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This revised edition incorporates all amendments up to and including 1 December 2021 and comes into operation on 31 December 2021. An Act to facilitate payments for construction work done or for related goods or services supplied in the building and construction industry, and for matters connected therewith.
What is the SOP Act? The Building and Construction Industry Security of Payment (SOP) Act came into operation on 1 April 2005. The Act aims to improve cash-flow in the built environment sector by giving parties the right to seek progress payment for work done.
The Building and Construction Industry Security of Payment (SOP) Act aims to improve cash-flow of the construction industry by (i) providing a statutory right to payment and (ii) establishing adjudication as a speedy and low-cost payment dispute resolution mechanism.
10.—. (1) A claimant may serve one payment claim in respect of a progress payment on —. ( a) one or more other persons who, under the contract concerned, is or may be liable to make the payment; or. ( b) any other person specified in or identified in accordance with the terms of the contract for this purpose.
Security of Payment Act Flowchart * Important: The flowchart does not cover all situations and details of the Building and Construction Industry Security of Payment Act. For full appreciation of the rights and obligations, please consult the Act or obtain legal advice.
Nov 26, 2019 · The definition of “supply contract” in section 2 of the Act does not include agreements which do not contain any provision specifying or identifying the construction site or the construction project in relation to which goods are to be supplied.
Dec 1, 2019 · Security of Payment Act seeks to affirm parties’ entitlement to payment for work done pursuant to a construction contract. Beyond this, the Act also provides claimants with a binding enforcement mechanism to obtain payment for an ongoing or completed project – a process known as adjudication.
B. ENACTMENT OF THE SOP ACT 5 In Singapore the SOP Act was enacted on 16 November 2004 but came into force only on 1 April 2005. While the Singapore SOP Act was modelled substantially on the New South Wales legislation of the same name, it included additional features which are still considered to be novel. C. RECEPTION 1. Effect of the SOP Act
Amendments to the Building and Construction Industry Security of Payment Act (“SOP Act”) will come into force later this year. Many of the amendments are intended to address shortcomings and ambiguities in the SOP Act that became evident in cases before the Courts and adjudicators.
Act applies to both private and public sector projects. It can be used even where the contract has no provision for progress payment. The Act does not allow “pay when paid” clauses to be enforced where these are included in the contract. To benefit from the Act, a claimant (payee) must serve payment claims according to
