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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.
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.
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.
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.
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.
Effect of “pay when paid provisions”. 9.—. (1) A pay when paid provision of a contract is unenforceable and has no effect in relation to any payment for construction work carried out or undertaken to be carried out, or for goods or services supplied or undertaken to be supplied, under the contract. (2) In this section —.
Construction Industry Security of Payment (Amendment) Act (“SOPA (Amendment) Act”) introduced in Parliament on 10 September 2018 and effective 15 December 2019. The SOPA (Amendment) Act implements a number of key reforms to the SOPA regime, including but not limited to:
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
the Court of Appeal rejected the Appellant’s argument that the 2019 amendments, in particular Section 17(2A) of the SOP Act, was merely declaratory of the pre-existing position, and “simply clarified but did not change the legal position under the pre-amendment SOPA”.
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
