Tiong Seng Contractors v Chuan Lim Construction: Applicability of Security of Payment Act to Final Payment Claims
In Tiong Seng Contractors (Pte) Ltd v Chuan Lim Construction Pte Ltd, the High Court of Singapore addressed whether the Building and Construction Industry Security of Payment Act (Cap 30B) applies to final payment claims. Tiong Seng Contractors, the plaintiff, sought to set aside an adjudication determination in favor of Chuan Lim Construction, the defendant, arguing that the Act does not extend to final claims. The High Court, Lai Siu Chiu J, held that the Act does encompass and provide for the adjudication of final progress payments, dismissing Tiong Seng's application and awarding costs to Chuan Lim Construction.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's attempt to set aside the Adjudication determination is dismissed with costs to the defendant.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court held that the Building and Construction Industry Security of Payment Act applies to final payment claims, dismissing Tiong Seng's challenge.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tiong Seng Contractors (Pte) Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| Chuan Lim Construction Pte Ltd | Defendant | Corporation | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
4. Facts
- Tiong Seng Contractors appointed as main contractor for a construction project.
- Tiong Seng contracted with Chuan Lim Construction to undertake earthworks.
- Chuan Lim Construction raised a Final Claim dated 2007-01-25 for S$481,155.77.
- Tiong Seng made a preliminary payment of S$210,553.68, leaving S$270,602.09 unpaid.
- Chuan Lim Construction raised Progress Claim No. 10 for the unpaid balance.
- Chuan Lim Construction sought adjudication under the Act based on Progress Claim No. 10.
- The Adjudicator determined that Tiong Seng should pay Chuan Lim Construction S$178,447.44.
5. Formal Citations
- Tiong Seng Contractors (Pte) Ltd v Chuan Lim Construction Pte Ltd, OS 711/2007, [2007] SGHC 142
6. Timeline
| Date | Event |
|---|---|
| Defendant raised Final Claim | |
| Defendant raised Progress Claim No. 10 | |
| Adjudication Conference convened | |
| Plaintiff informed defendant of intention to challenge Adjudication determination | |
| Defendant served statutory demand on the plaintiff | |
| Judgment reserved |
7. Legal Issues
- Applicability of Building and Construction Industry Security of Payment Act to final payment claims
- Outcome: The court held that the Act does encompass and provide for the adjudication of final progress payments.
- Category: Substantive
8. Remedies Sought
- Setting aside of Adjudication determination
9. Cause of Actions
- Statutory Demand under s 254(2)(a) of the Companies Act (Cap 50 2006 rev. ed.)
10. Practice Areas
- Construction Law
- Commercial Litigation
- Arbitration
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| AU v AV | Singapore | Yes | [2006] SGSOP 9 | Singapore | Cited for the conclusion that the Act applies even after a contract is terminated. |
| BC v BD | Singapore | Yes | [2006] SGSOP 10 | Singapore | Cited for the conclusion that a final claim should not be dealt with under the Act. |
| Jemzone Pty Ltd v Trytan Pty Ltd | New South Wales Supreme Court | Yes | [2002] NSWSC 395 | Australia | Cited for the holding that the NSW Act (as it applied then) did not extend to claims for final payment. |
13. Applicable Rules
| Rule Name |
|---|
| O 95 r 3(3) of the Rules of Court (2006 rev. ed.) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Section 34(1) Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
| s 254(2)(a) of the Companies Act (Cap 50 2006 rev. ed.) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Final Claim
- Progress Payment
- Adjudication
- Building and Construction Industry Security of Payment Act
- Adjudication Determination
15.2 Keywords
- Building and Construction Industry Security of Payment Act
- Final Payment Claims
- Adjudication
- Construction Law
- Singapore High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Construction Law | 90 |
| Building and Construction Contracts | 85 |
| Adjudication | 70 |
| Contract Law | 60 |
16. Subjects
- Building and Construction Law
- Security of Payment
- Adjudication