Ang Cheng Guan Construction v Corporate Residence: Adjudication Review Scope under Building and Construction Industry Security of Payment Act

In Ang Cheng Guan Construction Pte Ltd v Corporate Residence Pte Ltd, the Singapore High Court addressed the scope of an adjudication review under the Building and Construction Industry Security of Payment Act. Ang Cheng Guan Construction sought to set aside an adjudication review determination. The High Court held that in an adjudication review, the entire adjudication determination is liable to be reviewed by the review adjudicator and set aside the Adjudication Review Determination.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Adjudication Review Determination set aside.

1.3 Case Type

Construction

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court case concerning the scope of adjudication review under the Building and Construction Industry Security of Payment Act. The court held that the entire adjudication determination is reviewable.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Ang Cheng Guan Construction Pte LtdApplicantCorporationAdjudication Review Determination set asideWon
Corporate Residence Pte LtdRespondentCorporationAdjudication Review Determination set asideLost

3. Judges

Judge NameTitleDelivered Judgment
Lee Seiu KinJudgeYes

4. Counsels

4. Facts

  1. ACG sought to set aside the adjudication review determination dated 13 July 2016.
  2. CR engaged ACG to carry out works in a construction project.
  3. ACG took out adjudication application no SOP/AA 102 of 2016 in relation to a payment claim dated 22 February 2016.
  4. The adjudicator determined five issues in the adjudication.
  5. CR lodged the Adjudication Review Application pursuant to s 18(2) of the Building and Construction Industry Security of Payment Act.
  6. CR paid the Adjudicated Amount to ACG prior to the lodgement.
  7. The RA formed the view that his jurisdiction was limited to the determination of the issues raised by CR in the Adjudication Review.

5. Formal Citations

  1. Ang Cheng Guan Construction Pte Ltd v Corporate Residence Pte Ltd, Originating Summons No 774 of 2016, [2017] SGHC 9

6. Timeline

DateEvent
Payment Claim dated
ACG took out adjudication application no SOP/AA 102 of 2016
CR lodged the Adjudication Review Application
Adjudication review determination dated
Hearing submissions from counsel
Hearing submissions from counsel
Judgment reserved

7. Legal Issues

  1. Scope of Adjudication Review
    • Outcome: The High Court held that in an adjudication review, the entire adjudication determination is liable to be reviewed by the review adjudicator.
    • Category: Substantive
  2. Breach of Natural Justice
    • Outcome: The court found that there was no breach of natural justice.
    • Category: Procedural
  3. Judicial Review of Adjudication Determinations
    • Outcome: The court affirmed the power of judicial review over statutory tribunals and adjudication determinations.
    • Category: Procedural

8. Remedies Sought

  1. Setting aside of Adjudication Review Determination

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
SEF Construction Pte Ltd v Skoy Connected Pte LtdHigh CourtYes[2010] 1 SLR 733SingaporeCited to note that the adjudication review procedure is unique to Singapore.
CJP Builders Limited v William Verry LimitedEnglish High CourtYes[2008] EWHC 2025 (TCC)England and WalesCited regarding breach of natural justice where adjudicator took an erroneously restrictive view of his own jurisdiction.
Pilon Limited v Breyer Group PlcEnglish High CourtYes[2010] EWHC 837 (TCC)England and WalesCited regarding adjudicator failing to address the question referred to him because he has taken an erroneously restrictive view of his jurisdiction.
Ballast Plc v The Burrell Company (Construction Management) LimitedOuter House of the Scottish Court of SessionYes[2001] BLR 529ScotlandCited regarding breach of natural justice.
Thermal Energy Construction Limited v AE & E Lentjes UK LimitedEnglish High CourtYes[2009] EWHC 408 (TCC)England and WalesCited regarding breach of natural justice.
Reiby Street Apartments Pty Ltd v Winterton Constructions Pty Ltd & AnorNew South Wales Supreme CourtYes[2006] NSWSC 375AustraliaCited regarding adjudicator’s failure to consider certain material meant that he had failed to afford the respondent the measure of natural justice.
Sungdo Engineering & Construction (S) Pte Ltd v Italcor Pte LtdHigh CourtYes[2010] 3 SLR 459SingaporeCited for the High Court's power of judicial review over statutory tribunals.
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 401SingaporeCited regarding the power of nomination under s 14(1) of the Act is predicated on the existence of a payment claim and the service thereof on the respondent.
Citiwall Safety Glass Pte Ltd v Mansource Interior Pte LtdCourt of AppealYes[2015] 1 SLR 797SingaporeCited regarding applications to set aside adjudication determinations and/or judgments under s 27 of the Act are akin to judicial review proceedings.
Associated Provincial Picture Houses, Limited v Wednesbury CorporationEnglish Court of AppealYes[1948] 1 KB 223England and WalesCited regarding a wrong direction as to the law could affect the validity of a decision.
Padfield and Others v Minister of Agriculture, Fisheries and Food and OthersHouse of LordsYes[1968] AC 997United KingdomCited regarding the authority must not allow itself to be influenced by something extraneous and extrajudicial which ought not to have affected its decision.
Anisminic Ltd v Foreign Compensation Commission and AnotherHouse of LordsYes[1969] 2 AC 147United KingdomCited regarding where a tribunal acts without jurisdiction that its decision is a nullity.
Re Fong Thin ChooHigh CourtYes[1991] 1 SLR(R) 774SingaporeCited as a case where the doctrine is well established in Singapore.
Attorney-General v Venice-Simplon Orient Express Inc LtdHigh CourtYes[1995] 1 SLR(R) 533SingaporeCited as a case where the doctrine is well established in Singapore.
Tan Seet Eng v Attorney-General and another matterCourt of AppealYes[2016] 1 SLR 779SingaporeCited as a case where the doctrine is well established in Singapore.
Joseph Musico (aka Giuseppe Musico), Rosemary Musico, Luigi Genua and Rose Genua v Philip Davenport and Grosvenor Constructions (NSW) Pty Ltd [Administrators appointed]New South Wales Supreme CourtYes[2003] NSWSC 977AustraliaCited regarding where the determination of a dispute submitted to an adjudicator requires the adjudicator to consider issues of law, the adjudicator will not fall into jurisdictional error simply because he or she makes an error of law in the consideration and determination of those issues.
Craig v The State of South AustraliaHigh Court of AustraliaYes[1995] 184 CLR 163AustraliaCited regarding If such an administrative tribunal falls into an error of law which causes it to identify a wrong issue, to ask itself a wrong question, to ignore relevant material, to rely on irrelevant material or, at least in some circumstances, to make an erroneous finding or to reach a mistaken conclusion, and the tribunal's exercise or purported exercise of power is thereby affected, it exceeds its authority or powers.
Multiplex Constructions Pty Limited v Jan Luikens and Lahey Detailed Joinery Pty LtdNew South Wales Supreme CourtYes[2003] NSWSC 1140AustraliaCited regarding relief will be granted where an adjudicator’s determination is the result of jurisdictional error.

13. Applicable Rules

Rule Name
Order 95 Rule 3 of the Rules of Court (Cap 322, R5)

14. Applicable Statutes

Statute NameJurisdiction
Building and Construction Industry Security of Payment Act (Cap 30B)Singapore
Section 27 of the Building and Construction Industry Security of Payment Act (Cap 30B)Singapore
Sections 18 and 19 of the Building and Construction Industry Security of Payment ActSingapore
Section 17(3)(a) to (h) of the Building and Construction Industry Security of Payment ActSingapore
Section 21(3) of the Building and Construction Industry Security of Payment ActSingapore
Supreme Court of Judicature Act (Cap 322, 2007 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication
  • Adjudication Review
  • Adjudication Determination
  • Adjudication Review Determination
  • Building and Construction Industry Security of Payment Act
  • Payment Claim
  • Payment Response
  • Extension of Time
  • Liquidated Damages

15.2 Keywords

  • Adjudication Review
  • Building and Construction Industry Security of Payment Act
  • Construction Law
  • Singapore
  • High Court
  • Adjudication Determination

17. Areas of Law

16. Subjects

  • Construction Dispute
  • Adjudication
  • Contract Law
  • Civil Procedure