Australian Timber Products v A Pacific Construction: Enforceability of Adjudication Determination under SOPA

In Australian Timber Products Pte Ltd v A Pacific Construction & Development Pte Ltd, the High Court of Singapore, presided over by Justice Woo Bih Li, dismissed A Pacific Construction & Development Pte Ltd's application to set aside an adjudication determination and an order of court obtained by Australian Timber Products Pte Ltd. The case concerned a dispute over the enforceability of an adjudication determination made under the Building and Construction Industry Security of Payment Act. The court found that the progress claim in question was a valid payment claim under the Act.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Application to set aside the Adjudication Determination and the AR’s order dismissed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The case concerns the enforceability of an adjudication determination under the Building and Construction Industry Security of Payment Act. The court dismissed the application to set aside the determination.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Australian Timber Products Pte LtdPlaintiffCorporationJudgment for PlaintiffWon
A Pacific Construction & Development Pte LtdDefendantCorporationApplication DismissedLost

3. Judges

Judge NameTitleDelivered Judgment
Woo Bih LiJudgeYes

4. Counsels

4. Facts

  1. ATP was appointed by APCD to carry out the supply, delivery and installation of parquet flooring and timber skirting for the Project.
  2. ATP sent Progress Claim No. 9 to APCD for $427,373.61.
  3. APCD did not make a payment response within the meaning of the Act.
  4. ATP served a notice of intention to apply for adjudication on APCD.
  5. The adjudicator found that Progress Claim No. 9 was a valid payment claim.
  6. APCD applied to set aside the Adjudication Determination and the AR’s order.

5. Formal Citations

  1. Australian Timber Products Pte Ltd v A Pacific Construction & Development Pte Ltd, Originating Summons No 210 of 2012 (Summons No 1633 of 2012), [2013] SGHC 56

6. Timeline

DateEvent
APCD appointed ATP under a letter of award.
ATP accepted the appointment under a sub-contract.
ATP sent Progress Claim No. 9 to APCD.
ATP served a notice of intention to apply for adjudication on APCD.
ATP served Adjudication Application No SOP/AA004 of 2012 on APCD.
Adjudication hearing convened.
Adjudicator issued the Adjudication Determination.
ATP filed Originating Summons No 210 of 2012.
Assistant registrar granted ATP leave.
APCD applied to set aside the Adjudication Determination and the AR’s order.
Court dismissed APCD’s application.

7. Legal Issues

  1. Enforceability of Adjudication Determination
    • Outcome: The court held that the adjudication determination was enforceable.
    • Category: Substantive
    • Sub-Issues:
      • Validity of payment claim
      • Compliance with formal requirements of the Act and SOPR
  2. Validity of Payment Claim
    • Outcome: The court held that the progress claim in question was a valid payment claim under the Act.
    • Category: Substantive
    • Sub-Issues:
      • Intention to make a payment claim
      • Sufficiency of details in payment claim

8. Remedies Sought

  1. Order to enforce the Adjudication Determination as a judgment debt

9. Cause of Actions

  • Enforcement of Adjudication Determination

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Lee Wee Lick Terence (alias Li Weili Terence) v Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) and another appealCourt of AppealYes[2013] 1 SLR 401SingaporeThe case is binding and lays down the proper approach to be taken by the courts and adjudicators when dealing with disputes under the Act.
Sungdo Engineering & Construction (S) Pte Ltd v Italcor Pte LtdHigh CourtYes[2010] 3 SLR 459SingaporeCited regarding the intention of a claimant for a document to amount to a payment claim under the Act, but the court disagreed with the decision in Sungdo.
RN & Associates Pte Ltd v TPX Builders Pte LtdHigh CourtYes[2012] SGHC 225SingaporeCited regarding estoppel, but the court found the argument unpersuasive.
JFC Builders Pte Ltd v LionCity Construction Co Pte LtdHigh CourtYes[2012] SGHC 243SingaporeCited regarding a respondent’s failure to raise in a payment response his objections relating to the alleged invalidity of a payment claim.
Clarence Street Pty Ltd v Isis Projects Pty LtdSupreme Court of New South WalesYes(2005) 64 NSWLR 448AustraliaCited regarding the practical way for respondents to raise objections to the validity of a payment claim.
Nepean Engineering Pty Ltd v Total Process Services Pty Ltd (In Liq)Supreme Court of New South WalesYes(2005) 64 NSWLR 462AustraliaCited regarding the practical way for respondents to raise objections to the validity of a payment claim.
Chase Oyster Bar Pty Ltd v Hamo Industries Pty LtdSupreme Court of New South WalesYes(2010) 78 NSWLR 393AustraliaCited approvingly in Chua Say Eng, regarding the breach of a legislatively important provision in the NSW Act.
Multiplex Constructions Pty Ltd v LuikensSupreme Court of New South WalesYes[2003] NSWSC 1140AustraliaCited regarding the operation of the NSW Act.
Protectavale Pty Ltd v K2K Pty LtdFederal Court of AustraliaYes[2008] FCA 1248AustraliaCited regarding the test to determine compliance with the formal condition.
Coordinated Construction Co Pty Ltd v Climatech (Canberra) Pty LtdNew South Wales Court of AppealYes[2005] NSWCA 229AustraliaCited regarding the test to determine compliance with the formal condition.
Gantley Pty Ltd v Phoenix International Group Pty LtdSupreme Court of VictoriaYes[2010] VSC 106AustraliaCited regarding the test to determine compliance with the formal condition.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 10Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 10(3)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 11(3)(c)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 15(3)(a)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 12(4)(a)Singapore
Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) s 12(5)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Payment Claim
  • Payment Response
  • Building and Construction Industry Security of Payment Act
  • Progress Claim
  • Variation Works

15.2 Keywords

  • Adjudication
  • Construction
  • Payment Claim
  • Security of Payment Act

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Adjudication
  • Contract Law