Shin Khai Construction v FL Wong Construction: Adjudication Determination & Security of Payment Act
Shin Khai Construction Pte Ltd (SK) applied to the High Court of Singapore to set aside an adjudication determination in favor of FL Wong Construction Pte Ltd (FL) under the Building and Construction Industry Security of Payment Act. SK argued that the payment claim was defective and the adjudication application was lodged out of time. The High Court, presided over by Assistant Registrar Jordan Tan, dismissed the application, finding that the payment claim was not defective and the adjudication application was filed within the stipulated time frame.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application to set aside the Determination dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court examined if an adjudication determination can be set aside because the adjudication application was lodged late under the SOP Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Shin Khai Construction Pte Ltd | Plaintiff | Corporation | Application Dismissed | Lost | |
| FL Wong Construction Pte Ltd | Defendant | Corporation | Determination Upheld | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Jordan Tan | Assistant Registrar | Yes |
4. Counsels
4. Facts
- SK, a general contractor, appointed FL, a renovation contractor, to carry out works for a project.
- The project involved the erection of a single-storey single-user light industrial development with a 4-storey ancillary office building.
- FL was to be paid $768,768 for the works.
- On 25 September 2012, FL sent Payment Claim No 8 to SK.
- SK argued that the Payment Claim was defective and the Adjudication Application was lodged out of time.
- The Determination was issued on 15 November 2012.
5. Formal Citations
- Shin Khai Construction Pte Ltd v FL Wong Construction Pte Ltd, Originating Summons No 1134 of 2012/Y, [2013] SGHCR 4
6. Timeline
| Date | Event |
|---|---|
| SK appointed FL to carry out works for a project. | |
| FL sent Payment Claim No 8 to SK. | |
| SK allegedly faxed its payment response to FL. | |
| FL gave notice of its intention to adjudicate and lodged the Adjudication Application. | |
| The Determination was issued. | |
| Judgment reserved. |
7. Legal Issues
- Validity of Payment Claim
- Outcome: The court held that the Payment Claim complied with the formal requirements under s 10(3) of the Act and regulation 5(2) of the Regulations.
- Category: Substantive
- Sub-Issues:
- Compliance with s 10(3) of the Act
- Compliance with regulation 5(2) of the Regulations
- Whether the claimed amount was calculated by reference to the period to which the payment claim relates
- Whether a detailed breakdown of the items constituting the claimed amount was provided
- Related Cases:
- [2012] SGHC 243
- [2012] SGCA 63
- Timeliness of Adjudication Application
- Outcome: The court held that the Adjudication Application was lodged within the time stipulated under s 13(3)(a) of the Act, considering the contractual period for serving the payment response.
- Category: Procedural
- Sub-Issues:
- Compliance with s 13(3)(a) of the Act
- Interpretation of contractual clauses regarding payment response period
- Related Cases:
- [2012] SGCA 63
- [2012] SGHC 225
8. Remedies Sought
- Setting aside of adjudication determination
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Construction Litigation
- Commercial Litigation
- Adjudication
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Wee Lick Terence @ Li Weili Terence v Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) | Court of Appeal | Yes | [2012] SGCA 63 | Singapore | Considered the question of whether an adjudication determination may be set aside on the ground that the adjudication application was lodged later than the period of entitlement stipulated under s 13(3)(a) of the Building and Construction Industry Security of Payment Act. |
| JFC Builders Pte Ltd v Lioncity Construction Company Pte Ltd | High Court | Yes | [2012] SGHC 243 | Singapore | Cited for the principle that the court has the power to set aside an adjudication determination under s 27(5) of the Act and O 95 of the Rules of Court and in deciding whether to do so, may review the validity of a payment claim. |
| RN & Associates Pte Ltd v TPX Builders Pte Ltd | High Court | Yes | [2012] SGHC 225 | Singapore | Cited for the observation that s 16(2) of the SOP Act circumscribes the jurisdiction of an adjudicator by laying out the circumstances wherein an adjudicator must reject an adjudication application. |
| Zurich Insurance (Singapore) Pte Ltd v B-Gold Interior Design & Construction Pte Ltd | Court of Appeal | Yes | [2008] 3 SLR(R) 1029 | Singapore | Cited regarding the admissibility of evidence of subsequent conduct in contract interpretation. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) | Singapore |
| Section 10(3) of the Building and Construction Industry Security of Payment Act | Singapore |
| Section 13(3)(a) of the Building and Construction Industry Security of Payment Act | Singapore |
| Section 16(2) of the Building and Construction Industry Security of Payment Act | Singapore |
| Section 15(3) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Adjudication determination
- Adjudication application
- Payment claim
- Payment response
- Security of Payment Act
- Construction contract
- Progress payment
- Contractual clause
- Payment certificate
15.2 Keywords
- adjudication
- security of payment
- construction
- payment claim
- payment response
- SOP Act
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Building and Construction Industry Security of Payment Act | 95 |
| Construction Law | 75 |
| Contract Law | 60 |
| Adjudication Determination | 50 |
| Civil Procedure | 30 |
16. Subjects
- Construction Dispute
- Adjudication
- Contract Law
- Security of Payment