Are payment claims served after the construction contract is terminated pre-cluded from adjudication under the SOPA?
A review of Shimizu Corporation v Stargood Construction Pte Ltd
Prior to Shimizu’s case, practitioners in the building and construction industry had assumed that payment claims may be submitted for adjudication under the SOPA after the contract is terminated. This approach facilitates the ‘roughshod’ justice intended by the SOPA to enable downstream contractors to obtain payment for work done or materials supplied under the contract. In other words, ‘pay now, argue later’! In 2020, Shimizu and Far East’s case (2019) drastically overturned the prior state of the law that had allowed such claims. This article seeks to evaluate the two cases and suggests a practical way forward until the Court of Appeal has the opportunity to review the position.
Contributed by: Eric Ng Yuen and Tan Lay Hong