JFC Builders v Permasteelisa: Security of Payment Act Dispute over Built-in Fitment Installation
In JFC Builders Pte Ltd v Permasteelisa Pacific Holdings Ltd, the High Court of Singapore addressed an application by JFC Builders to set aside an adjudication determination (AD) under the Building and Construction Industry Security of Payment Act. The primary legal issue was whether the works carried out by Permasteelisa, specifically the supply, fabrication, and installation of built-in furniture, fell within the definition of 'construction work' under the Act. The court dismissed JFC Builders' application, finding that the works did fall within the Act's definition, as the furniture was attached to and intended to be permanently attached to the building.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
Application dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court addressed whether installing built-in fitments constitutes 'construction work' under the Security of Payment Act, dismissing JFC Builders' application.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| JFC Builders Pte Ltd | Plaintiff | Corporation | Application Dismissed | Lost | |
| Permasteelisa Pacific Holdings Ltd | Defendant | Corporation | Judgment for Defendant | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Li Jiaxin | Michael Por Law Corporation |
| Teo Kah Wee | Chan Neo LLP |
4. Facts
- JFC Builders was the main contractor for a hotel development at Telok Blangah Road.
- JFC Builders engaged Permasteelisa to carry out certain works at the Development via a quotation dated 16 August 2010.
- The dispute pertained to two variation orders (VO 1 and VO 2) dated 26 July 2011 and 3 November 2011 respectively.
- VO 1 comprised omitted works and additional works including supply, fabrication and installation of built-in fitments.
- VO 2 comprised additional works including supply, fabrication and installation of built-in fitments.
- The Adjudicator decided in favor of Permasteelisa in the Adjudication Determination.
5. Formal Citations
- JFC Builders Pte Ltd v Permasteelisa Pacific Holdings Ltd, Originating Summons No 622 of 2016, [2016] SGHC 247
6. Timeline
| Date | Event |
|---|---|
| Quotation issued by Permasteelisa Pacific Holdings Ltd to JFC Builders Pte Ltd. | |
| Variation Order 1 issued. | |
| Variation Order 2 issued. | |
| Adjudication Determination dated. | |
| Hearing held. | |
| Judgment issued. |
7. Legal Issues
- Definition of Construction Work
- Outcome: The court held that the defendant's works, which included the supply, fabrication, and installation of furniture that was attached to, and that was intended to be permanently attached to, the building, fell within the definition of 'construction work' under the Act.
- Category: Substantive
8. Remedies Sought
- Setting aside of the adjudication determination
9. Cause of Actions
- Application to set aside an adjudication determination
10. Practice Areas
- Construction Law
- Commercial Litigation
11. Industries
- Construction
- Hospitality
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Gibson Lea Retail Interiors Ltd v Makro Self Service Wholesalers Ltd | Not specified | No | [2001] BLR 407 | United Kingdom | Cited for the principle that 'forming part of the land' imports the common law on fixtures. |
| Savoye and another v Spicers Ltd | Not specified | Yes | [2015] Bus LR 242 | United Kingdom | Cited for the principle that whether something forms part of the land is a question of fact and degree, informed by but not circumscribed by principles in the law of real property and fixtures. |
| J & D Rigging Pty Ltd v Agripower Australia Ltd & Ors | Court of Appeal of Queensland | Yes | [2013] QCA 406 | Australia | Cited for the principle that the requirements of the law of real property about ownership of things affixed to land are not imported into the Queensland Building and Construction Industry Payments Act. |
| W Y Steel Construction Pte Ltd v Osko Pte Ltd | Court of Appeal | Yes | [2013] 3 SLR 380 | Singapore | Cited for the principle that the purpose of the Act is to preserve cashflow in the construction industry. |
13. Applicable Rules
| Rule Name |
|---|
| Order 95 of the Rules of Court (2006 Revised Edition) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Building and Construction Industry Security of Payment Act (Cap 30B) | Singapore |
| Interpretation Act (Cap 1, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Construction work
- Adjudication determination
- Security of Payment Act
- Built-in fitment
- Fixtures
- Forming part of the land
15.2 Keywords
- Construction
- Adjudication
- Security of Payment Act
- Built-in fitments
- Singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Construction Law | 95 |
| Adjudication | 90 |
| Dispute Resolution | 60 |
| Civil Procedure | 30 |
16. Subjects
- Construction Dispute
- Adjudication
- Contract Law