the
enforcement of the adjudicator’s determination, or any
proceeding before a court or tribunal or any other dispute
resolution proceeding;
(d) to the extent that the disclosure is required for any purpose
under this Act; or
(e) if the information will not be published in a form that could
reasonably be expected to identify any particular person.

Effect on other proceedings

34.—(1) Nothing in this Act shall affect any right that a party to a
contract may have —
(a) to submit a dispute relating to or arising from the contract
to a court or tribunal, or to any other dispute resolution
proceeding;
(b) to apply for adjudication under this Act, notwithstanding
that the dispute is the subject of proceedings in a court or
tribunal or the subject of any other dispute resolution
proceeding; or
(c) to take such measures as he is entitled under Part V to
enforce payment of any adjudicated amount.
(2) If a party to a contract submits a dispute relating to or arising
from the contract to a court or tribunal or to any other dispute
resolution proceeding while the dispute is the subject of an
adjudication under this Act, the submission to that other dispute
resolution proceeding shall not bring to an end or otherwise affect the
adjudication.
(3) An adjudicator shall terminate the adjudication proceedings on
a dispute relating to or arising from the contract if, before the
adjudicator determines the dispute, the dispute is determined by a
court or tribunal or at any other dispute resolution proceeding.

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(4) In any proceeding before a court or tribunal in relation to any

matter arising under or by virtue of a contract, the court or tribunal —
(a) shall allow for any amount paid to a party to the contract
under, or for the purposes of, this Act in any order or award
it makes in the proceeding; and
(b) may make such orders as it considers appropriate, having
regard to any action taken by a party to the contract in good
faith and in reliance on an adjudication determination
made under this Act.

PART VII
MISCELLANEOUS
Act to bind Government
35. This Act shall bind the Government.

No contracting out
36.—(1) The provisions of this Act shall have effect
notwithstanding any provision to the contrary in any contract or
agreement.
(2) The following provisions in any contract or agreement (whether
in writing or not) shall be void:
(a) a provision under which the operation of this Act or any
part thereof is, or is purported to be, excluded, modified,
restricted or in any way prejudiced, or that has the effect of
excluding, modifying, restricting or prejudicing the
operation of this Act or any part thereof;
(b) a provision that may reasonably be construed as an attempt
to deter a person from taking action under this Act.
(3) The Minister may, for the purpose of subsection (2)(a),
prescribe the type of provisions in any contract or agreement, or
any class thereof, which are deemed to have the effect of excluding,
modifying, restricting or prejudicing the operation of this Act or any
part thereof.

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(4) Nothing in this Act shall, except as provided in subsection (1),
limit or otherwise affect the operation of any other law in relation to
any right, title, interest, privilege, obligation or liability of a person
arising under or by virtue of a contract or an agreement.

Service of documents
37.—(1) Where this Act authorises or requires a document to be
served on a person, whether the expression “serve”, “lodge”,
“provide” or “submit” or any other expression is used, the
document must be served on the person —
(a) by delivering it to the person personally;
(b) by leaving it during normal business hours at the usual
place of business of the person;
[Act 47 of 2018 wef 15/12/2019]

(c) by sending it by post or facsimile transmission to the usual

or last known place of business of the person;
[Act 47 of 2018 wef 15/12/2019]

(d) by sending it by email to the person’s email address; or

[Act 47 of 2018 wef 15/12/2019]

(e) by sending it by any other electronic method authorised by

regulations made under section 41(1) for the service of
documents of that kind if the person consents to service of
a document of that kind in that way.
[Act 47 of 2018 wef 15/12/2019]
[Act 47 of 2018 wef 15/12/2019]

(2) Service of a document on a person under this section takes

effect —
(a) if the document is sent to the person’s usual or last known
place of business under subsection (1)(c) — when the
document is received at that place;
(b) if the document is sent by email — at the time that the
email becomes capable of being retrieved by the person; or
(c) if the document is sent by any other electronic method
mentioned in subsection (1)(e) — at the time that the

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electronic communication transmitting the document

becomes capable of being retrieved by the person.
[Act 47 of 2018 wef 15/12/2019]

(2A) In this section, “email address” means —

(a) the last email address given by the addressee concerned to
the person serving the document as the email address for
the service of documents; or
(b) the last email address of the addressee concerned known to
the person serving the document.
[Act 47 of 2018 wef 15/12/2019]

(3) The provisions of this section are in addition to, and do not limit
or exclude, the provisions of any other law with respect to the service
of documents.

Exemption
38. The Minister may, by regulations, exempt —
(a) any person or class of persons; or
(b) any contract, agreement, matter or transaction, or any class
thereof,
from all or any of the provisions of this Act, subject to such terms or
conditions as may be prescribed.

Amendment of specified periods

39. The Minister may, by order published in the Gazette, amend
section 8(1)(b), (2), (3)(b) or (4), 10(2)(b), 11(1)(a) or (b), 12(5),
13(3)(a), 14(3), 14A(3), 15(1), 17(1)(a) or (b), 18(2) or (6), 18A(3),
19(3), 22(1)(a), (1A)(a) or (b), (2)(a) or (3)(a), 24(2)(b) or (3),
25(2)(c) or 26(1)(c), (4) or (5) by substituting a different period for
the period for the time being specified therein.
[Act 47 of 2018 wef 15/12/2019]

Delegation of powers
40.—(1) The Minister may, subject to such terms or conditions as
he thinks fit, delegate to any person all or any of his powers, functions
and duties under this Act, except —

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(a) the power of delegation conferred by this section; and
(b) the power to make subsidiary legislation.
(2) The Minister may exercise any power or perform any function
or duty conferred upon him under this Act notwithstanding the
delegation of that power, function or duty under subsection (1).

Regulations
41.—(1) The Minister may make regulations for or with respect to
any matter that by this Act is required or permitted to be prescribed or
that is necessary or convenient to be prescribed for carrying out or
giving effect to this Act.
(2) Without prejudice to the generality of subsection (1),
regulations may be made for or in connection with —
(a) the forms to be used and the information or documents to
be furnished;
(b) the manner in which authorised nominating bodies are
required to exercise their functions or perform their duties;
(c) the form of records to be kept and maintained by the
authorised nominating bodies, the information to be
recorded and the submission of such records; and
(d) the conduct of adjudicators.

Transitional and savings provisions

42. The Minister may, within 2 years of 1st April 2005, prescribe
such transitional and savings provisions as he may consider necessary
or expedient.

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 LEGISLATIVE HISTORY
BUILDING AND CONSTRUCTION INDUSTRY SECURITY OF
PAYMENT ACT
(CHAPTER 30B)
This Legislative History is provided for the convenience of users of the Building
and Construction Industry Security of Payment Act. It is not part of the Act.
1. Act 57 of 2004 — Building and Construction Industry Security of
Payment Act 2004
Date of First Reading : 19 October 2004
(Bill No. 54/2004 published on
20 October 2004)
Date of Second and Third Readings : 16 November 2004
Date of commencement : 3 January 2005
(sections 1, 28 and 40)
2. Act 57 of 2004 — Building and Construction Industry Security of
Payment Act 2004
Date of First Reading : 19 October 2004
(Bill No. 54/2004 published on
20 October 2004)
Date of Second and Third Readings : 16 November 2004
Date of commencement : 1 April 2005
(sections 2, 3, 4, 29 to 39, 41 and
42 and Parts II to V)
3. 2006 Revised Edition — Building and Construction Industry Security of
Payment Act
Date of operation : 31 January 2006
4. Act 47 of 2018 — Building and Construction Industry Security of
Payment (Amendment) Act 2018
Date of First Reading : 10 September 2018 (Bill No.
38/2018 published on
10 September 2018)
Date of Second and Third Readings : 2 October 2018
Date of commencement : 15 December 2019

Informal Consolidation – version in force from 15/12/2019