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 Range Construction Pte Ltd v Goldbell Engineering Pte Ltd [2020] SGHC 1919 (“Range Construction”) Decision Date: 10 Sept 2020 INTRODUCTION Range Construction Pte Ltd (“RC”) was Goldbell Engineering Pte Ltd’s (“GE”) contractor. RC obtained an adjudication determination in its favour against GE. However, RC was dissatisfied with the adjudicator’s decision to allow GE’s claim for liquidated damages of $852,000.00. RC applied to the High Court (“HC”) set aside the adjudication determination. One of the grounds relied on by RC was that the adjudicator did not have the power to determine GC’s claim for liquidated damages. The HC disagreed with RC’s contention and dismissed the application. In doing so the HC briefly commented on Section 17 (2A) of the SOP Act. This appears to be the first reported observations on Section 17 (2A) which came into effect on 15 December 2019. We will discuss this aspect of the HC’s decision in this post.  Shimizu Corporation v Stargood Construction Pte Ltd [2020] SGCA 3 Introduction
This is a Court of Appeal decision rendered in 2020 concerning an application to set aside two adjudication determinations relating to the submission of payment claims following the termination of a sub-contract. This decision touches on the “dual railroad track system” for making payment claims which has been accepted and understood by the industry as a norm since the Singapore High Court’s decision in Tienrui Design & Construction Pte Ltd v G & Y Trading and Manufacturing Pte Ltd [2015] 5 SLR 852 (“Tienrui”) in 2015. After this decision, do parties have separate rights under contract and statute to make payment claims? What impact will this have on contract negotiations for main and subcontractors alike? This decision by the apex court will clarify matters and provide clearer guidance for construction contracts. 2/5/2020
SMC Adjudication Rules Update The Singapore Mediation Centre (‘SMC’) has issued Supplementary Rules for Electronic Adjudication Lodgement (‘Supplementary Rules’) which provide for lodgement of documents electronically, telegraphic transfer of fees, electronic service of documents and online Adjudication Conferences. The Supplementary Rules take effect on 15 April 2020. A copy of the latest version of the Supplementary Rules is available for download at the SMC’s website. These Rules are a welcome update especially with the ongoing COVID 19 situation. With the Supplementary Rules, the entire Adjudications Application process can be carried out virtually. Adjudication Application and Adjudication Responses can be lodged electronically with the SMC and Adjudication Conferences can be held using online virtual meeting platforms. These measures should reduce costs for parties; increase the efficacy of the process while at the same time allowing parties to comply with safe distancing protocols. |
21/11/2020