Eng Seng Precast v SLF Construction: SOP Act & Construction vs. Supply Contracts
In Eng Seng Precast Pte Ltd v SLF Construction Pte Ltd, the High Court of Singapore addressed whether a contract for the supply of prefabricated components manufactured offsite falls under the definition of a 'construction contract' or a 'supply contract' under the Building and Construction Industry Security of Payment Act (SOP Act). The court allowed the defendant's application to set aside an adjudication determination, holding that the contract was a construction contract, not a supply contract, due to the offsite prefabrication work, and the adjudication application was filed out of time.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Defendant's application allowed; the adjudication determination and order are set aside.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The case clarifies whether a contract for prefabricated components with offsite manufacture falls under 'construction' or 'supply' contract under the SOP Act.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Eng Seng Precast Pte Ltd | Plaintiff | Corporation | Application Dismissed | Lost | Lim Ker Sheon, Ang Minghao |
| SLF Construction Pte Ltd | Defendant | Corporation | Application Allowed | Won | Loy Wee Sun |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lim Ker Sheon | Characterist LLC |
| Ang Minghao | Characterist LLC |
| Loy Wee Sun | Loy & Co |
4. Facts
- The defendant awarded a sub-contract to the plaintiff for the supply and delivery of precast concrete components.
- The contract involved offsite manufacture of prefabricated components.
- The plaintiff served a payment claim on the defendant.
- The defendant filed a payment response.
- The plaintiff lodged an adjudication application.
- The adjudicator determined that the defendant was liable for a sum of money.
- The defendant applied to set aside the determination, arguing the application was out of time.
5. Formal Citations
- Eng Seng Precast Pte Ltd v SLF Construction Pte Ltd, Originating Summons No 410 of 2015 (Summons No 2618 of 2015), [2015] SGHC 252
6. Timeline
| Date | Event |
|---|---|
| Sub-contract awarded to the plaintiff for supply and delivery of precast concrete components. | |
| Plaintiff served a payment claim on the defendant for $747,229.13. | |
| Defendant filed a payment response. | |
| Plaintiff lodged the Adjudication Application. | |
| Adjudication determination was dated. | |
| Plaintiff obtained a court order to enforce the adjudication determination. | |
| Defendant's application to set aside the determination was allowed. | |
| Decision Date |
7. Legal Issues
- Classification of Contract: Construction vs. Supply Contract under SOP Act
- Outcome: The court held that a contract for the supply and offsite manufacture of prefabricated components is a construction contract, not a supply contract.
- Category: Substantive
- Validity of Adjudication Determination
- Outcome: The court held that the adjudication determination was invalid because the adjudication application was not made within the stipulated time.
- Category: Procedural
- Related Cases:
- [2013] 1 SLR 401
- [2014] SGHC 142
8. Remedies Sought
- Setting aside of Adjudication Determination
- Setting aside of Court Order
9. Cause of Actions
- Enforcement of Adjudication Determination
10. Practice Areas
- Construction Disputes
- Commercial Litigation
- Arbitration
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lee Wee Lick Terence (alias Li Weili Terence) v Chua Say Eng (formerly trading as Weng Fatt Construction Engineering) and another appeal | High Court | Yes | [2013] 1 SLR 401 | Singapore | Cited for the test of whether a breached provision is so important that an act done in breach of the provision should be invalid. |
| YTL Construction (S) Pte Ltd v Balanced Engineering & Construction Pte Ltd | High Court | Yes | [2014] SGHC 142 | Singapore | Cited for setting aside an adjudication application made out of time. |
| Anthony Hordern and Sons Limited and others v The Amalgamated Clothing and Allied Trades Union of Australia | High Court of Australia | Yes | Anthony Hordern and Sons Limited and others v The Amalgamated Clothing and Allied Trades Union of Australia (1932) 47 CLR 1 | Australia | Cited regarding the interpretation of 'prescribed' and the validity of an order by the Commonwealth Court of Conciliation and Arbitration. |
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 |
| s 2 of the Building and Construction Industry Security of Payment Act | Singapore |
| s 3(1) of the Building and Construction Industry Security of Payment Act | Singapore |
| s 13(3)(a) of the Building and Construction Industry Security of Payment Act | Singapore |
| s 16(2)(a) of the Building and Construction Industry Security of Payment Act | Singapore |
| Interpretation Act (Cap 1, 2002 Rev Ed) | Singapore |
| Section 2(1) of the Interpretation Act (Cap 1, 2002 Rev Ed) | Singapore |
| Building and Construction Industry Security of Payment Act 1999 (Act 46 of 1999) (NSW) | New South Wales |
15. Key Terms and Keywords
15.1 Key Terms
- Construction contract
- Supply contract
- Prefabricated components
- Adjudication determination
- Security of Payment Act
- Payment claim
- Payment response
- Offsite manufacture
- Construction work
15.2 Keywords
- Construction contract
- Supply contract
- Security of Payment Act
- Prefabrication
- Adjudication
- Singapore
16. Subjects
- Construction Law
- Contract Law
- Security of Payment
- Adjudication
17. Areas of Law
- Construction Law
- Building and Construction Industry Security of Payment Act
- Contract Law
- Arbitration Law