United Integrated Services v Civil Tech: Stay of Enforcement under Building and Construction Industry Security of Payment Act

United Integrated Services Pte Ltd (the Main Contractor) applied for a stay of enforcement of an adjudication determination obtained by Civil Tech Pte Ltd (the Sub Contractor) under the Building and Construction Industry Security of Payment Act. The High Court granted the stay, holding that a subsequent adjudication determination, which took into account the prior determination, effectively superseded the prior one. The court also considered the Sub Contractor's insolvency as a ground for granting an unconditional stay. Harmonious Coretrades Pte Ltd was the second respondent due to a garnishee order.

1. Case Overview

1.1 Court

High Court of the Republic of Singapore

1.2 Outcome

Stay of enforcement of the first adjudication determination granted without condition.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Stay of enforcement application concerning adjudication determination under SOPA. The court granted the stay due to a subsequent adjudication and the subcontractor's insolvency.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Harmonious Coretrades Pte LtdRespondentCorporationNo order madeNeutral
United Integrated Services Pte LtdApplicantCorporationStay of enforcement grantedWon
Civil Tech Pte LtdRespondentCorporationStay of enforcement grantedLost

3. Judges

Judge NameTitleDelivered Judgment
Chan Seng OnnJudgeYes

4. Counsels

Counsel NameOrganization
Lu Huiru GraceHolborn Law LLC
Lee Mei Yong DebbieECYT Law LLC
Ashok Kumar RaiEversheds Harry Elias LLP

4. Facts

  1. Main Contractor and Sub Contractor entered into a Sub-Contract Agreement worth $25,000,000.
  2. Sub Contractor referred Payment Claim 6 to adjudication, resulting in a determination that the Main Contractor was to pay $1,369,987.02.
  3. A second Adjudication Determination determined that no amount was payable by the Main Contractor, resulting in a negative sum of $1,176,050.67.
  4. The second adjudicator adopted the valuation of work items and variation works considered in the first adjudication.
  5. The Main Contractor applied to stay the enforcement of the first adjudication determination.
  6. The Sub Contractor faced problems paying its own subcontractors from June 2018.
  7. Multiple applications were made to wind up the Sub Contractor due to its inability to pay debts.

5. Formal Citations

  1. United Integrated Services Pte Ltd v Civil Tech Pte Ltd and another, Originating Summons No 1433 of 2018 (Summons No 5522 of 2018), [2019] SGHC 32

6. Timeline

DateEvent
Main Contractor and Sub Contractor entered into a Sub-Contract Agreement
First Adjudication Determination issued
Sub Contractor referred Payment Claim 7 for adjudication
Garnishee order made absolute
Sub Contractor granted leave to enforce the first Adjudication Determination
Second Adjudication Determination issued
Chamber hearing
Application for stay of enforcement granted
Further arguments heard
Grounds of decision issued

7. Legal Issues

  1. Stay of Enforcement of Adjudication Determination
    • Outcome: The court granted a stay of enforcement of the first adjudication determination, considering the subsequent adjudication determination and the insolvency of the claimant.
    • Category: Procedural
    • Sub-Issues:
      • Superseding effect of subsequent adjudication determination
      • Insolvency of claimant
    • Related Cases:
      • [2013] 3 SLR 380

8. Remedies Sought

  1. Stay of Enforcement

9. Cause of Actions

  • Enforcement of Adjudication Determination

10. Practice Areas

  • Construction Law
  • Commercial Litigation

11. Industries

  • Construction

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
W Y Steel Construction Pte Ltd v Osko Pte LtdCourt of AppealYes[2013] 3 SLR 380SingaporeCited for the principle of temporary finality of adjudication determinations and the circumstances under which a stay of enforcement may be justified, including insolvency.

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
Companies Act (Cap 50, 2006 Rev Ed)Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Adjudication Determination
  • Stay of Enforcement
  • Building and Construction Industry Security of Payment Act
  • Insolvency
  • Garnishee Order

15.2 Keywords

  • adjudication
  • stay of enforcement
  • SOPA
  • insolvency
  • construction
  • payment claim

17. Areas of Law

Area NameRelevance Score
Adjudication Determinations95
Building and Construction Industry Security of Payment Act95
Adjudication90
Construction Law90
Statutory Interpretation60
Bankruptcy40
Civil Procedure30
Contract Law30

16. Subjects

  • Construction Dispute
  • Adjudication
  • Insolvency