Construction Law Update - Impact On Parties In The Construction Industry

The Singapore Court of Appeal's recent decision in Audi Construction Pte Ltd v Kian Hiap Construction Pte Ltd [2018] SGCA 4 has addressed two broad issues for Singapore companies on their service obligations and the protection of their rights under the Building and Construction Industry Security of Payment Act. This decision has a significant impact on how parties deal with the service of a payment claim, and more importantly, the preparation of a payment response.

In the recent decision of Audi Construction Pte Ltd v Kian Hiap Construction Ptd Ltd [2018] SGCA 4 ("AC v KHC"), the Singapore Court of Appeal ("SGCA") addressed two main issues:

1. How a party may serve a payment claim under the Building and Construction Industry Security of Payment Act (Cap 30B, 2006 Rev Ed) (the "SOPA") if the contract provide for service on a date that falls either on a Sunday or public holiday; and