Quanta Industries v Strategic Construction: Setting Aside Adjudication Determination under SOPA

In Quanta Industries Pte Ltd v Strategic Construction Pte Ltd, the High Court of Singapore heard an application by Quanta Industries to set aside an adjudication determination. The court, presided over by Chan Seng Onn J, ruled on January 6, 2015, that the adjudicator had acted outside their powers under the Building and Construction Industry Security of Payment Act (SOPA) by ordering Quanta Industries, the claimant, to pay Strategic Construction, the respondent, a sum of money. Despite Strategic Construction's argument that there were no live issues between the parties, the court set aside the adjudication determination.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Adjudication Determination set aside

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

The High Court set aside an adjudication determination under the Building and Construction Industry Security of Payment Act (SOPA) because the adjudicator exceeded their jurisdiction.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
STRATEGIC CONSTRUCTION PTE LTDDefendantCorporationAdjudication Determination not enforcedLost
Quanta Industries Pte LtdPlaintiffCorporationAdjudication Determination set asideWon

3. Judges

Judge NameTitleDelivered Judgment
Chan Seng OnnJudgeYes

4. Counsels

Counsel NameOrganization
Loy Wee SunLoy & Company
Poonaam BaiEldan Law LLP
Daniel Koh Choon GuanEldan Law LLP

4. Facts

  1. Plaintiff was a sub-contractor engaged by the defendant for a project.
  2. Plaintiff submitted a progress claim for $561,693.14.
  3. Defendant issued a payment response for negative $155,891.63.
  4. Plaintiff lodged an Adjudication Application.
  5. The adjudicator determined that the plaintiff shall pay the defendant $141,508.56.
  6. Defendant stated it would not ask the plaintiff to make payment but would not consent to setting aside the AD.
  7. The plaintiff and the defendant were in the midst of arbitration proceedings when the adjudication application was lodged.

5. Formal Citations

  1. Quanta Industries Pte Ltd v Strategic Construction Pte Ltd, Originating Summons No 913 of 2014, [2015] SGHC 2

6. Timeline

DateEvent
Plaintiff submitted a progress claim for $561,693.14
Defendant issued a payment response for negative $155,891.63
Plaintiff lodged an Adjudication Application
Defendant lodged the Adjudication Response
Simple interest of 1% shall run from this date
Adjudication Determination was rendered
Plaintiff asked the defendant to consent to the setting aside of the AD
Defendant replied that it will not ask the plaintiff to make payment but will not consent to setting aside the AD
Plaintiff filed originating summons to set aside the AD
Judgment issued

7. Legal Issues

  1. Exceeding Adjudicator's Jurisdiction
    • Outcome: The court held that the adjudicator exceeded their jurisdiction by ordering the claimant to pay the respondent.
    • Category: Jurisdictional
    • Sub-Issues:
      • Determining payment from claimant to respondent
      • Ordering interest payments
  2. Setting Aside Adjudication Determination
    • Outcome: The court held that it had supervisory jurisdiction to hear the application to set aside the adjudication determination.
    • Category: Procedural

8. Remedies Sought

  1. Setting aside of Adjudication Determination

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Litigation
  • Adjudication

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Attorney-General v Joo Yee Construction Pte Ltd (in liquidation)High CourtYes[1992] 2 SLR(R) 165SingaporeCited regarding the principle that a court will not decide on issues that will not gain the appellant something they would not gain if they lost.
Citiwall Safety Glass Pte Ltd v Mansource Interior Pte LtdCourt of AppealYes[2014] SGCA 61SingaporeCited for the principle that a court exercises its supervisory jurisdiction in hearing and determining an application to set aside an adjudication determination.

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

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Security of Payment Act
  • Progress Claim
  • Payment Response
  • Adjudicator's Jurisdiction
  • Setting Aside
  • Construction Contract

15.2 Keywords

  • adjudication
  • construction
  • security of payment
  • SOPA
  • jurisdiction
  • setting aside

17. Areas of Law

Area NameRelevance Score
Security of Payment80
Construction Law75
Building and Construction Contracts70
Adjudication70
Arbitration60
Civil Procedure50
Administrative Law30

16. Subjects

  • Construction Dispute
  • Adjudication
  • Contract Law